Quarterly update webcall on BT’s 21CN programme

28th April 2009

Welcome to the

BT's 21CN programme is subject to consultation and further development. Dates and other details should be treated as indicative only, and subject to change

Agenda

• The 21CN strategic priorities review and what this means

• Pathfinder progress and plans/ next steps

• Key Consult21 engagement activities

• Q&A session & poll

Speakers:– Bill du Cann, Nigel Scott, Bob Corner & Chris Basey

21CN strategic review and what this means

Nigel ScottBTW, Industry Consultation

BT's 21CN programme is subject to consultation and further development. Dates and other details should be treated as indicative only, and subject to change

21CN strategic priorities – key points 21CN Strategic Priorities 2009/10 briefing issued in March 09

• Acknowledges the changed global economic outlook

• Includes BT’s view that the future economy will be fibre-led – enabled with the successful delivery of the 21CN core infrastructure

• A fibre-led future allows BT to consider leapfrogging technologies

• The priorities for 2009/10 are operationally simpler to deliver

• It completes the transition of the programme to be more customer and market-led and we will sustain 20C longer than previously envisaged

• Looking to extend fibre network as far as possible to cater for the huge amount of telecoms traffic driven by current & future technologies

• Migration plans being developed based on local condition of 20CN

21CN strategic priorities – financial year 08/09 successes

In the financial year 2008/9, we have:

• Completed the rebuild of BT’s core and transmission networks in the UK

• Introduced Ethernet services across the widest national footprint in the UK market

• Introduced 21CN broadband to an addressable market of 10 million UK homes and businesses – 40% of the addressable market

• Successfully migrated end users to 21CN voice services in South Wales as part of Pathfinder

• Launched BT’s global network of virtualised data centres

21CN strategic priorities – what does it really mean for our products going forward? WBC & Ethernet

1) Continue to extend the footprint

2) Aim for 09/10 is to reach 714 nodes – an increase of 100

3) Accelerate migration of customers to new Ethernet services

Wholesale Ethernet

1) Continue to extend the footprint

2) Aim for 09/10 is to reach up to 55% of the addressable market

3) Parallel progress of super fast Broadband plans to ensure 21CN optimises its use of NGA

4) Key milestones for 09/10 - Wholesale WBC-FTTC trial - customer trial start end April 09; 2200 customer pilot start July 09

Wholesale Broadband Connect (WBC)

1) Continue to extend the footprint

2) Aim for 09/10 is to reach 714 nodes – an increase of 100

3) Accelerate migration of customers to new Ethernet services

Wholesale Ethernet

1) Continue to extend the footprint

2) Aim for 09/10 is to reach up to 55% of the addressable market

3) Parallel progress of super fast Broadband plans to ensure 21CN optimises its use of NGA

4) Key milestones for 09/10 - Wholesale WBC-FTTC trial - customer trial start end April 09; 2200 customer pilot start July 09

Wholesale Broadband Connect (WBC)

21CN strategic priorities – what does it really mean for our products going forward? Voice

Continue through 2010WLR Voice migration to 21CN

Expands to prove high volume capability

Pathfinder

Development not proceeding – will not be introduced

Wholesale Broadband Connect Converged (WBCC)

Development not proceeding – will not be introduced

Wholesale Voice Connect (WVC)

Continue through 2010WLR Voice migration to 21CN

Expands to prove high volume capability

Pathfinder

Development not proceeding – will not be introduced

Wholesale Broadband Connect Converged (WBCC)

Development not proceeding – will not be introduced

Wholesale Voice Connect (WVC)

21CN strategic priorities – what does it really mean for our products going forward? TDM

• Currently awaiting outcome of feasibility studyTDM sub-2Mbit/s

• Will retain the majority of existing 2Mbit/s (and above) 20C Partial Private Circuit (PPC) products

• Will incorporate 21CN components over time to replace obsolete 20C network components.

TDM 2Mbit/s (and above)

• Currently awaiting outcome of feasibility studyTDM sub-2Mbit/s

• Will retain the majority of existing 2Mbit/s (and above) 20C Partial Private Circuit (PPC) products

• Will incorporate 21CN components over time to replace obsolete 20C network components.

