DEFINITIONS

Actual Annual Spend means the money spent by a customer with BT on the Service in one year.

Contract Floor means the minimum amounts of expenditure from the start of the Contract term.

Committed Spend means the Customer's committed expenditure from the start of their Contract term.

Contractual Delivery Date means the date on which BT is to complete provision of the access circuit or such as maybe agreed in writing between BT and the Customer.

PRODUCT DESCRIPTION

IP Clear, Gigabit Ethernet, Macronet (`the Service') is an access option to a wide area Internet Protocol, (IP-VPN) service for the UK market designed to service customers who require high speed, flexible bandwidth at their largest sites. Customers can contract for between 40Mbit/s and 1-Gbit/s across the access connection. The Service is available only to those customers who meet the Service spend and average bandwidth criteria.

IP Clear, Gigabit Ethernet, Macronet - is an unbundled product. A router is required to deliver the solution.

Connection - The Service offers two connection options; Secure and Secure Plus.

Secure connections offer dual, physically diverse fibres, converging on the same BT Point of Presence.

Secure Plus connections offer dual, physically diverse fibres connecting back to two distinct BT Points of Presence.

A Split Site Secure + connection is a configuration option, available as part of the Secure + connection. The option allows customers to split the delivery of Secure +, at the Customer end, between two geographically separate Sites. In all other ways this option is identical to the Secure + connection.

Both options provide an access connection capable of delivering 1Gbit/s of Ethernet bandwidth.

DESCRIPTION OF CHARGES

Charges for the Service consist of :-

• i.An access Connection Charge (`Connection Charge') which is a one off charge payable upon successful installation. Connection Charges can be amortised over the term of the Contract using the Spread Connection Charges option, as set out in the main IP Clear section.
• ii.An annual rental charge (`Rental Charge') which relates to the bandwidth the Customer contracts for is, applicable to all access types. All individual physical accesses are subject to a minimum period of 12 months.

SITE CONNECTION AND ANNUAL RENTALS

Connection Charges

Secure connections

Secure Plus connections

For option of Spread Connections, See Note (d) below.

Annual Rental Charges

Secure connections

Secure Plus connections

LEAD TIMES

The standard lead-time for delivery of the Service access is:

75 Working Days

Orders of more than 5 accesses at once have to be arranged as a project and standard lead times do not apply.

Standard lead times only apply to those Customer Sites within the normal serving radial distance of a live BT Point of Presence.

Orders for connections outside of the normal serving radial distance criteria of a live Service Point will have to be arranged as a project and standard lead times do not apply.

Customer orders will be taken as a project and managed accordingly with BT and the Customer working together to formulate a suitable agreed roll-out plan. Order placement can then be staggered according to the plan and Contractual Delivery Date (CDD) which will apply (using the standard lead times of access circuits) unless a specific extension is agreed in writing with the Customer.

REGRADE CHARGES & TIME SCALES

Customers may re-grade from a Secure connection to a Secure Plus connection. Customers may also re-grade their bandwidth on either a Secure or a Secure Plus connection.

Upgrades

Upgrades may be requested at any time and rentals will be re-calculated following the upgrade.

Bandwidth Upgrades

Upgrades in bandwidth are deemed to be the change in the Service from a lower to a higher priced bandwidth, within the same access type.

Bandwidth upgrades may be ordered at any time. A minimum Contract period of 30 calendar days will apply at the new bandwidth level.

There is no upgrade Connection Charge for this bandwidth growth, although the Rental Charge will increase in line with the prices listed.

Upgrades must be to one of the stated bandwidth levels. (40-100 in 10Mbit/s increments, 100-500 in 50Mbit/s increments & 500-1000Mbit/s in 100Mbit/s increments).

Any upgrade order for more than 5 accesses at once have to be arranged as a project.

There is no commitment to time scales for upgrading bandwidth.

Connection class upgrade

Upgrades in connection class are deemed to be the change of IP Clear Gigabit Ethernet from a Secure to a Secure Plus connection.

