1. PPC Industry Forum, 4 June 2009

2. Managed Bandwidth Services BTW Products and Strategy Disclaimer BT has taken reasonable care to check that the information contained in the following slides was accurate at time of publication. Any price indications or timescales contained within this presentation are estimates for information purposes only and do not constitute any contractual or other obligation. In relation to any products/services referred to in this presentation which are currently under development and/or trial, BT gives no undertaking or other commitment that the product/service will be made commercially available BT reserves the right to make changes to the information in this presentation at any time without further notice Exclusive reliance on the information in this slide pack is at your own risk Partial Private Circuits

3. Managed Bandwidth Services BTW Products and Strategy Agenda Introductions – All Review of previous actions– Leslie Hurrell-Smith/All Product Development Update– Pauline Cowie 21CN & Exchange Closure Update -Bill Du Cann Product In Life Update – Pauline Cowie/All QoS Reports-Jeneva Hibbert Communications/Notifications-Jeneva Hibbert Contract Review-Jeneva Hibbert AOB – All Meeting Review -Leslie Hurrell-Smith/All Date of next meeting - All Partial Private Circuits

4. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point Review

5. Managed Bandwidth Services BTW Products and Strategy Action Point 03/11 (01/03/07) Ongoing B End Shift – Internal/External Shifts Partial Private Circuits

6. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 01/12 (04/12/08) – Ongoing RFT T2R Initiatives Presentation: Repair Base Line

7. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 02/12 (04/12/08) RFT T2R Initiatives Presentation: Structured Questions

8. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 04/12 (04/12/08) RFT T2R Initiatives Presentation: Validation Rules

9. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Action Point 09/12 (04/12/08) Netview Plus QoS Reports

10. Managed Bandwidth Services BTW Products and Strategy Action Point 01/03 (05/03/09) Exchanges taken off the Closure List Partial Private Circuits

11. Managed Bandwidth Services BTW Products and Strategy Action Point 02/03 (04/12/08) Netview Plus / Oracle Business Intelligence (OBI) Partial Private Circuits

12. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product Development Update

13. Managed Bandwidth Services BTW Products and Strategy PPC Development Roadmap Q2 2009/10 Q1 Q3Q4 34 & 155Mbit/s CELA Price Deregulation 15 June 09 PPC Quick Win 9 June 09 BCMR Final Document & Price Control Consultation Document December 08 Shared 3 rd Party Infrastructure – Phase 2 Q2 Rapid Restore – Trial to start April 09 Q3 to launch Geographic Lead Time (Birmingham) Q2 BCMR Aggregation Node Phase 2 June 09 PPC Contract Review June 09 Q4 2008/09 Q3 BCMR Aggregation Node Phase 3 July 09 BCMR Aggregation Node - Phase 1 1 April 09 BCMR SLG March 09 Leased Line Charge control – Final Doc Received June 09 Annual Price Control Review Oct 09 Leased Line Charge control - Implementation 1 Sept 09 Shared 3 rd Party Infrastructure – Phase 1 June 09 High Band FOC Improvement Q2 to launch High Band FOC Improvement Cust, Trial Q4 – Q2 Priority Repair PPC Q2 to launch Managed A-End Shift Q2 – Q3 Term Contract Q3 B-End Shift Price October 09

14. Managed Bandwidth Services BTW Products and Strategy 21CN & Exchange Closure Updates Partial Private Circuits

15. business unit (for internal use only) / url (for external use) Operational Building Vacation (OBV) Programme May 2009 Outline steps for all Platforms

16. Managed Bandwidth Services BTW Products and Strategy BT Disposal List Process - 21st March and 21st Sept Annually (Or at significant date change) BT Analysis Feasibility (Network & Products) BT Update List, including Issue & Doc Control Publish Disposal List Openreach web site updated Existing BT Internal Processes 21CN Delivery Team Consult21 In addition to web information following are also advised following Authorisation BT Planning Processes to ID Vacation Prospects BT Financial & Operational Authorisation Process ( via Steering Group) BT Product Line owners notified

17. Managed Bandwidth Services BTW Products and Strategy BT Group Property Operating Board Financial Authority Authorised No Yes Update Openreach Web siteUpdate BTW Project ManagerUpdate 21CN Delivery Team Operational Building Vacations Authority Process Agreed Building closure project date changes Change Control from BTP PM Migration Assurance Board Updated Yes No Presented to the Operational Building Vacations Steering Group for Operational Concurrence/Control BT Group Property Operational Building Vacations Business Case submission Notify LoBs of Budget and resource allocation, updated monthly Budget held by BTP LoB/MFU business case authorisation/ approval Green Light Committee

