Pure Fibre incentive: fibre growth condition update
We have listened to concerns raised by RSPs around the net growth condition introduced to our Pure Fibre incentive from January 2024.
In recognition that it is a challenging market, activity can take time to get traction, and to help RSPs have fibre growth recognised, we are providing RSPs with the alternative option of a ‘3 month rolling average’ (3MRA) to calculate net fibre growth for each month (from May’s connections).
This alternative approach smooths out any peaks and troughs being experienced.
This is a rolling month by month calculation so credits will still be calculated and paid on a monthly basis if the condition is met.
How is the ‘3 month rolling average’ calculated?
It’s calculated by taking the average of the month for which credits are being calculated and the two previous months e.g. for May credit eligibility calculated in June, fibre growth is calculated for each of March, April and May and then averaged out.
If the average monthly growth is positive, the RSP would be eligible for Pure Fibre incentives (N.B. the existing tolerance of 20 still applies so the effective average would have to be no more than -19).
This calculation (and a comparison to the existing monthly calculation) is set out below by way of example (noting the round half away from zero rounding method will be applied to round to whole a number):
Month | Net base movement | 3 month rolling average | Incentive eligibility under '3 month rolling average' | Incentive eligibility under the current 'month by month' methodology |
Mar | 250 |
| n/a | Yes |
Apr | -45 |
| n/a | No Fibre growth = -45 |
May | -50 | 52 | Yes - even though growth was negative for May the total positive growth from previous months off-sets this | No Fibre growth = -50 |
Jun | 10 | -28 | No - the in-month growth for June is not enough to offset the previous months losses (-45 + -50 + 10) / 3 = -28 | Yes |
Jul | 45 | 2 | Yes - in-month for July was positive and the 3MRA is also positive | Yes |
Aug | 30 | 28 | Yes – in-month for August was positive and the 3MRA is also positive | Yes |
Please consider carefully which calculation methodology you want to apply. As you can see from the above, the 3MRA will be advantageous in some situations, for example if you have had very high growth in one month, this could offset negative growth in the following months (as for the March - May period, where high growth in March offsets lower April and May numbers). But conversely it could be disadvantageous if you have a significant drop one month that is then harder to make up in the following months (as in the April - June example above).
How to opt-in
If you wish to apply the ‘3 month rolling average’ methodology, please email your Chorus account team before 19 June 2024.
Contact
If you have any questions or require additional information, please contact your Chorus account team.