1 Carrier Market Solutions BT Carrier IDD Volume Commitment Proposal Anthony Sheppard BT Carrier Services

2 Carrier Market Solutions Background Market increasingly competitive Increasing volatility Increased use of Net Accounting Need to offer more stable, more competitive prices

3 Carrier Market Solutions Proposal specific prices for committed volumes not a volume discount scheme price is for commitment ‘send or pay basis’ standard price still available for uncommitted volumes

4 Carrier Market Solutions How this will work (1) register with your Commercial Manager price for a route, DISC and DMSU minutes/month available at DISC and DMSU duration of offer 2-6 months min bid 5% of total, max bid 25%, bid in increments of 5% offers will be posted on the web as soon as normal notification has been issued

5 Carrier Market Solutions to bid you call a designated number accepted on first come first served basis bids confirmed by and letter bids are contractually binding committed to pay for 100% of volumes oversend of up to 10% at offer rate How this will work (2)

6 Carrier Market Solutions Effect of Over/Under-shoot 100K mins. offered Std. Price = 10 ppm Offer Price = 8 ppm

7 Carrier Market Solutions Implementation Finalise admin. Arrangements –customer registration –new contract schedule Ensure customer awareness

8 Carrier Market Solutions SUPPLEMENTARY SLIDES

9 Carrier Market Solutions Example of Oversend

10 Carrier Market Solutions Example of Undersend