MPLS Harmonisation An introduction to BT intelligent VPN

MPLS Harmonisation An introduction to BT intelligent VPN MPLS Product team Sept 2006

MPLS Harmonisation Phase 1 Phases 2 & 3 • Phase 1 scope: Meeting Reuters needs & launching Financial vertical for Radianz • Phase 2 scope: BT MPLS (3 Co. S & 6 Co. S) & BT Infonet (IVS & ACVPN) • Q 1 2007/08: Release 1 launch BT intellligent VPN • Q 2 2007/08 Release 2 BT intellligent VPN : Additional Features Launched • Phase 3 scope: UK MPLS (WAN & LAN Matrix, IP Clear, IP Converge, Equ. IP) • Q 3 -4 2007 -08

MPLS Harmonisation Phase 2 • Simplifying the Global MPLS portfolio, one offer to all customers • Deliver synergies: Infrastructure & Operational • Use ‘sum of best parts’ to deliver new product = BT intelligent VPN • Use new Product to expand the Global market and increase market share

Key Messages A new MPLS product will be launched in first half of 2007 called BT intelligent VPN (BT i. VPN) Combines BT’s networking strengths and Infonet’s Customer service experience All new customers (via all BT & Infonet channels, wholly owned and most non wholly owned) will be sold BT i. VPN once launched Customers on existing BT / Infonet products WILL NOT be forced to upgrade Existing Products will continue to be supported (Geographic reach & access options will continue to be added to existing services) BT will manage platform integration activities behind the scenes, minimising customer impact (Network and Systems consolidation) Customers can choose when they are ready to upgrade to BT i. VPN (product specific processes will be available from Q 2 2007/08) BT i. VPN will be priced at BT MPLS rates as of most recent price book

Harmonisation strategy – Combining strengths BT’s network + Infonet approach to customer service & systems BT MPLS Network Features Network Management Network Resilience Network Coverage intelligent VPN Capabilities Customer Experience Service Options Application Management CRM Network Service led culture

BT intelligent VPN – Target Q 2 2007 -08 6 Classes of Service Voice, MM critical Data (x 3) Standard Data On-line Ordering Quoting Order tracking Fault tracking Access Leased Line Ethernet DSL Mobile. Xpress Global Coverage Target: 160 countries Target: 1200 nodes Proactive Fault management triggered by SMARTS in the network Capability Network Managed CPE Call Local for Customer service – local language Customisable Portal Access to reports, orders, fault tracking Application Centric VPN Traffic optimisation at an Application level Next Gen Reports Site to Site RTD, Jitter, Packet Loss CE polling (secure Telnet access) Near real time Customer Experience UK & ROW One systems stack Service led culture Pre-sales, after sales Simple Packages Access + CPE + COS + Service Options = SLA per site

Moving to BT intelligent VPN (Network & systems) Target Platform Non target Co. S model Target platform Target Co. S model Systems / Network integration Platform consolidated through PEW’s Data Migration to target systems (minimal customer impact) Harmonised Platform (Network + Systems) Non harmonised Platforms i. VPN BT MPLS 3 Co. S (& older Co. S Schemes) BT MPLS 6 Co. S Infonet IVS & ACVPN IVS Encore Non target platform Non target Co. S model 3 Co. S 5 Cos Non target platform Target Co. S model Customer Upgraded to BT i. VPN Class of Service Upgrade 6 Co. S

Moving to BT intelligent VPN (Customer messages) What do I say to my customers today? What are the messages? BT Infonet IVS & ACVPN IVS Encore • There is No change to your current service, you will not be forced to move • IVS & ACVPN services supported foreseeable future • You can still add, move and change sites • You will benefit from new global coverage from August 2006 (IVS Encore) • You can upgrade to i. VPN from Q 3 2007 -08, BT will manage this with you • Upgrade advised at contract renewal or when upgrading to new i. VPN features • Upgrade involves Commercials, Co. S and where necessary Port / Access BT MPLS 6 Co. S • There is No change to your current service, you will not be forced to move • BT MPLS 6 Co. S supported foreseeable future • You will continue to benefit from new global coverage • You will benefit from service wrap improvements starting Q 2 2007 -08 • Upgrade advised at contract renewal or when upgrading to new i. VPN features • Upgrade includes Commercials and service wrap BT MPLS 3 Co. S (& older Co. S Schemes) • There is No change to your current service, you will not be forced to move • BT MPLS 3 Co. S will be supported foreseeable future • You can still add, move and change sites • You will continue to benefit from new global coverage • You can upgrade to i. VPN from Q 2 2007 -08, BT will manage this with you • Upgrade process will build on existing 3 Co. S to 6 Co. S process • Available at contract renewal or when upgrading to new i. VPN features • Upgrade involves Commercials, Co. S upgrade and service wrap

