1. Thank you

2. The new market Promotion of competition based on LLU
More intense competition for narrowband lines
Fewer, stronger competitors
Improved incentives to invest in MSANs, Soft Switches,
network intelligence, Core Transport
Reduced competitive investment in access and backhaul
Stable and certain regulatory framework
Competition Act and consumer protection regulation only at Retail level

3. Openreach
Openreach has had its own headquarters, distinct brand and around 30,000 people, from January 2006
It controls and operates the duct, fibre, copper and other non-electronic assets in BT’s access and backhaul networks (the ‘access bottleneck’)
It provides product management, sales and service management for significant market power (SMP) products delivered over BT’s access and/or backhaul networks - bottleneck products
Any performance-related pay for Openreach staff is based only on Openreach own objectives and performance; not BT Group’s
BT will publish separate financial accounts for Openreach

4. Openreach- product set
Wholesale Analogue Line Rental
customer access for analogue voice services
Wholesale ISDN2 and ISDN 30 Line Rental
customer access for digital voice services
Local Loop Unbundling (full and shared)
copper pairs
Wholesale Extension Service
Ethernet partial private circuits from customer to first exchange
Backhaul Extension Service
Ethernet partial private circuits from first exchange to POP or second exchange
and facility to co-locate specified equipment at exchanges
aggregation equipment, video servers, access network termination
Plus specified future access and backhaul services if requested by a CP

5. Example: LLU Equivalence of Input available on 30 June
Openreach hit a major milestone on 30 June with the delivery of LLU Equivalence of Input (EoI) via the Equivalence Management Platform (EMP)
All CPs’ ordering, fault repair and dialogue services capability is conducted through a single interface
BT Wholesale new orders now use the same LLU products (SMPF & MPF) on the same terms as the rest of industry
Openreach are fully committed to making LLU a success.
The number of lines unbundled is now in excess of half a million (announced 15/6/06).
Openreach is currently fulfilling more than 20,000 LLU orders per week.
Nearly 20 LLU Communications players provide unbundled services from almost 1,000 local exchanges across the UK today.
The EMP will be able to handle greater volumes and improve automation of business critical processes for all LLU users

6. Local Loop Unbundling (LLU)
BT Exchange
Full unbundling - Metallic Path Facility (MPF)
The whole line is transferred from Openreach to Communications Providers
Communications Providers can provide any combination of Broadband, Voice and TV services to end users
Shared line - Shared Metallic Path Facility (SMPF)
Communications Providers share a line between the local exchange and their end user’s premises in order to supply broadband.
Telephony services, provided by a WLR Communications Provider, use the same line
Customer
Premises
CP DSLAM
NTE
Openreach provided
Openreach responsibility

7. Wholesale Line Rental Communications Providers are able to:
BT Exchange
Openreach:
Provides, repairs and maintains the lines
Bills the Communications Providers for services
Communications Providers:
Sell services to end users
Set prices
Bill end users
Arranges for calls to be handled
Communications Providers are able to:
Offer an own branded service to their customers using Openreach access network
Own the end to end customer relationship
Customer
Premises
Voice switch
NTE
Openreach provided
Openreach responsibility

8. Operator Density UK Nationally* there are:
2-5 Operators
6+ Operators
Nationally* there are:
1698 unbundled exchanges in service at 30th June 2007.
This represents 77.6% of Households.
465 have six or over operators present.
741 have two to five operators present.
492 of these have one operator present.
Overall at 1st July 2007 there were 2,423,567 unbundled lines.
* Now taking into account novations, takeovers and ceases

9. Ethernet Products – June 2007
End User Site
BT Access Node
BT Access Node
Ext. CP PoP Site
End User Site
WES
Local Access
WES
WES Aggregation
WEES
BES (Daisy Chain)
BES Backhaul Only
Backhaul only
BNS
e.g. cell site
ONBS
ONBS only available in 21CN footprint

10. Private Circuit (Leased Line)
PPC
PPC
Customer
Site
Customer
Site
TILLAP
TILLBP
Trunk
TILLBP
TILLAP
BT Core
Local
Exchange
Point of
Interconnect
Point of
Interconnect
Local
Exchange
Retail PC Product
Wholesale Provide
PPC Partial Private Circuit
Openreach Provide
TILLAP and TILLBP

11. 21CN - The operational challenge is huge
30 million customer lines to be migrated to 21CN
Five year migration programme
Half a million tests conducted in the countdown to and during the first phase of end user migration
More than 40million calls already successfully carried over IP trunk network link
More than 300 trialists already testing end to end services between MSANs
Whatever way you look at 21CN it’s BIG….

12. 21CN – End user migration progress
2011
2010
2009
2008
Broadband
PSTN
Both
2007