the best ofboth worlds

Ian Livingston CEO BT Retail

BT Fusion

BT Fusion - best of both worlds

‘all the convenience and features

of a mobile phone with fixed line

costs and quality’

BT Fusion – how it worksB

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The best of both worlds

• BT landline rates when you are at home or office

• Competitive mobile bundled minutes when you are out and about

• Free BT Fusion Motorola v560 phone

– Stylish, compact flip phone design with large, vivid colour display with video and camera

• Free BT Hub to wireless network your home

Meeting customer needs

“70% of customers avoid paying mobile

rates by using a landline”

“Over 30% of mobile calls are made from

the home today”

“19% of customers have problems with mobile coverage”

• BT landline rates when calling from home or office

– 5.5p per hour evenings/weekends

– 3p per minute peak hours

• Out and about

– Competitive mobile rates

– Free short calls home

– Monthly subscription from just £9.99(inc 100 mobile minutes)

• Free phone, free BT Hub

BT Fusion – exceptional value

Call type : from mobile device to UK landline in the home

5 min(pence)

10 min(pence)

30 min(pence)

60 min(pence)

% saving 10 mins

Peak call

% saving 10 mins off-peak

call

BT Fusion Off Peak 5.5p 5.5p 5.5p 5.5p

BT Fusion Peak 15p 30p 90p 180p

"3" Videotalk 500 25p 50p 150p 300p 40% 89%

Orange 200+100 online 50p 100p 300p 600p 70% 95%

O2 (Anytime) 200 50p 100p 300p 600p 70% 95%

T-Mobile Relax 200 self service 50p 100p 300p 600p 70% 95%

Virgin Pay monthly 200 75p 100p 200p 350p 70% 95%

Sainsbury's O2 200 50p 100p 300p 600p 70% 95%

5 min 30 min 60 min

% saving 10 mins

Peak call

BT Fusion – exceptional value

Call type : from mobile device to UK landline in the home

"3" Videotalk 500

Orange 200+100 online

O2 (Anytime) 200

T-Mobile Relax 200 self service

Virgin Pay monthly 200

10 min

% saving 10 mins off-peak

call

BT Fusion Peak

5.5p 5.5p 5.5p 5.5p

15p 30p 90p 180p

25p 50p 150p 300p 40% 89%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%

75p 100p 200p 350p 70% 95%

50p 100p 300p 600p 70% 95%Sainsbury's O2 200

BT Fusion Off Peak

BT Fusion – exceptional value

Call type : from mobile device to UK landline in the home 5 min 30 min 60 min

% saving 10 mins

Peak call

"3" Videotalk 500

Orange 200+100 online

O2 (Anytime) 200

Virgin Pay monthly 200

T-Mobile Relax 200 self service

10 min

% saving 10 mins off-peak

call

BT Fusion Off Peak 5.5p 5.5p 5.5p 5.5p

15p 30p 90p 180p

25p 50p 150p 300p 40% 89%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%75p 100p 200p 350p 70% 95%

50p 100p 300p 600p 70% 95%Sainsbury's O2 200

BT Fusion Peak

BT Fusion – exceptional value

Call type : from mobile device to UK landline in the home 5 min 10 min 30 min

% saving 10 mins

Peak call

% saving 10 mins off-peak

call

"3" Videotalk 500

Orange 200+100 onlineO2 (Anytime) 200

T-Mobile Relax 200 self service

Virgin Pay monthly 200

60 min

BT Fusion Off Peak 5.5p 5.5p 5.5p 5.5p15p 30p 90p 180p

25p 50p 150p 300p 40% 89%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%

50p 100p 300p 600p 70% 95%

75p 100p 200p 350p 70% 95%

50p 100p 300p 600p 70% 95%Sainsbury's O2 200Over 99% saving

BT Fusion Peak

• Phone that automatically connects through BT Broadband

• One personal phone

• Free BT Hub to wireless network your home

• 3 phones can be used at once

• Seamless handover

• Guaranteed coverage at home and office

• Range 20-25 metres in typical home

• 50-100 metres in free air

• Excellent voice quality

• Mobile when out and about

BT Fusion – a world first

• Start delivery to around 400 paying customersToday

September• Start rollout

Register today at bt.com/btfusion

Autumn• Further propositions for business

Just the start

just the start

Steve Andrews Chief of Mobility & Convergence

BT Fusion

BT

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eBT Fusion – just the start

Bluetooth

Today• Connection via Bluetooth to Broadband• Seamless in-call handover• Wi-Fi enabled BT Hub• Up to 6 phones per household, 3 calling simultaneously

Wi-Fi

The future• Migration to Wi-Fi phones• Richer services at broadband speeds

BT

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eBT Fusion – just the start

Wi-Fi

• More places • More mobile devices

Evolution of BT Fusion- More devices

• Greater range of devices from Tier 1 vendors

– The Motorola V3 RAZR will be the next BT Fusion Bluetooth/UMA handset - available later this year

– Working with Motorola, Nokia and Samsung to launch 6 Wi-Fi/ UMA handsets in around 12 months

Creating a world first

Creating a world first

Driving fixed mobile convergence globally

Fixed Mobile Convergence Alliance (FMCA)

• Currently the fastest growing operator alliance, founded & chaired by BT

• Driving standards based solutions & convergence handsets

• 18 Members representing over 300 million customers

– Auna, AT&T Corp, Belgacom, Bezeq, Brasil Telecom, BT, Cegetel, Cesky Telecom, Eircom, Korea Telecom, KPN, NTT Com, PCCW, Rogers Wireless, Swisscom, TRUE/ Orange, Telecom New Zealand & Telkom South Africa

Typical new product growth

Years

Vol

ume

Typical new product growth

Years

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2001 2003 200520042002

>5 million

Connected anywhere A wireless world - through convergence

BluetoothBluetoothWi-FiWi-Fi

Private/GuestWi-Fi

PublicPublicWi-FiWi-Fi

Public Wi-Fi

Connected anywhere A wireless world - through convergence

BluetoothBluetoothWi-FiWi-Fi

PublicPublicWi-FiWi-Fi

Private/GuestWi-Fi

Seamless, ubiquitous, easy to use & secure

Public Wi-Fi

Connected anywhere - BT Building the future

Over 7800hotspots in the UK

Over 30,000 hotspots globally

Enterprise wireless LAN & guest Wi-Fi

Delivering new services & applications

EnterpriseBT Fusion

Converged voice & data

messaging

High quality video-centric

services

Machine to machine

More convergence

devices

A world first from BT

Ian LivingstonCEO BT Retail

‘all the convenience and features

of a mobile phone with fixed line

costs and quality’

BT Fusion – best of both worlds

A world first