Moving to BT intelligent VPN (Commercials) Principles The prices will be similar / equivalent to BT MPLS for port and access at launch (this is generally cheaper for Infonet channels) The prices will decline less often (than BT MPLS did previously) as we recognise the value of the new service in the market The recommended discounting scheme will be based on spend and term Contractually, the BT approach will be adopted: Master Services Agreement and service schedule for BT i. VPN* There will be a slightly different approach to charging for Port and Class of Service – Port types (similar to existing Infonet approach) Port types are associated with ‘packages’ of EF, AF, DE called Type 1, Type 2 etc * Except for specific Infonet non wholly owned channels who might continue with an updated version of existing contracts

Benefits – What benefits make BT i. VPN more valuable than our competitors services? It has the broadest coverage of any MPLS service in the world (100 countries vs. 78 for MCI and 69 for AT&T (Aug 2006) Most extensive expansion plan of any Global MPLS provider (60 new countries planned for 2007) Market leading 6 classes of services including Voice & Multimedia It will offer an award winning service experience as per BT Infonet (awarded ‘best in class’ award by Telemark for IPVPN Market for last 6 years) A new systems stack delivering proactive faults, online order & fault tracking It will offer a market leading features roadmap Dual Core capability Multicast enabled core New Ethernet access variants & expansion (25 countries by March 07) DSL coverage (25 countries by March 07 ) It will offer market leading Application management services ACVPN, AAI Open Interface to Application hosting centres

Harmonisation: The new target timeline BT intelligent VPN Release 1 Launch of IVS Encore Enhanced coverage for Infonet Channels IVS& ACVPN customers • Reuters • Finance Vertical • BT MPLS Ops • improvements BT’s network + Infonet approach to customer service & systems BT intelligent VPN Release 2 Additional features Launched All sales channels August 2006 Q 1 2007/08 Q 2 2007 -08 A shift of some requirements Upgrade process launched Process for Upgrading existing customers Ex-BT sales channels Q 2 2007 -08 Ex-Infonet channels Q 3 2007 -08

Summary BT intelligent VPN is the one future for BT MPLS & Infonet MPLS customers BT will target an accelerated growth in it’s share of the Multi National Corporate market with this product The continued satisfaction of existing customers is top priority Customers on existing services will be given control of their upgrade path (they won’t be forced) This strategy requires a shift towards a service culture by the sales force The network will be the best in the world – take that as a given Where we need to further differentiate ourselves is in excellent customer experience You will be given the tools to deliver this through BT i. VPN

Thank you Offices worldwide Telecommunications services described are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc's respective standard conditions of contract. Nothing in this publication forms any part of any contract. © British Telecommunications plc 2006

Backup Slides

The Business hot house The Problem statement High demand on development resources throughout BT (ONe. IT, Networks teams) Reuters, Finance vertical, launch of BT intelligent VPN, BT MPLS Operational improvements, BT MPLS new features, IVS Encore – all needed A need to prioritise and break the work down into executable work packages The output was a time bound list of priorities 1. Reuters – BT’s biggest contract worth $3 bn 2. BT MPLS operational improvements 3. Financial Vertical (Radianz) – greatest cost savings available 4. Launch BT i. VPN 5. BT MPLS, IVS Encore And a focus on re-usable systems and network architecture to maximise efficiency

