Current thinking. Subject to change.

Rory Murphy Head of Digital Media Propositions & Customer Engagement BT Wholesale

March 2011

BENEFITS OF BUILDING AN IN-HOUSE CONTENT DISTRIBUTION NETWORK (CDN)

Current thinking. Subject to change.

CONTENT SERVICES FROM BT WHOLESALE

BT owns & manages the largest communications network in the UK

Provides a wide range of digital media distribution services to the entertainment industry - for 50+ years

Media services incorporate BT Media & Broadcast, BT agilemedia & BT Wholesale Content Services

Introducing a new approach to content distribution & delivery - developing broadband as a TV platform

Content Connect (CC) - a CDN built to address exponential growth of broadband video traffic

Current thinking. Subject to change.

BT WHOLESALE & ISP BROADBAND MARKET

Broadband Subscriber Numbers Q4 2010

Total Broadband Subs 19,620,484

BT Wholesale (DSL) 7,979,755

LLU Lines 7,489,629

Virgin Media (DOCSIS) 4,011,100

Other (Kingston etc) 140, 000

~19.5 million UK broadband lines BT Wholesale provides broadband:

– to around 8m UK homes & businesses – to 600+ fixed & mobile operators & ISPs– BT investing £2.5bn in fibre & continuing to roll out

advanced copper broadband – broadband services provided on an open wholesale

basis

(Source: Enders Analysis)

Current thinking. Subject to change.

MARKET CONTEXTINTERNET VIDEO TRAFFIC CONTINUES TO RISE IN UK AND AROUND THE WORLD

• BBC iPlayer reported a record 101.3m online TV content requests in Jan 2011• Virgin Media BBC iPlayer TV requests were an additional 25m• Ericsson believes IP video will grow to over 90% of network traffic in the next few years• Cisco predicts global internet video will increase from 2.7 to 19.5 exabytes (1m larger than terabyte) by 2014

PROLIFERATION OF INTERNET ENABLED DEVICES DRIVING CSP/CDN STRATEGY

• Redshift research found 35% of UK viewers watch more TV on mobiles than 2 years ago • Content Providers use multiple CDN partners for greater reach, burst and economic benefits• The rise & range of connected devices offers Content Service Providers increasing options to reach their customers

Current thinking. Subject to change.

Off-Net

Edge-Net

On-Net

A MANAGED NETWORK DELIVERY

Current thinking. Subject to change.

CONTENT DELIVERY IN A MANAGED NETWORK

Off-net delivery service incurs the end to end costs CDN Core & Backhaul Access

Over-The-Top (OTT) delivery fragments the end to end costs

CSP incurs CDN costs ISP incurs network costs

On-net managed networks can balance between cost & quality

To deliver a consistent experience to the end user To provide cost effective delivery

Current thinking. Subject to change.

Content Connect

100% UKCoverage

Basic

~8m BTWUsers

Standard Premium

LLUNetwork Users

Custom

Basic: routes traffic via Internet and is comparable to standard ‘Over The Top’ Internet CDN delivery. Broadband access is not part of this serviceStandard: enables ISPs to present content to BT for caching within BT Wholesale’s broadband access network to participating ISPs’ end usersPremium: provides advanced quality of service within the broadband access network to assure delivery to end usersCustom: Extension and integration of CC into LLUOnetworks with agreement of third party operators

BT WHOLESALE’S CONTENT CONNECT FAMILY

Sold to CSPs only

Sold to ISPs only

Sold to ISPs only

Sold to LLUOs

only

Current thinking. Subject to change.

Content Connect

100% UKCoverage

Basic

~8m BTWUsers

Standard Premium

LLUNetwork Users

Custom

Basic: routes traffic via Internet and is comparable to standard ‘Over The Top’ Internet CDN delivery. Broadband access is not part of this serviceStandard: enables ISPs to present content to BT for caching within BT Wholesale’s broadband access network to participating ISPs’ end usersPremium: provides advanced quality of service within the broadband access network to assure delivery to end usersCustom: Extension and integration of CC into LLUOnetworks with agreement of third party operators

BT WHOLESALE’S CONTENT CONNECT FAMILY

Sold to CSPs only

Sold to ISPs only

Sold to ISPs only

Sold to LLUOs

only

CDN KEY FEATURES WCC BASIC WCC STANDARD WCC PREMIUM

Download/Streaming from Edge Caches to End Users

YesDelivery via Internet only

YesDelivery via ISP Network

YesDelivery Via ISP Network &

QoS

Origin Server Access Yes Yes Yes

Geo blocking Yes (UK) Yes (in ISP Network) Yes (in ISP Network)

Content Storage Yes Yes Yes

Usage Reporting & Billing Yes Yes Yes

SLAs for Performance, Reliability & Resilience Yes Yes Yes

Current thinking. Subject to change.

… TO ADDRESS NEEDS OF ISP & CSPs ALIKE- Achieving full UK broadband coverage for all CSPs

Priority Delivery

CC PREMIUM

Quality of Service

ISP Network Product

CC STANDARD

Superior delivery

Core Internet CDN

CC BASIC

100% UK Coverage

Featu

res &

Cap

ab

ilit

y

Timeline

Offering network bandwidth & core CDN services via IP address management

Serving video content within ISP networks or via ‘Over-The-Top’

internet delivery route

• Basic: OTT Delivery• Standard: ‘Through the

network delivery’• Premium: QoS

‘Premium’ in addition to Standard

Current thinking. Subject to change.

ISP Network21CN

CC Content Caches

CC Premium

BackhaulDSL

CC Standard

MSANCC Basic & all otherinternet CDN traffic

BRAS

WCCOrigin Server

CSPOrigin Server

ISPOrigin Server

WWW(Internet)

CC Basictraffic

CONTENT CONNECT ARCHITECTURE

Current thinking. Subject to change.

A DEDICATED SERVICE PORTAL FOR PARTNERS

Developing a secure destination zone for Content Connect partners to manage their business

• Content management, cache deletion…• Skytide insight for performance, reporting &

analytics across all ISPs• Ability for CSPs to view volume & actual content

(url) delivered by ISPs• Fault management & help features• Service management & training• Access to billing information• Network status visibility

All under one wholesale.com security & authentication wrap

Current thinking. Subject to change.

BT WHOLESALE CONTENT CONNECT

BROADBAND VIDEO DISTRIBUTION FOR UK PARTNERS BT sees broadband as a video delivery platform & a viable complement to DTT, Cable or Satellite

A NETWORK CDN Deployed deep in BT’s network A basic OTT option & plans to introduce a managed service variant for 3 rd party networks

A QUALITY USER EXPERIENCE CC Assured provides traffic prioritisation in the broadband access network delivering a predictable &

consistent user experience

TRANSFORMING THE COMMERCIAL MODEL Establishing a new commercial model for content delivery which brings the ISP into the ecosystem

& offers greater choice for CSPs

INSIGHT AND OPERATIONAL SIMPLICITY A single reporting portal for deeper audience & operational insight with industry leading reporting

system from Skytide

Current thinking. Subject to change.

THANK YOU

Exchanges

BT WholesaleBroadband, data, voice

Managed network services

Homes/businesses

THE UK WHOLESALE MARKET

Copper

OpenreachAccess products (LLU, WLR, GEA, Backhaul)

Copper

Fibre

Fibre