This briefing on the 21CN strategic priorities for 2009/10 is for all Communications Providers.

This document is supplied by BT to Communications Providers (CPs), being customers of BT Wholesale and/or Openreach, as part of the Consult21 consultation process.  Details within it may be subject to change as a result of that process and/or for technical, commercial or operational reasons.

Please note that this document was published to all CPs registered with Consult21 on 20th March 2009.  Openreach is also publishing the information to ensure that all its customers have the opportunity to obtain the information.

Briefing Note: 21CN Strategic Priorities 2009/10

The information contained in this document represents plans at this time and may be subject to change. Any developments carried out by CPs based on the contents of this document are entirely at the CPs' own risk.

1. Introduction

In December 2008 we communicated that as part of our continuous review of the programme we were taking stock of our 21CN strategy. To inform the debate we sent out a questionnaire in January 2009 , designed to look at desired outcomes for CPs in the voice market and held a workshop with senior 21CN Programme leads and key industry players in early March 2009. 

We are now in a position to communicate the principle outcomes of that review and the strategic priorities for the programme for 2009/10.  It is an approach that acknowledges a number of important changes that impact the industry, including BT’s view that the future economy will be fibre led, which is enabled by the successful delivery of our 21CN core infrastructure, as well as the changed global economic outlook. A fibre led future allows BT to consider leapfrogging technologies and this has a bearing on the specific products we aim to develop.

The priorities for 2009/10 are operationally simpler to deliver and complete the transition of the programme to being more customer and market-led.  Importantly, the programme maintains the momentum we have built in terms of the delivery of new services whilst helping to conserve costs for BT.  We believe 21CN continues to play an important role in building the foundation for the future of our industry.

In the financial year 2008/9, we have:

• Rebuilt BT’s core and transmission networks in the UK
• Introduced Ethernet services across the widest national footprint in the UK market
• Introduced Ethernet Backhaul Direct (and the radically lower costs it enables)
• Introduced 21CN broadband to an addressable market of 10 million UK homes and business
• Successfully migrated 20,000 end users, and rising, to 21CN voice services in South Wales. 
• Launched BT’s global network of virtualised data centres
• Closed down a range of legacy platforms and systems

2.  Strategy Review

In carrying out this review, BT has taken into account input from both our CP customers and vendors, assessed technical and market developments, and considered the current state of the economy, as well as its own plans around next generation access.

2.1 WBC and Ethernet Footprints

We look forward to maximising the potential of our new WBC and Ethernet footprints which have provided 21CN broadband to an addressable market of 10 million homes and businesses, with a headline speed of 24Mbps and the UK’s market leading Ethernet footprint. Throughout 2009/10, we will continue to extend both the WBC and Ethernet footprints in line with demand from our CP customers, whilst ensuring that our CP customers exploit the current capabilities and that links between 21CN and NGA are fully optimised.

2.2 Voice Migration

Our priorities for 2009/10 build on these achievements whilst providing continuity and momentum to our CP customers in the current economic climate. To minimise disruption and maximise choice for our CP customerswe are now parallel running 20CN and 21CN, a key step towards preparation for large scale legacy platform decommissioning.

We recognise that a strategy of aggressive forced migration is at odds, in the short term, with the current economic climate.  We still plan to proceed with the planned migration to 21CN voice services across the country from 2010, but it will be at a slower pace and smaller scale than previously envisaged.

2.3 Pathfinder

During 2009/10, we will continue with Pathfinder migrations to industrial scale and continue to prepare for the introduction of 21CN voice services outside South Wales as part of our plans for the future of voice.  

We expect to migrate materially more than the 75,000 lines currently in plan to the 21CN voice platform from Ericsson.  In addition to prepare for planned migrations, we will continue with trialling and piloting the migration of ISDN.

2.4 NGN Call Conveyance

Development towards an NGN interconnection product will continue but, with a slower pace of migration, timings may well be impacted. We will continue discussions with CPs, particularly through the sector based workshops outlined later in this document, to better understand how best to progress to interconnect at the 29 points of connection, associated timings and so on.

2.5 Fibre Plans

We see the future as being a fibre led mixed economy and are excited about the imminent launch of our FTTC capabilities in Muswell Hill and Whitchurch, building on our FTTP capability at Ebbsfleet. Our fibre strategy has been made possible by the successful delivery of our multi-service core 21CN network.

2.6 Future Voice

We have decided not to proceed with plans to introduce WBCC/WVC.  We know options for future voice are important and that CPs are keen to advance to products and solutions that more fully exploit IP based solutions that work in an agnostic way in a mixed economy of access. Of course we will continue to examine our options, taking into account changes in technology and other new information, including ongoing engagement with CPs.  

Looking to the future we are excited about the enhanced future voice offerings enabled through 21CN’s software innovation capabilities and plan to consult later in the year on our derived voice plans in anticipation of a fibre-led future. We will also introduce innovative new platforms and services to the market this year, including Software as a Service (SaaS) and internet Cloud Computing services.

2.7 Strategic priorities for 2009/10

This year we plan to:

• Extend our Ethernet footprint further and exploit it for our and our customers benefit
• Extend our 21CN Broadband footprint, while progressing our Super Fast Broadband plans in parallel
• Migrate up to a further 275,000 customers to prove our 21CN voice at industrial scale and prepare for voice migration to 21CN outside the South Wales area
• Enhance the RFT performance of our new 21CN services to match or exceed the levels of customer experience delivered on the 20CN services they will replace

3 Next Steps

3.1 Consult21 Work Plan

Discussions will take place at the next Consult21 Steering Board on 26th March 2009, the IMWG on 16th April 2009 and Portfolio Working Group on 22nd April 2009.  These will aim to inform and build the next iteration of the workplan for Consult21, identifying consultation and collaborative activity that will be required to deliver the plan going forward.

3.2 Sector Focused Workshops

As agreed at the Steering Board and Voice Experts meeting on 4th March 2009, a series of multi-lateral workshops are being arranged to explore areas of win-win between BT and CPs against the new plan.  These workshops will include:-

• Geography implications
• Joint cost savings
• Trialling and execution
• A focus on “win-win” opportunities

The workshops will be by market sector with the suggestions of:-

The aim of this paper has been to set out the strategic direction of the programme for 2009/10 and to provide CPs with clear direction on the 21CN priorities for the financial year ahead.

We will continue to review other areas of the programme in line with changes in technology and other new information, including engaging with industry as we endeavour to meet all reasonable demand for new 21CN products and services.

If you wish to discuss the information contained within this brief, please contact your Sales and Relationship Manager.

The contents of this briefing are accurate at the time of writing and are subject to change.