Application Centric VPN i. VPN + Application management service = A unique, award-winning, integrated applications centered global MPLS network and applications management service Apps Intelligence & Remediation AC VPN Visibility & Control Compression & Acceleration • Apps Intelligence: Individual applications performance problems fixed in real-time as they are detected. Know every application running on your network. • Visibility: View and control individual applications and user flows globally. Control network resource utilisation. View all aspects of application performance across the network. • Compression: Compress individual applications. Decompress automatically at all sites by default with no additional hardware of software. Accelerate TCP startup and Window

i. VPN Roadmap –future MPLS developments Hong Kong Existing core network Launch of ‘dual core’ capability Tokyo San Jose Los Angeles Bangalore Dallas Mumbai Tier 2 Po. Ps will be connected to both “red” and “blue” tier 1 Po. Ps where required Hong Kong 2 St. Louis New York 2 Tokyo 2 San Francisco Singapore 2 Johannesburg Morocco- Casablanca Poland- Warsaw 2 US-Houson 2 Canada-Calgary Norway-Stavanger China-Beijing-q 2 Gibraltar (LL) Albania Bolivia Bosnia Costa Rica Ecuador Georgia Moldova Panama Puerto Rico Saudi Arabia-Riyadh Pakistan- Karachi London Switch Düsseldorf (tentative) Japan-Tokyo 3 Paris Le Capitole Atlanta Complete diversity/ separacy between the two networks Second core network Q 3 Frankfurt Philadelphia Singapore See BT MPLS web pages for full detail Q 2 Amsterdam London Tufnell New York Park Hudson St. Chicago Los Angeles 2 Washingto n DC Houston Dubai Riyadh Paris Telehouse Q 4 Algeria Armenia Angola Bahamas Bangladesh Barbados Botswana Brunei Cayman Islands Ghana Iraq Ivory Coast Kenya Libya Madagascar Malawi Mauritania Mongolia Mozambique Namibia Netherlands Antilles Nigeria Paraguay Senegal Tanzania Turkmenistan Uganda Uzbekistan Vietnam Yemen Zambia Zimbabwe Continued Geographic expansion Driven by customer demands (on-going) Munich

i. VPN Roadmap - future MPLS developments Dedicated & Shared Ethernet (10 M (10 countries) 100 M, 1000 M (25 countries) by March 2007) Pt. P Access CE BT MPLS CE CE PE Pt. P, single handover, un-contended to avoid Qo. S issues Pt. P Aggregated Access CE BT MPLS CE CE PE Pt. M, aggregated handover, un-contended to avoid Qo. S issues PE router needs to support VLAN tagging Multicast

Commercial Go-To-Market Approach for Packaging Sales simplicity Packages to address all physical, technical and service options Make it more simple to bid and price Make i. VPN more accessible to more customers Target – pre-defined packages to address 80% of volume Bring together site physical attributes and service management options Pre-designed Access, CPE, Co. S combinations depending on application and SLA requirement Pre-designed service management options SLA generated automatically once packs selected Price will be sum of parts minus package discount

Packaging - Applied to Customer HQ R&D Data Centre Distribution Sales Branch Office Distribution (small) Sales Main Office Sales Branch Office

Packaging - Applied to Customer P 5 HQ P 4 R&D M 3 P 5 M 2 M 3 Data Centre P 3 Distribution P 2 P 1 M 2 M 1 Sales Branch Office Distribution (small) P 1 P 5 M 2 Sales Main Office P 1 M 1 Sales Branch Office

Packaging - Applied to Customer: WAN +AAI +Security (Future) R&D Data Centre P 4 / M 2 P 3 / M 3 P 2 / M 2 P 5 / M 3 P 2 / M 1 P 4 / M 3 Service Management Project Management Enhanced Reporting P 1 / M 1 P 2 / M 2 P 2 / M 1 Distribution Sales Branch Office P 1 / M 2

Package examples • 5 Site Physical packages • 4 Site Management packages • Designed to be simple • Some flexibility within • ‘Freeform’ is still available

Channels – which channels will offer i. VPN? Replace BT MPLS and BT Infonet IVS & AC VPN sold in current sales channels GS Direct Channels BT Retail BT Wholesale Non-wholly Owned Country Reps (NB: no MPLS interconnect available a Phase 1 launch) BT Infonet Resellers BT GS Resellers

Thank you Offices worldwide Telecommunications services described are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc's respective standard conditions of contract. Nothing in this publication forms any part of any contract. © British Telecommunications plc 2006