Performance Indicators - Q3 2006/7 Page Profit & Loss 1 External Revenue by Segment 2 External Revenue Analysis 3 External Revenue Analysis - BT Global Services / Sales Order Value 3a (1) External Revenue Analysis - BT Global Services - Memo Information 3a (2) External Revenue Analysis - BT Retail 3b External Revenue Analysis - BT Wholesale 3c External Revenue Analysis - Openreach 3d Summary Cost Analysis 4 Capital Expenditure 5 Total Call Volumes / Growth / Carrier Pre Select / Market Share 6 Exchange Lines / Wholesale Line Rental / Broadband / Local Loop Unbundling 7 Average Revenue per Consumer Household / BT Together Packages / Active Customers / Mobility Connections 8 Q3 - 2006/07 Bringing it all together Q3 06/07 Revenue Up 5% BT Group Results - P&L 2006/07 Q3 Actual BT Group £m unless stated Revenue BT Global Services BT Retail BT Wholesale Openreach Other Eliminations Group Revenue 2005/06 Q3 Actual Restated 2,291 2,131 1,922 1,314 2 (2,534) 5,126 2,197 2,116 1,848 1,278 3 (2,560) 4,882 27 23 232 219 497 468 (4) 1,412 223 175 481 487 15 1,381 Depreciation & amortisation of intangibles BT Global Services BT Retail BT Wholesale Openreach Other Group Depreciation 180 43 293 177 48 741 Op Profit Inc. leaver costs BT Global Services BT Retail BT Wholesale Openreach Other Underlying Group Op Profit Leaver costs EBITDA Inc. leaver costs BT Global Services BT Retail BT Wholesale Openreach Other Group EBITDA Net Finance Costs Share of post tax profits/losses of associates and joint ventures Underlying PBT Specific Items : Net gains (losses) Reported PBT Tax - Underlying Tax on specific items Tax rate Net Income Memo: Minority Interest EPS before specific items EPS after specific items Proposed Dividend Average Number of Shares in Issue Capital Expenditure Net Debt Q3 - 2006/07 EBITDA up 2% Better / (worse) % 4.3 0.7 4.0 2.8 (33.3) 1.0 5.0 2006/07 Q2 Actual BT Group 2005/06 Q2 Restated BT Group 2,157 2,077 1,885 1,279 4 (2,461) 4,941 2,102 2,136 1,813 1,271 4 (2,559) 4,767 33 37 4.0 25.1 3.3 (3.9) (126.7) 2.2 224 228 469 460 4 1,385 198 189 464 482 15 1,348 160 36 271 196 47 710 (12.5) (19.4) (8.1) 9.7 (2.1) (4.4) 157 39 291 178 38 703 52 176 204 291 (52) 671 63 139 210 291 (32) 671 17.5 26.6 (2.9) 0.0 (62.5) 0.0 (62) 7 616 23 639 (150) 969 24.4% 1,458 (129) 3 545 0 545 (134) 0 24.6% 411 51.9 (133.3) 13.0 17.2 (11.9) 5.6 17.6 4.9 4.9 14.3 259.2 8,284 815 8,796 8,407 759 8,113 (7.4) (8.4) - 254.7 PBT up 13% Better / (worse) % 2005/06 Q1 Restated BT Group Better / (worse) % 2,155 2,068 1,847 1,259 5 (2,470) 4,864 2,067 2,120 1,814 1,294 6 (2,570) 4,731 24 6 13.1 20.6 1.1 (4.6) (73.3) 2.7 211 180 477 470 24 1,362 219 155 468 507 8 1,357 158 39 274 188 33 692 0.6 0.0 (6.2) 5.3 (15.2) (1.6) 148 40 285 175 55 703 67 189 178 282 (34) 682 40 150 190 294 (18) 656 (67.5) 26.0 (6.3) 4.1 (88.9) 4.0 (55) 5 632 (3) 629 (155) 1 24.5% 475 (100) 3 559 (70) 489 (139) 21 24.9% 371 5.7 5.7 5.10 8,308 812 8,079 5.0 4.4 4.30 8,456 694 8,133 Page 1 2.6 (2.8) 4.0 0.6 0.0 3.8 3.7 2006/07 Q1 Actual BT Group EPS up 14% 2005/06 Nine Months Restated BT Group Better / (worse) % 6,603 6,276 5,654 3,852 12 (7,466) 14,931 6,366 6,372 5,475 3,843 13 (7,689) 14,380 84 66 (3.7) 16.1 1.9 (7.3) 200.0 0.4 667 627 1,443 1,398 24 4,159 640 519 1,413 1,476 38 4,086 4.2 20.8 2.1 (5.3) (36.8) 1.8 152 34 271 186 66 709 2.6 (17.6) (5.2) 5.9 16.7 0.8 485 122 869 530 141 2,147 638 147 1,102 800 197 2,884 24.0 17.0 21.1 33.8 28.4 25.6 63 140 192 295 (31) 659 67 121 197 321 (58) 648 6.0 15.7 (2.5) 8.1 46.6 1.7 182 505 574 868 (117) 2,012 170 410 597 906 (108) 1,975 (7.1) 23.2 (3.9) 4.2 (8.3) 1.9 45.0 (66.7) 13.1 28.6 (11.5) 28.0 (46) 2 615 0 615 (151) 0 24.6% 464 (142) 5 511 (12) 499 (129) 4 25.2% 374 67.6 60.0 20.4 23.2 (17.1) 24.1 (163) 14 1,863 (18) 1,845 (456) 4 24.5% 1,393 56.1 (27.3) 15.4 20.4 (13.4) 20.5 14.0 29.5 19% (17.0) 0.7 5.6 5.6 8,314 715 7,727 4.5 4.4 8,471 716 8,121 24.4 27.3 0.1 4.9 16.9 (371) 11 1,615 (82) 1,533 (402) 25 24.9% 1,156 1 14.4 13.7 - 4.3 (2.5) 1.8 (2.7) (16.7) 3.9 2.8 2006/07 Nine months Actual BT Group - 8,302 2,342 8,796 8,444 2,169 8,113 3.7 (1.5) 3.3 0.2 (7.7) 2.9 3.8 - 17.4 (100.0) (8.0) (8.4) 2004/5 EXTERNAL REVENUE BY SEGMENT 2005/6 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 £m 1,324 1,597 586 1,218 6 4,731 £m 1,336 1,629 583 1,215 4 4,767 £m 1,324 1,732 568 1,255 3 4,882 £m 1,312 1,922 587 1,308 5 5,134 £m 5,296 6,880 2,324 4,996 18 19,514 £m 1,252 1,699 588 1,319 6 4,864 £m 1,257 1,703 593 1,384 4 4,941 £m 1,310 1,833 584 1,397 2 5,126 EXTERNAL REVENUE BY SEGMENT HEADLINE YEAR-ON-YEAR GROWTH Q1 Q2 Q4 Total Q1 Consumer Major Corporate Business Wholesale / Global Carrier Other Total (6.5%) 14.8% (5.0%) 11.9% n/m 4.7% (5.2%) 15.4% (6.6%) 10.3% n/m 4.7% Consumer Major Corporate Business Wholesale / Global Carrier Other Total Q3 - 2006/07 Q1 Q2 Q3 Q4 £m 1,416 1,391 617 1,088 7 4,519 £m 1,410 1,412 624 1,102 6 4,554 £m 1,400 1,440 600 1,090 6 4,536 £m 1,373 1,693 601 1,147 6 4,820 Total 2006/7 £m 5,599 5,936 2,442 4,427 25 18,429 Page 2 2005/6 Q3 (5.4%) 20.3% (5.3%) 15.1% n/m 7.6% (4.4%) 13.5% (2.3%) 14.0% n/m 6.5% (5.4%) 15.9% (4.8%) 12.9% n/m 5.9% (5.4%) 6.4% 0.3% 8.3% n/m 2.8% 2006/7 Q2 (5.9%) 4.5% 1.7% 13.9% n/m 3.7% Q3 (1.1%) 5.8% 2.8% 11.3% n/m 5.0% 2004/5 EXTERNAL REVENUE ANALYSIS BT Group Q1 £m Q2 £m Q3 £m 2005/6 Q4 £m Total £m Q1 £m Q2 £m 2006/7 Q3 £m Q4 £m Total £m Q1 £m Q2 £m Q3 £m Networked IT Services Broadband and LLU Mobility Other 634 186 43 73 699 199 49 86 738 253 55 89 995 292 58 101 3,066 930 205 349 899 314 66 106 914 350 69 106 1,038 374 75 120 1,214 421 82 134 4,065 1,459 292 466 981 454 71 135 1,001 486 72 177 1,117 520 73 170 Total New Wave 936 1,033 1,135 1,446 4,550 1,385 1,439 1,607 1,851 6,282 1,641 1,736 1,880 Exchange lines/ISDN - connection and rental Calls Private Circuits Transit, conveyance, interconnect circuits, WLR and other wholesale (incl. FRIACO) Other 918 982 326 959 888 325 952 820 325 934 799 316 3,763 3,489 1,292 