TDM 2Mbit/s (and above)

21CN strategic priorities – what does it really mean for our products going forward? Interconnect: NGNCC

• Remain committed to launching an NGNCC product but ..

• Will not be launching NGNCC in April 2010

• Currently taking views from CPs as to when it is required

Next generation call conveyance (NGNCC)

• Remain committed to launching an NGNCC product but ..

• Will not be launching NGNCC in April 2010

• Currently taking views from CPs as to when it is required

Next generation call conveyance (NGNCC)

Openreach Fibre plans which support NGNs

BT sees the future as a fibre led mixed economy

1) Launch BTs FTTC capabilities in Muswell Hill (London) and Whitchurch (Wales)

2) Enables super fast broadband

Fibre to the cabinet (FTTC)

1) Continue to build on BTs FTTP capability at Ebbsfleet

2) FTTP enables super fast broadband

3) The plans for FTTP deployment will be known late this year and may be limited to selected Greenfield housing developments.

Fibre to the premises (FTTP)

1) Launch BTs FTTC capabilities in Muswell Hill (London) and Whitchurch (Wales)

2) Enables super fast broadband

Fibre to the cabinet (FTTC)

1) Continue to build on BTs FTTP capability at Ebbsfleet

2) FTTP enables super fast broadband

3) The plans for FTTP deployment will be known late this year and may be limited to selected Greenfield housing developments.

Fibre to the premises (FTTP)

21CN Deployment Strategy Plan (DSP)• The: - 21CN Deployment Strategy Plan (DSP) - Summary of 21CN Product Plans - Service availability schedule

were issued on 15th April and are available via the secure area of the Consult21 website.

For access to the secure area* please email consult21@bt.com

NB: Access is only available to our CP customers

Pathfinder progress & plans moving forward

Bob Corner (BT Design)

Chris Basey (BT Design)

BT's 21CN programme is subject to consultation and further development. Dates and other details should be treated as indicative only, and subject to change

Voice migration first phase of voice pilot activity – Pathfinder • The voice migration and pilot activity in preparation for voice network

migration is known as Pathfinder

• This pilot activity involves voice line migrations only at present

• The pilot is taking place in a small area of South Wales

• Pathfinder is providing learning and helping to build confidence for large scale migrations

• All planning and operational activities are carried out in close collaboration with a working group of service providers

• We are contacting service providers with customers in the area ahead of migration activities

Where & when is Pathfinder happening?Completed exchange migrations

Exchange name Date of migration Number ranges

Wick 23rd October 2008 01656890

Bedlinog 30th October 2008 01443710

Nelson 6th November 2008 0144345

Penarth 22nd January 2009 02920426,0292035

Ynysybwl 5th February 2009 0144379

Treharris 19th February 2009 0144341

Cardiff S 5th March 2009 02920- 353, 354, 355, 359,4225,550, 574, 660, 661,

663, 664, 665, 666, 667, 668, 669

Ferndale 12th March 2009 0144373, 0144375

Tonyrefail 12th March 2009 014436- 70, 71, 72, 73, 74, 75, 76, 78

Caerphilly 26th March 2009 02920- 718, 760, 807, 808, 809, 849, 85, 86, 88

Roath E 23rd April 2009 02920- 356, 46, 470, 471, 472, 473, 474, 475, 477,

478, 479,570, 662, 769

Roath D 23rd April 2009 02920- 358, 430, 431, 432, 433, 434, 435, 436, 437,

447, 48, 49, 523, 557

Where & when is Pathfinder happening?Future migrations

** Llandaff, Whitchurch & Llanishen are now being migrated on 7th May – this deferment was on CPs’ request (original date was Maundy Thursday 9th April)

Exchange name Date of migration Number ranges

Llandaff 7th May 2009 0292055- 1, 2, 3, 4, 5, 6

Whitchurch 7th May 2009 02920- 357, 62, 714

Llanishen 7th May 2009 029206- 80, 81, 82, 83, 84, 86, 89,0292075

Pathfinder 1 migration and upgrade plan

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Pathfinder 1 Complete

Approx 65000 Customer lines

Network upgrades

May July/Aug

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Current position

7/5

Pathfinder current facts and figures

• Over 50,000 working customer voice lines have migrated to 21CN*

• Last migration was Roath on 23rd April – successful migration – no significant issues raised since migration

