Innovation in the Access Network- Our evolving portfolio and ecosystem Johnny McQuoid, MD Service Design, Openreach

Innovation in the Access Network – our evolving portfolio and ecosystem Johnny McQuoid CIO Openreach 7th February 2013

Openreach - LLU, Ethernet and NGA Openreach was formed in January 2006 To deliver underpinning infrastructure under Equivalence of Input (EOI) terms for all. To stimulate competition in higher layer network services. The result: Non-BT LLU growth to >7m lines (from <1m in 2006) and Wholesale Line Rental at >7m. Growth in Ethernet backhaul services enabling real network-based competition. UK Broadband availability and competitiveness remains amongst the highest in the G8. Now enabling Superfast Broadband for the UK.

We’re creating the UK’s superfast fibre access network £2.5bn Investment >13m premises passed >35,000 Cabinets deployed >1,300 Exchanges enabled >25 million man hours invested BDUK wins Ambition to reach 90% UK by 2017 Multicast capability to support IPTV 1.5m premises passed by early summer 2010 >13m premises passed Now 15m premises passed by end FY 2012/13 2/3 of UK premises passed by spring 2014

Enabling Innovation in Openreach and Communications Provider Domains Ethernet to enable Physical Media Independence separates concerns Innovation above and below that layer Innovation requires commercial incentives for all Openreach – long term infrastructure case Communications Providers – shorter term retail cases Criticality of Scale and Pace in our Market Model Many Communications providers need volume Global experience suggests NGA take-up grows steadily and take-up is partial FTTC Overlay model for now GEA FTTC enables rapid deployment and speedy provision VDSL2 performance improvements ANFP changes to enable – up to 80Mb/s GEA FTTP where cost case is compelling New sites, MDU (a relatively small % in UK), low cost deployments Future FTTP Fibre on Demand in FTTC areas To enable high demand clusters and 300Mb/s service rates Enabling real Innovation in Openreach and our CPs’ domains Unlocking real value for customers and communities

ANFP 80 Mbit/s Bonding Vectoring An enabling framework for Openreach and industry innovation SUBSET OF WDM EXCHANGES (OPENREACH HANDOVER POINT) BROADCAST TV 8 WAY SPLIT INTERNET NEW FIBRE CABLE 4 WAY SPLIT VoD SERVER Voice Sync options 5500 LOCAL EXCHANGES SSU ASDH FTTP NEW FIBRE CABLE Ethernet ANFP 80 Mbit/s Bonding Vectoring ‘E’ SIDE COPPER NEW & EXISTING HOUSES EXISTING HOUSES Voice Internet FTTC T.V. FTTP ‘D’ SIDE COPPER Voice Huawei ONT Internet T.V. Modem Fibre on Demand Voice Internet T.V. Modem Termination

CPs are innovating now to meet consumer market demand for fibre and to drive an IPTV revolution

Future Innovation in the customer domain HD streamed games – without a console Interactive TV: a new TV experience Doctor @ Home Look Left Look Forward Look Right Touch-screen telepresence – a window into your world 360 degree video streaming – with real-time end-user control Virtual academy – removing the barriers to learning

A few examples of Openreach Innovation Creation of the Ethernet Open Access model for NGA. Creation of a new class of network platform Development of the Equivalence Management Platform. The UK telecoms industry’s B2B gateway Launch of the 80/20 Higher Frequency Bandplan. Increasing the value of FTTC to us and our customers Fibre. A long history of innovation and industrialisation over 3 decades Copper Test and Diagnostics. Hand-held and network tools to speed fault location and repair Conducrete. One of many innovations to enable one of the fastest global NGA deployments

Openreach and Adastral Park Adastral Park supports our innovation activities with our customers, stakeholders and suppliers. Innovation is key for us, but it needs to be Invention plus Implementation. Much is done with our 20,000+ engineers in the field and to support them. A lot of the work is done here in Adastral. The “4 Acre Site” is a field lab for many of the innovations critical to Openreach Cables, Plant and Practices. Integration of our NGA propositions – Active Equipment, Cables, Ducts and Poles, Systems, Processes and Procedures. A place where Openreach, BT’s R&T people and suppliers all come together. Our key equipment suppliers for NGA and Ethernet have people here – e.g Ciena, Huawei and ECI. Some infrastructure vendors are also here – e.g. Prysmian. Many of our early field trials are done locally, for example much of the fibre work was trialled down the road in Foxhall.