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Standard Contract Forum
Thursday 8 June 2006
2
3
4
5
1
AGENDA
Introduction and Notes of Previous Meeting
Pathfinder Contracting
O & M Manuals
AIT Update
Consult 21
6 Review of New and Amended Schedules
7 Any Other Business
• Withdrawal of School Internet www.btwholesale.com

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Standard Contract Forum
8 June 2006

Standard Contract Forum
8 June 2006
• New Schedule 131 (Virtual Interconnect Circuits product) for future “Virtual DLE interconnection”
• VIC Supplemental (inc Schedule 131) for DLEinterconnected CPs System Alterations Side-letter for
DLE-interconnected CPs for Pathfinder; further Side – letters for DLE-NGS Tranches 2/3; Supplemental for
DLE-NGS System Alterations for Tranche 4 onwards www.btwholesale.com

Standard Contract Forum
8 June 2006
• Contract Notice to cover off minor documentation changes for BT call termination, indirect access etc (with offer of existing
Supplemental to update documentation of contract if requested)
• Special contract treatment for those few CPs taking
FRIACO or CPS/SAD www.btwholesale.com

Standard Contract Forum
8 June 2006
SIA – O&M MANUAL
Update to O&M Manual proposed
Proposed process:
• Highlighted draft onto SCF website
• Interconnection notice issued inviting comments
•
Comments analysed
– incorporated or response
• Report back to next SCF
• Updated O&M Manual on SIA web-site
Commence in next one-two weeks www.btwholesale.com

Standard Contract Forum 2006
Erica Cumming
Commercial Lawyer (BTW Core Network Services)

AIT (Artificial Inflation of Traffic)
Current Definition: “a situation where the flow of Calls to any particular
Revenue Share Service [RSS] is as a result of any activity on or behalf of the party operating that RSS disproportionate to the flow of Calls which would be expected from good faith commercial practice and usage of the network” [Annex D]
New Definition: Need to ensure it covers:
- personal numbering services;
- reverse charge calling
- short duration calls;
- virtual mobile calls;
- future services?

Standard Contract Forum 2006: AIT
Current A1 Retention Notice:
• ONO can withhold £ to BT if suspect AIT and BT must hold off paying TNO until TNO can show that traffic is valid
BT is Transit Operator in 70% of cases:
ONO
Originating
Network
Operator
£ calling party
SIA
ONO & BT
£
TO (BT)
Transit
Operator
Diagram showing:
flow of money; and
2 separate SIAs where BT is TO
SIA
BT & TNO
TNO
Terminating
Network
Operator
£
£
Info
Provider
£
Service
Provider
£
Info
Provider
£
Service
Provider
£
Info
Provider

Standard Contract Forum 2006: AIT
Problems for Industry and BT:
1. AIT definition in Annex D is very narrow - existing/future forms of fraud?
2. Indicators of AIT in Annex E refer to “Revenue Share Service”
3. ONOs may misuse AIT process to withhold legitimate revenue, or withhold £ - but give no justification and force BT to act as policeman
4. Delay in revenue payments to legitimate TNOs – may stifle innovation or new services
5.
Revised proposal was for only ONO to raise AIT notice to withhold £ – but have found that BT may be first party aware of a potential fraud occurring
6.
BT is usually ‘piggy in the middle’ of ONO/TNO dispute (ie., 70% AIT cases involve BT as Transit Operator) – timely/costly for BT to resolve

Standard Contract Forum 2006: AIT
Contract review is needs to deal with:
1. More appropriate/relevant definition of AIT
2. Balance new AIT definition with revised AIT indicators - so that ONOs don’t abuse AIT as cash flow mechanism
3.
Provide for BT to raise AIT notices and withhold £ to TNO when BT notices unusual activity in transit traffic – BT will alert ONO of problem
4. Increase onus on ONOs to provide supporting information of AIT:
“ good suspicion ” necessary to initially halt payment
“ strong and convincing reasons ” to hold on to payment
5. Resolution process needs improvement - ideally so BT can drop out where it only provides transit and leave ONO and TNO to resolve themselves

Standard Contract Forum 2006: AIT
Industry AIT Discussions Recommenced in May 2006:
• Met with Industry (12 May 2006)
• Industry (broadly) agreed that a new AIT scope was required and BT invited proposals regarding AIT definition and indicators
• BT currently redrafting Annex E (definition, indicators and retention process)

