2. www.btwholesale.com. Standard Contract Forum 20 July 2006 13.30 Customer Suite, BT Centre, London

3. www.btwholesale.com Standard Contract Forum Thursday 20 July 2006 AGENDA 1 Introduction and Notes of Previous Meeting 2 Consult 21 3 VIC 4 Paperless OCCN 5 Review of New and Amended Schedules 6 Any Other Business 21CN SIA Impact AIT Update

4. www.btwholesale.com Consult21 SCF Update 20 th July 2006 Tim Short

5. Agenda Steering Board Agenda Working Group RAG Status Comms AOB

6. Consult21 Steering Board Agenda Cost RecoveryColin Annette Spectrum Report – Progress on Action ResolutionHuw Saunders/Jo Upward 21CN programme Progress against Pathfinder Plan/Monthly Progress Report Dave Power Broadband UpdateMatt Beal / Andy Large Conformance Testing Working GroupJim Feenan Communications UpdateJoe Kelly Consult21 Working Group Progress Report & ReviewNigel Scott

7. Spectrum Report Response Ofcom survey of BT’s Wholesale customers – published 23 rd May 06 undertaken by Spectrum Strategy Consultants Confirmed earlier industry feedback gathered via C21 process Actions started prior to report, but report has helped focus responses Responses listed as: Working Groups Communications Consultation focus/condocs Forward looking focus

8. Architecture & Framework Network Structure Systems & Processes Network Hooks Products Interconnection & Portfolio Broadband Line Access Point to Point Conformance Testing Implementation & Migration Communications Working Group Status RAGRAG July 2006 From amber

9. Network Structure RAG Status Green Key Issues (For Discussion) Nothing recorded Key Milestones June/July Achievements Drilled-down on voice interconnect architectures – output to inform the commercial debate Liaison statements forwarded to NICC TSG on voice delay variation specification and on Overlap Signalling in SIP/SIP(I) Initial response provided on the DSL Forum document TR-101options proposed to be implemented in 21CN Analysed Voice Line Access media flow scenarios Discussed future work plan July/August Work plan Draft top-level description of BT‘s NGN and a description of how products are supported and accessed Progress White Paper on network technical rules and guidelines Progress inventory of the components of BT's NGN to sites, logical and topological relationships Seek indications of the type of network inventory data that will be needed to enable investment scenario planning. TimeCostQuality Customer Satisfaction Status: Information

10. Systems & Processes RAG Status Green Key Issues (For Discussion) Linkage between Systems work already completed for implementation of TSR and that for 21CN Key Milestones June/July Achievements Working group held on 7 th July. Presented at Broadband, Point to Point & Line Access WGs. Have concluded gap analysis between BTW and Openreach systems plans & corrective actions in place. Graham Crane now Chairman-designate of NICC B2B Group – will be used to turn CP requirements into standards. Full engagement between WG and BT 21CCE – driving delivery of CP systems and process requirements. July/August Work plan Issue revised Systems Roadmap in July. Systems Architecture event 26 th July 2006. TimeCostQuality Customer Satisfaction Status: Information

11. N/W Hooks & Common Capabilities RAG Status None Key Issues (For Discussion) Acceptance of work packages by other groups in order to close the NHCC consultation under Consult21. Key Milestones June/July Achievements Last Working Group held 24/04/06. Co-Chairs presented to C21 Steering Board 24th May06. Outlined alternative framework to progress Common Capability and product discussions outside Consult21. Progressed model for moving discussion of Network Hooks and areas of industry collaboration to NGN-UK. Was accepted by Steering Board. Initial discussions to be held with NGN-UK mid-July – awaiting response from NGN-uk. Common Capability & BTW Products workshop agenda finalised. Date confirmed for 22/9/06. TimeCostQuality Customer Satisfaction Status: Information

