Comms Provider 12Openreach update18 October 201218 October 2012Tim Barclay

Agenda� Service improvement progress

− Performance and productivity− Performance and productivity− Resource and right-skilling

� SMC improvements and escalations � Business CP focus

− Programmes and progress− Service solutions− Expect Openreach

A battle between ‘right-sizing’ and record-breaking weather

March and early April 2012 Provision times stable at 4-6 working days

UK then endured the wettest April everWe recovered back within SLG in May

June and Summer deluge followed40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

6-A

pr

20

-Ap

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4-M

ay

18

-Ma

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15

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13

-Jul

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-Jul

10

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24

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21

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p

5-O

ct

No

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ult

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ek

Weekly fault intake – April to October

June and Summer deluge followedAn extraordinary situation impacting

right across the UK

The effectFault intake levels consistently higher

- spiked far above 11/12 levels.

Repair focus demanded a flex in provision

Recruitment decisions in June-August,

allowed us to adapt to the new (wet)

world.

0

10

20

30

400

1-A

pr-1

1

06

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10

-Jun

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-Jan

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-12

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-Au

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-Se

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-Oct-1

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No

. o

f d

ay

s

L2C lead times (weekly average - SOM level)

Average

Ap

r

Ap

r

Ma

y

Ma

y

Jun Ju

n

Jun

Jul

Jul

Au

g

Au

g

Se

p Se

p

Oct

2011/12 2012/13

Performance (vs stated plan):

c40k ahead

Av. provision lead time:

circa 21.4 days

Performance (vs stated plan):

c40k ahead

Av. provision lead time:

circa 21.4 days

� £220M (To March 12) invested in network protection over last 3 years

� Record completion last week 129,157

� £220M (To March 12) invested in network protection over last 3 years

� Record completion last week 129,157

Recovery is focused on provision & repairFuelled by resource/recruitmentBy end of 2012/2013 we will have increased our fiel d force by 20% in just 18months

2011/2012Recruited 1050 new

permanent engineers

Up to end FY 2013 • 1000 new recruits from BT group

• c1000 agency added Q2 & Q3

• 250 ex-service recruits in Q3

Q1 2012/2013 Added 175 permanent

recruits

Target for recovery to normal:

Dec 2012

Target for recovery to normal:

Dec 2012

129,157� 111,000 of these are copper

129,157� 111,000 of these are copper

350,511

100,000

110,000

120,000

130,000

140,000

150,000

160,000

200,000

225,000

250,000

275,000

300,000

325,000

350,000

375,000

400,000

425,000

21

-Se

p-1

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28

-Se

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-Oct-1

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-Oct-1

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-Oct-1

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-Oct-1

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ork

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Q3 planned workstack and completions

Actual workstack Planned workstack Planned completions

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

31

/08

/20

12

07

/09

/20

12

14

/09

/20

12

21

/09

/20

12

28

/09

/20

12

05

/10

/20

12

12

/10

/20

12

Week on week L2C workstack movement

Right-skilling & Right tools are key

Centralised training facility / programmes:‒ 100% increase in training capacity‒ Targeted skill sets for specific demand‒ c1000 have been trained or re-skilled to date this year

Weekly faultsWith and without R10k

The ‘R10k’ (>>R15k) challenge programme:‒ Already reduced non-weather related repair visits

by 12k per week (est). ‒ Target by end 12/13 = 15,000 faults / wk

‒ c1000 have been trained or re-skilled to date this year‒ New recruit to the field: 6 weeks ‒ 25% of training time is health and safety focused

Providing our engineers with the best tools and app lications:

‒ £50M Tools transformation programme underway‒ To reduce ineffective time and improve end user experience‒ Plus enabling an agile workforce for the future

• Quicker • More accurate• More agile

New iPhones &

apps

Laptops fit for the

future

Better field line testing capability

More hoists to speed up completions

Service Management Improvements

� Disputed No Access Trial - well received by customers. BAU launch 15 October� High Impact Provision of Service short term process – running 15 Oct to 31 Dec 12� Classic Escalations – launched 1st October

Plus:

� Revised EWC criteria to be more inclusive� Revised escalation path produced to introduce more responsive senior review point� Flexing additional resources onto the escalation queues where possible� Resource modelling for DSO and Escalations – sizing/planning for future resource needs� Resource modelling for DSO and Escalations – sizing/planning for future resource needs� Our team are meeting customers f2f and following up on monthly break out calls

Still lots to do, but in consultation with our cust omers, we have a good understanding of the issues we are facing. And our resourcing and r ecovery glide-path plans will help us return to the position we enjoyed pre-Spring.