921 764 314 912 749 302 889 730 322 881 713 302 3,603 2,956 1,240 876 685 309 851 655 317 844 692 291 657 700 650 699 619 685 599 726 2,525 2,810 630 717 634 731 636 698 655 732 2,555 2,878 661 692 689 693 704 715 Total Traditional 3,583 3,521 3,401 3374 13,879 3,346 3,328 3,275 3283 13,232 3,223 3,205 3,246 Total Revenue 4,519 4,554 4,536 4,820 18,429 4,731 4,767 4,882 5,134 19,514 4,864 4,941 5,126 Key Highlights Q3 06/07 Broadband revenue over £500m in the quarter Call revenue increased sequentially for the first time in over 4 years Q2 06/07 Broadband revenue now 10% of Group Revenue Q1 06/07 New wave revenue grew c£250m in Q1, similar rate of growth for the last 9 quarters Q4 05/06 and FY 05/06 Networked IT Services 65% of FY new wave revenue and over a fifth of Group Revenue Q3 05/06 Networked IT Services now our largest revenue stream Q2 05/06 Group Broadband revenue exceeds that of Private Circuits for the first time Networked IT Services revenue exceeds that of Line Rental for the first time Q3 - 2006/07 Page 3 2004/5 EXTERNAL REVENUE ANALYSIS Global Services Q1 £m Q2 £m Q3 £m 2005/6 Q4 £m Total £m Q1 £m Q2 £m Q3 £m 2006/7 Q4 £m Total £m Q1 £m Q2 £m Q3 £m Networked IT Services Broadband and LLU Mobility Other 578 7 26 - 626 9 26 - 666 12 25 - 912 14 26 - 2,782 42 103 - 824 14 39 - 841 14 39 - 955 15 44 - 1,112 15 55 - 3,732 58 177 - 898 14 45 - 923 15 46 - 1,026 17 49 - Total New Wave 611 661 703 952 2,927 877 894 1,014 1,182 3,967 957 984 1,092 Exchange lines/ISDN - connection and rental Calls Private Circuits Transit, conveyance, interconnect circuits, WLR and other wholesale (incl. FRIACO) Other (a) 166 107 129 158 101 123 157 91 122 154 89 114 635 388 488 155 86 112 158 85 111 148 80 112 145 82 109 606 333 444 157 82 117 152 74 114 152 72 108 427 416 407 466 1,716 451 455 438 474 1,818 441 439 461 Total Traditional 829 798 777 823 3,227 804 809 778 810 3,201 797 779 793 1,440 1,459 1,480 1,775 6,154 1,681 1,703 1,792 1,992 7,168 1,754 1,763 1,885 287 332 330 385 1,334 386 399 405 414 1,604 401 394 406 1,727 1,791 1,810 2,160 7,488 2,067 2,102 2,197 2,406 8,772 2,155 2,157 2,291 Networked IT Services order intake Other Order Intake Q1 £m 1,276 571 Q2 £m 852 477 2004/5 Q3 £m 1,235 926 Q4 £m 3,798 491 Q1 £m 2,359 466 2005/6 Q2 Q3 £m £m 752 1,194 706 1,203 Q4 £m 1,086 1,232 Q1 £m 1,041 739 2006/7 Q2 £m 702 915 Q3 £m 1,516 986 Total Global Services order intake 1,847 1,329 2,161 4,289 2,825 1,458 2,318 1,780 1,617 2,502 Total Revenue Memo: Internal Revenue Total Global Services Reported Revenue(b) Shading = not restated for proforma Openreach (a) and (b) - See Memo info on following page Global Services ORDER VALUE Q3 - 2006/07 Page 3a - Global Services (1) 2,397 2005/6 Memo information - Global Services Q1 £m Q2 £m 2006/7 Q3 £m Q4 £m Total £m Q1 £m Q2 £m Q3 £m (a) Other Traditiona UK Non-UK Total 72 379 451 53 402 455 59 379 438 56 418 474 240 1,578 1,818 59 382 441 54 385 439 54 407 461 (b) Reclassified total revenue