1. 1 FRIACO OFTEL INTERNET FORUM - 11 December 2000 Geoff Brighton JanWillem van den Bos

2. 2 FRIACO …… so far geoff.brighton@oftel.gov.uk

3. 3 FRIACO The Direction OFTEL issued the FRIACO Direction on 26 May 2000 Provision of wholesale unmetered call origination from the customer to the DLE FRIACO was available from 1 June 2000

4. 4 FRIACO Subsequent Developments BT agreed that IECs ordered for SurfTime could be re-configured for FRIACO CCITT7 signaling arrangements to use STP configuration to reduce number of signaling links BT provided all SurfTime IECs on time, but OLOs have only connected to a very few MCIW and VIATEL have contracted for FRIACO

5. 5 FRIACO ‘Hybrid’ Delays to IECs and continued pressure for DMSU interconnect lead to FRIACO ‘Hybrid’ OFTEL facilitate BT / MCIW discussions Hybrid allows traffic to be carried from DLE to the DMSU using metered rates Hybrid flat rate + ppm charge DLE - DMSU ports not capacity constrained, so special metered supplement if notional capacity exceeded

6. 6 FRIACO Progress In practice, no FRIACO-based retail products have been launched (but note AOL) Partly due to Hybrid still being partly metered Partly due to uncertainty over longer term Delay to Technical Experts Report

7. 7 Technical Experts Report Existing Internet traffic doubling every 10 months BT meshed trunk network is unsuitable for handling unmetered growth - has reached scalability limit Not practical for all OLOs to connect at all DLEs IP interconnect is best long term, but will take time Some short term capacity can be made available in trunk network by traffic re-arrangement to DLEs Medium term, BT should build a new tandem overlay network for ISP traffic

8. 8 FRIACO II Proposals Consultation Document - www.oftel.gov.uk/competition/tech1100.htm Draft Direction - www.oftel.gov.uk/competition/frdd1100.htm janwillem.vandenbos@oftel.gov.uk

9. 9 FRIACO II Proposals Short Term (1 Feb. 2001 - 31 Jan. 2002) Limited trunk capacity and traffic re-arrangement Medium Term (1 Feb. 2002 - onwards) Unlimited tandem capacity (e.g. by ISP tandem overlay) Long Term: IP interconnection using BT modems and routers Note: FRIACO at the DLE remains available

10. 10 BT’s network structure Operator Local X BT Tandem Network BT Tandem Network FRIACO II ISP FRIACO (‘classic’) Local X

11. 11 Short Term 1 February 2001 to 31 January 2002 DMSU traffic rearrangement, priority to co-located DLEs 13,500 2Mbit/s port single tandem ceiling: £17,690 per 2Mbit/s Local 1 1 3 3 2 2

12. 12 Medium Term 1 February 2002 onwards ISP tandem No ceiling Local Possible problem of stranded assets if traffic moves to IP quickly 1 1 3 3 2 2

13. 13 Long Term ISP tandem Local modem IP interface to be agreed router 1 1 4 4 3 3 2 2

14. 14 FRIACO II Next Steps Comments requested on FRIACO II proposals Implementation of Stage 1 from 1 February 2001 Co-operation on network reconfiguration essential Periodically reviewing traffic ceiling Industry group regarding IP interconnect (Stage 3) Industry group to address stranded assets issues

15. 15 FRIACO II Consultation & Comments Consultation Document published on 13 November 2000 and Draft Direction published on 25 November 2000 Comments by 8 December 2000 Comments on comments by 22 December 2000 Final Direction to be published during January 2001 Single tandem FRIACO available from 1 February 2001

16. 16 End FRIACO II All OFTEL documents available from the OFTEL web site www.oftel.gov.uk