Director Industry Development

Jo Upward

FORWARD LOOKING STATEMENTS – CAUTION ADVISED

Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: BT's plans for transformation of its networks; benefits to customers of the 21CN programme; key milestones and expected timetable for delivery of 21CN; and the benefits in relation to, for example interconnect, convergence and broadband

Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual outcomes may differ materially from those expressed or implied by these forward-looking statements

Factors that could cause differences between actual outcomes and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; supplier arrangements; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised

AGENDA

10.30 Welcome and Introduction Jo Upward10.35 21CN Migration Proposal Consultation Process Jo Upward10.45 21CN Migration Proposal and Key Strategic Elements

Matt Beal11.00 21CN Migration Proposal Detail Matt Beal

Operations DetailOperational Risks and Issues

11.20 Introduction to Migration Delivery Team

The Way Forward Deb Covey

11.30 Q & A All 12.00 Close Jo Upward 12.10 Lunch

NATIONAL MIGRATION PROPOSAL:

CONSULTATION FRAMEWORK

NATIONAL MIGRATION PROPOSAL:CONSULTATION FRAMEWORK

SCOPE:

BT will consult specifically on its proposed Migration Plan as part of the consultation on 21CN

OBJECTIVE & TIMESCALES

present as clear a view as possible of the Migration Plan, including aspects where changes can be considered, and those that cannot, e.g. end date.

commences in October with a formal statement of closure expected in January.

Migration Plan published to key stakeholders from February.

CAVEAT

the published Migration plan, which covers a 5 year term, will be subject to regular review within the I&M working group, and inevitably will be subject to change.

WHY ARE WE CONSULTING?

Goal:

Production of a Plan of Record for business planning purposes

BT does not have all the answers

BT seeks views on the most appropriate and timely approach to:

Reach acceptable solution to all parties – recognising the schedule will be fine tuned to reflect operational needs as migration proceeds

Effective change control management

Minimising & anticipating the impact on customers

FIT WITH EXISTING CONSULT 21 PROCESS

Migration Proposal Consultation

Operationally under the umbrella of the I&M working group

Co-Chairs – Chris Danzelman (C&W), Mike Cook (BT)

may include separate ‘community of interest’ sub groups

End user communications

Customer Migration Communications working group communications programme to support public dissemination of

this information

Appropriate, timely and relevant

Pre-Consultation

(22/9-20/10)

• Framework & Enablers

Consultation

(21/10– 16/12)

•Multi/Bi-Lateral Consultation

NATIONAL MIGRATION PROPOSAL: CONSULTATION PROCESS OVERVIEW

Revised National Migration Proposal

21/10

NATIONAL MIGRATION PROPOSAL:PRE-CONSULTATION PHASE

Pre-Consultation Goals:

Answers to the questions:

key topics for the Consultation phase

appropriate structure for consultation: multi-lateral v bi-lateral discussion

additional information required for meaningful consultation on the NMP

industry view regarding operational disputes process envisioned in the TSR Undertakings

written views and comments on the issues raised in the NMP

22/09 National Migration Proposal (iteration 1) issued to industry

04/10 National Migration Proposal Information Exchange Event

07/10 Pre-consultation closes

19/10 Implementation & Migration Working Group

Consultation phase approach (21/10 – 16/12)

Timetable for additional information

Overview of Comments & BT approach

Overview of Change Control & Dispute process

21/10 National Migration Proposal (iteration 2) issued to industry

NATIONAL MIGRATION PROPOSAL:CONSULTATION PHASE

What we are consulting on: Operational impact of timing Sequencing Specific event driven freeze

periods Sensitive customer impact Forecasted cost optimisation NGN business plans Re-use of ‘stranded assets’

Other issues raised within scope from the pre-consultation

21/10

National Migration Proposal (iteration 2) issued to industry

22/10 – 02/12/05

Multi/Bilateral Consultation Communities of interest

02/12 - 16/12

Consultation conclusion 01/2006

Formal issue of National Migration Plan

02-03/2006

Publication of the National Migration Plan

NATIONAL MIGRATION PROPOSAL:

KEY STRATEGIC ELEMENTS AND DETAIL

Director 21 CN Solution Definition and Delivery

Matt Beal

NATIONAL MIGRATION PROPOSAL:STRATEGIC IMPORTANCE

To ensure a smooth transition to the UK’s advanced communications network for the future:

BT recognises the importance of gaining industry involvement before the Migration Plan is finalised

BT remains committed to give as much advanced notice as possible of its 21CN intentions

The information is provided to elicit feedback and to enable industry to undertake preliminary:

Business planning

Capital investment programme planning

Resource planning

NATIONAL MIGRATION PROPOSAL:INFORMATION OVERVIEW

Topology of 21CN Network

Deployment of MSANs

Mass migration to the 21CN network

Consultation principles

Aim: Sufficient information for CPs to determine how and when they need to change their existing switch network to effectively interconnect with 21CN

NETWORK TOPOLOGY

Inner Core SitesCirca 8 sites.Fully meshed – 10Gbit/s links.Transmission layer resilience.Full service functionality.