New wave (as reported) Non-UK (Included in Other) Internal GS New Wave 877 379 260 894 402 264 1,014 379 275 1,182 418 291 3,967 1,578 1,090 957 382 300 984 385 292 1,092 407 295 1,516 1,560 1,668 1,891 6,635 1,639 1,661 1,794 353 72 126 354 53 135 340 59 130 336 56 123 1,383 240 514 356 59 101 340 54 102 332 54 111 551 542 529 515 2,137 516 496 497 2,067 2,102 2,197 2,406 8,772 2,155 2,157 2,291 Traditional (as reported above excluding Othe UK Traditional (Included in Other) Internal GS Traditional Total GS Reported Revenue 2006/7 Year on Year Change Q1 Q3 GS New Wave 8.1% 6.5% 7.6% GS Traditional (6.4%) (8.5%) (6.0%) 4.3% 2.6% 4.3% GS Total Q3 - 2006/07 Q2 Page 3a - Global Services (2) 2004/5 EXTERNAL REVENUE ANALYSIS Retail Q1 £m Q2 £m Q3 £m 2005/6 Q4 £m Total £m Q1 £m Q2 £m Q3 £m 2006/7 Q4 £m Total £m Q1 £m Q2 £m Q3 £m Networked IT Services Broadband Mobility Other 56 108 17 14 73 111 23 18 72 131 30 19 83 146 32 26 284 496 102 77 75 159 27 17 73 176 30 26 83 185 31 29 102 198 27 44 333 718 115 116 83 212 26 49 78 219 26 90 91 225 24 84 Total New Wave 195 225 252 287 959 278 305 328 371 1,282 370 413 424 Exchange lines/ISDN - connection and rental Calls Private Circuits Transit, conveyance, interconnect circuits, WLR and other wholesale (incl. FRIACO) Other 752 875 43 801 787 47 795 729 48 780 710 35 3,128 3,101 173 766 678 41 754 664 41 741 650 41 736 631 35 2,997 2,623 158 719 603 34 699 581 35 692 620 33 266 277 272 254 1,069 260 272 257 253 1,042 251 254 254 Total Traditional 1,936 1,912 1,844 1,779 7,471 1,745 1,731 1,689 1,655 6,820 1,607 1,569 1,599 Total External Revenue 2,131 2,137 2,096 2,066 8,430 2,023 2,036 2,017 2,026 8,102 1,977 1,982 2,023 Memo: Internal Revenue 53 68 64 83 268 97 100 99 109 405 91 95 108 2,184 2,205 2,160 2,149 8,698 2,120 2,136 2,116 2,135 8,507 2,068 2,077 2,131 Total Retail Reported Revenue Shading = not restated for proforma Openreach Q3 - 2006/07 Page 3b - Retail 2004/5 EXTERNAL REVENUE ANALYSIS Wholesale Networked IT Services Broadband and LLU Mobility Other Q1 £m Q2 £m Q3 £m 2005/6 Q4 £m Total £m Q1 £m Q2 £m Q3 £m 2006/7 Q4 £m Total £m Q1 £m Q2 £m Q3 £m 71 59 79 68 110 70 132 75 392 272 130 89 147 80 152 91 159 90 588 350 179 86 181 87 192 86 Total New Wave 130 147 180 207 664 219 227 243 249 938 265 268 278 Exchange lines/ISDN - connection and renta Calls Private Circuits Transit, conveyance, interconnect circuits, WLR and other wholesale (incl. FRIACO) Other 154 155 155 167 631 161 150 169 158 638 158 168 150 657 - 650 - 619 - 599 - 2,525 - 588 - 587 - 575 - 582 - 2,332 - 574 - 594 - 599 - Total Traditional 811 805 774 766 3,156 749 737 744 740 2,970 732 762 749 Total External Revenue 941 952 954 973 3,820 968 964 987 989 3,908 997 1,030 1,027 Memo: Internal Revenue 1,332 1,311 1,318 1,314 5,275 847 849 861 879 3,435 850 855 895 Total Wholesale Reported Revenue 2,273 2,263 2,272 2,287 9,095 1,815 1,813 1,848 1,868 7,344 1,847 1,885 1,922 Shading = not restated for proforma