Innovation in the Access Network Our evolving portfolio

Innovation in the Access Network- Our evolving portfolio and ecosystem Johnny Mc. Quoid, MD Service Design, Openreach

Innovation in the Access Network – our evolving portfolio and ecosystem Johnny Mc. Quoid CIO Openreach 7 th February 2013

Openreach - LLU, Ethernet and NGA Openreach was formed in January 2006 – To deliver underpinning infrastructure under Equivalence of Input (EOI) terms for all. – To stimulate competition in higher layer network services. The result: – Non-BT LLU growth to >7 m lines (from <1 m in 2006) and Wholesale Line Rental at >7 m. – Growth in Ethernet backhaul services enabling real networkbased competition. – UK Broadband availability and competitiveness remains amongst the highest in the G 8. – Now enabling Superfast Broadband for the UK.

We’re creating the UK’s superfast fibre access network § £ 2. 5 bn Investment § >13 m premises passed § >35, 000 Cabinets deployed § >1, 300 Exchanges enabled § >25 million man hours invested § BDUK wins § Ambition to reach 90% UK by 2017 § Multicast capability to support IPTV 1. 5 m premises passed by early summer 2010 >13 m premises passed Now 15 m premises passed by end FY 2012/13 2/3 of UK premises passed by spring 2014

Enabling Innovation in Openreach and Communications Provider Domains § Ethernet to enable Physical Media Independence separates concerns – Innovation above and below that layer § Innovation requires commercial incentives for all – Openreach – long term infrastructure case – Communications Providers – shorter term retail cases § Criticality of Scale and Pace in our Market Model – Many Communications providers need volume – Global experience suggests NGA take-up grows steadily and take-up is partial • FTTC Overlay model for now – GEA FTTC enables rapid deployment and speedy provision – VDSL 2 performance improvements • ANFP changes to enable – up to 80 Mb/s – GEA FTTP where cost case is compelling • New sites, MDU (a relatively small % in UK), low cost deployments – Future FTTP Fibre on Demand in FTTC areas • To enable high demand clusters and 300 Mb/s service rates • Enabling real Innovation in Openreach and our CPs’ domains - Unlocking real value for customers and communities

An enabling framework for Openreach and industry innovation T AS TV SUBSET OF WDM EXCHANGES (OPENREACH HANDOVER POINT) C AD RO B A EC ET RN TE W IN NE ons BL E 8 Y WA IT L SP R FIB D pti Vo VER co n R y S SE ice Vo Et U SS H D AS et n r e h 4 Y WA IT L SP 5500 LOCAL EXCHANGES FT FIB W E N E BL CA TP RE ‘E’ SID EC NE ANFP 80 Mbit/s Bonding Vectoring OP EX W &E HO XIST US I ES NG IST PE R ING HO US ES FT TC ‘D’ FT TP Hu T. V SID E . aw CO PP ER Inte rne T. V Mo dem Fibre on Demand M Te odem rm ina n tio Vo T. V ice Inte. rne t Vo ice . t Inte rne ei O NT Vo ice t

CPs are innovating now to meet consumer market demand for fibre and to drive an IPTV revolution

Future Innovation in the customer domain HD streamed games – without a console Doctor @ Home Interactive TV: a new TV experience Look Left Look Forward Look Right Touch-screen telepresence – a window into your world 360 degree video streaming – with real-time end-user control Virtual academy – removing the barriers to learning

A few examples of Openreach Innovation § Creation of the Ethernet Open Access model for NGA. – Creation of a new class of network platform § Development of the Equivalence Management Platform. – The UK telecoms industry’s B 2 B gateway § Launch of the 80/20 Higher Frequency Bandplan. – Increasing the value of FTTC to us and our customers § Fibre. – A long history of innovation and industrialisation over 3 decades § Copper Test and Diagnostics. – Hand-held and network tools to speed fault location and repair § Conducrete. – One of many innovations to enable one of the fastest global NGA deployments

Openreach and Adastral Park § Adastral Park supports our innovation activities with our customers, stakeholders and suppliers. § Innovation is key for us, but it needs to be Invention plus Implementation. – Much is done with our 20, 000+ engineers in the field and to support them. – A lot of the work is done here in Adastral. – The “ 4 Acre Site” is a field lab for many of the innovations critical to Openreach − Cables, Plant and Practices. − Integration of our NGA propositions – Active Equipment, Cables, Ducts and Poles, Systems, Processes and Procedures. § A place where Openreach, BT’s R&T people and suppliers all come together. – Our key equipment suppliers for NGA and Ethernet have people here – e. g Ciena, Huawei and ECI. – Some infrastructure vendors are also here – e. g. Prysmian. – Many of our early field trials are done locally, for example much of the fibre work was trialled down the road in Foxhall.