1. November 2011

2. A local initiative to bring high speed fibre access to homes and businesses in West Oxfordshire Independent from national operators, establishes new competitive infrastructure at low cost Independent from national operators, establishes new competitive infrastructure at low cost Current plan - 7,000 premises passed within 18 months Current plan - 7,000 premises passed within 18 months 100 Mbps service available 100 Mbps service available New jobs will be created in West Oxfordshire New jobs will be created in West Oxfordshire Combined Community, Central Gvmt & local funding model Combined Community, Central Gvmt & local funding model Provides vanguard project for other parts of Oxfordshire and UK Provides vanguard project for other parts of Oxfordshire and UK

3. The infrastructure challenge of the 21 st Century The infrastructure challenge of the 21 st Century Business needs: Business needs: Cloud Computing Cloud Computing Videoconferencing Videoconferencing Dispersed networks Dispersed networks Home needs: Home needs: Video on demand, HD, 3D Video on demand, HD, 3D Live events, sport, concerts Live events, sport, concerts Gaming Gaming Changing media consumption patterns Changing media consumption patterns Community Needs Community Needs E-learning, telemedicine, telecare E-learning, telemedicine, telecare

4. Greater speed and capacity required for networking, browsing, video, HD Greater speed and capacity required for networking, browsing, video, HD Symmetrical service suffers no bottlenecking Symmetrical service suffers no bottlenecking Inadequate speed available from other technologies; ADSL, mobile, 4G Inadequate speed available from other technologies; ADSL, mobile, 4G FTTC deployment will not reach all premises FTTC deployment will not reach all premises Longevity Longevity Future-proof Future-proof

5. Source: Point Topic November 2011

6. Current broadband penetration good, but average speed poor (2- 4Mbps)* Current broadband penetration good, but average speed poor (2- 4Mbps)* Customer speed dissatisfaction Customer speed dissatisfaction No other FTTH provider locally No other FTTH provider locally Many SoHo workers/small businesses Many SoHo workers/small businesses Rural business parks Rural business parks Severe limitations on future high-bandwidth applications Severe limitations on future high-bandwidth applications * See findings from Oxfordshire Business Broadband Survey

7. Started as a community project under Transition Chipping Norton (TCN) Started as a community project under Transition Chipping Norton (TCN) Current plans derived from TCN sponsored study: Current plans derived from TCN sponsored study: Sustainable community/economic values Sustainable community/economic values Fill in ‘not-spots’ of West Oxfordshire Fill in ‘not-spots’ of West Oxfordshire Assist local businesses/residential users Assist local businesses/residential users

8. Chipping NortonOver Norton, Salford, Southcombe, Heythrop, Chalford Chipping NortonOver Norton, Salford, Southcombe, Heythrop, Chalford CharlburySpelsbury, Taston, Dean, Chadlington, Shorthampton, Chilson, Leafield CharlburySpelsbury, Taston, Dean, Chadlington, Shorthampton, Chilson, Leafield WychwoodsShipton, Milton, Ascott, Lyneham, Bruern, Foscot, Idbury, Fifield WychwoodsShipton, Milton, Ascott, Lyneham, Bruern, Foscot, Idbury, Fifield KinghamChurchill, Sarsden, Bledington, Daylesford, Oddington, Cornwell KinghamChurchill, Sarsden, Bledington, Daylesford, Oddington, Cornwell Phase Two EnstoneChurch Enstone, Cleveley, Lidstone, Fulwell, Radford, EnstoneChurch Enstone, Cleveley, Lidstone, Fulwell, Radford, Witney FringeWoodstock, Hanboroughs, Stonesfield, Finstock, North Leigh, Burford Witney FringeWoodstock, Hanboroughs, Stonesfield, Finstock, North Leigh, Burford Hook NortonRollright, Swerford, Whichford, Sibfords, Wiggington, Newington Hook NortonRollright, Swerford, Whichford, Sibfords, Wiggington, Newington South WarksShipston, Long Compton, Barton, Wolfords, Toddenham, Cherington, Brailes South WarksShipston, Long Compton, Barton, Wolfords, Toddenham, Cherington, Brailes East GloucsStow, Bourton, Moreton, Rissingtons, Slaughters, Westcotes, Barringtons East GloucsStow, Bourton, Moreton, Rissingtons, Slaughters, Westcotes, Barringtons Assume initial take-up of 35%, growing to 70% in year three

