1. ©OTA O TA Office of the Telecommunications Adjudicator 1 11/10/20041 High Level Review and Status of Activities under the Telecommunications Adjudicator Scheme for Local Loop Unbundling Further details can be obtained by contacting Peter Black or Clive Fedida

2. ©OTA 2 O TA Office of the Telecommunications Adjudicator 11/10/20042 Local Loop Unbundling The Vision The Objectives

3. ©OTA O TA Office of the Telecommunications Adjudicator 3 11/10/20043 Vision By January 2006 the LLU industry will have the operational capability to deliver more than One Million unbundled local loops per annum in a manner that will enable efficient, fair and viable competition on a high quality platform.

4. ©OTA O TA Office of the Telecommunications Adjudicator 4 11/10/20044 The Vision Will Deliver Greater than 4,000 copper loops unbundled per day Greater than 4,000 copper loops unbundled per day BT Site preparation ahead of the Market needs BT Site preparation ahead of the Market needs Customer Provisioning and Customer Faults no longer issues Customer Provisioning and Customer Faults no longer issues Migrations between Products and Operators no longer a barrier to success Migrations between Products and Operators no longer a barrier to success High Quality & Volume, Multi-Service Platform in Place High Quality & Volume, Multi-Service Platform in Place

5. ©OTA O TA Office of the Telecommunications Adjudicator 5 11/10/20045 We will achieve the Vision through the Critical Success Factors Agreed with BT Wholesale and the LLU Operators Throughput – Orders Processed per Day Throughput – Orders Processed per Day Right First Time – Orders Delivered On Time, To Defined Quality Right First Time – Orders Delivered On Time, To Defined Quality Telephony Migration – e.g. Number Portability Telephony Migration – e.g. Number Portability Broadband Migration – e.g. Existing Services Moving to LLU based services Broadband Migration – e.g. Existing Services Moving to LLU based services Backhaul – Enhanced Products Required (consultation with Ofcom in process) Backhaul – Enhanced Products Required (consultation with Ofcom in process)

6. ©OTA O TA Office of the Telecommunications Adjudicator 6 11/10/20046 First Quarter Adjudicator Activities Visit the scheme operators to obtain their input, share and develop the Vision - Complete Visit the scheme operators to obtain their input, share and develop the Vision - Complete Identify the business plans where large early volumes will come from. Aggregate business plan physicals -Complete Identify the business plans where large early volumes will come from. Aggregate business plan physicals -Complete Operators & BT to nominate senior operational exec to join the UK LLU ‘Market Breakthrough’ Executive - Complete Operators & BT to nominate senior operational exec to join the UK LLU ‘Market Breakthrough’ Executive - Complete Paul Reynolds to confirm to industry BT support for Joint BT & Industry Vision and Critical Success Factors – Complete Paul Reynolds to confirm to industry BT support for Joint BT & Industry Vision and Critical Success Factors – Complete Resolve/Assimilate Current Disputes & Concerns - Ongoing Resolve/Assimilate Current Disputes & Concerns - Ongoing Get support from the LLU working group - Complete Get support from the LLU working group - Complete

7. ©OTA 7 O TA Office of the Telecommunications Adjudicator 11/10/20047 First/Second Quarter Activities Initiate Rapid Product Review – Complete Initiate Rapid Product Review – Complete Initiate Process & Automation Reviews – Complete Initiate Process & Automation Reviews – Complete Review and Develop Overview KPIs – Complete Review and Develop Overview KPIs – Complete Review Need to Develop SLGs to Complement KPIs – In progress Review Need to Develop SLGs to Complement KPIs – In progress Walkthrough all processes from Customer Order to Customer In-service and Bill with Operators and BT – Complete Walkthrough all processes from Customer Order to Customer In-service and Bill with Operators and BT – Complete Implement Key Measures Based On End User performance – 50% progress Implement Key Measures Based On End User performance – 50% progress

