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Bill MurphyManaging Director – NGABT

20 October 2010

Next Generation Access – ready for partnership

© British Telecommunications plc

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BT is making a major investment in fibre £2.5bn investment to roll-out fibre to two-thirds of UK premises by 2015

Install c.30,000 cabinets in over 1,000 exchanges

Lay over 50,000km of fibre

Supported by 32,000 engineers

FTTC: enabling 2,400 – 3000 cabinets and passing 1millon+ premises each quarter

FTTP: pilots in York, Leytonstone, Milton Keynes, London

Launched Race to Infinity to take the nation’s broadband pulse, and Get IT Together

Two-thirds premises passed by 2015

4m premises passed by end of 2010

1.5m premises passed by summer 2010

10m premises passed by2012

ADSL enabled for 99% of all premises

© British Telecommunications plc

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Broadband Britain: a success story

99% of homes and businesses have access to broadband More than France, Germany, Italy, USA

More than 19 million premises use broadband Equivalent to 71% of UK households

Some of the lowest broadband prices in the world Cheaper than Italy, France, Spain, USA

40 million internet users 30 million people use it daily

© British Telecommunications plc

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A “mixed economy” of services for government, consumers and businesses

Total BB8 Mbps

Total BB ADSL2+24 Mbps

Total BB Fibre (FTTC + FTTP)40/100 Mbps

Ethernet1 Gbps

Increase in bandwidth, service levels, performance

More than 800 Ethernet PoPs,

90% of business premises are

within 5km of an Ethernet node

today

Fibre speeds available to two-

thirds of premises in UK by Spring

2015

Available to c.75% of

premises in UK Spring 2011

Already available to 99% of

premises in UK

© British Telecommunications plc

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We need to build a plan

Customer Demand• Engage citizens, businesses & stakeholders• Demand stimulation e.g. economic development & regeneration, social inclusion

• Effective delivery of public services online e.g. e-health, telemedicine

• Improved organisational efficiency e.g. flexible working

Public Private Partnership• Lower risk profile• Commercial sustainability • Joint investment• Address the engineering challenge together

e.g. Birmingham’s Digital District

Shared Vision

• How can local authorities attract private sector investment?

• How can we create one vision and a coherent plan for the public sector?

e.g. Birmingham’s Big City Plane.g. Digital Birmingham

Open, Competition Ready• Giving customers choice of products, applications and service from day 1

• More providers + more choice = better services + better prices

© British Telecommunications plc

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Example 1: Cornwall and the Isles of Scilly

The challenge

Rural, remote, peripheral

Rapidly expanding population

Focus on developing the knowledge economy

100% of the population to get improved speeds

Objective: To deliver next generation broadband to 100% of the county

The solution

£132m project

ERDF convergence funding up to £53.5m

80-90 % fibre, half FTTP

10-20% satellite / wireless / advanced copper

Open, competitive network

© British Telecommunications plc

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Example 2: Northern Ireland

The challenge

Technology neutral

Open access / Wholesale level

Minimum 2Mb rural

Minimum 10Mb urban

Equitable

Consumer & business variants

Northern Ireland: Next generation broadband to 85% of business by 2011

The solution

£48m investment

1,175 cabinets

166 exchanges

+ In-fill technologies

Wholesale level solution – open to all service providers

Completion - May 2011

White label marketing

© British Telecommunications plc

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Example 3: Iwade, Kent

The challenge

Close to Sittingbourne but not in commercial roll-out

SMEs needing fibre to flourish

Parish council formed an action group

The solution

Gap funding secured from the County Council

Open, competitive network

All homes will be connected by Christmas

The challenge is the business model, not the technology

Objective: Fibre to all 1,400 premises in the village