1. High Volume, High Value, High Margin Opal Ethernet Lance Spencer

2. Our network This document is uncontrolled if printed or saved to a non-authorised site. Slide 2 UK’s largest and most connected Next Generation Network Scale 1,750 broadband enabled exchanges  3 times more than BT 21CN  2 times more than C&W Coverage 80% of UK on MPF and 55% on SMPF  Access to 2.1 million businesses  Increasing to 2,000 exchanges by 2010 (MPF & SMPF) Tried and Tested 4 million data customers generating  150 Giga bits / second of public Internet IP traffic  1.5 billion minutes of monthly VoIP traffic

3. Our network This document is uncontrolled if printed or saved to a non-authorised site. Slide 3 Network depth and multi-service platforms provide unique market advantage Optimised for resilience and capacity  800Gb supercore fibre network around London  2 x 400Gb fibre rings around main population centres  10Gb peripheral rings  High capacity backhaul to core network QoS enabled  Hierarchical QoS in the core, edge and access  Ethernet bandwidth assured (priority over Broadband) Ideal for the delivery of Ethernet  Deeply built access – large amount of PoPs  Short access lines (sub 6km)  Lowest cost base in the industry DWDM Nodes – Core Network – Collector Nodes - Exchanges

4. Broadband product positioning This document is uncontrolled if printed or saved to a non-authorised site. Slide 4 Increasing value Standard Business Degree of assurance High assurance Application performance requirement Data stream, LLUIP stream, data stream, LLU The only provider with a full range of SMPF, MPF, L2TP and managed broadband wholesale products 512K, 2Mb, MAX 512K- MAX, ADSL2+*, Annex M** Annex M 1:1 - 512K, 1M, 1.5M 2M** 512K to MAX, ADSL2+*, Annex M*, Low contention, bandwidth guarantees Premium LLU SDSL (M) Premium/ Assured ** SMPF only SDSL (M) Premium/ Assured Business Standard

5. Opal wholesale and reseller IPVPNs This document is uncontrolled if printed or saved to a non-authorised site. Slide 5

6. IPVPN growth remains strong This document is uncontrolled if printed or saved to a non-authorised site. Slide 6 Connections Revenues

7. UK Ethernet market This document is uncontrolled if printed or saved to a non-authorised site. Slide 7 Hosted applications / servers driving bandwidth requirements Mergers and acquisitions driving WAN refresh Sales Volume Time IntroductoryGrowthMaturityDecline National Ethernet Metro Ethernet MPLS IPVPN Next Generation Ethernet Simplification of WAN networks Poor customer service experience from incumbent supplier Ethernet simplicity and high availability

8. Volume of connections DSL Connections Bandwidth requirements by Corporate site Small Office, Retail outlet Large HQ, Datacentre Mid sized office Large office Leased Lines Ethernet DSL allows data services to be provided to smaller business units economically. Annex M and Bonding pushing into space previously occupied by Leased lines. More data at more sites means bigger “pipes” required to transport data to key sites Ethernet reducing in costs and requirements for convergence means bigger connections that can flex with demand are required at the expense of leased lines Ethernet Growth in Ethernet Products

9. Ethernet solutions Wholesale IPVPN Ethernet delivered as part of our wholesale IPVPN All connections are 100Mb with CIR of 10Mb intervals This document is uncontrolled if printed or saved to a non-authorised site. Slide 9 Customer sites Ethernet connection Core network IPVPN network Access to existing VPNS Existing sites or non Ethernet sites Handover point - NTE

10. This document is uncontrolled if printed or saved to a non-authorised site. Slide 10 Ethernet solutions Wholesale Ethernet Multiple circuits passed to a single interconnect Core network Existing sites or non Ethernet sites Handover point - NTE Partner network interconnect Aggregation point

11. Ethernet solutions This document is uncontrolled if printed or saved to a non-authorised site. Slide 11 Core network Handover point - NTE Ethernet connection Ethernet to internet Partner manages NAT, email scanning, port scanning etc. internet

12. This document is uncontrolled if printed or saved to a non-authorised site. Slide 12 Zone based pricing Zone 1 – local based access Fixed price if connecting in an Opal based exchange Opal Exchanges Zone 2 – non-local based access  Service brought back to an Opal exchange  Higher rental, and a per metre charge on main link  Main link cannot exceed 25km (as crow flies) and 40Km of fibre path  Main link can span multiple exchanges for long circuits

