Transcript Delivering BT`s 21st Century Network Presentation

Delivering BT’s
21st century network
Welcome
Presentations by
Paul Reynolds
CEO, BT Wholesale
Matt Bross
Chief Technology Officer,
BT Group
Delivering BT’s
21st century network
Paul Reynolds
CEO
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: transformation of BT's
networks and cost base; benefits to customers of the 21CN programme; anticipated
capital spend on 21CN transformation and expected cash savings; timescales for
delivery of 21CN; and delivery of instantly available broadband dialtone
• 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
results may differ materially from those expressed or implied by these forward-looking
statements
• Factors that could cause differences between actual results 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; 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. BT undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise
Delivering BT’s
21st century network
Paul Reynolds
CEO
BT Wholesale
BT’s strategy is on track
Traditional focus
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Long-term partnership
with our customers
Improved service
Aggressive & creative
marketing
Price innovation
Reduce costs
New wave focus
21CN
transformation
–
–
–
–
Broadband
Mobility
ICT
Global Solutions
A world where everyone has access to
modern communications
Coverage %
100
80
60
40
20
0
April 2000
26%
July 2002
66%
November 2003
80%
May 2004
90%
Summer 2005
99.6%
Broadband availability in the UK
Note:
Percentage of homes and businesses connected to a broadband enabled exchange
OECD report
DSL Availability in G7
2001
2002
2003
2004
2005
UK
60
64
85
95
99
Canada
69
70
75.4
-
-
France
66
71
79
90
95
Germany
70
80
85
90
-
Italy
67.5
70
80
-
-
Japan
73.5
80
90
90
-
USA
50
68
75
-
-
Source: OECD May 2004
This is good …
but it’s not enough
The changing landscape
• Convergence is gaining momentum
• Convergence needs an underlying infrastructure
to deliver and support it
• Customers want more choice, flexibility and
control
• Simplicity is key
21CN - three key points
• We will empower the
customer with control, choice
and flexibility like never before
and offer them
communications from
anywhere to any device
• We’ll make exciting new
services available for
customers faster than has
been possible before
• We’re reducing our costs –
we’ll make growing cash cost
savings which are expected to
amount to £1 billion per
annum by 2008/9
Speed to
market
Customer
experience and
empowerment
Cost
transformation
21CN – what it means for BT
• Moving from narrowband to broadband
• Moving from selling capacity to selling capability
• Moving from a product focus to customer focus
21CN - the radical strategy
• Broadband everywhere…
• Replacing the PSTN
• PSTN transformation trial
• A world first for a telecoms company
Broadband dialtone
• By 2009, broadband dialtone will be instantly
available to most BT customers in the UK
• Customers can switch lines to broadband use
themselves
• No physical work is required at the exchange
21CN – it’s big
•If that sounds big …
it’s because it is
• Bigger annual investment than is spent
on UK’s motorways and trunk roads
21CN - aligning our investments
21CN - network architecture
Today
Future
MSAN
Project
Bluephone
Flexible
Bandwidth
Wholesale Web
Call Connect
BT
Rich Media
BT Communicator
PSTN/
Voice trial
Fibre trial
Converged core
EDC
Service creation
First mover advantages
• Supplier product alignment
• Technology start-up funding
• Shared learning and risk management
• Low costs
• Best in class whole life costs
21CN - a new partnership approach
• With all our customers
• With the global vendor
community in IT
and traditional telecoms
• This is unique in
our industry
• Focus on whole life costs
21CN - our current network
PSTN
Copper
DPCN
PSTN
KStream
DSL
CWSS
Fibre
ATM
Inter-node
transmission
provided by
SDH/PDH platforms
DWSS
IP
Mesh -SDH
MSH -SDH
ASDH
PDH
End
User
~5k
nodes
~2k
nodes
~1k
nodes
~400
nodes
~100
nodes
~15
nodes
21CN - our simplified network
PSTN Migration
Converged Core
Class 5
Call Server
Copper
WWW
DSL
Fibre &
Copper
IP-MPLS-WDM
Agg Box
Content
End
User
~5k
nodes
~100
nodes
ISP
21CN - quality
• 21CN services delivered at the same or better
quality as we do today
• 21CN will raise the quality threshold traditionally
associated with IP to PSTN standards and better
