1. the best of both worlds Ian Livingston CEO BT Retail BT Fusion

2. BT Fusion - best of both worlds ‘all the convenience and features of a mobile phone with fixed line costs and quality ’

3. BT Fusion – how it works BT Broadband line

4. The best of both worlds BT landline rates when you are at home or office Competitive mobile bundled minutes when you are out and about Free BT Fusion Motorola v560 phone –Stylish, compact flip phone design with large, vivid colour display with video and camera Free BT Hub to wireless network your home

5. Meeting customer needs “70% of customers avoid paying mobile rates by using a landline” “Over 30% of mobile calls are made from the home today” “19% of customers have problems with mobile coverage”

6. BT landline rates when calling from home or office –5.5p per hour evenings/weekends –3p per minute peak hours Out and about –Competitive mobile rates –Free short calls home –Monthly subscription from just £9.99 (inc 100 mobile minutes) Free phone, free BT Hub

7. BT Fusion – exceptional value Call type : from mobile device to UK landline in the home 5 min (pence) 10 min (pence) 30 min (pence) 60 min (pence) % saving 10 mins Peak call % saving 10 mins off-peak call BT Fusion Off Peak5.5p BT Fusion Peak15p30p90p180p "3" Videotalk 50025p50p150p300p40%89% Orange 200+100 online50p100p300p600p70%95% O2 (Anytime) 20050p100p300p600p 70%95% T-Mobile Relax 200 self service50p100p300p600p70%95% Virgin Pay monthly 20075p100p200p350p70%95% Sainsbury's O2 20050p100p300p600p70%95%

8. 5 min30 min60 min % saving 10 mins Peak call BT Fusion – exceptional value Call type : from mobile device to UK landline in the home "3" Videotalk 500 Orange 200+100 online O2 (Anytime) 200 T-Mobile Relax 200 self service Virgin Pay monthly 200 10 min % saving 10 mins off-peak call BT Fusion Peak 5.5p 15p 30p 90p180p 25p50p150p300p40%89% 50p100p300p600p70%95% 50p100p300p600p 70%95% 50p100p300p600p70%95% 75p 100p 200p350p 70% 95% 50p100p300p600p70%95%Sainsbury's O2 200 BT Fusion Off Peak

9. BT Fusion – exceptional value Call type : from mobile device to UK landline in the home 5 min30 min60 min % saving 10 mins Peak call "3" Videotalk 500 Orange 200+100 online O2 (Anytime) 200 Virgin Pay monthly 200 T-Mobile Relax 200 self service 10 min % saving 10 mins off-peak call BT Fusion Off Peak 5.5p 15p30p90p180p 25p50p150p300p40%89% 50p100p300p600p70%95% 50p100p300p600p 70%95% 50p 100p 300p600p70% 95% 75p100p200p350p70%95% 50p100p300p600p70%95%Sainsbury's O2 200 BT Fusion Peak

10. BT Fusion – exceptional value Call type : from mobile device to UK landline in the home 5 min10 min30 min % saving 10 mins Peak call % saving 10 mins off-peak call "3" Videotalk 500 Orange 200+100 online O2 (Anytime) 200 T-Mobile Relax 200 self service Virgin Pay monthly 200 60 min BT Fusion Off Peak 5.5p 15p30p90p180p 25p50p150p300p40%89% 50p100p300p 600p 70%95% 50p100p300p600p 70%95% 50p100p300p600p70%95% 75p100p200p350p70%95% 50p100p300p600p70%95%Sainsbury's O2 200 Over 99% saving BT Fusion Peak

11. Phone that automatically connects through BT Broadband One personal phone Free BT Hub to wireless network your home 3 phones can be used at once Seamless handover

12. Guaranteed coverage at home and office Range 20-25 metres in typical home 50-100 metres in free air Excellent voice quality Mobile when out and about

13. BT Fusion – a world first Start delivery to around 400 paying customers Today September Start rollout Register today at bt.com/btfusion Autumn Further propositions for business Just the start

14. just the start Steve Andrews Chief of Mobility & Convergence BT Fusion

15. BT Broadband line BT Fusion – just the start Bluetooth Today Connection via Bluetooth to Broadband Seamless in-call handover Wi-Fi enabled BT Hub Up to 6 phones per household, 3 calling simultaneously Wi-Fi

16. The future Migration to Wi-Fi phones Richer services at broadband speeds BT Broadband line BT Fusion – just the start Wi-Fi More places More mobile devices

17. Evolution of BT Fusion - More devices Greater range of devices from Tier 1 vendors –The Motorola V3 RAZR will be the next BT Fusion Bluetooth/UMA handset - available later this year –Working with Motorola, Nokia and Samsung to launch 6 Wi-Fi/ UMA handsets in around 12 months

18. Creating a world first

20. Driving fixed mobile convergence globally Fixed Mobile Convergence Alliance (FMCA) Currently the fastest growing operator alliance, founded & chaired by BT Driving standards based solutions & convergence handsets 18 Members representing over 300 million customers –Auna, AT&T Corp, Belgacom, Bezeq, Brasil Telecom, BT, Cegetel, Cesky Telecom, Eircom, Korea Telecom, KPN, NTT Com, PCCW, Rogers Wireless, Swisscom, TRUE/ Orange, Telecom New Zealand & Telkom South Africa

21. Typical new product growth Years Volume

22. Typical new product growth Years DSL Broadband customers 2001 20032005 20042002 >5 million

23. Connected anywhere A wireless world - through convergenceBluetoothWi-Fi Private/Guest Wi-FiPublicWi-Fi Public Wi-Fi

24. Connected anywhere A wireless world - through convergenceBluetoothWi-Fi PublicWi-Fi Private/Guest Wi-Fi Seamless, ubiquitous, easy to use & secure Public Wi-Fi

25. Connected anywhere - BT Building the future Over 7800 hotspots in the UK Over 30,000 hotspots globally Enterprise wireless LAN & guest Wi-Fi

26. Delivering new services & applications Enterprise BT Fusion Converged voice & data messaging High quality video- centric services Machine to machine More convergence devices

27. A world first from BT Ian Livingston CEO BT Retail

28. ‘all the convenience and features of a mobile phone with fixed line costs and quality ’ BT Fusion – best of both worlds A world first