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Delivering BT’s 21 st century network. Welcome Presentations by Paul Reynolds CEO, BT Wholesale Matt Bross Chief Technology Officer, BT Group. Delivering BT’s 21 st century network. Paul Reynolds CEO BT Wholesale. Forward-looking statements - caution advised.

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delivering bt s 21 st century network

DeliveringBT’s 21st century network

Welcome

Presentations byPaul ReynoldsCEO, BT Wholesale

Matt Bross

Chief Technology Officer,

BT Group

delivering bt s 21 st century network1

DeliveringBT’s 21st century network

Paul Reynolds

CEO

BT Wholesale

forward looking statements caution advised
Forward-looking statements - caution advised
  • Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: transformation of BT's networks and cost base; benefits to customers of the 21CN programme; anticipated capital spend on 21CN transformation and expected cash savings; timescales for delivery of 21CN; and delivery of instantly available broadband dialtone
  • Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements
  • Factors that could cause differences between actual results and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies; and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised. BT undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise
delivering bt s 21 st century network2

DeliveringBT’s 21st century network

Paul Reynolds

CEO

BT Wholesale

bt s strategy is on track
Traditional focusBT’s strategy is on track

Long-term partnership

with our customers

  • Improved service
  • Aggressive & creative marketing
  • Price innovation
  • Reduce costs

New wave focus

  • Broadband
  • Mobility
  • ICT
  • Global Solutions

21CN

transformation

a world where everyone has access to modern communications
A world where everyone has access to modern communications

April 200026%

100

80

60

Coverage %

40

20

0

July 200266%

November 200380%

May 200490%

Summer 200599.6%

Broadband availability in the UK

Note:Percentage of homes and businesses connected to a broadband enabled exchange

oecd report
OECD report

DSL Availability in G7

2001 2002 2003 2004 2005

UKCanadaFranceGermanyItalyJapanUSA

6069667067.573.550

64707180708068

8575.47985809075

95-9090-90-

99-95----

Source: OECD May 2004

the changing landscape
The changing landscape
  • Convergence is gaining momentum
  • Convergence needs an underlying infrastructureto deliver and support it
  • Customers want more choice, flexibility and control
  • Simplicity is key
21cn three key points
21CN - three key points
  • We will empower the customer with control, choice and flexibility like never before and offer them communications from anywhere to any device
  • We’ll make exciting new services available for customers faster than has been possible before
  • We’re reducing our costs – we’ll make growing cash cost savings which are expected to amount to £1 billion per annum by 2008/9

Customerexperience and empowerment

Speed to market

Cost

transformation

21cn what it means for bt
21CN – what it means for BT
  • Moving from narrowband to broadband
  • Moving from selling capacity to selling capability
  • Moving from a product focus to customer focus
21cn the radical strategy
21CN - the radical strategy
  • Broadband everywhere…
  • Replacing the PSTN
  • PSTN transformation trial
  • A world first for a telecoms company
broadband dialtone
Broadband dialtone
  • By 2009, broadband dialtone will be instantly available to most BT customers in the UK
  • Customers can switch lines to broadband use themselves
  • No physical work is required at the exchange
21cn it s big
21CN – it’s big
  • If that sounds big …it’s because it is
  • Bigger annual investment than is spent on UK’s motorways and trunk roads
21cn aligning our investments
21CN - aligning our investments

21CN - network architecture

Today

Future

MSAN

Project Bluephone

Fibre trial

Converged core

EDC

Service creation

Flexible Bandwidth

PSTN/Voice trial

Wholesale Web Call Connect

BTRich Media

BT Communicator

first mover advantages
First mover advantages
  • Supplier product alignment
  • Technology start-up funding
  • Shared learning and risk management
  • Low costs
  • Best in class whole life costs
21cn a new partnership approach
21CN - a new partnership approach
  • With all our customers
  • With the global vendor community in IT and traditional telecoms
  • This is unique in our industry
  • Focus on whole life costs
21cn our current network
21CN - our current network

PSTN

DPCN

PSTN

Copper

KStream

DSL

ATM

Inter-node transmission provided by SDH/PDH platforms

CWSS

IP

Fibre

Mesh -SDH

DWSS

MSH -SDH

ASDH

PDH

End

User

~5k

nodes

~2k

nodes

~1k

nodes

~400

nodes

~100

nodes

~15

nodes

21cn our simplified network
21CN - our simplified network

PSTN Migration

Converged Core

Class 5

Call Server

Copper

WWW

DSL

IP-MPLS-WDM

Fibre &

Copper

Agg Box

ISP

Content

End

User

~5k

nodes

~100

nodes

21cn quality
21CN - quality
  • 21CN services delivered at the same or better quality as we do today
  • 21CN will raise the quality threshold traditionally associated with IP to PSTN standards and better
  • We are designing this level of quality into 21CN
21cn systems
21CN - systems
  • Concurrent systems transformation
  • Designed to enhance the customer experience
  • Empowering the customer with greater control
21cn key milestones