Customer

focused

complaints

policies

Improving

customer issue

resolution

Building

organisational

capability

Fit for purpose

systems

Focus on

continuous

improvement

Our plans focus on five key areas:

Ethernet MTTP & CDD performance

20

25

30

35

40

45

50

55

60

65

70

75

01-A

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22-A

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10-J

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10-M

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17-M

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24-M

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31-M

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MTTP glidepathShows the projected weekly figures required

to achieve the action plan targets

Action plan targets:• 10% reduction in MTTP for Provide Orders

• 47.5 (11/12 average) to 43 days (Q4)

Average Working Days to Provide - All Provides Average Working Days to Provide - Excluding Aged Orders MTTP Glide path - Excluding Aged Orders

CDD performance

remains consistent at

97.2% (excl NI)

Working with our Business CPsA high profile Openreach programme, committed to delivering differentiation

Dedicated Business CP programme:

� Working closely with CPs � Problem statements have been agreed� CP steering groups already established across five workgroups� Each workgroup has an exec sponsor within Openreach� Balancing short and long term deliverables is key!

Plus driving forward:

Eight transformation programmes:

Very early days but

expectations are high and

feedback so far is excellent…

Eight Industry ‘customer service’ initiatives:Eight transformation programmes:

1. R10k >> R15k 5. Frames

2. Planning 6. Controls

3. Dwell 7. Equipment

4. Production Mgt 8. Ethernet Provision

Related progress:

1. Business CP impact statement now on service portal

2. High Impact Provision of Service (HIPOS)

� Will run from 15th October to the end of December 2012

� Products currently in scope are WLR3 PSTN, MPF and we are reviewing

GEA-FTTC with the intention to include this.

� Mailbox details will be included in the CSP

Eight Industry ‘customer service’ initiatives:

1. Late Cancellations

2. Increased WLTO adoption

3. Reduction in Forced Provides

4. Reduce Repeat Provision visits

5. Reduce Repeat Repair visits

6. Improve Reappointing process

7. Ensure Appt availability through the day

8. Improve Address Matching

• Remit to work on regulated and

unregulated parts of the network

• On-site network improvement and

bespoke passive fibre infrastructure.

• Local resource ‘on-call’ for disaster

recovery (flood, fire etc.)

• Remote and temporary connectivity

requirements

• Coordinate projects across sites

• C-ordinate multiple orders into a

single programme of work

• Manage through risks involved in

larger projects

• Ideal for jeopardy management

• Single point of contact for

programmes of work

Customer Network SolutionsAccess to capabilities that enable the delivery

of more complete end-customer solutions.

Project Services & managed installExpertise to support challenges related to all our BAU products and processes.

Key Business CPs service solutions…

requirementsprogrammes of work

Service solutions can be combined to support larger projects

Rollout status:Rollout status:

� £2.5bn Investment

� 80Mbps/300Mbps

� 11.5M premises passed

� 1,225 Exchanges - 31,500 Cabinets

� Ambition to reach 90% UK by 2017

Enabling NGA for Business:

� ‘Gold standard’ fibre broadband service for SMEs / SOHOs

� Flexible morning / evening slots to suit businesses

� Commitment to 6 hour repair (Service Level 4)

� Impact Level 2 (IL2) assurance

� Bulk line check shows which lines/circuits can benefit today.

Fibre broadband roll-out:

Expect OpenreachA powerful resource for our customers and their peo ple

Reinforces our correct name, role and

position in market and explains:

� Our specific relationships with:

− CPs

− Resellers

− End users

� Our responsibilities to our customers.

Provides:

� A training resource for employees and

resellers

� A useful site for end user familiarisation

(so they understand who will be

visiting)

� End user guidance on ‘what to do

before reporting a fault’

� Interesting facts and figures www.expect.openreach.co.uk/

“A place to point their own customers to help them better understand

their relationship with us”.

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