The charge for this type of upgrade will be the difference between the prevailing Secure connection price and the Secure Plus connection price.

There is no commitment to delivery time scales for upgrading connections from Secure to Secure Plus

Downgrades

Bandwidth downgrade

Downgrade of bandwidth below the original contracted bandwidth is not permitted during the first 12 months after installation.

After the first 12 months bandwidth downgrades are permitted and annual Rental Charges will be adjusted accordingly.

Downgrades in bandwidth are deemed to be a change of Service from higher to a lower priced bandwidth.

Downgrades must be associated with a minimum of 30 calendar day's notice.

Downgrades must be to one of the stated bandwidth levels. (40-100 in 10Mbit/s increments, 100-500 in 50Mbit/s increments & 500-1000Mbit/s in 100Mbit/s increments).

Customers may not downgrade to less than 40Mbit/s on any one connection.

Connection class downgrade

Downgrades in connection class from Secure Plus to Secure are charged as if the Secure Plus circuit were being ceased (subject to the 12 months minimum period per connection) and a Secure circuit were being installed as new.

SHIFT CHARGES

For Shift charges see Section 47 Part 2 Sub-Part `BT Ignite IP Clear Pricing'

ANCILLARY CHARGES

For Ancillary charges see Section 47 Part 2 Sub-Part `BT Ignite IP Clear Pricing'

CANCELLATION CHARGES

The Customer must give notice of cancellation in writing.

The delivery of a circuit is timed to meet the CDD, as agreed in writing. The cancellation charges raised reflect the amount of work already undertaken by BT and are calculated on the number of Working Days between the date the Customer requests cancellation and the CDD.

The cancellation charge is expressed as a percentage of the appropriate circuit Connection Charge.

Once delivered, the Rental Charge will be due for the minimum period of 12 months.

Accesses Provided Within 75 Working Days

Cancellation charges will not be raised if the Customer cancels an order:

• i.more than 65 Working Days before CDD for products with a standard lead-time of 75 Working Days.
• (that is, 10 Working Days cool off period)
• Secure:Within 35km of a Service Point
• Secure Plus:Within 35km of two, distinct Service Points

The full cost of all additional work, (e.g. duct) which is separately identified on the Customer Requirements Form (CRF) and which has been specifically incurred as a result of that order will be fully recovered. This is in addition to the Cancellation Charge.

Should the Customer request amendments to the CDD and subsequently cancel the order, the cancellation charge will be calculated from the date of the original CDD and not the date that the Customer notifies BT of the amendment.

SERVICE POINTS

Customer Sites should be within the following distances to receive the Service:

• Secure:Within 35km of a Service Point
• Secure Plus:Within 35km of two, distinct Service Points

BT will enter into discussions with the Customer should they have a need to provide service within range of one of the Potential Service Points.

In the event that the Customer is not within reach of a Service Point or of a potential Service Point, then BT may offer an out of area solution. The price of this out of area solution is bespoke depending on the nature and location of the Customer site. BT retains the right to refuse service to any site.

CONTRACT OPTIONS

Individual Connections

Each individual connection wil be subject to a minimum period of 12 months.

Customers will be charged the full Connection Charge and Rental Charge if they cease a circuit within 12 months of the Operational Service Date.

Discount Scheme

The Service is currently included in the Unified Discount Scheme.

Spread Connection Charges

For Spread Connection charges see Section 47 Part 2 Sub-Part `BT Ignite IP Clear Pricing'

Service Level Guarantee

IP Clear, Gigabit Ethernet, Macronet is not currently part of the VPN Service Level Guarantee Scheme.

TERMS AND CONDITIONS

IP Clear, Gigabit Ethernet, Macronet in the United Kingdom is subject to the BT Ignite Conditions for IP Clear.

Change Requests

Each Change requested after the initial order for the service will be subject to the VPN Services charge. Please see Section 47. Part 2 `VPN Service Charges'.