• Largest System X migration to date

• Physical transfer of lines were completed in under two hours

• Average outage was one minute 45 seconds

• Over 12.5 million calls have been carried over 21CN

* Numbers may change due to churn

Learning from Pathfinder so far

• Slow start approach taken is the proven, correct approach

• Have proved the technology, processes and supporting tools with CPs

• Fault numbers currently running at or below figures for 20CN

• Have been some critical CPE issues – payment machines – lines are being groomed or regressed

• No significant issues with Caller Display, burglar alarms or ATMs

• No recent significant platform issues , or interim upgrades required to date

Pathfinder – the next steps – Pathfinder Volume POTS

• Moving into “Pathfinder Volume POTS”

• Again voice migrations only

• Will complete the further 7 DLEs in South Wales

- Cardiff, G, L, E, F, Bridgend, Cardiff B, Pontypridd

• Will complete the migration of up to 260K lines

• Will take place January 2010 through to July 2010

• Same technology & architecture as Pathfinder – Ericsson based call server

• July 2009 – September 2009 - Call Server and MSAN upgrades in Pathfinder area

• Will provide key learning following migration of a complete DLE in a night

Then what? Moving into planned voice migration

• Planned (scale) voice migration will be at a slower pace & smaller scale

– We plan to run 21CN and 20CN in parallel for longer

• Migrations will flow onwards from Pathfinder Volume POTS

• Migrations will be DLE by DLE

• Migration schedule will be driven by a mixture of 21CN and 20CN factors

• Revised schedule is under development and will be advised to CPs in accordance with agreed leadtimes

Other plans - timeline

At sites which customer access is via Fujitsu MSAN & Ericsson call server

BT own-use service trial of ISDN in Pathfinder

Aug 10 onwards

Migration of ISDN customers on the 9 DLEs in Pathfinder that have already had their POTS migrated

Pathfinder ISDN products migration

TBA

London & Midlands scale trialling of migration onto an Ericsson call server – POTS, ISDN2, ISDN30 & Featureline – DLE on a night basis from both an AXE10 & a System X exchange. Dependant on Huawei NI trial for proving MSAN capability

Pathfinder Volume All Products

TBA

Migration of POTS, ISDN2, ISDN30 & Featureline on to a Huawei MSAN & Ericsson call server

Huawei NITBA

Voice only completing DLEs in Pathfinder areaPathfinder Volume POTS

Jan 10 – July 10

On Huawei MSANs & Ericsson call servers at 3 national sites

BT own-use service trial of ISDN

Oct 09 onwards

Call server & MSAN upgrades in Pathfinder area

July 09 – Sept 09

With migrations of Llandaff, Whitchurch & Llanishen on 7th May 09

Pathfinder endsMay 2009

At sites which customer access is via Fujitsu MSAN & Ericsson call server

BT own-use service trial of ISDN in Pathfinder

Aug 10 onwards

Migration of ISDN customers on the 9 DLEs in Pathfinder that have already had their POTS migrated

Pathfinder ISDN products migration

TBA

London & Midlands scale trialling of migration onto an Ericsson call server – POTS, ISDN2, ISDN30 & Featureline – DLE on a night basis from both an AXE10 & a System X exchange. Dependant on Huawei NI trial for proving MSAN capability

Pathfinder Volume All Products

TBA

Migration of POTS, ISDN2, ISDN30 & Featureline on to a Huawei MSAN & Ericsson call server

Huawei NITBA

Voice only completing DLEs in Pathfinder areaPathfinder Volume POTS

Jan 10 – July 10

On Huawei MSANs & Ericsson call servers at 3 national sites

BT own-use service trial of ISDN

Oct 09 onwards

Call server & MSAN upgrades in Pathfinder area

July 09 – Sept 09

With migrations of Llandaff, Whitchurch & Llanishen on 7th May 09

Pathfinder endsMay 2009

08/09 Fiscal 09/10 Fiscal 10/11 Fiscal 11/12 Fiscal

Issue 15 Apr 09

July 08 May 09

Remigration of regressed/groomed analogue lines

Pathfinder - POTS OnlyMigration of customers by concentrator/multiple concentrator unit at a time in Pathfinder catchment

Jan 10 Jul 10

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS4.1.1);Migration from System X DLEs.