Next Steps:
Standard Contract Forum 2006: AIT
1. Industry were asked to consider and suggest new AIT definition and add to BT’s proposed new definition which would include “all Calls with exceptions”, and also consider indicators of AIT in Annex E
2. BT to circulate revised Annex E which shall include:
• Revised process for issuing AIT and withholding £ (A1 Notice) where BT (or
ONO) notices unusually call traffic
• Revised dispute resolution process (optional 2-way arbitration between
ONO and TNO, but retain BT’s discretion to use court proceedings)
3. BT to update and circulate AIT flow charts
4. BT to prepare a draft issues matrix
5. Next Industry Meeting: mid-June

Standard Contract Forum 2006: AIT
Long Term (by end 2006):
• Agreement of key industry players with new AIT definition, Annex E indicators, A1 retention notice processes and dispute resolution
• Formal consultation with wider industry and 160+ operators
• Possible informal talks with OFCOM (and ICSTIS?)
• Update Reference Offer and make Supplemental Offer to all CPs
(BUT – proviso in both that not applicable until universal)
• Refer to OFCOM those who don’t sign-up

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21CN Strategy Refresh –
Standard Contract Forum
8th June 2006
Tim Short
BT Wholesale

Forward Looking Statements – Caution Advised
Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities
Litigation Reform Act of 1995. These statements include, without limitation, those concerning: BT's plans for transformation of its networks; benefits to customers of the 21CN programme; key milestones and expected timetable for delivery of 21CN; and the benefits in relation to, for example interconnect, convergence and broadband.
Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual outcomes may differ materially from those expressed or implied by these forward-looking statements.
Factors that could cause differences between actual outcomes and those implied by the forward-looking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; supplier arrangements; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies and the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised.

Key elements of the refreshed 21CN proposal
Refreshed plan reflects issues raised by industry around timing, products, contracting and testing, as well as other factors such as Undertakings and vendor commitments.
BT believes the new proposal addresses these issues and provides benefits for all CPs.
Broadband players benefit from accelerated access to next generation broadband services
Voice players get de-risked migration process
LLU players benefit from accelerated Ethernet backhaul product introductions
PC and PPC-based Data Services get continuity of service on 20C in the medium term
Timeline
Additional time for comprehensive collaborative testing and participation in Pathfinder, leading to a better overall customer experience for all CPs
Detailed industry review period after Pathfinder to allow adequate time to share the learning and plan for the beginning of migration of services nationally.
Products
Effort focused on bringing forward key next generation products to bring advantages of 21CN as early as possible, including next generation broadband and backhaul services
Enabling migration to next generation voice with one step migration via NGN SIP-I Interconnect option
Other
Provides additional time and flexibility to resolve risk mitigation and contracting strategy.

Agenda
Overview of the revised Strategy and Plan for 21CN
Accelerating Next Generation Broadband
Pathfinder Phasing and Review
Testing Approach
Transfer Engineering.
Risk Mitigation
Implementation & Reporting
Consult21 Update
Working Group Structure
Key Updates incl Common Capabilities
Summary

Overview of the revised 21CN Plan for 2006 - 2008
2006
Voice Migration in Pathfinder with Phase Review points
VIC and NGN SIP-I
I/Connect
VIC contract end July 06
Broadband
(IPstream, Industrial scale migration)
Ph 1
VIC
2007
Ph 3
Review
Period
NGN SIP- I
Interconnect
Dev’t Phase
2008
Voice and BB
Migration,
Future BB
Dev’t
IPstream
Migration
Availability of new
Interconnect and
Broadband services
Openreach Ethernet
Service products to support new Ethernet &
Backhaul
WES B
1&2
WES B
3 & 4
Private Services/
PPCs
Develop & Test –
Readiness to Operate
Existing Private Services maintained – future options under analysis
Growth of New Ethernet Point to Point services
Voice proven at Industrial scale, BB migration under way.
Voice and Broadband concurrent migration.
Note: NGN SIP-I Interconnect is being developed for launch before the beginning of national service migration. It will not be sufficiently mature to launch within the Pathfinder timescale – migration to NGS via the VIC product will be available within Pathfinder.
Migration
Completes in
Dec 2011

Testing Approach
BT shares CP’s view of the need for adequate testing to build confidence in both product capabilities and transfer engineering
BT will consult with CPs on the scope of our testing and trials to optimise efforts
BT will share results of our testing and trialling activities with CPs
Two test centres being established: Swansea and Adastral Park where
CPs will have an opportunity to do supplementary testing.

