1. PPC Industry Forum, 7 June 2007

2. Managed Bandwidth Services BTW Products and Strategy Disclaimer BT has taken reasonable care to check that the information contained in the following slides was accurate at time of publication. Any price indications or timescales contained within this presentation are estimates for information purposes only and do not constitute any contractual or other obligation. In relation to any products/services referred to in this presentation which are currently under development and/or trial, BT gives no undertaking or other commitment that the product/service will be made commercially available BT reserves the right to make changes to the information in this presentation at any time without further notice Exclusive reliance on the information in this slide pack is at your own risk Partial Private Circuits

3. Managed Bandwidth Services BTW Products and Strategy Agenda Introduction – Leslie Hurrell-Smith Review of previous actions – Pauline Cowie/All Product Development Update – Pauline Cowie/All Industry Forum Issues Log – Pauline Cowie/All Product In Life Update – Pauline Cowie/All QoS Billing Communications Product Handbook Regulatory Update – Kath Embleton AOB – All Meeting Review – Leslie Hurrell-Smith Date of next meeting - All Partial Private Circuits

4. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point Review

5. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/1 (01/12/05) – “BT to investigate the inclusion of eCo Repair in the data quality monitoring on the One Truth Data Base” 07/07/07 – Alignment delayed due to priority being given to EOI/TSR system separation. This alignment is being worked on in the background with an anticipated completion date of Q4 2007/08. Action to be reviewed December 2007 to check completion on track. Action Ongoing

6. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/1 (07/12/06) – “Wolverhampton CMC have asked CPs to provide circuit IDs of A Ends to begin provision process, but SNEiD is already provided to the CMC and should suffice. BT to check why this is requested” 07/06/07 – Bilateral meeting held 19/04/07, ISH SNEiD alignment to ISH charging points discussed and agreed. Action Discharged

7. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/2 (07/12/06) – “Do BTW provide wholesale variants of Defence Private Services, and if not, can these be developed as a service for CPs to take?” 07/06/07 – No SoR received from Industry. Action discharged.

8. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 12/6 (07/12/06) – “BT to check legal implications of previous application of Ancillary Charges which were charged but not noted in the CPL” 07/06/07 – CPL to be updated with “Cancellation from day after FOCA” will incur published cancellation charges. Industry agreed to this change. Action Discharged

9. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Response to Action Point 03/1 (01/03/07) – Product Handbook: BT to present on changes to the Product Handbook at the next Industry Forum. BT to extend CP’s feedback on issues to 16 th March 07. 07/06/07 – Updates to the Handbook is based on original feedback, no additional feedback received following March’s forum. Handbook to be up-issued to issued 3 and published on the PPC Reference Offer website. Action Discharged

10. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/2 (01/03/07) – Stop the Clock: BT to produce individual CP’s Third Party STC reasons for analysis. Account Teams to work with CPs to understand how to reduce number of instances where STC is initiated due to CPs Third Party site issues. Partial Private Circuits Update on next slide

11. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Third Party Stop the Clock Reasons – April 2007

12. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/3 (01/03/07) – Exchange Closure: CPs to provide BT with a list of people within their organisation who should receive Exchange Closure notification. CPs to provide this information by 30 th March 07. 07/06/07 – 2 CPs provided BT with notification information. Process for Exchange Closure agreed. Action Discharged Partial Private Circuits

13. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/4 (01/03/07) – Exchange Closure: CPs request BT provide an inventory of PPC services that will be impacted by the closure of an exchange. 07/06/07 – Agreed with industry that inventory would be provided to each CP’s Service Manager and CP contacts. Action Discharged Partial Private Circuits

14. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/5 (01/03/07) – 21CN Point to Pont: BT to report back to CPs re exchange closure as a result of 21CN. 07/06/07 – Industry was advised that as part of the Consult 21 point-to-point discussion BT has given the assurance that exchange closures currently planned are for reasons other than 21CN. Action Discharged Partial Private Circuits

15. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/6 (01/03/07) – CLZ/Metro Pricing: BT to Clarify CLZ and Metro Price List Entry. 07/06/07 – Price List being updated to add ‘London Metro’ to 2Mbit/s CLZ entry at B8.03 and to remove reference to 0207 exchange area. Action Discharged Partial Private Circuits

16. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/8 (01/03/07) – Pricing Tool: 1) BT to ensure Pricing Tool highlights Infrastructure and Excess charges are included in the price quoted. The tool currently quotes circuit prices only. 2) Consider the possibility of CPs being given the ability to input their PoH postcodes or Grid References as an inventory in future developments. Partial Private Circuits 07/06/07 – Update provided: Enhancements to tool will be managed in various phases with Phase 2a target to complete in September 07. June 07 – Inclusion of RBS and E-Line pricing. July 07 – more PPC enhancements and inclusion of Megastream Ethernet pricing. BT to provide industry with pricing tool project plan. Action Ongoing

17. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/9 (01/03/07) – Issues Log: BT to review log to remove Replicability issues and also to include ‘Origin’ of issues on the log. 07/06/07 – Issues log amended. Industry request further amendments to include ‘Date Issue Raised’, Issue Originator’ and a ‘Good Description of Issue raised’ Issue originator to ensure Issue is clear, unambiguous and clearly describes the issue raised. Action Ongoing Partial Private Circuits

18. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/10 (01/03/07) – Customer Satisfaction: BT Account Teams to work with Industry to understand customer sat responses and what can be done to make the responses more meaningful. 07/06/07 – CPs currently working with their Account Teams. Action Discharged Partial Private Circuits

19. Managed Bandwidth Services BTW Products and Strategy Response to Action Point 03/11 (01/03/07) – B End Shift – Internal/External Shifts: Cost does not appear to be correct BT to Investigate. 07/06/07 – This issue is under investigation. BT to update industry on findings within 6 weeks of forum. Action Ongoing Partial Private Circuits

20. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Industry Forum Issues Log

21. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product Development Update

22. Managed Bandwidth Services BTW Products and Strategy Data Connectivity Development Timeline PPC Enhance Phase 2 - Volume & Term Discounts TDM Conversion – Ethernet based product; 7.6Mbit/s 4 x 2Mbit/s; Trial end June/beginning July. Online Pricing Tool Phase 2a – Target completion Sept 07 622Mbit/s PPC Price Re-Launch – proposed pricing from online pricing tool based on 2.5 times 155Mbit/s prices ACO Proposed improvements – proposed interim forecast.

23. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product In-Life Update QoS Billing Communications Customer Satisfaction Product Handbook

24. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance - Reporting Update Q4 Aggregated Report published on website Q4 CP reports distributed Retail Comparison available on CDD, CRD and Repair PPC/Retail Comparison Q4 Provision Retail 97.08% PPC 96.59% Repair Retail 82.66% PPC 87.67%

25. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance – Q4 Highlights Circuit CDD performance improved to 96.59% from 93.67% last quarter. FOCR performance has improved for the 6th quarter in a row. 78.99% against 78.81% in the last quarter. The percentage of Stop the clock instances due to the Third Party customers decreased significantly from 92% in the last quarter to 75% in this quarter. The repair performance improved from 86.07% in the last quarter to 87.67%. New installation faults is down from 4184 in the last quarter to 3782.

26. Managed Bandwidth Services BTW Products and Strategy QoS QoS Performance – Q4 Lowlights The performance on Highband FOCR is similar to the last quarter's and is not likely to improve based on the 8 day response window The Stop the Clock instances increased to 1839 from 1689 in the last quarter, against a decrease in the volume of circuits ordered this quarter. The number of new installation faults down to Communication Providers increased from 71.69% in the last quarter to 76.66%. BT suffered 9 Serious Network incidents.

27. Managed Bandwidth Services BTW Products and Strategy Billing

28. Managed Bandwidth Services BTW Products and Strategy PPC Migration to GenIUS - Timeline Apr 07MayJunJulAugSep Oct Nov Dec Sample bill backup containing realistic data Parallel test Oct bill Live Migration PCNBS July Bill 1st Live GenIUS PPC Bill Jan 08 FebMar Contingency: PCNBS continue to bill to January PCNBS Oct bill CPs uses Sample data to start In house development BT require CPs sign-off CPs billing development phase CP load & test Oct bill data PCBNS GenIUS CP Test Migration for select CPs

29. Managed Bandwidth Services BTW Products and Strategy Communications No reported website outages Withdrawal of Spare Capacity Charges – 5/3/07 Issue 2 of PPC IRO Review - 7/3/07 Partial Private Circuits

30. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product Handbook Revision Generic change to replace PECN and customer with Communications Providers. Following slides detail other changes to the document

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34. Managed Bandwidth Services BTW Products and Strategy Regulatory Update PPC IRO PPC Price Control Leased Line Market Review (LLMR)

35. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Forum Review

36. Managed Bandwidth Services BTW Products and Strategy A.O.B Next Meeting Scheduled 6 th September 2007 BTC, Business Showcase Partial Private Circuits