ACCELERATING NETWORK TRANSFORMATION IN 84 DAYS

Henry Minogue Liberty Global, European Director Consumer Solutions Transformation Agenda • Liberty Global – Who we are. • Digital transformation – The necessity – Overcoming the constraints of legacy (Bi model Approach with an agile platform) • Virgin Media - Network Expansion – Expanding our network footprint – Accelerating return in investment • Virgin Media – Service Intelligence – Data, Rules and Insight driven Intelligence – Personalised next best action / offer

2 Liberty Global

*Vodafone / Liberty JV 50%

3 Digital Transformation Imperative

DIGITAL ENGAGEMENT INTERNET CLASS & OMNI CHANNEL DIGITAL CAPABILIIES Service fulfilment must move Elevated capabilities based on from physical to digital, seamless data capture, user context, across every channel and intelligence and analytics; new service interaction business and service monetization models

TRANSFORMED GO BEYOND THE PIPE SERVICE AGILITY TOWARDS DIGITAL SERVICES As customers use more over-the- Cable’s industrial back office systems top services, they expect the same to support the network drive agility in our ability to evolve the significant cost and complexity. user and service experience New; capabilities needed to diversify offerings in digital service domains

4 Digital Transformation Challenges

1 Telecom Speed vs. Internet Speed • Waterfall development for legacy systems • Vendors have difficulty adapting to new world • Processes and culture slow to change

2 Systems of record aging and customized • Developed for a different paradigm • Vendor lock-in or low knowledge base

3 Regional Considerations • Separate BSS/OSS in most regions • Varying vendor and architecture combinations • Common requirements with regional nuances

5 Approach

1 Moving to Internet Speed

We have adopted a bi-modal IT approach to achieve agility and de-couple ourselves from legacy constraints

Clearly articulate the vision of the company in 5 years

Engage with vendors on an Agile approach Focus on incremental capabilities

Take legacy systems off the critical path

Bring systems to a minimum standard

Accept instances where programs diverge from vision

6 Approach

2 Innovating Above Monolithic Systems

We are implementing a Digital BBS to overlay our legacy BSS

Omnichannel Experience Layer • Reusable building blocks USER USER 3RD • Define the digital experience INTERFACE EXPERIENCE PARTIES • Extensible to third parties

Digital Identity as the Engagement Paradigm • Shift from customer to digital user DIGITAL IDENTITY • Implement user lifecycle management above CRM & USER PERSONALIZATION • Microservice architecture across any channel/service

Omnichannel Enablers • Drive intelligence into the digital experience PRODUCT CONTEXTUAL CONTEXTUAL DATA & • Reusable components; dedicated functions CATALOG CRM MARKETING INTELLIGENCE • Easy to plug in and replace if required

THE LINE everything above the line is the “Intelligent Digital Platform”

LEGACY BILLING ORDERING ANCILLARY Legacy IT Systems CRM & RATING & OSS SYSTEMS • Core telco capabilities (network & facilities based) • Isolation, abstraction and exposure • Fortification & replacement when necessary DATA HUB & ENTERPRISE CUSTOMER MODELLING

7 Approach

3 Leveraging a Common Platform, Supporting Regional Constraints

The Common PE Core • Common denominator functions across all EU countries • Multitenant solution running in private cloud infrastructure • Single OPEX for multiple country implementation

Comprehensive Solution • 90% common processes across all LGI countries • Enabling unified user journeys and processes across LGI • Allows country specific ‘overlays’ where required

Country Onboarding • Brings digital functionality to countries as a full solution • UI, configuration and integration in each country • Leverages Pan European abstraction layer for integration

Service Onboarding • Allows integration of a service for all countries (e.g.: Horizon Go) • Does not require the country to have Digital BSS deployed • Rapid integration for white label or premium digital services

8 Virgin Media UK

• Revenue £4.5 billion * • 13.6 million homes passed • 5.4 million customers • 13.0 million cable service subscribers (RGU’s) – 3.8 million enhanced video subscribers – 5.0 million broadband internet subscribers – 4.4 million telephony subscribers • 3.0 million mobile subscribers

* Revenue is for the year-ended 2016; other subscribers statistics are as March 31st 2017

9 We Are Expanding Our Network

Getting the country connected to ultrafast internet is no mean feat, but it’s not just about us. By privately investing in the UK’s digital network, we're creating jobs, empowering businesses and supercharging the economy.

