Big investment, big challenges - the BT view. Bill Murphy, Managing Director NGA, BT

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1 Big investment, big challenges - the BT view Bill Murphy, Managing Director NGA, BT

2 What a difference a year makes

3 Good news from the Government By 2015 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 830m public funding for superfast broadband in rural areas Between now and from digital switchover under spend 150 pa (from 2013) from BBC licence fee settlement Four NGA pilot schemes announced Highlands and Islands, North Yorkshire, Cumbria, Herefordshire

4 Good progress from BT By this time last year October 2008: announced intention to begin fibre pilots in summer 2009 March 2009: first fibre exchanges announced, due to go live early 2010 March 2009: pledged 1.5bn investment to roll out fibre to 40% UK by 2012 June 2009: first FTTC pilots live July 2009: announced target of 1.5 million premises passed by summer 2010 October 2009: announced FTTP trial locations In the last 12 months We have hit our targets and increased our determination, ambition and financial commitment 2.5bn to reach two-thirds of the UK 50,000km fibre, 37,000 new cabinets, 200,000 new distribution points Additional BT funding available to partner to reach the final third Engaging across the country with local authorities and devolved governments Building business models to make the ambitions of the final third a commercial reality 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

5 2010: delivering on promises and building scale Already passed more than 3 million premises, on track for 4 million by Christmas Rolling out fibre to 500 cabinets and passing c.150,000 homes and businesses each week Doubled the number of fibre deployment engineers FTTP trials underway, commercial services launching in external service providers are utilising BT s fibre services, Talk Talk will make this 22 early next year BT infinity launched in January, speeds of up to 40Mbps from per month

6 Investing to grow the market Race to Infinity launched in October to take the nation s broadband pulse More than 200,000 votes cast so far 2000 campaigners You only have 5 more weeks left to vote! BT Get IT Together launched in October to get friends and family online We're at a crossroads in our march towards a networked nation. BT's new approach recognises we can all have a role to play. Martha Lane Fox

7 International comparisons By 2012 the proportion of UK homes able to receive SFBB will have overtaken France, the Netherlands, Spain and Italy Deploying at almost twice the pace of France Telecom, Sing Tel and Swisscom More than twice the pace of Deutsche Telecom, AT&T, Verizon and Belgacom More than three times the pace of peers in Japan (NTT) & Korea (KT) We are building the equivalent of the fibre network in Singapore every quarter 100% 90% 80% 70% Percentage of premises passed with superfast broadband 60% 50% 40% 30% 20% 10% %

8 The opportunity for the industry Shared Vision Ensuring the UK is at the leading edge of the global digital economy Public Private Partnership Essential to go beyond the commercial areas Customer Demand Vital to engage citizens, businesses and other local stakeholders on the benefits Open, Competition Ready Giving customers choice on products, applications and service

9 Addressing the challenge of the final third Northern Ireland BT has pledged to invest 30m in the government s Next Generation Broadband Project FTTC technology to a majority of businesses with other fixed line solutions being used where appropriate 30,000 business and 250,000 consumers covered Wholesale level solution to ensure all Service Providers can access services at the same T&Cs and cost. Increased competition will benefit end users White label marketing campaign delivered prior to the enablement of an area to generate awareness of next generation broadband Cornwall Most ambitious rural broadband project in the world EU contribution of 53.5m, 78.5m BT investment 25,000 businesses and 263,000 premises covered Fibre access to 80-90% of local businesses and homes by 2014 An array of service providers offering competition and innovation A mixed economy infrastructure comprising FTTP, FTTC, ADSL2+, wireless and satellite broadband Everyone to get improved speeds First 8 exchanges announced today DETI objective: increase the availability of next generation broadband speeds to 85% of businesses by 2011

10 The next 12 months Infinite possibilities Thriving competition driving innovation, choice and services Well on the way to 10 million premises passed by 2012 Commercial FTTP services bringing 100 Mbps to many Northern Ireland job done! Big society in action: funding at a community and county level Public services over fibre increased efficiency and improved delivery Businesses competing more effectively and offering new services Connected communities improving people s lives

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