Openreach Q3 - 2006/07 Page 3c - Wholesale 2005/6 EXTERNAL REVENUE ANALYSIS Openreach Q1 £m Q2 £m Q3 £m Q4 £m Total £m Networked IT Services Broadband and LLU Mobility Other 11 - 13 - 22 - 49 - Total New Wave 11 13 22 Q1 £m Q2 £m Q3 £m 49 - 71 - 86 - 49 95 95 49 71 86 Exchange lines/ISDN - connection and rental Calls Private Circuits Transit, conveyance, interconnect circuits, WLR and other wholesale (incl. FRIACO) Other - - - - - - - - 42 - 47 - 61 - 73 - 223 - 81 - 91 - 103 - Total Traditional 42 47 61 73 223 81 91 103 Total Revenue 53 60 83 122 318 130 162 189 Memo: Internal Revenue 1,241 1,211 1,195 1,177 4,824 1,129 1,117 1,125 Total Openreach Reported Revenue 1,294 1,271 1,278 1,299 5,142 1,259 1,279 1,314 Openreach only restated for 2005/6 Q3 - 2006/07 2006/7 Page 3d - Openreach 2004/5 Summary Cost Analysis Staff costs before leaver costs Leaver costs Staff costs (including leaver costs) Other operating costs^ Own work capitalised^ Sub total POLO's Depreciation and amortisation Amortisation of acquired intangibles Total costs* Q1 £m 1,070 102 1,172 1,285 (172) 2,285 988 700 3,973 Q2 £m 1,065 8 1,073 1,371 (206) 2,238 964 704 3,906 Q3 £m 1,098 12 1,110 1,370 (169) 2,311 880 695 3,886 2005/6 Q4 £m 1,155 44 1,199 1,502 (175) 2,526 893 745 4,164 Total £m 4,388 166 4,554 5,528 (722) 9,360 3,725 2,844 15,929 Q1 £m 1,156 6 1,162 1,406 (161) 2,407 1,009 706 3 4,125 Q2 £m 1,210 37 1,247 1,395 (159) 2,483 989 690 2 4,164 ^ 2005/6 restated to exclude external software development related activity from both Other Operating Costs and Own Work Capitalised * Under IFRS basis and before specific items Shading = not restated Q3 - 2006/07 Page 4 Q3 £m 1,226 23 1,249 1,453 (179) 2,523 1,032 707 3 4,265 2006/7 Q4 £m 1,241 67 1,308 1,633 (175) 2,766 1,015 770 3 4,554 Total £m 4,833 133 4,966 5,887 (674) 10,179 4,045 2,873 11 17,108 Q1 £m 1,256 24 1,280 1,437 (171) 2,546 1,006 700 3 4,255 Q2 £m 1,274 33 1,307 1,442 (175) 2,574 1,034 700 3 4,311 Q3 £m 1,282 27 1,309 1,593 (186) 2,716 1,051 737 4 4,508 Capital Expenditure 2004/5 Q3 Q4 Total Q1 Q2 2005/6 Q3 Q4 Total Q1 2006/7 Q2 Q3 £m £m £m £m £m £m £m £m £m £m 141 159 605 142 171 169 220 702 149 176 186 41 44 54 170 35 33 32 53 153 40 40 34 548 514 442 1,981 230 198 221 326 975 200 266 237 257 246 270 265 1,038 271 279 297 Q1 Q2 £m £m £m 144 161 31 477 By Line of Business BT Global Services BT Retail BT Wholesale Openreach 42 53 71 89 255 52 46 67 109 274 55 51 61 694 803 770 744 3,011 716 694 759 973 3,142 715 812 815 Transmission Equipment Exchange Equipment Other Network Equipment Computers and Office Equipment Software Motor Vehicles and Other Land and Buildings 357 41 141 58 66 21 10 392 36 155 62 113 30 15 401 40 159 61 58 35 16 338 26 193 37 82 45 23 1,488 143 648 218 319 131 64 373 18 162 56 65 31 11 347 18 148 54 101 14 12 356 21 134 64 136 29 19 353 23 283 107 147 34 26 1,429 80 727 281 449 108 68 297 14 160 74 134 14 22 297 39 229 60 164 13 10 303 24 214 70 179 8 17 Total 694 803 770 744 