8. ©OTA O TA Office of the Telecommunications Adjudicator 8 11/10/20048 Early Success BT appointed a Director for LLU and are forming a single organisation to deliver the industry Vision for LLU BT appointed a Director for LLU and are forming a single organisation to deliver the industry Vision for LLU BT ramp-up of resources to cope with Number Portability demand BT ramp-up of resources to cope with Number Portability demand Suspension of penalties for under-achievement of MPF forecasts Suspension of penalties for under-achievement of MPF forecasts Intervention required to help improve performance of newly introduced Broadband Migration process Intervention required to help improve performance of newly introduced Broadband Migration process BT agreed to overhaul change control for LLU Products, Processes and Systems with immediate effect BT agreed to overhaul change control for LLU Products, Processes and Systems with immediate effect

9. ©OTA O TA Office of the Telecommunications Adjudicator 9 11/10/20049 Market Breakthrough Executive Formed Market Breakthrough Executive Formed Focussed Workshop held on September 2 nd Focussed Workshop held on September 2 nd Operational & product Executives, from Operators & BT were present Operational & product Executives, from Operators & BT were present Analysed and Agreed LLU Success Criteria Analysed and Agreed LLU Success Criteria Formulated outline Breakthrough Plan Formulated outline Breakthrough Plan Adjudicator Team co-ordinating overall plan Adjudicator Team co-ordinating overall plan Detailed Workshops on Operations, Product and Automation held week beginning 13 th September Detailed Workshops on Operations, Product and Automation held week beginning 13 th September First Pass Breakthrough Plan Produced by 30 th September – Clarification work in progress First Pass Breakthrough Plan Produced by 30 th September – Clarification work in progress BT and Operators will execute Breakthrough Plan when agreed BT and Operators will execute Breakthrough Plan when agreed

10. ©OTA O TA Office of the Telecommunications Adjudicator 10 11/10/200410 LLU Operators Requirements - Output From Workshops Co-mingling build predictability – ability to plan 12 month DSLAM rollouts Backhaul products – longer reach LES/BES with aggregation MPF and SMPF forecasting – renegotiate punitive under- forecasting penalties Migration processes – implementation of Broadband migration and number portability Systems – MPF and SMPF ordering and repair, parallel development, test systems, defect management etc MPF and SMPF Delivery performance – volumes, RFT, on time Repair products – equivalence, with PSTN and leased line MPF and SMPF Repair performance – on time, accurate RWT

11. ©OTA O TA Office of the Telecommunications Adjudicator 11 11/10/200411 The Market Needs – Growth in Loops

12. ©OTA O TA Office of the Telecommunications Adjudicator 12 11/10/200412 Key Performance Indicators – Throughput Capability Required 50K Lines Unbundled by January 2005 50K Lines Unbundled by January 2005 250K Lines Unbundled by June 2005 250K Lines Unbundled by June 2005 400K Lines Unbundled by September 2005 400K Lines Unbundled by September 2005 550K Lines Unbundled by January 2006 550K Lines Unbundled by January 2006 1M Lines Unbundled by June 2006 1M Lines Unbundled by June 2006 Based on Operators and BT Forecasts Based on Operators and BT Forecasts

13. ©OTA O TA Office of the Telecommunications Adjudicator 13 11/10/200413 Key Performance Indicators – Delivery Quality Milestone Targets Right First Time today 50% Right First Time today 50% Right First Time 75% by November 2004 Right First Time 75% by November 2004 Right First Time 85% by January 2005 Right First Time 85% by January 2005 Right First Time 95% by March 2005 Right First Time 95% by March 2005 Right First Time 98% by June 2005 Right First Time 98% by June 2005 Right First Time 99.8% by January 2006 (aspirational) Right First Time 99.8% by January 2006 (aspirational)

14. ©OTA O TA Office of the Telecommunications Adjudicator 14 11/10/200414 Vision By January 2006 the industry will have the operational capability to deliver more than One Million unbundled local loops per annum in a manner that will enable efficient, fair and viable competition on a high quality platform.