Current thinking. Subject to change.

October 2011

BENEFITS OF BUILDING AN IN-HOUSE CONTENT DISTRIBUTION NETWORK (CDN)

Current thinking. Subject to change.

CONTENT SERVICES FROM BT WHOLESALE

BT owns & manages the largest communications network in the UK

Provides a wide range of digital media distribution services to the entertainment industry - for 50+ years

Media services incorporate BT Media & Broadcast, BT agilemedia & BT Wholesale Content Services

Introducing a new approach to content distribution & delivery - developing broadband as a TV platform

Content Connect (CC) - a CDN built to address exponential growth of broadband video traffic

Current thinking. Subject to change.

BT WHOLESALE & ISP BROADBAND MARKET

Broadband Subscriber Numbers Q4 2010

Total Broadband Subs 19,620,484

BT Wholesale (DSL) 7,979,755

LLU Lines 7,489,629

Virgin Media (DOCSIS) 4,011,100

Other (Kingston etc) 140, 000

~19.5 million UK broadband lines BT Wholesale provides broadband:

– to around 8m UK homes & businesses – to 600+ fixed & mobile operators & ISPs– BT investing £2.5bn in fibre & continuing to roll out

advanced copper broadband – broadband services provided on an open wholesale

basis

(Source: Enders Analysis)

Current thinking. Subject to change.

MARKET CONTEXTINTERNET VIDEO TRAFFIC CONTINUES TO RISE IN UK AND AROUND THE WORLD

• BBC iPlayer reported 90m online TV content requests in September 2011• Virgin Media BBC iPlayer TV requests were an additional 23m• Ericsson believes IP video will grow to over 90% of network traffic in the next few years• Cisco predicts global internet video will increase from 2.7 to 19.5 exabytes (1m larger than terabyte) by 2014

PROLIFERATION OF INTERNET ENABLED DEVICES DRIVING CSP/CDN STRATEGY

• Redshift research found 35% of UK viewers watch more TV on mobiles than 2 years ago • Content Providers use multiple CDN partners for greater reach, burst and economic benefits• The rise & range of connected devices offers Content Service Providers increasing options to reach their customers

Current thinking. Subject to change.

Content Connect

~8.3m BTWUsers

Standard Premium

Standard: enables ISPs to present content to BT for caching within BT Wholesale’s broadband access network to participating ISPs’ end users

Premium: provides advanced quality of service within the broadband access network to assure delivery to end users

BT WHOLESALE’S CONTENT CONNECT FAMILY

CDN Key Features CC Standard CC Premium

Download/ Streaming from caches to End users

Delivery via the ISP network Delivery via the ISP network and QoS

Origin Server access Yes (BT or CSP provded) Yes (BT or CSP provded)

Geo Blocking Yes (in ISP network) Yes (in ISP network)

Usage reporting and billing Yes Yes

SLA for performance reliability and resillience

Yes Yes

Current thinking. Subject to change.

ISP Network21CN

CC Content Caches

CC Premium

BackhaulDSL

CC Standard

MSAN

Traditional Internet CDN traffic flow

BRAS

WCCOrigin Server

CSPOrigin Server

ISPOrigin Server

WWW(Internet)

CONTENT CONNECT ARCHITECTURE

Current thinking. Subject to change.

A DEDICATED SERVICE PORTAL FOR PARTNERS

Developing a secure destination zone for Content Connect partners to manage their business

• Content management, cache deletion…• Skytide insight for performance, reporting &

analytics across all ISPs• Ability for ISPs to view volume & actual content (url)

delivered by CSPs• Fault management & help features• Service management & training• Access to billing information• Network status visibility

All under one wholesale.com security & authentication wrap

Current thinking. Subject to change.

BT WHOLESALE CONTENT CONNECT

BROADBAND VIDEO DISTRIBUTION FOR UK PARTNERS BT sees broadband as a video delivery platform & a viable complement to DTT, Cable or Satellite

A NETWORK CDN Deployed deep in BT’s network

A QUALITY USER EXPERIENCE CC Assured provides traffic prioritisation in the broadband access network delivering a predictable &

consistent user experience

TRANSFORMING THE COMMERCIAL MODEL Establishing a new commercial model for content delivery which brings the ISP into the ecosystem

& offers greater choice for CSPs

INSIGHT AND OPERATIONAL SIMPLICITY A single reporting portal for deeper audience & operational insight with industry leading reporting

system from Skytide

Exchanges

BT WholesaleBroadband, data, voice

Managed network services

Homes/businesses

THE UK WHOLESALE MARKET

Copper

OpenreachAccess products (LLU, WLR, GEA, Backhaul)

Copper

Fibre

Fibre

Current thinking. Subject to change.

THANK YOU