As you know Chorus’ next bonus credit runs from 1 February 2021 through to 30 April 2021. We’d like to continue building fibre growth momentum in the new calendar year and seek your feedback by 21 December on some ideas we have for our next RSP incentives. Following receipt of your feedback we will consider whether any changes are required prior to finalising offers in January 2021.

Upcoming RSP incentive timeline:

A) Basic Fibre offer - Mar-Jun 2021

Through this incentive we aim to address the Price Seeker segment for which the current entry level fibre price of ~$65 is too high. We believe this segment of the market has grown over the last 6-months due to the recessionary environment.

• Potential offer: A one off credit of up to $105 with 24-month clawback, provided the RSPs standalone retail price point on all 30/10Mbps plans is no more than $60 per month
• Eligible product: Home Fibre 50 (upscaled to 50-10-2.5-2.5)
• Eligible transactions: new connections only (excludes anywhere intact within the last 30-days), no transfers, no change address, no modify attributes, no downgrades.
• Conditions:
  • “Stand-alone” retail price capped at maximum $60 per month (or pro-rated equivalent based on a 30-day month) on all 30/10Mbps plans offered by that RSP – this cap must remain for as long as participating RSPs are earning credits under this bonus offer
  • Where a connection is eligible for multiple credits (i.e. Bonus credits and Basic Fibre) the higher dollar value will apply (not both)
  • For the avoidance of doubt, connections that qualify for the Basic Fibre 30/50 offer will not earn Mix it Up credits, BUT will be counted in the Mix it Up threshold calculation (though it will be harder to reach the 100Mb & gig threshold).

We’re seeking your feedback on different elements of this offer such as:

• The overall proposition of a Basic Fibre offer for price seekers
• Do you believe there’s demand from prospects for this? If not, why not?
• Would you be interested in participating? If not, why not?
• Would you prefer a lower credit amount with a 12-month clawback? If not, why not?
• Please let us know any other thoughts you have.

B) Bonus Kicker - May-Jun 2021

We’d like to continue to drive mass market fibre adoption and reward RSPs who strive to do the same.

Option 1: Reward for Effort

Extend the bonus framework utilised Feb-Apr i.e.

• We provide a list of fibre prospects with a credit $ attached to each
• RSPs provide appropriate marketing plans & indication of scale
• Chorus pays RSP for any prospects converted from the list to fibre during the extended window (no need for the RSP to nominate dates).

Option 2: Pay for Performance

• Chorus would nominate a level of connections (likely based on historical performance) which you must outperform in order to earn credits in May-Jun 2021
• Credits paid on all eligible connections once the benchmark volume has been exceeded (i.e. if the benchmark is 100 connections and you connect 120, we will pay out on the 120)
• It will NOT be address list based, but you will still have access to our Copper and Offnet address list for direct marketing.

We’re seeking your feedback on these two options such as:

• The overall proposition of a ‘reward for effort’ vs. ‘pay based on performance’
• Tell us what you prefer your reference months to be or suggest how we could establish this.

Next Steps

Please provide feedback to your Chorus account manager by 21 Dec 2020.