2009

21CN - key milestones

2008

Broadband dialtone

available tomost customers

2007

Mass PSTN migration reaches more

than 50% of customers

Large scale non PSTN service migration begins

2006

Mass PSTN migration begins

17 new product launches/enhancements based on re-usable capabilities

New operations & service management capability in place

2005

Broadband available to 99.6%

Strategic vendors announced

Broadband growth on MSAN/combo cards

First new service launches based on re-usable capabilities

2004

PSTN transformation trial

Deep fibre trial

Converged network

Service creation

Experience development centre

key messages
Key messages
  • We’re making broadband available everywhere
  • But convergence is creating new opportunities and new customer expectations
  • 21CN is a radical transformation for BT
  • Narrowband to broadband; capacity to capabilities; product to customer focus
  • Announcing important trials on PSTN and fibre today
  • Timetable for large scale roll-out outlined
  • You’ll hear much more over time
implementing bt s 21 st century network

Implementing BT’s21st century network

Matt Bross

Chief Technology Officer

BT Group

21cn activities 2004
21CN – activities 2004

Experience development centre

Service

creation

Converged

network

Deep fibre trial

PSTN trial

pstn trial
PSTN trial

What and where?

  • Seamless bypass of core PSTN network links between three major network nodes (Cambridge, Woolwich London and Faraday London )
  • Voice calls between enabled nodes diverted to IP/MPLS network
  • End to end calls between enabled customers carried exclusively over IP
  • Installation of new MSAN equipment at 18 exchanges in London, Kent and East Anglia
  • Equipment includes softswitch, MSANs, media servers and media gateway cards
pstn trial1
PSTN trial

When?

  • Next generation voice services to first 1,000 customers ‘live’by end January 2005
  • Further 3,000 customers ‘live’by June 2005
  • Major roll-out to all regions begins 2006
  • Broadband dialtone to most customers by 2009
pstn trial2
PSTN trial

Why?

  • Allows us to monitor transition and robustness pre large scale migration of all PSTN services to 21CN from 2006
  • Helps test quality of services is as good as, or better than, PSTN
  • First steps towards 21CN
deep fibre trial
Deep fibre trial

Fibre

Copper

PCP

What and where?

  • Trials of deep fibre in access network – to the cabinet and to the premises
  • Designed to test the investment, operational, technology and business case
  • Providing telephone and broadband via fibre to 1,500 homes
  • Trials in Suffolk, Milton Keynes and London
deep fibre trial1
Deep fibre trial

When?

  • First trialists will have fibre lines installed and working by October 2004
  • Trials to run until September 2005

Exchanges

  • Kesgrave exchange, Martlesham Heath
  • Bradwell Abbey exchange, Milton Keynes
  • Albert Dock exchange, London Docklands

Why?

converged network
Converged network
  • Reducing complexity of our infrastructure
  • Eliminating 100,000 network components and significant cost
  • Establishing a single platform that is multi-service and future proof on IP
  • Optimised for reliability and performance
  • Closely aligned to PSTN transformation
  • Phased roll-out begins this year
service creation framework
Service creation framework
  • Applying the development approach from IT software industry to telecoms
  • Creating series of reusable, common capabilities
  • First 9 components created 2004/5
  • 17 new products or enhancements based on these components to be launched 2005/6
  • Increase automation and accelerate time to market for new services
  • Help contribute to cost reduction
experience development centre
Experience development centre
  • An environment where operations, portfolio, systems and networks are brought together
  • Prototype new services, platforms and processes
  • Increase speed to market
  • Drives the delivery of the end to end customer experience
21cn key points
21CN - key points
  • 21CN is the enabling infrastructure for growth at BT and for its customers
  • The most ambitious business transformation programme in communications worldwide
  • Represents a major investment by BT
  • Will put UK at the forefront of communications innovation
  • We are delivering now
  • Large scale vendor engagement starts today
slide36

DeliveringBT’s 21st century network

A

&

Q

Questions can only be takenfrom the BT Auditorium