12. Interconnect & Portfolio RAG Status Amber Key Issues (For Discussion) Commercial Solution for PSTN Emulation conclusions not published Final review of Obligatory products list required Pathfinder product review criteria required Timeline needed for VLAN (extension to Metronode) product Product developments reviews required Key Milestones June/July Achievements Second PSTN Emulation commercial consultation launched and closed 9 June. Consultation closure statement given 22 June PSTN Emulation Feasibility interim report on 13 June VIC Commercial issues largely resolved, contract text agreed and sent to CPs for signature VIC product supporting documentation drafted VIC launched, web site open 1 July July/August Work plan Progress PSTN Emulation commercial solution Resolve any remaining industry issues related to VIC Obtain industry signatures to VIC contractual documentation Review VIC commercial offer (current proposal closes 31 July) TimeCostQuality Customer Satisfaction Status: Information

13. Broadband (inc LLU) RAG Status Red Key Issues (For Discussion) Industry Escalation covered at IMWG on 6 July and again at a Webinar on 13 July. Issues were aired and discussed in preparation for the Steering Board to discuss and clear the escalation. If IPstream First goes ahead, Industry are very concerned about IPstream Migration (e.g. number of CBUK changes and impacts on their own systems and call centres) Many customers require out of hours Grooming especially for business customers and ask that this is considered. Lack of commercial principles is a major issue for Industry as they try to make decisions on future suppliers and products Key Milestones June/July Achievements Working Group held on 28 June on same day and location as the ISP forum. 28 attended – 18 people from 8 Companies plus 1 from Ofcom and 9 from BTW and Openreach. 15 Bilaterals held on 21CN Transfer Engineering for LLU & IPstream plus w-BBC and Managed w-BBC development. Also covering plans for Datastream. LLU Migration Condoc agreed with Industry and issued on target. Consultation closes September 2006 July/August Work plan IMWG will discuss IPstream Migration in some detail. On 6 July and handle the BB/LLU escalation on no requirement for Bb First, can they please remain on 20CN IPstream until w-BBC launches. Bilaterals will continue into July, to include LLU bilaterals. Condocs will be produced on (a) IPstream Transfer Engineering (subject to escalation being resolved); (b) Datastream Withdrawal: (c) Launch of w-BBC. Next meeting is 25 July 2006. TimeCostQuality Customer Satisfaction Status: Information

14. Line Access RAG Status: Green Key Issues Communications needed with all BTW and openreach customers, including the 300 smallest. Need to agree Standards for SIP-I in NICC and ETSI. (Voice Line Access) Further work required in Network Structures and in BTW to support the network aspects of the VLA product. TimeCostQuality Customer Satisfaction Status: Key Milestones June/July Achievements Line Access Working Group met on 27 June 2006. 4 Industry attendees and 1 Ofcom plus 7 BTW and openreach. Agreed to close consultations on existing obligatory products with no issues outstanding. Continued good progress on Voice line Access. Condoc issued and timescales for consultation agreed. Presentation on Communications from Andy Rudman July/August Work plan Continue with consultation on Voice Line Access product, Hold VLA Bilaterals to support consultation Set up Workshops with WLR customers to communicate BT’s plans for Pathfinder and beyond. Information

15. Point to Point RAG Status Red Key Issues Plan of record for sub 2M products has not been amended despite reminders. Industry have concerns that sub 2M leased line developments are being given insufficient priority and resource Utility customers and other Infrastructure customers need info on alternative products before 2008 as they have long lead times. Inconsistent 21CN communications (a) on web sites and (b) by BT account teams Condocs required on WES products by 7 July. Promised date must not slip. There is no tie in with TILLAP and TILLBP. TimeCostQuality Customer Satisfaction Status: Key Milestones June/July Achievements Working Group meeting held on 29 June Attended by 16 people, representing 8 CPs plus BTW and Openreach. Presentations (a) Further discussions on 21CN WES products (b) SORs 2 and 3 (c) Utility Products July/August Work Plan Next meeting 27 July 2006 Discussions on Network Structure, Wholesale Ethernet and TILLAP, TILLBP. Workshops with CPs on SORs 2 and 3 Workshop with CPs and Utilities on Utility customer requirements in 21CN Information

