1. Next Generation Networks – delivering competitive advantage Neil McArthur Chairman, TalkTalk Technology

2. Agenda  What’s an NGN  Our NGN  The significance of Ethernet  The importance of QoS  Opals Network based SIP development  Managing Legacy to NGN migration  Assurance.

3. What is an NGN?  Multi-service network  QoS enabled  End to end IP based network  Separation of conveyance and service control (network intelligence) functions/applications  Ability to build new services without changing the network infrastructure  NGNs speed up innovation

4. Slide 4 PSTN Line Card DSLAM CATV Ethernet switch ATM / IP SDH / Ethernet NTE / Customer access device Access Network Aggregation Node Backhaul Network Network Edge IN platform Base Station PSTN V-HLR GMSC web e-mails Video server Core Network ASP / datacentre Phone PC TV Mobile Office premises ConveyanceApplications Network Intelligence Ofcom Current architecture

5. This document is uncontrolled if printed or saved to a non-authorised site. Slide 5 IP / MPLS MSAN Ethernet switch WDM / Ethernet NTE / Customer access device Access NetworkBackhaul Network Network Edge & Core Base Station Network Intelligence Phone PC TV Mobile Office premises Voice Web e-mails Video server ASP / datacentre Games Conveyance Network Intelligence Aggregation Node Applications Ofcom NGN architecture

6. What does our NGN look like?  Core network two 400 Gig fibre rings around the main population centres. 47 core POPs  800 Gig Supercore fibre network around greater London taking in all the Telehouses and main carriers  Layer 1 & 2, access network building to 2000 exchanges  Exchange MSANs copper and fibre, supporting Residential, SOHO and SME services  Hierarchical QoS enabled network hence supporting voice and data services

7. Index Core Network 800Gb 400Gb 10Gb DWDM Nodes (Optical connectors) Collector Nodes Unbundled Exchanges Fig 3 Covers over 80% of businesses – 2.1 million business premises Commitment to increase to 2,000 exchanges for both MPF and SMPF by end 2010 85% coverage of businesses Ethernet termination at 1,300 exchanges in 2010

8. But, we still have one of these to run

9. MPF Ethernet Backhaul High Level View of Opal NGN and TDM Networks MSAN TDM Switches ASX Switches IP/TDM Transit TDM GSX Switches Opal NGN Manchester BirminghamLondon Fig 1

10. Impact of Ethernet Source: Analysis Research, 2007

11. The significance of Ethernet  Has become the established standard for network interconnectivity, at work and in the home  A disruptive technology, replacing Frame Relay, ATM, E1,Token ring etc  Can be delivered cost effectively across large scale NGNs  Not distance dependant and highly scalable  End to end standards based, meaning compatibility  Creates another telecoms inflection point

12. Three phases of Carrier Ethernet  E-LAN, E-Line, E-Tree services  P2P, P2MP, MP2MP Metro and national Ethernet Layer 2  Access circuits to MPLS  10/100/1000Mbps fibre access, with resilience options  Incremental, flexible service bandwidths/internet over Ethernet option  Aim to be MEF 9 and 14 compliant Standard Ethernet Phase 1 EFM/NGA Ethernet over copper Phase 3 Enhanced Ethernet Phase 2  3Mbps-40Mbps service bandwidths over copper  To be included in Ethernet and MPLS services  Option for a lower-cost alternative / different SLA  EOAM 802.1ah - end to end QoS management and reporting  Remote diagnostics capability, enhanced alarm functionality resulting in better SLA, reduced downtime, greater visibility of service performance  Bandwidth profiling  Burstable bandwidth option

13. Tactical and Strategic Ethernet Ethernet Phase Product OfferedAccess mediumDemarcation of service Opal/Reseller Tools Tactical Wholesale implementation of: IPVPN Access P2P Ethernet P2MP Ethernet Fibre onlyLocal Exchange Pricing Strategic Wholesale and managed variants of: IPVPN Access P2P Ethernet P2MP Ethernet M2MP Ethernet Fibre Copper Local Exchange Customer Premises Pricing Ordering Reporting Service changes

14. QoS enabled network  QoS is the differentiator on NGN service delivery.  Network supports Hierarchical QoS in the core, edge and access  QoS Protocols - MPLS, COS, DiffServ  Precision Time Protocols. IEEE 1588v2  Layer 2 Ethernet OAM, ITU 1731  Layer 3 IPSLA

15. Opal’s SIP development  Our NGN already carries 1.5Billion minutes of VoIP traffic month  So where are the network based SIP products?  Connectivity is key in the SIP business  Functionality around In/ Outbound  Centrex- Featureline services  IVR services  Number portability

16. Voice Solution Overview  Access to suit customer requirements  Customer has transport choice  Network Hosted Features as standard  Up Sell to Network Value Adds

17. Managing TDM to NGN migration  Leave the choice to the customer.  Our view is we should accept voice traffic into the NGN either as TDM or IP. For both PSTN and ISDN.  Customers migrating to IP PBX may send traffic direct as IP over DSL or Ethernet.  Customers retaining TDM PBX may send traffic to the NGN over Ethernet using Circuit Emulation.  Traffic is carried into the core of the NGN and broken out into conventional TDM trunk exchanges.  This avoids building out TDM/SDH network out to exchanges.

18. No 1 in Copper Assurance  Investment of over £5M on copper loop testing  Openreach accept our fault data  Proactive fault management  Fastest average speeds over copper in the UK  Dynamic line management DLM optimises copper line speeds  Important in EFM deployment.

19. Key OAM Metrics reported on:  Availability  Throughput (% of CIR/EIR)  Frame Loss  Frame Delay  Frame Delay Variation Ethernet OAM Enables engineered SLA’s at Layer 3 and above by delivering Layer 2 fault and performance management End to end functionality validated through implementation of industry standards 802.1ag – Connectivity Fault Management (CFM) ITU T.Y.1731 – Service Performance

21. Our vision What does our NGN offer our partners?  Separate service from conveyance  Allowing Partners more space to add value  Moving to access based charging  Unify B2B connectivity towards Ethernet.  Roadmap of migration from legacy to NGN operation  Network SIP product set in development.  Better transparency of assurance

22. SIP CPE Retain TDM PBX ISDN30C/E Router NEW SIP PBX NGN Call Server Media Converter GSX C/E TDM Trunk Switch National TDM Network The Customer’s Choice

23. ? Any questions?

24. Opal NGN roadmap Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 2011 EthernetReach Dedicated internet access MPLS IP/VPN - Fibre, DSL, leased line access - Fully meshed, private networking - Performance reporting for customers Wholesale MPF and L2TP 8Mbps, 24Mbps Voice and broadband Ethernet L2/L3 VPNs E-Line, E-LAN services 3Mbps – 1Gbps options Internet over Ethernet EFM/NGA (Ethernet ) Symmetric bandwidth up to 10Mbps Enhanced Ethernet EOAM – E2E QoS Burstable bandwidth options Online performance reports Wholesale SMPF and L2TP 8Mbps, 24Mbps Voice and broadband VoIP ISDN30 replacement

25. customer metro exchange core NGN Network Topology and QoS edge www S U P E R C O R E 800G DWDM MSAN LAYER 2 SWITCH 10G DWDM 400G DWDM BRAs CU MPLS L7 Voice L4 Data Diffserv+ MPLS DF+L7 Voice EF+L4 Data PE Router COS L4 Voice L0 Data COS+ MPLS L4+L7 Voice L0+L4 Data P Router Core Switch Core Switch