Next Generation Access: Enabling Transformation

Bill Murphy - Managing Director, NGABT Group

Good news from the Government

By 2015

£830m public funding for superfast broadband in rural areas£830m public funding for superfast broadband in rural areas

Between now and 2017£230m from digital switchover under spend£150m pa (from 2013) from BBC licence fee settlement

Four NGA pilot schemes announced and wave two underwayFour NGA pilot schemes announced and wave two underway

Wave 1: Highlands and Islands, North Yorkshire, Cumbria, Herefordshire

“Our goal is simple: within this parliament we want Britain to have

the best superfast broadband network in Europe”

Jeremy Hunt, Secretary of State for Culture, Media and Sport

Superfast broadband available to 90% of people in each local authorityAccess to at least 2Mbps for everyone in the UK

3

Maintaining momentum in BT

►4 million+ premises passed with fibre, 5 million in the next few weeks

More than 400 exchanges live12,000+ cabinets livePassing c. 80,000 new premises per week

►On track for 10 million premises passed in 2012►Deploying more than twice as fast as NTT, Korea Telecom,

Deutsche Telecom, AT&T, Verizon, Belgacom►Footprint expanding by the equivalent of the population of

Singapore each quarter►45 communications providers are using BT’s fibre services►BT Infinity launched in January 2010

144,000 customers up & running5,000 new orders each week

No other company in the world is investing as much in fibre without public sector support or a regime that allows for far greater returns

No other company in the world is investing as much in fibre without public sector support or a regime that allows for far greater returns

4

Innovation & market engagement

SpeedsDoubling the download and upload speeds on FTTC to approx

80Mbps and 20Mbps respectivelyTechnical trials underway achieving 1Gbps over fibre

FTTP12 pilot sites – underground & overhead; 9 CPs actively trialling11,000 premises passed, approx 1000 triallistsCommercial launch later this year

Passive infrastructureEngaging with 12 CPs on Passive Infrastructure Access (PIA)

Launched draft offer on schedule in JanuaryTrial underway with Sky & Call Flow, more to followPricing significantly below European comparatorsAnnouncing revised pricing on PIA shortly with commercial

products launching in the summer

5

A sustainable solution needs.....

Competition

ChoiceAffordability

“Competition ready” – critical for success

The plan•Deliver next generation broadband to 100% of the county•80-90% fibre•10-20% wireless / satellite / advanced copper•Open, competitive, future-proof network•Focus on developing the knowledge economy•£132m investment, 60% from BT

The plan•Deliver next generation broadband to 100% of the county•80-90% fibre•10-20% wireless / satellite / advanced copper•Open, competitive, future-proof network•Focus on developing the knowledge economy•£132m investment, 60% from BT

What we’ve achieved• Eight FTTC pilots underway• First business customer went live in

January• Four communications providers connected• Eight exchanges live, 61 cabinets• Available to 15,000 premises • 50 customers connected by end March

What we’ve achieved• Eight FTTC pilots underway• First business customer went live in

January• Four communications providers connected• Eight exchanges live, 61 cabinets• Available to 15,000 premises • 50 customers connected by end March

Cornwall and the Isles of Scilly

How we work

• Shared vision

Joint programmes focussing on:• Demand stimulation• Business support & skills, helping

businesses extract benefits• Digital inclusion & equal opportunities• Research & innovation• Environmental sustainability

How we work

• Shared vision

Joint programmes focussing on:• Demand stimulation• Business support & skills, helping

businesses extract benefits• Digital inclusion & equal opportunities• Research & innovation• Environmental sustainability

Why we did it

To enable Cornwall & the Isles of Scilly to become the best

connected rural area in the world

Why we did it

To enable Cornwall & the Isles of Scilly to become the best

connected rural area in the world

More than just infrastructure:

Demand stimulationDriving high take upLong term sustainabilityDeliver economic & social returns

Research, innovation & evaluationUniversity & industry research & observationMeasuring & driving socio-economic impactsCulture of innovation & new applications

Business support & skills programmesDriving high growth & high valueAssist business to extract benefit

Digital inclusion & equal opportunitiesDrive benefit for all

Environmental sustainabilityMinimising the impactMaximising the benefit

Two pints of lager and…super-fast broadband

“Because we offer free Wi-Fi people can experience super-fast broadband first hand while enjoying a pint of real ale.

More business people are coming in now with laptops…people can drop in, do their work and print it off while enjoying a drink or a spot of lunch.”

Michael Owen, co-owner, Britannia Hotel, Chacewater, Cornwall

BT and West Sussex

More than 1000 BT employees live and work in the area3,700 FTE local jobs supported, total value £518m£33m pa spent with local suppliersGVA £170 million

78 exchanges serving 415,000+ homes & businesses; 99% ADSL ‘up to 8Mbps’ broadband availability

78 exchanges serving 415,000+ homes & businesses; 99% ADSL ‘up to 8Mbps’ broadband availability

ADSL2+ ‘up to 20Mbps’ broadband available to 254,000+ homes and businessesADSL2+ ‘up to 20Mbps’ broadband available to 254,000+ homes and businesses

9 exchanges announced for super-fast broadband, reaching 100,000+ premises. Service already available in Crawley and Horsham. Others include East Grinstead, Pound Hill and

Haywards Heath

9 exchanges announced for super-fast broadband, reaching 100,000+ premises. Service already available in Crawley and Horsham. Others include East Grinstead, Pound Hill and

Haywards Heath

13 Ethernet nodes including Littlehampton, Chichester and Burgess Hill13 Ethernet nodes including Littlehampton, Chichester and Burgess Hill

Lindfield is a ‘Race to Infinity’ winning exchange, due to go live December 2011Lindfield is a ‘Race to Infinity’ winning exchange, due to go live December 2011

Working in partnership we could reach 90% of West Sussex with fibreWorking in partnership we could reach 90% of West Sussex with fibre

Speed is of the essence for First Time Response

“I have seen a fantastic improvement in speed since the upgrade. Superfast Broadband saves us serious amounts of time… and it just all works better”

Brian Fagence-TraynorDirector, First Time Response LtdCrawley, West Sussex

West Sussex: a recipe for success

Shared VisionEnsuring the UK is at the leading edge of the global

digital economy

Shared VisionEnsuring the UK is at the leading edge of the global

digital economy

Public Private PartnershipEssential to go beyond the

“commercial” areas

Public Private PartnershipEssential to go beyond the

“commercial” areas

Open, Competition ReadyGiving customers choice on products, applications

and service

Open, Competition ReadyGiving customers choice on products, applications

and service

Demand StimulationVital to engage citizens, businesses and other

stakeholders on the benefits

Demand StimulationVital to engage citizens, businesses and other

stakeholders on the benefits

A few final thoughts

The roll-out of fibre is an exciting opportunity and a

major engineering challenge

Local engagement – with the county and the community – is critical

We want to engage, participate, partner and invest in West Sussex

We can help you create a sustainable solution that provides

maximum economic value

bill.murphy@bt.competer.r.cowen@bt.com