BT Group plc BT Network Teach-in Howard Watson, MD Architecture and Global IT Platforms 5 March 2013

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1 BT Group plc BT Network Teach-in Howard Watson, MD rchitecture and Global IT Platforms 5 March

2 BT Chief rchitect role Part of BT Technology, ervice & Operations (TO) Pan-BT accountability for technology and process Focused on technology of all IT platforms, networks and infrastructure Regularly upgrade IT Platforms with major releases several times each year Own all technical delivery for BT s TV business 2

3 BT Technology, ervice & Operations TO a simpler, more end-to-end structure CIO, BT G CIO, BT Retail CIO, BT Wholesale CIO, BT Group CIO, Openreach IT end-to-end Network end-to-end Infrastructure end-to-end End-to-end service Research and Innovation 3

4 BT Technology, ervice & Operations impler for our people so we can deliver better for our customers implifying our organisation implifying our processes implifying our legacy implicity to deliver clarity Removing boundaries llowing a view of the whole lifecycle Removing complexity peeding up delivery Networks IT platforms Clarity of accountability Clarity to speed up decision making 4

5 BT s UK Network structure Broadband network structured around regulatory interfaces Highly resilient and scalable dual-vendor core Legacy networks still in place (PTN, 20C data, TM) Opportunity to change broadband architecture over next few years 5

6 BT s UK Network structure 20C Broadband ignificant investment in fibre and broadband in recent years Copper ccess fibre to more than 13m premises 21C Broadband N WBC (DL2+) to more than 90% of UK Infinity / FTTC Cab D L M Further significant investment in access layer to reach 2/3 premises with fibre during spring 2014 Fibre ccess potential to reach >90% in 2017 Infinity / FTTP Openreach 6

7 BT s UK Network structure 20C Broadband D L M 20C Backhaul B R 10 21C core scaled for broadband and Ethernet growth 21C Broadband Copper ccess Cab M N N X B R WCC Enhanced by the addition of content caches (WCC) and IP Multicast Infinity / FTTC D L M 1200 Programme in place to replace 20C Backhaul (TM) Infinity / FTTP Fibre ccess 21C Converged Core LTV Head End Opportunity to rearchitect 21C core Openreach Backhaul/ Core Content Content Content Providers Providers 7

8 BT s UK Network structure (as drawn on flip chart) Retail ggregation Nodes (RN) Wholesale operators connect at this level Over time aggregation and content caching will move closer to the customer (from POI node to super exchanges) FTTC operators connect at this level 20 POI nodes 106 Metro nodes c.1,200 super exchanges Point Of ervice Interconnect nodes at 20 locations around the UK Main aggregation nodes within 21C network c.1,200 Ethernet enabled exchanges and c.1,200 Openreach Head Ends for delivering multicast TV LLU operators connect at this level c.5,500 total exchange buildings 8

9 BT s UK Network structure Internet 20C Broadband D L M 20C Backhaul B R 10 21C Broadband Infinity / FTTC Copper ccess Cab D L M M N N X B R WCC RN RTMN/RN Network 4 RET erver(s) Nagra Head End VOP Origin erver EPG / Content tore Infinity / FTTP Fibre ccess 21C Converged Core LTV Head End YouView Intertrust Head End Openreach Backhaul/ Core Retail Content Content Content Providers Providers 9

10 BT TV multicast network oft launched in January 2013 End-to-end delivery of linear TV BT Infinity homes 30,000+ cabinets 1,200 Layer 2 switches 2 Head Ends Cab D L M X X LTV Head End Nagra Head End 10

11 BT TV multicast network Currently 18 D plus 4 HD channels 150 Mbps to each fibre cabinet to deliver channels Enhancing the proposition later this year upgrading to 500 Mbps to each fibre cabinet to deliver additional channels 11

12 BT TV multicast network Multicast on YouView requires a different encryption than delivery on legacy Vision platform imulcrypt allows BT to transmit channels once but encrypt with two keys avoids cost of retransmitting channels twice 12

13 IT Platforms summary Matrix portfolio architecture used applications aligned into functional platforms functionality grouped into stacks for each customer-facing unit Mixed use of off-the-shelf products (e.g. Oracle) and inhouse Opportunity for further improvements simplify application estate reduce number of UK data centres significant virtualisation opportunity 13

14 IT Platforms new architecture 14

15 ummary End-to-end structure allows TO to improve customer delivery ignificant network investment has driven improvements with more to come Robust linear TV delivery network in place Opportunity for further IT platform improvements 15

16 BT Group plc Q& 16

17 ppendix glossary BR Broadband Remote ccess erver - routes traffic to and from broadband remote access devices C2M Concept to Market the process of creating and delivering new or improved products or processes DLM Head End ITIL L2C LTV Digital ubscriber Line ccess Multiplexer - a network device, often located in a telephone exchange or cabinet which connects multiple customer digital subscriber line (DL) interfaces to a high-speed digital communications channel using multiplexing techniques The originating point in a communications system. In TV delivery, the head end is where the programming originates in the network Information Technology Infrastructure Library a set of practices for IT service management adopted by many thousands of organisations Lead to Cash a set of business processes that begin with a lead and end with the company receiving cash Linear Television channels delivered via IP Multicast MN MTB Multi-ervice ccess Node - a device typically installed in a telephone exchange or street cabinet which connects customers' telephone lines to the core network, to provide telephone, IDN, and broadband all from a single platform Manage The Business the set of applications used to run the business (e.g. HR and finance systems) 17

18 ppendix glossary RET erver RTMN RN E T2R Retransmission server used with IP Multicast services to increase quality of delivery by supplying lost packets on request Retail Traffic Management Node - used to stream the upstream and downstream broadband traffic through the traffic management equipment to manage the service for the customer Retail ccess Node the Points of ervice Interconnect between the BT Wholesale and BT Retail networks ervice Execution specific IT applications associated with service delivery to customers (e.g. voice and TV IT applications) Trouble to Resolve process that begins when a customer has told us they are not happy with either our product or service and ends when that problem has been resolved to the customer s satisfaction UKMN WCC BT UK Media Network - provides live-to-air quality real-time video connectivity between television, film and other content producers, and broadcasters Wholesale Content Connect BT Wholesale product that delivers on demand content efficiently by caching content deep in the broadband network 18

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