16. Conformance Testing RAG Status Red Key Issues (For Discussion) Is there sufficient time available to complete testing? CPs remain concerned that there is insufficient time allowed for testing prior to the start of Pathfinder (Testing Schedule Due End July To Enable Review Of This Issue) What facilities will be made available to CP’s for CP specific testing? (UNDERWAY) More detail required on the trials identified in BT’s 21CN Implementation Strategy and Plan e.g. BB First Pilot Key Milestones June/July Achievements Interoperability consultation closed: 6 responses to date Service Interoperability Test Plan in development 100% of Core Tests issued for consultation for Pathfinder Phase 1 (closure 21 st July) CP Test Facility requirements capture undertaken Transfer Engineering Trials Briefings underway VIC Test Briefing held and formal Brief documents issued for CP review July/August Work plan Publish Test execution Framework and Core Test schedule (31 st July) Complete definition of Service interoperability Plan Process Accesses requests to Test Result Database TimeCostQuality Customer Satisfaction Status: Information

17. Implementation & Migration RAG Status Amber Key Issues (For Discussion) 1.Lack of agreement on the VIC product is delaying planning for Pathfinder locale (DLE to NGS migration) 2.Lack of detail on Broadband First Pilot which will underpin BB migration Jul-Dec 2007) 3.Further clarity needed on the Pathfinder Customer experience 4.Further clarity/discussion of impacts required on BB migration implementation Key Milestones June/July Achievements Pathfinder Entry & Exit criteria concluded – 2 responses 2 consultations initiated for Migration Command & Control Go/No Go criteria, Fallback Management & Service Management during migration (closes 3/7/06) Scheduling & PEWs First Migration customer experience Workshop held Broadband Migration Experts initiated (1st session 6/07/06) July/August Work plan Set up & progress Emergency & Critical Services Migration Forum - 13/07/06 Conclude Plan of Record Consultation Publish First TE Briefings & TE Impact Matrix; and updated Pathfinder Briefing Update Working group plan Hold Pathfinder experts forum TimeCostQuality Customer Satisfaction Status: Information

18. Migration Communications RAG Status Green Key Issues (For Discussion) The engineering activities supporting migration are more complex than previously advised to the 3 rd party agency. The increased number of breaks in service may require additional communications to be issued to maintain SLA’s set out in the agency contract. Feedback from industry indicates that CP’s will not contribute towards the cost of any migration comms issued. Key Milestones June/July Achievements A 3 rd party supplier has been appointed to create and issue migration comms to consumers and SME’s. Industry has agreed to issue initial advice to corporates on or about 1 st September and sign-off for the supporting Q&A framework document is being sought. July/August Work plan The final preparations for the issuing of migration comms will be undertaken along with oversight of the 3 rd party agency activity around branding, collateral, website and contact centre. A new Governance structure for migration comms will be implemented to provide more responsive management control of the agency and the supporting messaging. TimeCostQuality Customer Satisfaction Status: Information

19. Spectrum Report Actions - Communications Functional Email Accounts will be set up for each Working Group: i) Will easily show which WG the email is connected with Emails will Continue to be headed: i) Consult21 Information: xxx Working Group – xxx Sub Group (if applicable) xxx (document) – xxx (date) ii) Document will be starred or marked “important information” as necessary

20. Spectrum Report Actions - Communications How we will send documents: Type of CommunicationSent on E Mail By: Invites/Agendas to Working GroupsDocument will be sent Minutes & Slides from Working Groupsurl will be sent * Condocsurl will be sent * General Information/BAU Documentsurl will be sent * Urgent InformationDocument will be sent - document will be sent by exception/if very late etc. Jump-ins will also be provided for ease of access