9. Partnering with AFL (Swindon) Partnering with AFL (Swindon) Use existing power lines to deploy fibre (long/short distance) Use existing power lines to deploy fibre (long/short distance) Aerial or subterranean customer drops Aerial or subterranean customer drops Cost effective Cost effective Proven technology, e.g. Rutland Proven technology, e.g. Rutland Finance terms available Finance terms available

10. 2 levels of service 40Mbps / 100Mbps 2 levels of service 40Mbps / 100Mbps Wholesale offering Wholesale offering CB carries out install for ISP CB carries out install for ISP CB manages fibre infrastructure CB manages fibre infrastructure ISP provides CPE and manages customer ISP provides CPE and manages customer VAS available through CB and ISP VAS available through CB and ISP

11. Marketing activity confined to awareness and stimulation, not direct sales activity Marketing activity confined to awareness and stimulation, not direct sales activity Local campaign: DM / parish meetings / door-to- door / local advertising Local campaign: DM / parish meetings / door-to- door / local advertising Targets: residential / business / business parks Targets: residential / business / business parks Value Proposition: better, faster, ISP choice (or retention), community benefits Value Proposition: better, faster, ISP choice (or retention), community benefits

12. Wholesale proposition for ISPs Wholesale proposition for ISPs Partnering with CityFibre Holdings (provisioning/billing/customer care) Partnering with CityFibre Holdings (provisioning/billing/customer care) Experience with similar projects: Experience with similar projects: York York Dundee Dundee Newcastle Newcastle Bath Bath Essex Essex

13. Limited company (operating co.) wholly owned by PLC (investment vehicle and franchisor) Limited company (operating co.) wholly owned by PLC (investment vehicle and franchisor) Local people providing local services Local people providing local services Emphasis on local recruitment Emphasis on local recruitment Franchise model could benefit community Franchise model could benefit community

15. Consistent ARPU derived from wholesale model Consistent ARPU derived from wholesale model Relatively low SAC & CPGA due to size of target market Relatively low SAC & CPGA due to size of target market Expected churn rates low due to ISP loyalty and 3 rd party relationships Expected churn rates low due to ISP loyalty and 3 rd party relationships Low cost of network build-out due to novel technology Low cost of network build-out due to novel technology CPE & Home Drop costs amortised, with menu pricing for customer installs CPE & Home Drop costs amortised, with menu pricing for customer installs

16. Potential to novate contracts currently relying on OCN to CB and upgrade speed/capacity Potential to novate contracts currently relying on OCN to CB and upgrade speed/capacity Assist in meeting OCC obligations & BDUK funding allocation Assist in meeting OCC obligations & BDUK funding allocation Opportunity to establish proof of concept to extend to other parts of the county. e.g.: Opportunity to establish proof of concept to extend to other parts of the county. e.g.: Thame Thame Bicester Bicester Henley Henley Didcot Didcot

17. Improved infrastructure for local businesses and community Improved infrastructure for local businesses and community Direct investment into/by local community rather than national operator Direct investment into/by local community rather than national operator Stimulation of demand through new applications Stimulation of demand through new applications Help retain businesses locally Help retain businesses locally Deliver public services locally Deliver public services locally

18. World-class service World-class service Part ownership in local business Part ownership in local business Future-proof infrastructure Future-proof infrastructure Service ubiquitous Service ubiquitous Retention of existing service provider Retention of existing service provider

19. BDUK allocation Shareholder Prospectus First ‘Dig’ First Customers Novate OCC Contracts Jan 2012 Jul 2012 Jan 2013 Jul 2013 Partner Trials Partner Contracts Demand Assessment

20. How this project could work within Oxfordshire’s Broadband Strategy: How this project could work within Oxfordshire’s Broadband Strategy: Market Demand Assessment required Market Demand Assessment required Feeds into & informs Oxfordshire Broadband Strategy Feeds into & informs Oxfordshire Broadband Strategy Supplements Broadband Survey (August 2011) Supplements Broadband Survey (August 2011) Addresses residential & business customers Addresses residential & business customers Community engagement/demand stimulation programme Community engagement/demand stimulation programme Investigate novation potential of OCC contracts Investigate novation potential of OCC contracts

21. Thank You