Transcript Opal Exchanges Openreach exchange area

High Volume, High Value, High Margin
Opal Ethernet
Lance Spencer
Our network
UK’s largest and most connected
Next Generation Network
Scale
1,750 broadband enabled exchanges
 3 times more than BT 21CN
 2 times more than C&W
Coverage
80% of UK on MPF and 55% on SMPF


Access to 2.1 million businesses
Increasing to 2,000 exchanges by 2010 (MPF & SMPF)
Tried and Tested
4 million data customers generating
 150 Giga bits / second of public Internet IP traffic
 1.5 billion minutes of monthly VoIP traffic
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Our network
Network depth and multi-service platforms
provide unique market advantage
Optimised for resilience and capacity
 800Gb supercore fibre network around London
 2 x 400Gb fibre rings around main population centres
 10Gb peripheral rings
 High capacity backhaul to core network
QoS enabled
 Hierarchical QoS in the core, edge and access
 Ethernet bandwidth assured (priority over Broadband)
Ideal for the delivery of Ethernet
 Deeply built access – large amount of PoPs
 Short access lines (sub 6km)
 Lowest cost base in the industry
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DWDM Nodes – Core Network – Collector Nodes - Exchanges
Broadband product positioning
Degree of assurance
High
assurance
The only provider with a full
range of SMPF, MPF, L2TP and
managed broadband wholesale
products
Annex M 1:1 - 512K, 1M, 1.5M 2M**
SDSL (M)
SDSL (M)
Premium/
Premium/
Premium
Assured
Assured
Business
Standard
Standard
IP stream, data stream, LLU
Business
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512K to MAX, ADSL2+*,
Annex M*, Low contention,
bandwidth guarantees
512K- MAX, ADSL2+*,
Annex M**
512K, 2Mb, MAX
Data stream, LLU
Application performance requirement
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Increasing value
LLU
** SMPF only
Opal wholesale and reseller IPVPNs
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IPVPN growth remains strong
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UK Ethernet market
Hosted applications / servers driving
bandwidth requirements
Simplification of WAN networks
Poor customer service experience
from incumbent supplier
Mergers and acquisitions driving
WAN refresh
Introductory
Ethernet simplicity and high availability
Growth
Maturity
Sales Volume
MPLS IPVPN
Metro Ethernet
National Ethernet
Next Generation Ethernet
Time
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Decline
Growth in Ethernet Products
Bandwidth requirements by Corporate site
Large HQ,
Datacentre
Large
office
Ethernet
Ethernet
Ethernet
Ethernet reducing in costs and
requirements for convergence
means bigger connections that
can flex with demand are
required at the expense of
leased lines
Leased Lines
Mid
sized
office
DSL
Connections
Small Office,
Retail outlet
Volume of connections
DSL allows data services to be
provided to smaller business
units economically. Annex M and
Bonding pushing into space
previously occupied by Leased
lines. More data at more sites
means bigger “pipes” required to
transport data to key sites
Ethernet solutions
Wholesale IPVPN
Ethernet delivered as part of our wholesale IPVPN
All connections are 100Mb with CIR of 10Mb intervals
Customer sites
Ethernet connection
Ethernet connection
Access to
existing
VPNS
Core network
Handover point - NTE
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IPVPN network
Existing sites or non
Ethernet sites
Ethernet solutions
Wholesale Ethernet
Multiple circuits passed to a single interconnect
Partner network
interconnect
Aggregation point
Core network
Existing sites or non
Ethernet sites
Handover point - NTE
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Ethernet solutions
Ethernet to internet
Partner manages NAT, email scanning, port scanning etc.
internet
Ethernet connection
Core network
Handover point - NTE
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Zone based pricing
Zone 1 – local based access
Fixed price if connecting in an
Opal based exchange
Zone 2 – non-local based access

Service brought back to an
Opal exchange

Higher rental, and a per metre
charge on main link
Main link cannot exceed 25km
(as crow flies) and 40Km of fibre path
Main link can span multiple exchanges
for long circuits


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Opal Exchanges
Ethernet footprint March 2010
Zone 1 exchanges = 705
Zone 2 exchanges = 4023
BTW 588 exchanges
(plans to expand)
C&W capability at
500+ exchanges
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Ethernet footprint December 2010
Zone 1 exchanges = 1300
Zone 2 = All cities and major
towns covered.
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Pricing – Zone 1 (local access)
Wholesale IPVPN and wholesale Ethernet

Install

Rental per annum
10Mb
£6,000
100Mb
£12,000
£2450
Installation with
3 year contract
10MB increments available
Wholesale Ethernet access to internet

Install

Rental per annum
10Mb
£7,200
VOLUME
DISCOUNTS
Applicable on
Zone 0 charges
£2450
10MB increments available
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FREE
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CONTRACT
Terms 1 & 3 years
Pricing – Zone 2 (non local Access)
IPVPN and wholesale Ethernet

