1. © British Telecommunications plc Next Generation Broadband Ian Shanks Head of Scottish Affairs BT Scotland

2. © British Telecommunications plc Range of Broadband Available 1070 Telephone Exchanges in Scotland 21 in Western Isles not broadband enabled( Wireless Network) 89 Exchange Activate Exchanges 960 at least up to 8Mbps ---------------------- 20 Mbps and 40 Mbps roll-out underway 2

3. © British Telecommunications plc OECD June 2009 The UK has one of the highest DSL coverage figures in the western world

4. © British Telecommunications plc UK telecom prices have fallen.. unlike energy and water ….

5. © British Telecommunications plc Bringing fibre to all is a shared challenge Customer Demand Vital to engage citizens, businesses and other local stakeholders on the benefits Customer Demand Vital to engage citizens, businesses and other local stakeholders on the benefits Public Private Partnership Government intervention enables a lower risk profile and ongoing commercial sustainability Public Private Partnership Government intervention enables a lower risk profile and ongoing commercial sustainability Shared Vision Ensuring the UK is at the leading edge of the global digital economy Shared Vision Ensuring the UK is at the leading edge of the global digital economy Open, Competition Ready Giving customers choice on products, applications and service Open, Competition Ready Giving customers choice on products, applications and service

6. © British Telecommunications plc Competition is greatest in urban areas with BT providing wholesale services for communication providers in the more remote locations This map shows the current footprint of where Communication Providers offer direct LLU service or where they resell wholesale broadband from BT Wholesale. It illustrates that the greatest extent of competition is available within dense urban areas Colour Coding & % of population 4 or more operators – 69% 2 to 3 operators – 14% BT only – 16% KCOM only – 1% Source; Ofcom

7. © British Telecommunications plc WHOLESALE BROADBAND CONNECT – COPPER, up to 20Mbit/s Scotland – Spring 2011 56% Up to 121 exchanges 1.2m potential end user lines enabled Up to Planned WBC coverage by spring 2011 Further rollout details to follow. Up to Current thinking. Subject to change coverage

8. © British Telecommunications plc BT is making a major investment in fibre access £2.5bn investment to roll-out fibre to two-thirds of UK premises by 2015 Install c.30,000 cabinets on over 1,000 exchanges Lay over 50,000km of fibre Supported by 32,000 engineers 2/3 UK premises passed by 2015 4m premises passed by end of 2010 1.5m premises passed by early summer 2010 10m premises passed by 2012 ADSL enabled for 99% of all premises

9. © British Telecommunications plc WHOLESALE BROADBAND CONNECT – FIBRE, up to 40Mbit/s Scotland – Spring 2012 Planned fibre coverage by Spring 2012 Further rollout details to follow. 23 exchange areas 181,000 potential end user lines enabled Up to

10. © British Telecommunications plc Our connectivity services are aimed at government, consumers and businesses Total BB 8 Mbps Total BB ADSL2+ 20 Mbps Total BB Fibre (FTTC + FTTP) 40/100 Mbps Ethernet 1 Gbps Increase in bandwidth, service levels, performance Up to 8 Mbps already available to 99% of premises in UK Up to 20 Mbps available to c.75% of premises in UK by Mar 2011 Fibre speeds available to 66% of premises in UK by Apr 2015 More than 800 Ethernet PoPs, 90% of business premises are within 5km of an Ethernet node today

11. © British Telecommunications plc For Fibre-to-the-Cabinet, Analysys Mason estimate that the most remote 10% of the UK would cost the same as the most urban 35% Source: Analysys Mason for the BSG UK-Wide Deployment Costs for Fibre-to-the-Cabinet Last Third RuralUrbanRemote USCMiddle ThirdFirst Third

12. © British Telecommunications plc Despite investment, some parts of the UK are still not part of the digital journey & Digital Britain aims to address this imbalance Stephen Carter announced the launch of the Digital Britain Review on 17 October 2008. –a converged project representing the Minister's responsibilities across both DCMS and BERR. –An action plan to secure the UKs place at the forefront of innovation, investment and quality in the digital and communications industries Previous Government was to implement Digital Britain report from June 2009 - Broadband Universal service Commitment ( USC) - £200m to ensure that 2Mbps broadband available to all the UK by 2012 - NGA Levy -50p per month on fixed lines from 2010 to 2017 to help rollout of fibre to final third Levy was to be implemented by Finance Act – but dropped during final stages of previous Parliament because not supported by opposition - all political parties supported USC and its funding - all supported wide rollout of fibre

13. © British Telecommunications plc Coalition Government has.... Said it supports the commitment to ensure a universal minimum 2Mbps service across the country and that virtually all homes will have access to a minimum 2Mbps by 2015 Will invest £530 million by 2015 to support the UKs broadband network and a further £300 million by 2017 Seeks rapid roll-out of superfast broadband across the country Will ensure BT and other infrastructure providers allow the use of their assets for that purpose Wants to get to remote areas at the same time as the more populated areas Has identified 4 pilot areas for roll-out of super fast broadband –including Highlands and Islands

14. © British Telecommunications plc Whats happening in Scotland Scottish Government has published a paper A Digital Ambition for Scotland and will be following up with a detailed strategy and action plan Scottish Governments Digital Ambitions are:- That next generation broadband will be available to all by 2020, and significant progress will be made by 2015; and That the rate of broadband uptake by people in Scotland should be at or above the UK average by 2013, and should be highest among the UK nations by 2015. The Highlands and Islands has been identified by BDUK as one of 4 pilot areas for Super Fast Broadband – HIE likely to issue tenders in February 14

15. © British Telecommunications plc Next Generation Broadband Ian Shanks Head of Scottish Affairs