3,011 716 694 759 973 3,142 715 812 815 Others (includes Fleet and Property) Total By Category Shading = not restated for proforma Openreach Q3 - 2006/07 Page 5 Total Fixed Network Calls Quarterly Minutes (billions) Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Internet Related and Other Non Geo Fixed to Mobile Total Non Geographic Calls 10.93 2.21 13.13 10.13 2.20 12.33 9.33 2.13 11.46 8.68 2.08 10.76 7.51 2.13 9.64 6.86 2.08 8.94 6.20 2.02 8.22 5.87 1.99 7.86 5.00 1.99 6.99 4.37 1.98 6.35 3.95 1.92 5.87 Local National International Total Geographic 10.61 5.53 0.52 16.66 10.34 5.51 0.52 16.37 10.42 5.46 0.52 16.40 10.15 5.33 0.50 15.98 9.53 5.09 0.49 15.11 9.02 4.90 0.48 14.40 9.15 4.87 0.47 14.49 9.01 4.87 0.47 14.35 8.20 4.47 0.45 13.12 7.93 4.42 0.45 12.80 8.10 4.45 0.46 13.01 Total Retail 29.79 28.70 27.86 26.74 24.75 23.34 22.71 22.21 20.11 19.15 18.88 Freephone and FRIACO 20.88 18.55 16.71 15.84 12.83 9.90 8.38 7.16 5.96 4.75 5.22 BT Group Originating Calls* 50.67 47.25 44.57 42.58 37.58 33.24 31.09 29.37 26.07 23.90 24.10 Quarterly Year on Year Minutes Change Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Internet Related and Other Non Geo Fixed to Mobile Total Non Geographic Calls (22)% (7)% (19)% (22)% (7)% (20)% (25)% (7)% (23)% (30)% (8)% (27)% (31)% (4)% (27)% (32)% (6)% (27)% (34)% (5)% (28)% (32)% (4)% (27)% (33)% (7)% (28)% (36)% (5)% (29)% (36)% (5)% (29)% Local National International Total Geographic (12)% (10)% (7)% (11)% (11)% (10)% (6)% (11)% (12)% (10)% (7)% (11)% (14)% (12)% (9)% (13)% (10)% (8)% (6)% (9)% (13)% (11)% (7)% (12)% (12)% (11)% (9)% (12)% (11)% (9)% (8)% (10)% (14)% (12)% (8)% (13)% (12)% (10)% (6)% (11)% (11)% (9)% (2)% (10)% Total Retail (15)% (15)% (16)% (19)% (17)% (19)% (18)% (17)% (19)% (18)% (17)% Freephone and FRIACO (10)% (16)% (25)% (33)% (39)% (47)% (50)% (55)% (54)% (52)% (38)% BT Group Originating Calls* (13)% (15)% (20)% (25)% (26)% (30)% (30)% (31)% (31)% (28)% (22)% Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 3,723 4,169 4,571 4,909 5,291 5,554 5,779 6,067 6,335 6,397 6,314 424 446 402 338 382 263 225 288 268 62 * Excluding Payphones and Directories (c0.3bn mins/qtr) Total Fixed Network Calls CPS Volumes ('000) Number of users* Net adds in quarter * CPS numbers include those customers who have migrated from Indirect Access Fixed to Fixed Voice Market Share * FY 05 Residential 64% 58% Business 42% 41% * BT annual estimates: Local, national, international and non-geographic voice minutes Q3 - 2006/07 FY 06 Page 6 (83) Exchange Lines + Broadband ('000) Product Group Summary Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Business PSTN Business ISDN Business Broadband Total Business 5,260 3,476 319 9,055 5,148 3,452 352 8,952 5,043 3,413 408 8,864 4,976 3,382 441 8,799 4,895 3,311 473 8,679 4,789 3,254 506 8,549 4,735 3,207 547 8,489 4,645 3,152 584 8,381 4,558 3,100 613 8,271 4,473 3,040 647 8,160 4,390 2,987 675 8,052 Residential PSTN Residential ISDN