18. Managed Bandwidth Services BTW Products and Strategy LLU/CP Openreach web sites updated CP’s – Notification periods in accordance with T&C’s. (Specific Project & Legal requirements outlined - See Notes Below) Inform CPs ( Communications Providers) GM, 21C Customer Services & Technology Notifies CP Account Managers Inform 21C Delivery Team BT Wholesale Markets Director Communications Service Provider Group Group Engineering Services Group Director notified Notifying Communication Providers of a Building Closure BTW Notification Director Service Creation Director, Broadband Services Director Product Management Consult21/IMWG TE Roof/MNO/Radio Arqiva/BT Property Reach Radio equipment - Local Planner (12 Month’s Termination Notice) Legal Negotiation by Openreach Access Locate/LLU Project Manager requested and Impact Analysis Statement Requested LLU Co-mingling Manual (Openreach) refers Legacy Platform Team BT Operate – Via OBV Steering Group BT Design – Via OBV Steering Group Openreach – Via OBV Steering Group Portfolio Execution Forum BT Group Property – Operational Building Vacations Notification that a building is being closed & request for onward cascade of information to all interested parties within the LoBs & Product Lines

19. Managed Bandwidth Services BTW Products and Strategy The majority of BT operational sites (telephone exchanges) are owned by Telereal, BT’s landlord. One telephone exchange closure is currently on the OBV programme:-  Chelsea – site handover – 1 st June 2012 Moorgate was completed on the 1st June 08 and West Ken on the 31 st December 08, both have been handed over to Telereal. There are other sites at the strategy stage, but these will only be made public once they have full financial and operational authorisation. Financial and operational authorisation is normally given 3 to 4 years before the handover date, to allow the works to take place to transfer the network and decommission the site. OBV Team – The Operational Building Closures team comprises of Senior Project Managers, Project Managers and a financial lead to ensure costs are tracked against budget. The are supported by Telereal for building aspects. Building Closure Programme

20. Managed Bandwidth Services BTW Products and Strategy Authorisation given All CP’s notified Project start HandoverDate Migrationstart Migrationend Decommission Site Projectend Migration Period Building Closure Time line Access Network Transfer Install Eqmt at Receive site RedirectThrough circuitsThrough circuitscomplete Provide receive site network Build Receive site (Includes CP Equipment) Notice of ServiceTermination

21. Managed Bandwidth Services BTW Products and Strategy Authorisation given – The business case is first presented to the Green Light Committee who ensure that the business case meets the necessary criteria to forward to the BT Property Operating Board for financial approval. Once approved it will be passed to the OBV Steering Group for operational approval. All CP’s Notified – Once full financial and operational authorisation is given, CP’s are notified – See slides 4 and 6 for detail. Project Start – There is a short delay after authorisation, where the resources are agreed and put in position to start the works. Through Circuits - Copper and fibre through circuits are the first to be diverted, using the Planned Engineering Works process. Work is completed before the migration period. Terminated Circuits – Copper and fibre circuits that terminate on equipment in the closing exchange are transferred using the Planned Engineering Works Process (PEW) during the migration period. Migration Period – This is the window in which all the customers on the closing exchange are transferred across to the new receive site. The duration of this window will vary to encompass the volumes of customers involved. Understanding the Building closures terms

22. Managed Bandwidth Services BTW Products and Strategy Project end – This is the point where all telephony and miscellaneous infrastructure, redundant equipment and services are removed from the site. Handover Date – Once the site is totally clear, a formal sign-off by BT to Telereal enables the building to be handed over to the Landlord, Telereal. Build Receive Site – This involves providing the infrastructure, such as the transmission network, power, vented floors/ceilings, ironwork, etc. Access Network Transfer – All copper and fibre cables are transferred across to the new receive site. Provide Receive Site Network – The various backhaul networks, i.e. Core, SDH, Broadband, etc are provided before migration start. Install Eqmt at Receive Site - Equipment is pre-installed prior to the migration start at the receive site. Migration Team - A fully trained, ring-fenced team of BT engineers are used to migrate customers, using Planned Engineering Works (PEW). Understanding the Building closures terms