10 Securing Wayleave Agreements

Fibre to the premise (FTTP) A fibre-to-the-premise connection (also known as fibre-to-the-home) utilises our amazing cables to connect your premises directly to our fibre network, providing exceptional speed.

Hybrid fibre-coaxial Our standard connection uses a combination of optical fibre and coaxial cable to connect homes and buildings to our amazing network.

Apartments & Flats When connecting a multiple dwelling unit we could connect to the building’s integrated receiver system (if there is one), or via FTTP or maybe even a bespoke cabling solution. We then use the existing wiring to get the flats or apartments connected.

New developments Need your new development connecting to the web? We’ll arrange a special install tailored to your property type to get you connected as soon as possible.

11 Network Build Is Complex An access agreement is the consent that Virgin Media can carry out work on privately owned land or property. Whether you’re a developer, housing association, local authority, landlord or tenant, an access agreement must be obtained before Virgin Media can install and maintain equipment on private land

Homeowners & Tenants We plan an extensive expansion of the Virgin Media’s network.

Property Managers Connecting tenants to our services i.e. get your property connected to broadband, TV and phone services.

Developers New builds team working with Developers.

Local Authorities & Housing Associations Virgin Media has special packages in place for housing associations and local authorities. This helps us to ensure that everyone can benefit from Virgin Media’s award-winning services at a price that’s right for them.

12 The Wayleaves / Nexflow Solution

The business required a new automated workflow for the Wayleaves process & an End to End process for Opportunity, Plan, Build, Release (OPBR) to support Network Expansion building two new applications on the same platform. The solution needed to interact with existing planning / GIS tools and not be constrained by them.

Approach: Nexflow is introducing a Business Process Management platform utilising the Pega workflow to reflect the to be OPBR workflow process. This involved high level requirements capture followed by detailed DCO (directly Captured Objectives) discussions with business SMEs (currently in progress) to translate that into a configured workflow.

Benefits: • End to End workflow from Opportunity through Release to enable Network Expansion to scale up to required volumes • Effective and efficient hand offs between teams in order to increase throughput • Quality MI and reporting in order to accurately forecast activities for effective resource management, supply chain and to support finance and sales teams • Automation of the Wayleaves processes and integration into the core workflow which will allow earlier identification of Wayleaves needs and tracking of progress

13 The Pega Solution

14 Delivery Approach – Incremental Benefits

VALUEVALUE

Command & Extend Channel Control Interfacing Extensions

• New end-to- • Prioritise high • Roll out full end process value-add mobile • Gain visibility interfaces capability • On board • Process • Complete components inflight ‘cases’ improvements value-add based on interfacing

Reuse existing Pega empirical • Process evidence

infrastructure and common common and infrastructure Improvements

60-90 day delivery cycles

15 Virgin Media and Pega – Working Together

INITIATE Virgin Media / Pega Delivery Model WAYLEAVES RELEASE ITERATIONS PLAN ELABORATION • Align vision and roadmap INCEPTION TRANSITION GO LIVE • Define release milestones CONSTRUCTION

