sean williams - bt - bbwf 2011 keynotes day 2

BT’s Super-fast Broadband Programme

Presentation to the Broadband World Forum28th September 2011

Sean WilliamsGroup Director, Strategy, Policy and PortfolioBT Group plc

© British Telecommunications plc Slide 2

Introduction

Overview of BT’s superfast broadband (SFBB) programme in the UK

– What are we doing?

– Is it delivering on its promises?

– What do retail customers think of it?

– What do wholesale customers think of it?

– How far can we go in terms of SFBB coverage?

How will SFBB transform the bandwidth landscape in the UK?

How can we get SFBB out to rural areas?

What lessons have we learnt from our SFBB deployment?


BT is committed to succeeding in superfast broadband

Passing c.80,000 new premises per week1, over 5M passed, on course to pass 10M by 2012

Customer base rising fast

– More than 200,000 BT Infinity customers

The only SFBB deployment that makes proactive provision to wholesale customers a central part of the approach

– c.50 CPs selling or trialling services2

Potential to drive higher performance in SFBB by improving network capabilities

2/3 premises

passed by

end of

2015

Over 5m

premises

passed

currently

10m premises

passed by

2012

ADSL enabled

for c.99% of all

premises

Fibre roll out

£2.5bn investment to roll-out fibre to two-thirds of UK premises by 2015

– A radical transformation of the UK broadband network

– Among the fastest and largest commercial roll-outs in the world

Very positive marketing and pricing of the product at the retail level

– Fibre broadband has the same headline price as copper broadband

FTTC – Fibre To The Cabinet FTTP – Fibre To The Premise

1.5m premises

passed

summer

2010

1 Q4 and full-year results 2010/112 Q1 results 2011/12


Our deployment is a mix of FTTC and FTTP (and copper)

Fibre to the cabinet (FTTC)Up to 40Mbps downstreamUp to 15Mbps upstream

Fibre to the premise (FTTP)100Mbps+ downstream30Mbps+ upstream

Exchanges Homes/Businesses

Copper (ADSL2+)Up to 24Mbps downstreamUp to 2.5Mbps upstream

ADSL 2+90% UK coverage by

Spring 2013.

Large majority of our 2/3rd UK deployment.

Up to 80Mbps downstream in 2012.

The remainder of our 2/3rd UK deployment.1Gbps trials on-going.

Copper

CopperFibre

Fibre

Cabinet

SFBB deployment facts & figures

• Laying 50,000km of fibre• Enabling over 1000 exchange areas• 37,000 new cabinets; 200,000 new DPs


BT has driven awareness of superfast broadband through strong retail marketing and local engagement

The Race to Infinity campaign gave people up and down the country the chance to vote to bring fibre to their area

Over 365k votes cast over 3 months

Power of local, community-based marketing demonstrated

Each of the winning communities will be upgraded by early 2012

The “Race to Infinity” generated a consumer ‘buzz’ across the UK

BT Infinity is establishing itself as a consumer and a business brand

Copper-based broadband

Unlimited broadband & calls

Up to 20Mb download speed

Unlimited usage; anytime calls

BT Infinity superfast broadband

Unlimited broadband & calls

Up to 40Mb download speed

Unlimited usage; anytime calls

£28

Monthly cost

£28


Dat

a ra

te(M

bp

s)

Our technology has delivered on its promises and customers have reacted well to the service

The technology is delivering the bandwidth... ...that customers need for emerging applications

50% of eligible customers take SFBB on joining BT for broadband

58% extremely or very satisfied. Over 80% at least satisfied

80% see confirmed improvement in streaming/downloading content

Customers like the service

More consistent speed performance than copper broadband

Technology performance


Customers are very positive about superfast broadband

“Superfast broadband really is changing the way our family all work, live and play - already I can’t imagine how we managed without it.”The Trotter family, St Day, Cornwall

“Superfast broadband is proving to be a terrific advantage to our business... We are particularly interested in cloud computing, through which we will be able to take advantage of the kinds of applications previously only available to big business.”Steve Brown, partner, Advertees, a fashion and promotional screen-printing company, Blackwater, Cornwall

“I am utterly blown away by the technology! The speeds are breathtaking! ... Superfast broadband is changing the way we live, opening new doors, enriching our lives and saving us time and money”Les Goldman, near the village of Luxulyan, Cornwall