Transfer Engineering
National Migration will begin in January 2008 following the Pathfinder
Review
Where possible all products identified on the exchange for national migration will transfer ‘on the night’
Consultation on Broadband migration methodology begins on May 16 th at the IMWG
We will not close consultation on Transfer Engineering until that process testing is complete.
Certain end users jointly identified as requiring critical/complex services will be scheduled via the Migration Control Centre for individual circuit migrations slot (eg Emergency and Public Safety Services)

Risk Mitigation
Ring fence involvement in Pathfinder and the SAN work in anticipation of National Migration
BT will act reasonably regarding appropriate SAN and “other costs” associated with CP’s involvement in Pathfinder
CPs and BT will use the Pathfinder experience to get a clearer picture as to the actual costs and agree a way forward with CPs to be contracted for by the start of national migration.
BT is developing an initial package of proposals on Risk Mitigation

Detailed Implementation Plan
Shows those activities which impact on CPs
For each activity we have shown
ID for the milestone or task
Consult-21 working group with the prime interest
“RAG” status of achieving the milestone / task

Working Group Status
April 2006
Architecture & Framework
Network Structure
Systems & Processes
Network Hooks
Products
Interconnection & Portfolio
Broadband
Line Access
Point to Point
Conformance Testing
Implementation & Migration
Communications
R A G

Summary
Refreshed plan reflects CP issues and provides benefits for all.
Broadband, Voice and LLU operators benefit specifically
Continuity for PCs and PPCs carried on existing platforms in the medium term
Additional time available for testing and flexible, three phase approach to
Pathfinder
Review period after Pathfinder de-risks national migration from January 2008
Key next generation products brought forward
One step voice migration via NGN SIP-I Interconnect for National Migration
Greater flexibility to help resolve risk mitigation and contracting strategy issues
.

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Questions

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Standard Contract Forum
8 June 2006

Standard Contract Forum
8 June 2006
SIA REFERENCE OFFER
BT is constrained to up-issue its reference offer to reflect current regulatory status and current offerings – in the light of the contract review
• discussions. Updates to:
Main Body
• Annex A
• Annex D
• Schedule 01 – ISI
• Schedule 02 – CSI
BT recognises that some (June 2004) review issues still remain unresolved, but considers that the changes introduced here are not contentious. Obviously BT will be ready to readdress issues as-and-when necessary/appropriate.
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Standard Contract Forum
8 June 2006
Updated Schedules to be issued in immediate future:
Schedule 313 - Operator Premium Rate Service Calls
Schedule 314 - Operator Personal Numbering Service
(PNS) Calls (including personal assistant service Calls)
Schedule 112 - BT Premium Rate Service Calls
Schedule 102 - BT Transit Calls via the BT System www.btwholesale.com

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0820 Schools/Public Institutions Internet Caller
Julian Wootten
CNS - Interconnect Portfolio www.btwholesale.com

• Launched April 1998 in support of the Government’s
National Grid for Learning initiative.
• Provides Schools/Public Institutions with dial up internet access using PSTN or ISDN2e lines.
• Schedule 368 - 0820 calls originating on BT network to be terminated on an Internet Service Provider connected to a
Communication Provider’s network.
• Schedule 168 - 0820 calls originating on a Communication
Provider’s network to be terminated on an Internet Service
Provider connected to the BT network.
• Schedule 169 - 0820 calls originating on a Communication
Provider’s network to transit the BT network to be terminated on an Internet Service Provider connected to another Operator's network. www.btwholesale.com

• Steady decline in users as product reaching the end of its lifecycle due to higher bandwidth products, in particular
Broadband.
• Department for Education Services aiming to get all schools in the UK upgraded by the end of March 2007.
• Small proportion of Users remain and potentially a large proportion of such Users may not be utilising the service.
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• BTW Commercial Managers will set up meetings with participating Communication Providers to discuss:-
Continued support of the service until all Users have considered alternative products and are upgraded to a higher bandwidth product.
Withdrawal of new supply.
Withdrawal of service following completion of upgrade - aim end of
March 2007
Continued support for users where an alternative higher bandwidth solution is not available. www.btwholesale.com