Residential Broadband Total Residential 19,554 198 783 20,535 19,497 170 931 20,598 19,467 140 1,101 20,708 19,405 115 1,339 20,859 19,086 93 1,508 20,687 18,701 74 1,661 20,436 18,360 61 1,863 20,284 17,863 49 2,084 19,996 17,219 41 2,213 19,473 16,836 35 2,333 19,204 16,729 24 2,544 19,927 Total PSTN Total ISDN Total Broadband (Incl. Major Corporates) Broadband Net adds in quarter 24,814 3,674 1,102 135 24,645 3,622 1,283 181 24,510 3,553 1,509 226 24,381 3,497 1,780 271 23,981 3,404 1,981 201 23,490 3,328 2,167 186 23,095 3,268 2,410 243 22,508 3,201 2,668 258 21,777 3,141 2,826 158 21,309 3,075 2,980 154 21,119 3,011 3,219 239 Total Retail Lines 29,590 29,550 29,572 29,658 29,366 28,985 28,773 28,377 27,744 27,364 27,349 2,687 472 3,294 607 4,182 888 5,023 841 5,713 690 6,348 635 7,078 730 7,760 682 8,071 311 8,439 368 8,679 240 BT Retail BT Wholesale Broadband Connections Net adds in quarter BT Openreach External WLR ('000) Analogue lines / ISDN Channels Net adds in quarter External LLU Volumes ('000) Full and Shared loops Net adds in quarter 491 114 630 139 825 195 1,026 201 1,450 424 1,882 432 2,333 451 2,874 541 3,557 683 4,003 446 4,193 190 14 3 20 6 28 8 41 13 72 31 122 50 192 70 356 164 580 224 838 258 1,295 457 BT Group Total DSL + LLU Net adds in quarter 2,701 475 3,314 613 4,210 896 5,064 854 5,785 721 6,470 685 7,270 800 Broadband numbers adjusted from Dec-04. This is due to all data now being sourced from equivalent BT Wholesale systems and also from the inclusion of BT own use and test lines Q3 - 2006/07 Page 7 8,116 846 8,651 535 9,277 626 9,974 697 Average Revenue per Consumer Household * Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 £ £ £ £ £ £ £ £ £ £ £ Annual revenue 265 261 258 254 252 251 250 251 253 254 258 Contracted** 59% 60% 62% 64% 65% 66% 67% 67% 68% 69% 68% Non-contracted 41% 40% 38% 36% 35% 34% 33% 33% 32% 31% 32% * Rolling 12 month consumer revenue, less mobile polos, divided by average number of primary lines ** Includes line rental, broadband, select services and packages. BT Together Packages ('000) Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Total 8,991 17,617 17,599 17,560 17,268 16,914 16,609 16,158 15,563 15,229 15,165 Option 1 Option 2 Option 3 BTT Local 5,609 1,250 433 1,699 14,270 1,269 515 1,563 14,314 1,290 556 1,439 14,326 1,317 582 1,335 14,119 1,344 582 1,223 13,836 1,387 575 1,116 13,600 1,409 573 1,027 13,192 1,442 586 938 12,630 1,478 598 857 11,997 1,785 681 766 11,665 2,025 774 701 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 15,408 15,128 14,878 14,712 14,398 14,144 13,970 13,685 13,382 13,272 13,309 (331) (280) (250) (166) (314) (254) (174) (285) (303) (110) 37 Active Customers ('000) Total Movement BT Mobility Connections ('000) Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Total 215 305 341 372 370 350 334 341 337 329 313 Business Consumer 127 88 144 161 162 179 185 187 196 174 204 146 209 125 214 127 219 118 223 106 215 98 Q3 - 2006/07 Page 8