Quotes and images courtesy of the Superfast Cornwall programme [www.superfastcornwall.org]

“The speeds are staggering... a real game-changer... I am able to work more productively with superfast broadband and also work remotely, because the connection is so stable ... Superfast really does open up new ways of working.”Jonathan Davies, director, LinedUp, a creative digital studio, Camborne, Cornwall

Superfast Cornwall is a programme funded by the EU, BT and Cornwall Council, and managed by Cornwall Development Company, a local authority company controlled by Cornwall Council


We have built the network for open access, to support competition and consumer choice


95% MAP

Illustrative Footprint – Up to 90%

2/3 Footprint

Final Third

Intervention

We believe that public funding and additional private investment could bring SFBB to 90% of the UK

£830m has been pledged by the UK government: £530m in the life-time of this parliament; plus a further £300m in the subsequent parliament; administered by BDUK

The government’s aim is get to 90% coverage of every local administrative area

Central funding will lever in other public finance and private sector investment

BT is supporting BDUK to deliver the government’s goal

– Delivering publicly-funded deployments in Cornwall and Northern Ireland

– Major current bids in Wales and elsewhere– Extensive support for the BDUK processes– Provision of sub-loop unbundling and passive infrastructure

access– Provision of access network data to public bodies and other

bidders– Development of products for policy priorities –

e.g. community broadband solutions


Superfast broadband will transform the UK bandwidth landscape

Today, more than 99% of UK homes have access to copper broadband, and 70% up to 20Mbps

SFBB could get to 90% of UK homes and businesses

– Including potential public funding of up to £530m, possibly £300m more

– Secured by multiple fibre investors

– Also including further local authority, regional government and EU funding

Changes to the access network frequency plan will allow us to deliver up to 80Mbps on FTTC

We are testing vectoring / other technologies which has the potential to offer over 100Mbps on FTTC

Broadband

Superfast Broadband

20Mbps

90%

Note: * All UK, not including cable, including other wholesale fibre investors

UK broadband transformation*


We are evaluating several solutions to deal with slow speed spots

Many of the slowest lines could benefit from other broadband solutions to achieve near universal service coverage

BET (Broadband Extension Technology)

Wireless, for example we are considering solutions based on:

– 4G LTE (BT/Everything Everywhere trial)

– TV whitespace (BT trials in Cambridge and the Scottish Isle of Bute)

– Fixed wireless, e.g. BT iNet

– Satellite

67%

Two-thirds

Footprint

70% 80% 90%

Digital £0.8bn public funding + matching investment USC

Exchange

Cabinet

EndCustomer

OpenreachFTTP

Openreach BET

OpenreachBET

Communitysolutions

Satellite

Fixed Wireless

CommunityFibre

EndCustomer

OpenreachEAD

4G LTEBroadband

TV White Space

OpenreachFTTC

EndCustomer

Mobile Network

USC – Universal Service CommitmentEAD – Ethernet Access DirectLTE – Long-Term Evolution

BET – Broadband Extension Technology

CopperFibre

Community

solutions


Superfast broadband has taught us many important lessons

Complex supply chain needs to be carefully aligned to achieve rapid scale deployment

Volume is critical to the business case, so keen pricing and scale marketing opportunities in the retail market is important, and wholesale customers

FTTC lessons learnt FTTP lessons learnt

Plan and Build process for FTTP is much more complex than FTTC

New tools, techniques and processes needed for many of our engineers

Issues around blockage on underground duct final drops

Give focus to the design of the provisioning process for customers

Engagement with local planning authorities for speedy deployment

Simplified cabinet build process was key for volume ramp-up

Capacity of power supply companies is on critical path

Customer appointing and reappointing processes are critical

Managing customer speed and throughput experience is essential


Summary

£2.5Bn commitment for commercial fibre roll-out based on a mixed economy approach

Delivering on our promises

– Deploying at scale and pace (one of the fastest roll-outs globally)

– On track to pass 10m premises by 2012 and 2/3 of UK premises by the end of 2015

Constantly evolving our plans both commercially and technically to meet the needs of the market and responding to UK Government

Customer reaction? They love it!

Clear evolution paths (for FTTC and FTTP) identified which are being actively pursued

Innovative partnerships can enable us to reach the final third

– Success stories in Cornwall and Northern Ireland and more to come

Our model is based on open access, competition and customer choice

– Wholesale customers are an important contributor to our business case


Thank you