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS4.1.1);Migration from System X DLEs.

Huawei NI - All Products dates TBCMigration of customers by concentrator unit at a time;Migration of all products in a night in Belfast

Pathfinder 1 POTS ~75K

Pathfinder 1 POTS ~75K

Pathfinder Volume POTS

~275k

Pathfinder Volume POTS

~275k

Pathfinder Volume All Products

Pathfinder Volume All Products

Pathfinder - POTS OnlyMigration of customers by DLE at a time in Pathfinder catchment

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS 4.0);Migration from AXE10 and System X

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS 4.0);Migration from AXE10 and System X

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1) Migration from AXE 10

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1) Migration from AXE 10

London - All Products dates TBCMigration of customers by DLE at a time;Migration of all products in a night in Thamesmead

Midlands - All Products dates TBCMigration of customers by DLE at a time;Migration of all products in a night in Redditch

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1) Migration from System X

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1) Migration from System X

Pathfinder – ISDN & Fline Products dates TBCMigration of customers by concentrator/multiple concentrator/DLE;Migration of all ISDN products in a night

Pathfinder ISDNPathfinder ISDN

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS 4.1.1) for ISDN and Featureline;Migration from AXE10 and System X

Proves:Baseband voice on 21CN using FTEL CMSAN, ETL CS (TSS 4.1.1) for ISDN and Featureline;Migration from AXE10 and System X

35k POTS, 1,200 ISDN2 & 200 ISDN30

44k POTS, 2,100 ISDN2 & 180 ISDN30

43k POTS, 2,100 ISDN2 & 180 ISDN30

21K ISDN21,900 ISDN30

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1);Migration from System X

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1);Migration from System X

Huawei Northern Ireland

Huawei Northern Ireland

HNI ISDN Service Trials

HNI ISDN Service Trials

Oct 09

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1), for I30e, I30DASS, I2e

Proves:Baseband voice on 21CN using Huawei CMSAN, ETL CS (TSS 4.1.1), for I30e, I30DASS, I2e

NGN CCNGN CC

CS & CMSAN Upgrades

Under ReviewUnder Review

Pathfinder ISDN Service Trials

Pathfinder ISDN Service Trials

Aug 10

Key Consult21 engagement activities

Bill du CannBTW Consult21

BT's 21CN programme is subject to consultation and further development. Dates and other details should be treated as indicative only, and subject to change

Consult21 NewsNICC B2BStandarddefinitions

Consult21 headlinesConsult21 News

NGN CC Contract OptionsCondoc

Consult21 News

MSILService

Resilience

Condoc

Consult21 News

Datasetssurvey

completed

Consult21 News

Sectorbased market

workshopsheld

Consult21 NewsBroadbandvideo andcontent webinar

Consult21 News

Use of FTTC

in 21CN broadband workshop

Consult21 News

Pathfinder

reviews

and

briefings

Consult21 forthcoming activities

Consult21 News

MSILService

Resilience

product

definitions

Consult21 News

TDM (data)

Sub 2Mbit/s

feasibility

report

Consult21 NewsDatastreamconsultationconclusions

Consult21 News

PathfinderVolumePOTS

preparation

Consult21 News

Sectorbased market

workshopsfollow

up

Consult21 News

Next

Customer

Experience

event

4th June

Consult21 News

Pathfinder summary updatewebcall

15th May

Useful information & how to get engaged

More information?then contact helen.nurse@bt.com

Or visit these sites

The Consult21 website: www.btwholesale.com/consult21

The independent public information website covering the process of migration: http://www.switchedonuk.org

For general information about BT’s 21CN programme go to: http://www.btplc.com/21CN/

Answers

Questions

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