Install £2450

Rental per annum
10Mb
£8,400 + distance charges
100Mb
£14,400 + distance charges
10MB increments available
FREE
Installation with
3 year contract
CONTRACT
Terms 1 & 3 years
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SLA’s
Target availability
 99.93% - Point to multipoint, IPVPN
and internet connectivity spoke sites
 99.99% - Network hub/interconnect ports
 99.86% - Point to point
Service credits
 For provisioning and repair
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Our support
Three tier account management
Commercial account manager
Supports you day to day
Business relationship manager
Gets your business connected to our network
Technical support manager
There to support you 24/7/365
Technical consultancy
Access to our own in-house technical consultants and
engineers for product customisation
Back-end systems
Automated provisioning portals
Same access to back-end systems as our engineers for
managing new and existing installations
Billing support
Billing records delivered to secure FTP for easy access
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Ethernet access – high volume
 Predicted UK market sizing (10Mb and 100Mb connections)
Access
type
March 08
March 09
March 10
March 11
March 12
March 13
10Mbps
60,184
71,719
81,736
90,669
98,791
106,229
100Mbps
44,135
51,421
57,292
62,125
66,163
69,531
TOTAL
104,319
123,140
139,028
152,795
164,954
175,760
* Ethernet forecast as UK’s fastest growing technology in terms of spend
* 2008 demand for Ethernet grew by 27%
* Predicted compound annual growth of 16% over the next four years
Much of the £1Bn historic base either out of contract
or up for renewal in the next year
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Typical Partner Base – Top 20 Savings - High Values
POSTCODE
KT3 4QF
SO50 9SJ
NW9 5JE
GL20 8GY
KT9 1SN
WA14 4PL
TW13 4HU
HP10 9YU
HP10 9YU
MK5 6LA
NG24 1EA
GU2 4DU
CF10 5BT
NN8 2DH
WA5 7TP
SN4 0BQ
WS10 7DD
SW12 8PP
SR5 1JE
CF11 9SW
Totals
Traditional Ethernet
Supplier
Product
Speed
Exponential-e Limited
10Mb
BT
10Mb
BT
100Mb
NTL
100Mb
BT
100Mb
Global Crossing
20Mb
Exponential-e Limited
100Mb
NTL
10Mb
NTL
10Mb
C&W
100Mb
NTL
10Mb
NTL
100Mb
NTL
100Mb
NTL
100Mb
NTL
100Mb
Global Crossing
100Mb
Neos
10Mb
Global Crossing/Fibrenet 10Mb
NTL
10Mb
NTL
10Mb
Traditional Price
Etherent
Annual Rental
£27,785.20
£23,800.00
£26,895.00
£20,043.00
£19,600.00
£16,300.00
£18,999.96
£12,600.00
£12,600.00
£17,499.96
£11,295.00
£17,200.00
£17,200.00
£16,466.00
£16,371.00
£21,210.00
£13,854.00
£9,887.04
£9,690.00
£9,690.00
£338,986.16
Note 1 Excludes OPAL Volume based discounts
Note 2 Excludes Zone 0 discounts
OPAL Next
Zone 2
Generation
Distance
Ethernet
(If Applicable) Annual Rental
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6108
2985
0
0
0
£6,000
£6,000
£12,000
£12,000
£12,000
£9,067
£12,000
£6,000
£6,000
£12,000
£6,000
£12,000
£12,000
£12,000
£12,000
£16,843
£9,594
£6,000
£6,000
£6,000
£191,505
Saving to
Partner
1 year
contract
Saving to
Partner
3 year
contract
£19,335
£15,350
£12,445
£5,593
£5,150
£4,783
£4,550
£4,150
£4,150
£3,050
£2,845
£2,750
£2,750
£2,016
£1,921
£1,917
£1,810
£1,437
£1,240
£1,240
£98,482
£65,356
£53,400
£44,685
£24,129
£22,800
£21,699
£21,000
£19,800
£19,800
£16,500
£15,885
£15,600
£15,600
£13,398
£13,113
£13,100
£12,780
£11,661
£11,070
£11,070
£442,445
Impact on OPAL Wholesale IPVPN - High Margins
OPAL Wholesale IPVPN Pricing using Existing Traditional 3rd Party Suppliers for Leased Lines and Ethernet
Access Product
Ethernet
Ethernet
Ethernet
Leased Lines
ADSL
Supplier
3rd Party Supplier
3rd Party Supplier
3rd Party Supplier
3rd Party Supplier
Opal
Qty
1
1
4
21
31
Current
Bandwidth
100Mb
20Mb
10Mb
2Mb
Various
Total
Total Recurring Value
£
19,242.00
£
11,735.00
£
21,653.00
£
118,233.00
£
2,150.00
£
173,013.00
OPAL Wholesale IPVPN Pricing using Opal Ethernet for all fixed line circuits
Access Product
Ethernet Reprovided On-Net
Ethernet Reprovided On-Net
Ethernet Reprovided On-Net
Leased Lines Reprovided as Ethernet
ADSL
Supplier
Opal
Opal
Opal
Opal
Opal
Qty
1
1
4
21
31
Provided
Bandwidth
100Mb
20Mb
10Mb
10Mb
Various
Total
Total Recurring Value
£
12,000.00
£
6,650.00
£
24,000.00
£
126,000.00
£
2,150.00
£
170,800.00
Why Opal Ethernet?
Value
 Solutions for a variety of Wholesale markets
 The widest Zone 1 (local access) footprint in the market
 The widest Zone 2 footprint in the market
 Disruptive pricing and FREE install for 3 year contracts
Service

Dedicated UK business support specialists

Award winning – Cisco Customer Service Excellence Award 2009
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Why Opal Ethernet?
Full range of products
 MPF based broadband products to optimise share of wallet
 SMPF based broadband for special apps and web only delivery
 Full range of Wholesale and Managed IPVPNs
 Single supplier management across all communications needs
Reliability

UK’s third largest business communications network operator

Over 15 years B2B experience serving over 300,000 businesses

Over £300M invested in the UK’s largest NGN

Network Operator of the Year 2009
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Any questions?
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Thank you
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