21. Questions?

22. www.btwholesale.com LEGACY INTERCONNECT Standard Contract Forum 20 th July 2006 Geoff Wills Interconnect Links Products Wholesale Products & Strategy VIC - VIRTUAL INTERCONNECT CIRCUITS

23. www.btwholesale.com VIC - Legacy Interconnect Product What is it Routing Prices Call minutes Ordering Benefits Lead-times Grace period Summary

24. www.btwholesale.com VIC - Legacy Interconnect Product VIC Launched 1 st July 2006 Schedule 131 Product description Carrier price list entry Billing manual Other Guidance documents Web site – Via www.btwholesale.comwww.btwholesale.com Products A – Z V for VIC

25. www.btwholesale.com VIC –What is it? Driven by DLE closure under 21C programme - VIC is a mechanism for enabling LES rate calls at DLEs that are closed….. but can be used even if the DLE is not yet closed Local rate calls will be physically delivered to a Next Generation Switch (NGS). Charge for Virtual Interconnect Circuits as if they existed to the DLE and allow LES rates for calls destined for the DLE. Physical circuits to the NGS carrying the calls are not charged for.

26. www.btwholesale.com VIC Choices of call minute routing : Consolidated route or Segregated route

27. Routing Scenarios: Consolidated Route A consolidated route where both LES rate and tandem rate traffic are conveyed down the same route Notes: On a consolidated route, the amount of DLE rate traffic will be governed by the number of Local Rate VICS on a per DLE basis. Calls that exceed this capacity will be charged at Single Tandem rate. The amount of Tandem rate traffic will be governed by the number of tandem rate VICs Calls will be charged at Double Tandem rate if the tandem calls exceed the tandem allowance for that route.

28. 21CN CP Interconnect Migration : VIC Overview BTW DLE A CP 'A' SWITCH 1 BTW NGS X BTW DLE C ISIISI muxmux muxmux calls @ ST calls @ LES E1s BTW DLE B calls @ LES DLE VICs to gain required LES capacity Tandem VICs to gain required Tandem capacity Additional DLE VICs to gain required LES capacity VICs : Consolidated Route once a CP has a route to an NGS with an element of vDLE traffic - then all routes from that CP to that NGS must be virtualised i.e. Tandem VICs ordered and paid for instead of paying for the physical E1s

29. Routing scenarios: Segregated Route: A segregated route where DLE rate traffic and Tandem traffic are carried in separate segment. The DLE partition may contain traffic from a number of DLEs Notes: On a DLE segment, the amount of DLE rate traffic allowed will be governed by the number of Local Rate VICs paid for by the CP on a per DLE basis. Calls that exceed this capacity will be charged at Single Tandem rate. Non- DLE traffic will be charged at Double Tandem Rate if carried on the DLE partition. Overflow of LES rated calls to an alternative NGS will be charged at Single Tandem call rates if the alternative NGS is a parent of the target DLE, otherwise it will be charged at Double Tandem rate.

30. 21CN CP Interconnect Migration : VIC Overview BTW DLE A CP 'A' SWITCH 1 BTW NGS X BTW DLE C ISIISI muxmux muxmux calls @ ST calls @ LES E1s BTW DLE B calls @ LES DLE VICs to gain required LES capacity with a segregated DLE route there is no requirement to buy Tandem VICs however, DLE VICs are specific to individual routes between the NGS and each CP switch - including down to traffic type segment VICs : Segregated Route segregated route vDLE segment - physical E1s zero rated for charging segregated route tandem segment - physical E1s charged for in normal manner

31. VIC – Circuit pricing Virtual versions of the Interconnect circuit portfolio priced exactly the same as the physical variants. However where the commercials are transferred to the virtual circuits the physical circuits associated will be zero rated. NGS only Routes - Circuits remain as they are - including pricing.