• Refine scope alignment Iteratively Build the Confirm Production High Level Scoping Deploy to Production SETUP Application Readiness • Review Requirements • Application meets • Establish environments • Design Build and Unit • Application meets and Business Test businessbusiness objectives objectives • Promote Application to • Install software Challenges • Integrate with •• FullyFully Tested Tested – –SIT,SIT, UAT, Live Environment • Draft Use Cases customer systems OAT,UAT, Performance OAT, and • BAU / Warranty LoadPerformance and Load PREPARE • Perform Operational • Perform Playbacks / Support Walkthroughs Show and Tells •• BusinessBusiness teams teams preparedprepared / /trained trained • Sizing / Capacity • Confirm resources • Incorporate Business agreed Feedback • Enable team members • Target Scope Agreed • Establish governance DCO Co-Production Governance Continuous Testing

16 Delivery Timelines • Pega Led delivery to begin, transitioning to a Partner Led/Pega Expert Services model, to ensure maximum standard functionality to deliver business benefit rapidly. Provide appropriate handover to the Virgin Media chosen delivery & support partner, in preparation towards further NExflow process enhancements

• Original Challenge for Pega delivered approach: – First meaningful release of Wayleaves delivered to live within 10 weeks of project commencement. – Ongoing release cycles for Nexflow in progress.

17 Virgin Media – Service Intelligence Data, Rules and Insight Driven Service Offering

The Objective: • Enable Virgin Media to provide existing Customers with more personalised and informed recommendations.

• Utilise next best actions / offers based on data, rules and insight. • Allow support agents to eliminate manual checks and make more informed decisions in retention.

• Drive revenue growth and minimise downspin.

18 Virgin Media – Service Intelligence The Pega Driven Solution

High Level Architecture

User Interfaces

Function Decisioning

Enterprise Decisioning

Enterprise Data

19 Virgin Media – Service Intelligence Key Deliverables to Date

Delivered to Care Agents, Retentions Agents and moving into Digital and Mobile Care Channels

Next Best Action and Offers • Applies commercial rules over current product holding to display the next best offers for the Customer to increase ARPU. • Supports a positive Customer experience (Net Promotor Score - NPS) through the inclusion of next best actions, such as recognising when a Customer is in complaint or fault and so enabling the Agent to adjust the Customer dialogue. • Support additional commercial priorities by encouraging and enabling agents to capture payment on outstanding debt.

Bundle Negotiator • Enables an Agent to see all possible movements that a Customer is able to make, based on their current position. • Integrated with Virgin Media’s Master Data Management application (MDM) to: – Provide the full list of accurate offers and movement rules available for a Customer based on their current product holding.

20 Keys to Predictable and Successful Results

• Pick the right delivery methodology • Embrace DCO • Enable the organization • Plan and design for reuse

Drive Delivery Excellence

• Engage business and IT collaboratively throughout the project • Integrate business users to coproduce as part of the team • Delivery business value iteratively • Optimize project outcomes by following best practices

Focus on Outcomes

• Define, deliver and measure specific business outcomes • Embrace continuous improvement to drive greater results • Prove success early

21 The Opportunity Data, Rules, Insights Driven CRM Layer

We are implementing a Digital BSS to overlay our legacy BSS

Omnichannel Experience Layer • Reusable building blocks USER USER 3RD • Define the digital experience INTERFACE EXPERIENCE PARTIES • Extensible to third parties

Digital Identity as the Engagement Paradigm • Shift from customer to digital user DIGITAL IDENTITY • Implement user lifecycle management above CRM & USER PERSONALIZATION • Microservice architecture across any channel/service

Omnichannel Enablers • Drive intelligence into the digital experience PRODUCT CONTEXTUAL CONTEXTUAL DATA & • Reusable components; dedicated functions CATALOG CRM MARKETING INTELLIGENCE • Easy to plug in and replace if required

THE LINE everything above the line is the “Intelligent Digital Platform”

LEGACY BILLING ORDERING ANCILLARY Legacy IT Systems CRM & RATING & OSS SYSTEMS • Core telco capabilities (network & facilities based) • Isolation, abstraction and exposure • Fortification & replacement when necessary DATA HUB & ENTERPRISE CUSTOMER MODELLING

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