• We are designing this level of quality into 21CN
21CN - systems
• Concurrent systems transformation
• Designed to enhance the customer experience
• Empowering the customer with greater control
21CN - common capability building blocks
2009
21CN - key milestones
2008
2007
Broadband dialtone
available to
most customers
Mass PSTN migration reaches more
than 50% of customers
Large scale non PSTN service migration begins
2006
2005
2004
Mass PSTN migration begins
17 new product launches/enhancements based on re-usable capabilities
New operations & service management capability in place
Broadband available to 99.6%
Strategic vendors announced
Broadband growth on MSAN/combo cards
First new service launches based on re-usable capabilities
PSTN transformation trial
Deep fibre trial
Converged network
Service creation
Experience development centre
Key messages
• We’re making broadband available everywhere
• But convergence is creating new opportunities and new
customer expectations
• 21CN is a radical transformation for BT
• Narrowband to broadband; capacity to capabilities;
product to customer focus
• Announcing important trials on PSTN and fibre today
• Timetable for large scale roll-out outlined
• You’ll hear much more over time
Implementing BT’s
21st century network
Matt Bross
Chief Technology Officer
BT Group
21CN – activities 2004
Experience
development centre
Service
creation
Converged
network
Deep fibre trial
PSTN trial
PSTN trial
What and where?
• Seamless bypass of core PSTN
network links between three major
network nodes (Cambridge, Woolwich
London and Faraday London )
• Voice calls between enabled nodes
diverted to IP/MPLS network
• End to end calls between enabled
customers carried exclusively over IP
• Installation of new MSAN equipment
at 18 exchanges in London, Kent
and East Anglia
• Equipment includes softswitch,
MSANs, media servers and media
gateway cards
PSTN trial
When?
• Next generation voice services
to first 1,000 customers ‘live’
by end January 2005
• Further 3,000 customers ‘live’
by June 2005
• Major roll-out to all regions
begins 2006
• Broadband dialtone to most
customers by 2009
PSTN trial
Why?
• Allows us to monitor transition and robustness pre
large scale
migration of all PSTN services to 21CN from 2006
• Helps test quality of services is as good as, or better
than, PSTN
• First steps towards 21CN
Deep fibre trial
What and where?
• Trials of deep fibre in access
network – to the cabinet and
to the premises
• Designed to test the investment,
operational, technology and
business case
• Providing telephone
and broadband via fibre
to 1,500 homes
• Trials in Suffolk, Milton Keynes
and London
Fibre
Copper
PCP
Deep fibre trial
When?
• First trialists will have fibre lines
installed and working by October
2004
• Trials to run until September 2005
Exchanges
• Kesgrave exchange,
Martlesham Heath
• Bradwell Abbey exchange,
Milton Keynes
• Albert Dock exchange,
London Docklands
Why?
Converged network
• Reducing complexity of our
infrastructure
• Eliminating 100,000 network
components and significant cost
• Establishing a single platform that is
multi-service and future proof on IP
• Optimised for reliability and
performance
• Closely aligned to PSTN
transformation
• Phased roll-out begins this year
Service creation framework
• Applying the development approach
from IT software industry to telecoms
• Creating series of reusable, common
capabilities
• First 9 components created 2004/5
• 17 new products or enhancements
based on these components to be
launched 2005/6
• Increase automation and accelerate time
to market for new services
• Help contribute to cost reduction
Experience development centre
• An environment where operations, portfolio,
systems and networks are brought together
• Prototype new services, platforms and processes
• Increase speed to market
• Drives the delivery of the end to end customer
experience
21CN - key points
• 21CN is the enabling infrastructure for growth
at BT and for its customers
• The most ambitious business transformation programme
in communications worldwide
• Represents a major investment by BT
• Will put UK at the forefront of communications innovation
• We are delivering now
• Large scale vendor engagement starts today
Delivering BT’s
21st century network
Q A
&
Questions can only be taken
from the BT Auditorium
Delivering BT’s
21st century network
Thank you