1. Interconnect Policy & Contract www.btwholesale.com

2. Interconnect Policy & Contract www.btwholesale.com SYSTEM ALTERATIONS Mark Ward - Interconnect Policy

3. Interconnect Policy & Contract www.btwholesale.com What is a System Alteration ? A change made to one Operator’s network that requires changes to be made in the other Operator’s network over and above a Data Management Amendment to allow Calls to continue to be passed.

4. Interconnect Policy & Contract www.btwholesale.com What are the Obligations? 1. On the Operator making the change. A. Provide at least 7 months written notice specifying the technical details and the anticipated date of the change. B. If the change is not covered by some very specific instances where each Operator will bear its own cost then, if it agrees the proposed alterations required in the other Operator’s network and agrees the quotation (if any) provided by the other Operator, to pay a sum not exceeding the quotation when invoiced at the conclusion of the change.

5. Interconnect Policy & Contract www.btwholesale.com What are the Obligations? 2. On the Operator receiving the notice. A. To notify the Operator making the change of any alterations required in its network within a month - other than DMAs. B. To provide a quote if it wishes for the cost of any such alterations (other than DMAs) calculated on the basis of minimum cost consistent with good engineering practice. C. To provide this no later than a month after receiving the original notification.

6. Interconnect Policy & Contract www.btwholesale.com What are the Obligations? 3. On both of the Operators A. To agree a plan within four months of the original notification to allow the implementation of the System Alteration to proceed and subsequently to carry out that plan.

7. Interconnect Policy & Contract www.btwholesale.com When are these used ? A. Very rarely in the past - most network changes only require Data Management Amendments which are carried out free of charge by Operators based on the knock for knock principle. B. Not required for NGS programme - BT arranged that the new switches retained the same point code as the original so all that was required was a straightforward planned engineering works - again carried out free of charge by Operators based on the knock for knock principle. C. But has been used on two recent BT programmes………...

8. Interconnect Policy & Contract www.btwholesale.com Example: 1. Limited DLE Replacement Programme A.Replacing DLEs with new technology requiring changed point code to original and possibly route consolidation - no doubt that System Alteration applies as more than DMA required. B. System Alteration Notices issued and negotiations between BT and Operators connected to affected DLEs. C. Bi-lateral agreements made based on alterations each Operator thought were required to their networks.

9. Interconnect Policy & Contract www.btwholesale.com Example: 2. DLE Consolidation Programme A. Closure Programme for 90+ DLEs - Concentrators re-parented onto other DLEs - System Alterations possibly apply where FRIACO routes are present - other services can be re-routed via tandem layer using DMAs. B. BT issues System Alteration notices to all Operators connected to the affected DLEs even where SA terms not strictly applicable.

10. Interconnect Policy & Contract www.btwholesale.com Example: 2. DLE Consolidation Programme C. All Operators given opportunity to retain local connection to number ranges on re-parented concentrators - BT will agree to free of charge provision of equivalent Capacity, justified by current traffic levels or agreed forecast (ACO), but does not expect to then pay out to cover other Operators costs where tandem delivery would otherwise ensure continuance of Calls. D. Some FRIACO Operators will fall into System Alteration terms and BT will pay agreed quotations accordingly.

11. Interconnect Policy & Contract www.btwholesale.com Any Questions ?

12. Interconnect Policy & Contract www.btwholesale.com

13. Interconnect Policy & Contract www.btwholesale.com System Alteration Notification (SAN) Process Using BT’s DLE Node Consolidation Program as an example. Presentation to SCRF 07/11/03 Presented by Chris Mitchell

14. Interconnect Policy & Contract www.btwholesale.com Operator provides details and Quote of costs (if any) SAN + 1 Month (Max) Operator BT Operator notified of BT’s planned network change by means of a SAN At least 7 Months before planned change (Min) Action Time Scale Owner Work completed, Operator invoices BT. OperatorBT Invoice paid when presented by Operator Invoice + 1 month System Alteration Notification Process Assuming BT is the issuer. SAN + 3 Months (Max) Operator & BT Quote agreed in writing & signed by both Parties Earliest reciprocal work start Operator & BT Joint Negotiations Agreement ? Disputes Procedure No Yes

15. Interconnect Policy & Contract www.btwholesale.com BT provides generic notification of intentions to all Operators by means of a Network Briefing available at http://www.btwholesale.com/interconnect2bt/network_information/netwo rk_briefings http://www.btwholesale.com/interconnect2bt/network_information/netwo rk_briefings Notification - 1.

16. Interconnect Policy & Contract www.btwholesale.com Notification - 2a. Affected Operators are subsequently individually notified by means of a formal System Alteration Notification, and.... Typical System Alteration Notification This is a formal System Alteration Notification in accordance with paragraph 4. of the NETWORK CHARGE CONTROL (ANNEX 2) STANDARD INTERCONNECT AGREEMENT. Further to the Network Briefing 'DLE Consolidation Program', and information contained in NIPPDLE Consolidation Program DLE Consolidation will require changes to your system with respect to the BT DLEs indicated on the accompanying spreadsheet that you currently interconnect with. As per paragraph 4.2 please advise BT, within one month of the receipt of this notice, of any alterations required to your System as a result of the proposed System Alteration and supply a quotation for the cost, if any, of such alterations calculated on the basis of the minimum cost consistent with good engineering practice. A response is required by

17. Interconnect Policy & Contract www.btwholesale.com Notification - 2b.... a customised spreadsheet detailing the changes that affect them.