32. www.btwholesale.com VIC – Call minute allowance VIC provides Communication Providers with an LES rate ‘call minutes’ allowance. All call minutes within the allowance are rated at the favourable LES rate; those beyond the allowance attract an excess charge ie the difference between Single tandem and LES rate calls. CPL Section B2.06. Dependant on call routing option chosen - there are Tandem Rate minutes allowances for tandem rate VICs.

33. VIC - Pricing calls A set of minute allowance will be set against Virtual capacity (Local or tandem) LES rate will apply to calls delivered to NGS where VIC capacity has been provided to DLEs. When this limit is exceeded on local rate VICs then Single tandem will apply by applying an excess charge to the Local Exchange segment rate. Similarly when Tandem rate Virtual capacity limits are exceeded then Double tandem short call rate will apply by applying an excess charge.

34. www.btwholesale.com VIC – Orders VIC orders will be accepted from the 1 July. CPs who wish to expand their capacity and benefit from LES call charges at the NGS, do not need to wait for DLE closure, Uses current ACO and ordering processes Orders for Interconnect at DLEs will only be accepted by way of the Virtual Interconnect Circuit product under Schedule 131 (in addition to Schedules 01 and/or 130) with effect from a date XX months in advance of the closure date for that BT DLE notified in NIPP.

35. www.btwholesale.com VIC - benefits VIC is an operationally efficient alternative to physical interconnects at DLEs, Optimise use of switch ports and multiplexers through the efficiencies of larger interconnect routes, Less manual intervention of engineering resources Improved delivery lead times. Route augments as short as 5 working days

36. VIC Lead Time Comparison Notes: Note1 Where the VICs are creating a new route it should be noted that the route ID must be raised on RPD 1 month prior to VIC order CRD in order to facilitate up-loading into the EBC matrix Note 2 Orders must be received for Physical and Virtual circuits at the same time in relation to the New POC. Note 3 CRD for the VICs should not be beyond RFT + 30 or BIS (whichever is the sooner) of the physical circuits relating to the new POC

37. VIC - Overflow Grace Period CPs need time to right-size or sub-segment the route to control overflow  3 months “grace period”: No overflow surcharge (up to 20% of the VIC Minutes Table) This Grace Period is for CP to order and procure additional VIC circuits and / or re-route or sub-segment. Traffic above the 20% allowance: rated as overflow at the appropriate rate. Subsequent “grace Periods”: after a period of stability of 6 months (ie no overflow for 6 consecutive months after the end of the last Grace Period).

38. VIC Overflow Grace period

39. Summary VIC is available for order from 1 st July 2006 Schedule 131 and product description available on the WWW.btwholesale.com website WWW.btwholesale.com Prices replicate current prices for circuits and calls Important choice of routing option to make for all your VIC capacity Lead times for augmentation short Grace period to allow time for right sizing of routes to avoid overflow. Contact your Commercial Manager in the first instance

40. How are VIC minutes tables derived? (1/2) Currently minutes constrained by peak capacity with physical circuits Minutes per Peak Erlang = average number of minutes per day / peak hour erlangs Ratio of minutes to peak hour erlangs is a characteristic of the traffic stream Flat traffic gives high Minutes per Peak Erlang Peaky traffic gives low Minutes per Peak Erlang Some CPs get more minutes than others from an E1

41. Route size (E1 Capacity) scaled to TC4 reflects the relative efficiencies of larger routes Minutes per erlang per day reflects CP specific traffic profile Same Capacity + Same Traffic Profile = Same Minutes VIC uses each CPs individual traffic profile to identify CP specific Minutes per Peak Erlang Calculation based on fully provided routes only (ie Peak hour erlang ≤ TC4) (ie excludes routes running hot) Calculation also excludes very low traffic routes & How are VIC minutes tables derived? (2/2)

42. www.btwholesale.com Paperless OCCNs Richard Jones Commercial Group Manager BT Wholesale Markets Accepted in principle by various Trial Customers. Logical Progression from “The Paperless Contract” Quick – Efficient – better tracking of correspondence. Launch – Late Summer / Autumn 2006

43. What it is.  Replacement of the final medium.  Existing processes untouched.  Electronic communication of the existing contract (not a new contract nor e-signatures ) What it’s not.  A change to BT’s contract.