13. Ethernet footprint March 2010 Zone 1 exchanges = 705 Zone 2 exchanges = 4023 BTW 588 exchanges (plans to expand) C&W capability at 500+ exchanges This document is uncontrolled if printed or saved to a non-authorised site. Slide 13

14. This document is uncontrolled if printed or saved to a non-authorised site. Slide 14 Ethernet footprint December 2010 Zone 1 exchanges = 1300 Zone 2 = All cities and major towns covered.

15. This document is uncontrolled if printed or saved to a non-authorised site. Slide 15 Pricing – Zone 1 (local access) Wholesale IPVPN and wholesale Ethernet  Install£2450  Rental per annum 10Mb £6,000 100Mb£12,000 10MB increments available Wholesale Ethernet access to internet  Install£2450  Rental per annum 10Mb £7,200 10MB increments available FREE Installation with 3 year contract VOLUME DISCOUNTS Applicable on Zone 0 charges CONTRACT Terms 1 & 3 years

16. This document is uncontrolled if printed or saved to a non-authorised site. Slide 16 Pricing – Zone 2 (non local Access) IPVPN and wholesale Ethernet  Install £2450  Rental per annum 10Mb £8,400 + distance charges 100Mb£14,400 + distance charges 10MB increments available FREE Installation with 3 year contract CONTRACT Terms 1 & 3 years

17. This document is uncontrolled if printed or saved to a non-authorised site. Slide 17 SLA’s Target availability  99.93% - Point to multipoint, IPVPN and internet connectivity spoke sites  99.99% - Network hub/interconnect ports  99.86% - Point to point Service credits  For provisioning and repair

18. This document is uncontrolled if printed or saved to a non-authorised site. Slide 18 Three tier account management Commercial account manager Supports you day to day Business relationship manager Gets your business connected to our network Technical support manager There to support you 24/7/365 Technical consultancy Access to our own in-house technical consultants and engineers for product customisation Back-end systems Automated provisioning portals Same access to back-end systems as our engineers for managing new and existing installations Billing support Billing records delivered to secure FTP for easy access Our support

19. Ethernet access – high volume  Predicted UK market sizing (10Mb and 100Mb connections) This document is uncontrolled if printed or saved to a non-authorised site. Slide 19 Access type March 08March 09March 10March 11March 12March 13 10Mbps60,18471,71981,73690,66998,791106,229 100Mbps44,13551,42157,29262,12566,16369,531 TOTAL104,319123,140139,028152,795164,954175,760 * Ethernet forecast as UK’s fastest growing technology in terms of spend * 2008 demand for Ethernet grew by 27% * Predicted compound annual growth of 16% over the next four years Much of the £1Bn historic base either out of contract or up for renewal in the next year

20. Typical Partner Base – Top 20 Savings - High Values Note 1 Excludes OPAL Volume based discounts Note 2 Excludes Zone 0 discounts

21. Impact on OPAL Wholesale IPVPN - High Margins

22. This document is uncontrolled if printed or saved to a non-authorised site. Slide 22 Why Opal Ethernet? Value  Solutions for a variety of Wholesale markets  The widest Zone 1 (local access) footprint in the market  The widest Zone 2 footprint in the market  Disruptive pricing and FREE install for 3 year contracts Service  Dedicated UK business support specialists  Award winning – Cisco Customer Service Excellence Award 2009

23. This document is uncontrolled if printed or saved to a non-authorised site. Slide 23 Why Opal Ethernet? Full range of products  MPF based broadband products to optimise share of wallet  SMPF based broadband for special apps and web only delivery  Full range of Wholesale and Managed IPVPNs  Single supplier management across all communications needs Reliability  UK’s third largest business communications network operator  Over 15 years B2B experience serving over 300,000 businesses  Over £300M invested in the UK’s largest NGN  Network Operator of the Year 2009

24. Any questions? This document is uncontrolled if printed or saved to a non-authorised site. Slide 24

25. This document is uncontrolled if printed or saved to a non-authorised site. Slide 25 Thank you