23. Managed Bandwidth Services BTW Products and Strategy Understanding the Building closures terms Decommissioning the site – All network kit, i.e. vent plant, generators, internal power supplies etc, have to be removed from site. The site has to be disconnected from the electricity, gas and water supplies. Customer Service - Reasonable endeavours to ensure minimal disruption to customer service and performance. Maintaining the highest levels of Customer Experience is paramount to the teams carrying out the migrations. Consult21 - The OBV team are working with the Consult21 team to ensure all CP’s are notified of a building closure, whether they have equipment at the closing building or not. Notice of Service Termination - A suitable notice period will be given to the CP’s indicating when telecommunications services will be ceased from the closing site. The period of notification will be set in accordance with the Terms and Conditions of the contract. CP’s Equipment rationalisation – CP’s will have the opportunity to rationalise their equipment when moving the equipment from the closing site to the receive site, to take advantage of their access to more than one MDF at the receive site. Funding of the transfer – This will be dealt with on a per contract/site basis with the Openreach and BTW Product/Legal Teams.

24. Managed Bandwidth Services BTW Products and Strategy

25. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits Product In-Life Update QoS Reports Communications & Notifications Contract Review

26. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits QoS Reports

27. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats

28. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision– Early Life Failures (ELF)

29. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision – Mean Time to Provide

30. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Provision Stats

31. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair Stats

32. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Repair – Repeat Faults

33. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits – Mean Time to Repair Includes Intermittent Faults 31 Dec 0831 Jan 0928 Feb 0931 Mar 0930 Apr 0931 May 09 Mean Time to Repair (PC T2R) Partial Private CircuitsAverage Repair Time (hh:mm) 04:3104:5504:1404:0320:0204:16 Volume 2,7922,5582,2492,4442,7912,625 HighbandAverage Repair Time (hh:mm) 02:3804:1502:2905:3607:2604:17 Volume 565857365241 NarrowbandAverage Repair Time (hh:mm) 02:4003:4604:3303:5631:47:0003:37 Volume 547455462528729563 WidebandAverage Repair Time (hh:mm) 05:0105:1104:1204:0316:0604:27 Volume 2,1892,0451,7301,8802,0102,021

34. Managed Bandwidth Services BTW Products and Strategy Excludes Intermittent Faults 31 Dec 0831 Jan 0928 Feb 0931 Mar 0930 Apr 0931 May 09 Mean Time to Repair (PC T2R) Partial Private CircuitsAverage Repair Time (hh:mm) 05:2106:2204:5105:0524:06:0005:18 Volume 2,2411,9361,7871,9152,3022,076 HighbandAverage Repair Time (hh:mm) 02:5705:1901:2206:4108:4705:45 Volume 504649304430 NarrowbandAverage Repair Time (hh:mm) 03:0104:43 04:3235:04:0004:16 Volume 469360388452660469 WidebandAverage Repair Time (hh:mm) 06:0306:4805:0105:1319:5905:36 Volume 1,7221,5301,3501,4331,5981,577 Partial Private Circuits – Mean Time to Repair

35. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits –Repair Stats

36. Managed Bandwidth Services BTW Products and Strategy Communications: 005/09005/09PPC Data Files Update127/05/09 004/09004/09PPC 2Mbit/s 2 Day FOC113/05/09 003/09003/09PPC Data Files Updates115/04/09 002/09002/09PPC Late Provision & Repair Compensation Payment101/04/09 001_09001_09PPC Tier 1 Node Aggregation131/03/09 001_09A001_09APPC Tier 1 Node Aggregation Pricing Diagrams-31/03/09 Pricing Notifications: ACCN 950 - PPC - 2 Day FOC Charge – effective 9th June 2009 – 12/05/09 ACCN 951 - PPC – Managed A End Shift Charges – effective 21st August 2009 22/05/09 ACCN 957 - PPC – Circuit Rental Charges – effective 1st September 2009 Partial Private Circuits

37. Managed Bandwidth Services BTW Products and Strategy Contract Review Partial Private Circuits Review Discussions Concluded end March 09 Marked up contracts distributed to Industry Quorum for Review 26 May 09 Feedback on Mark Up required by 5 th June 09 Notification to wider PPC Customers target for W/E 8 June 09 with a 14 day review period.

38. Managed Bandwidth Services BTW Products and Strategy Partial Private Circuits A.O.B

39. Managed Bandwidth Services BTW Products and Strategy Forum Review Next Meeting Scheduled 3 rd September 2009 Venue: Faraday Buildings Partial Private Circuits