44. What is the proposed change?  Each OCCN document is converted to PDF.(Adobe)  The contractual signatory document is produced as a ‘Word’ File.  PDF’s and Word file (+ Excel Version – Non Contractual) sent to CP Via E mail.  CP sends ‘signed’ word file back to BT (or faxes back)  BT produces and distributes final set of files. - Zipped together to create a completed set.

45. www.btwholesale.com Paperless Contract As a logical follow on from the successful introduction of Paperless contracts on the SIA Contracts, BT is proposing to change the medium of the OCCNs to “Paperless” Late Summer / Autumn 2006, as with the SIA contracts, the Customer can insert their electronic Signature into the document, or fax them back to BT. If a CP wishes to continue with the paper documents, then they will be able to print out the presented documents and post them back to BT………..

46. The OCCN

47. Page 1 of the Signature Page

48. Page 2 of the signature page

49. Page 3 of the signature page

50. BT/ CP Produces the OCCN BT Produces set of Adobe Files for a. The OCCN b. The Rates Start BT Produces a ‘ Word’ File for The Contractual Documentation Signature Page Also looking to provide the rates on an excel sheet. (not a part of the contractual documents) BT E Mails the PDF and Word Files to the CP. CM Receives the E Mailed or Faxed Contract Completion from CPand Passes to designated BT signatory to insert an signature Complete Set of Abobe Files Zipped and sent to CP via E mail for retention and stored by BT on backed up central servers.. Pricing team effect the changes in the CPL End

51. Areas of Improvement. No more waiting for the mail. Ability to achieve remote authorities within both companies. Improved storage and distribution. A move towards the future. Environmentally friendly.

52. Any Questions ?

53. www.btwholesale.com Standard Contract Forum 20 July 2006 Keith Mitchinson 20 July 06

54. www.btwholesale.com Standard Contract Forum 20 July 2006 SIA DOCUMENTATION NEW: 131 Virtual Interconnect Circuits (VIC) REVISED: 112 BT PRS*# 313 Operator PRS*# 314 Operator PNS*# 552 Operator Telephony Calls (Mobile)# 553 Operator International Incoming Calls (Mobile)# *drafts circulated at 8 June SCF *#draft text made available on web

55. www.btwholesale.com Standard Contract Forum 20 July 2006 SIA DOCUMENTATION (cont) PLANNED REVISIONS: 202/402 VMNO 102 Transit

56. www.btwholesale.com Standard Contract Forum 20 July 2006 UPDATED REFERENCE OFFER Following from 2004 GCR discussions As requested draft text on web (till 25/07/06) Updates to ◊ Main body ◊ Annex A ◊ Annex D ◊ Schedule 01 ISI ◊ Schedule 130 CSI

57. www.btwholesale.com Standard Contract Forum 20 July 2006 WEB DOCUMENTATION

58. www.btwholesale.com Standard Contract Forum 20 July 2006 TABLE SUMMARISING CHANGES AS SLIDES

59. www.btwholesale.com Standard Contract Forum 20 July 2006 PATHFINDER CONTRACTING – UPDATE SAN side-letter: necessary for DLE-interconnected Schedule 131 (VIC): necessary for DLE-interconnected, optional for others Formal notice of associated minor updates to SIA (option as supplemental if required) [Supplemental agreements for FRIACO and CPS/SAD?]

60. www.btwholesale.com Standard Contract Forum 20 July 2006 ARTIFICIAL INFLATION OF TRAFFIC – UPDATE Responses from industry group re scope and process Revised BT text circulated Meeting with industry group 19 July