Innovation in the 21 st Century Network

Transcription

1 Innovation in the 21 st Century Network Matt Bross, BT Group Chief Technology Officer NGN and Emerging Markets Investment, Infrastructure and Innovation Bonn, December 5 th 2005

2 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 These statements include, without limitation, those concerning: transformation of BT's networks, expected cost reductions and growing cash savings from 21CN; benefits to customers and industry of the 21CN programme, and convergence; anticipated investment in 21CN; and timescales for implementation of 21CN. Although BT believes that the expectations reflected in these forwardlooking 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; the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised; and general financial market conditions affecting BT's performance. BT undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 3 Content BT s strategy in the changing landscape BT s 21 st Century Network Open Innovation and the 21 st Century Network The Future of Access Concluding Remarks

4 4 BT: a snapshot of the business Turnover 18.5bn (04/05) Over 100,000 people in total with 33,000 people in 50 countries Ongoing investment in our global capabilities Expanding into new continents, especially in South America and Asia-Pacific Massive investment in global infrastructure through 21CN, with more ports on our network outside the UK than inside by 2006/7 Investing in new technologies Delivering innovative networked IT services on the global IP platform Rated number 1 in the Pan-European network services providers - Gartner (2005) and rated in top 10 infrastructure outsourcers Ovum (2005) In the Top 5 International Telecommunications Industry and number 1 in the UK in terms of R&D investment 10bn investment in the world s most advanced global IP network 71 countries connected today 170 by the end of 2007

5 BT s strategy in the changing landscape Defend traditional Creative marketing Improved service Price innovation Cost leadership Long term partnership with our customers Grow New Wave ICT Broadband Mobility 21 st Century Network through transformation 5

6 6 21CN objectives Empower customers with control, choice and flexibility like never before Offer exciting new services for customers faster than before Reduce costs and grow cash cost savings: 1 billion per annum by 2008/9 Speed to market Cost transformation Customer experience and empowerment

7 Simplified Current UK network 7

8 8 21CN - key milestones Programme nears completion 2007 Mass migration reaches more than 50% of customers 2006 Mass migration continues Customer and equipment migration underway Large scale non PSTN service migration begins 2005 Migration begins 17 new product launches/enhancements based on re-usable capabilities New operations and service management capability in place 2004 Strategic vendors announced Broadband growth on MSAN/combo cards First new service launches based on re-usable capabilities; broadband available to 99.6% Voice transformation trial begins; access fibre trial begins Converged network work begins Service creation framework work begins Experience development centre work begins Consult 21 Underway

9 9 Open Innovation will harness the power of 21CN Open Innovation: the capability to harness and exploit innovation globally for the benefit of shareholders, employees and customers Innovate at each stage and throughout the entire value chain Invent Design Implement Operate Productise Channels People & Organisation Deliver Customer Satisfaction, Employee Empowerment and Shareholder Value

10 10 Access strategy matrix Access technology Drivers/influencing factors Technology Regulation Spectrum Geography Commercials Copper POTS DSL Etc. Ofcom ITU EC ANFP* UK Europe Global Wireline & convergent services Broadband Video Data Fibre B/E/G-PON Ethernet Etc. Ofcom EC ITU UK Europe Global Optical services Broadband Video Data Wireless GSM GPRS WiMAX Ofcom ITU EC EMS** UK Europe Global Wireless and convergent services Other providers Copper Fibre Wireless Etc. As above Global impact and local application Various global UK Europe Global OLOs, MOLOs, Global services, interconnect with other networks ANFP* = Access Network Frequency Plan EMS** = Electro-Magnetic Spectrum

11 11 ADSL2+ Next generation equipment Different forms, different cost implications At the exchange based technology ADSL2+ Technology ADSL2+ copper from the exchange to the premise Trials Internal technology trials of exchanged-based and cabinet-based ADSL2+ OSS impacts Option to introduce dynamic line management

12 Fibre To The Cabinet (FTTC) Different forms, different cost implications Broadband overlay Opex intensive Street MSAN Capex intensive Technology Exchange fed copper lines (ADSL2+) FTTC and cabinet-fed lines (VDSL2+) Trials in progress with ADSL2+, VDSL2 In different geographic locations Working with our suppliers OSS impacts Provision and repair processes DSLAM management systems need to handle different spectral profiles Implement dynamic power management at each cabinet 12

13 13 Fibre To The Premises (FTTP) Different forms, different cost implications Capex cost neutral to copper Reduced Opex costs Increased capability Technology Trialling BPON, moving towards GPON Trials in progress In different geographic locations Working with our suppliers OSS impacts Provision & Repair Processes Integration of element management

14 14 AMDF MSAN SP1 Service1 SP1 Service 2 SP2 Service 1 SPn Service n AMDF in Ports AMDF DSL Test Head AMDF out Ports AMDF benefits - Providing services automatically (repair, provisioning ) - Improve customer experience - Reduced operational costs - Improved network management (maintaining accurate records )

15 Openreach Openreach is a business within BT which will start full operation during January 2006 Openreach will have the responsibility for ensuring equal access to the services associated with the local loop, the wires that run between the end-customer and the local exchange the local exchange and the core network even handing in its dealings with all its customers (including BT itself) Main BT PLC Board BT CEO EAB Operating Committee Openreach Board Wholesale Board Retail Board Global Board Openreach Wholesale Retail Global Services 15

16 16 Openreach: a snapshot of the business Around 30,000 people all BT s field operations 3.6 million customer visits per year 14 million jobs a year 30 million customer lines 120 million km copper access 300 million calls a day across our network Around 8 billion assets More than 4 billion projected revenues Will provide services for the whole UK communications industry Each day openreach visits 11,000 homes and offices and climbs the height of Everest up our poles 200,000 manholes 2 million km optical fibre 6 million broadband connections over our network 22,000 vans Carries $1 trillion of foreign currency transactions

17 17 Openreach as an enabler to access options on the back of 21CN Increased clarity Regulation focused on bottlenecks Expectation of reduced regulation elsewhere e.g. major business Incentive to invest in next generation networks and innovate Infrastructure-based competition Benefits the consumer and UK economy BT can compete fairly on a level playing field Creating a climate of confidence for infrastructure competition, investment and innovation

18 Concluding Remarks BT and its vision for Europe Europe will benefit from the deployment of new / high speed Next Generation networks and services. BT s commitment to this vision is demonstrated by the rollout, already under way in the UK, of BT s own 21CN network, based on an investment of Eur c14.5bn over 5 years BT is serious about Open Innovation Across products, services and operational processes Internally and externally BT and the Future of Access BT believes operators should compete to deliver the best service to customers over an application-neutral 21st Century Network Minimum requirement for fair competition: Provision of access and backhaul services by the incumbents on transparent, non-discriminatory and fair terms Future of Access Regulation: regulation of access products is and should remain technology neutral 18

19 Questions Answers