Outer Core SitesCirca 12 Sites.At least triple -parented off Inner Core – 10Gbit/s linksSome sideways links.Transmission layer resilience.Full service functionality at most sites.

Metro SitesCirca 86 sites.Dual-parented off Core – 10 & 2.5Gbit/s links.Resilience via IP MPLS Fast Re Route

Tier 1 MSAN Sites Circa 1100 sites.Ethernet carried directly over high-capacity fibre-optic links

MSAN SitesCirca 4400 sitesEthernet carried over GFP/SDHSingle parenting is allowed when it is not practical/possible to have dual homed routes.

c8 sites

c20 sites

c106 sites

c1200 sites

c5600 sites

NATIONAL MIGRATION PROPOSAL:

KEY STRATEGIC ELEMENTS AND DETAIL

MSAN DEPLOYMENTInformation disclosure:

List of Metro and core node sites

Specific building address available via NISCC

List of Tier 1 MSAN sites

List of other MSAN sites

0

50

100

150

200

250

300

350

400

450

500

East Midlands East of England London North EastNorth West Northern Ireland Scotland South EastSouth West Wales West Midlands Yorkshire and The Humb

MASS MIGRATION ROLLOUT

Information disclosure:

PSTN concentrator associated with each number block

For each PSTN concentrator, we are providing: Quarter when traffic associated the concentrator is scheduled to be

migrated onto the 21CN network

The 21CN infrastructure details involved in supporting traffic from the concentrator:

MSAN

1st and 2nd choice Metro nodes

For each Metro node we are providing the 1st and 2nd choice NGS switch that will carry traffic

MASS MIGRATION – THE UK IMPACTMarch 2007 March 2008 March 2009

March 2010 March 2011

MIGRATION CHECK LIST REFINEMENT

Planning Phase: High-level SAN – identifying DLE and time window, and receiving feedback from CPs

Detailed SAN – identifying routes, E1’s, transmission affected & specifying verification checks

Implementation on timescales and method statements

Agreement on costs

Communications provider infrastructure migration Establish network freezes

Network changes as per detailed SAN

Post-migration verification checks

End-user service migration Mitigating end-users concerns

Patching to move services to the 21CN network

Post-migration verification checks

SERVICE MIGRATION PLANS:PSTN AND BROADBAND MIGRATIONSchedule plans for between 2 and 9 DLE transfer per week

(equating to approx 150K lines).

Planned for simultaneous migration of PSTN and BB.

Data freeze periods will be discussed and agreed through the IMWG forum.

Synchronised data will be maintained for a month period following migration for the event that regression and fallback is necessary.

Business continuity success gate criteria must be achieved prior to any migration, co-ordinated from an Industry linked command and control centre.

OPERATIONAL READINESS

1. Service Migration & Continuity

•Customer Engagement

•CP Migration Plans•Product & Service

Migration

3. Business Continuity &

Response•Measurement•Response•Management

Control

2. Operational Readiness

•De risk implementation

•Compliance to requirements

•Based on end-end impact

COMPARATIVE IMPACT

STRUCTURED CONTINUITY PLAN

Provides structured responses to problems related to mass migration

Protects Customer Service

Operations for BT, its Customers and their customers

Avoid “Disasters” through preparation and learning

Based on established “BAU” arrangements but greatly extended

WHY MORE THAN BAU?

Maturity of the technology “Physical equipment”

Reduced resilience and fallback at initial build

Innovative nature of design

21CN brings new internal systems and working practices

Presenting a highly visible target

WHAT ARE WE PLANNING?

Pathfinder Full-scale migration of 350,000 end customers into 21CN network

Developing framework for designing, trialing, and proving enhanced continuity plans to support mass-migration

Developing Business Continuity framework Ensure continuity of service from now through completion of

“Pathfinder” into mass migration

Establish measurement framework to understand resource implications

Initial draft available in late November 2005

NATIONAL MIGRATION PROPOSAL:

INTRODUCTION TO MIGRATION DELIVERY TEAM & THE WAY FORWARD

Managing Director of Network Planning and Operations

Deb Covey

RESPONSIBLE FOR 21CN

Senior Team:

21CN Programme – Matt Beal

Design – Daryl Dunbar

Implementation – Ralph Steffans

Testing and Trials – Dwight Davis

Service Migration – Mike Cook

Operational Management – Ashley Hannah21CN

Programme

Design Implementation Testing & Trials MigrationOperational

Management

ANY QUESTIONS?