Rolling out fibre the BT reality. Bill Murphy, Managing Director, NGA BT

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1 Rolling out fibre the BT reality Bill Murphy, Managing Director, NGA BT

2 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 m from digital switchover under spend 150m pa (from 2013) from BBC licence fee settlement Four NGA pilot schemes announced and wave 2 underway Wave 1: Highlands and Islands, North Yorkshire, Cumbria, Herefordshire

3 Good progress from BT 2009 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 15 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

4 2011: delivering on promises and building scale More than doubled the number of fibre deployment engineers Rolling out fibre to 300 cabinets and passing c.90,000 homes and businesses each week More than 4 million premises passed with fibre FTTP trials underway, commercial services launching late summer 25 external service providers are utilising BT s fibre services BT infinity launched January 2010, speeds of up to 40Mbps from / month 41 market towns going live from Spring 2012

5 Fibre for rural communities SFBB rolling out in rural areas in the North including Billinge Bishop Auckland Burley in Wharfedale Calder valley Filey Haworth Holmfirth Knutsford Mirfield Morpeth Nantwich Penrith Ponteland Prudhoe Rainford Royston Stocksbridge

6 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

7 Example 1: Northern Ireland Objective: Next generation broadband to 88% of businesses and consumers by 2011 The challenge Technology neutral Open access / Wholesale level Minimum 2Mb rural Minimum 10Mb urban Equitable Consumer & business variants The solution 48m investment 1,215 cabinets 169 exchanges + In-fill technologies Wholesale level solution open to all service providers Completion - May 2011 White label marketing 1000 businesses already using the service

8 Northern Ireland s next generation broadband journey Mar 2009 Dec Mar 2011 Jan 2011 Jan 2011 Feb 2011 BT announces next generation broadband investment, as part of 2.5bn UK-wide project BT partners with DETI on Next Generation Broadband Project ( 48m) Fibre contract awarded through NI Broadband Fund, includes investment by BT BT becomes first partner of Derry~ Londonderry UK city of Culture 2013 BT accelerates its NI rollout of next generation broadband, as part of 2.5bn UK wide project Balmoral, Newtownards, Bangor, and Lisburn are first locations passed by BT next generation broadband programme (279 cabinets) 85% of businesses to be connected by March ,215 cabinets across 169 exchange areas by April 2011 Additional 23 cabinets in rural areas As part of the multi-million pound partnership BT will fibre enable all Derry City cabinets (110 cabinets) 88% of Northern Ireland premises will be connected to a fibre cabinet by March 2012 (783 cabinets)

9 Fibre transforming small businesses A family business Based in Warren point, rural County Down Specialist picture framers that also run a garden centre! Building up business outside of Northern Ireland using their website as the main sales and engagement tool Fibre connection installed two months ago Already saving 6,000 per month in catalogue production and distribution costs Able to increase number and quality of graphics on the website from 50 to 1000, and starting to use YouTube to demonstrate their craftsmanship Improving point-of-sale experience electronic catalogues arrive while they speak on the phone, not 30 minutes later Next challenge growing the garden centre business online.

10 Fibre transforming lives of consumers Mr Bob Jordan, an amazing silver surfer 83 years of age and a serial early adopter. 02 s first mobile customer in Ireland, he is now enjoying a 27 Mbps fibre link to his home Keeps in touch with friends all over the world using and Skype Books his holidays online, banks online, pays his car tax online, and shops online Wishes he had access to more council services from the comfort of his living room His grandchildren are also very taken with the speed of his internet connection.

11 Example 2: Cornwall and the Isles of Scilly Objective: To deliver next generation broadband to 100% of the county The challenge Rural, remote, peripheral Rapidly expanding population Focus on developing the knowledge economy 100% of the population to get improved speeds The solution 132m project ERDF convergence funding up to 53.5m % fibre, half FTTP 10-20% satellite / wireless / advanced copper Open, competitive network

12 Competition ready critical for success

13 The next 12 months Infinite possibilities Northern Ireland job done! Well on the way to 10 million premises passed by 2012 Commercial FTTP services bringing 100 Mbps to many Thriving competition driving innovation, choice and services Big society in action: funding at a community and county level Local broadband plans wave 2 and beyond Businesses competing more effectively and offering new services Connected communities improving people s lives

14 Already a lot of activity in the North Becoming recognised as a national digital test-bed Ensure your County Councils are taking action Develop county-wide plans Issue open procurements Let the market compete to offer the best economic value Work in partnership to innovate and derive maximum benefit bill.murphy@bt.com simon.roberson@bt.com

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