INTRODUCTION

BT Retail will be changing Consumer pricing (BT Together - all options) on 1st August 2007. For NTS service, these changes will only affect 0845 and 0870 calls. Changes made to the BT Together packages for 0845 and 0870 calls are summarised below:

Set-up fee will increase from 3p to 6p (incl VAT)

Restructure the time of day calling periods. Day, evening and weekend time bands will be reclassified as "Daytime" and "Evening" only.

Reduce the ppm rates for day and evening. Daytime rates for 0845 and 0870 calls to be reduced to 2ppm and 6ppm (incl VAT) and evening rates to be reduced to 0.5ppm and 1.5ppm (incl VAT) respectively.

IMPLICATIONS ON NTS INTERCONNECT PAYMENTS FOR 0845 AND 0870 CALLS

As the "Blended Rates" are calculated based on the pricing of Low User Scheme / Business non-Discounted prices, the change in BT Together pricing does not affect the "Blended Rates".

BT Together pricing can affect the discount percentages which apply to 0845 and 0870 calls. However, as the increase in set-up fee for BT Together has been offset by the reduction in the daytime and evening rates for 0845 and 0870 calls, the discount percentage in this instance remains unchanged.

To summarise, the POLO payments to terminating NTS operators will not be affected by thechange in Consumer pricing.

However, the POLO payments for 0845 calls will change following the Ofcom Determination on 4th June 2007. BT will need to amend the NTS out payments for 0845 calls to take account of thefollowing:

i) Introduce a call set-up fee of 2.55p (excl VAT) for all 0845 calls. The call set-up payment will be subject to the discount rate of 24.6% for the period between 1 October 2006 and 31 March 2007 and 24.3% for the period from 1 April 2007.

ii) Amend the "Blended Rates" for 0845 calls (also subject to the discount rate of 24.6%/ 24.3%) to 3.2741ppm for daytime, 0.9485ppm for evening and 0.8652ppm for weekend (excl VAT).

The implementation date of the Ofcom Determination is backdated to 1 October 2006.

If you have any queries please contact your BT Commercial Manager.

LEGAL NOTICE

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