Our current Mix it Up incentive ends 30 June 2021 and we’d like your feedback to help us shape what comes next. Our focus remains on supporting RSPs to help households connect to NZ’s best broadband - fibre.
We’re likely to link any new incentive credits to the number of new fibre connections an RSP wins during the promotion period provided that RSP meets an eligibility threshold.
Please review the potential options below and tell us:
- What you like or dislike about these ideas?
- What you like or dislike about different elements of each idea, as it may make sense to combine some?
- Would you be interested in participating? If not, why not?
- How you would suggest determining benchmark measurements for each?
- Any other thoughts you have about these ideas?
Details likely applicable to all potential eligibility criteria;
Offer period: 1 July 2021 – 30 June 2022
Eligible consumer NGA products: Fibre 50, 100, Gig, HyperFibre
Connection types on which Chorus will pay credits if eligibility criteria is met: new consumer connections only (excludes anywhere intact within the last 30-days), no transfers, no change address, no modify attributes, no downgrades.
Payments: will be matched to the assessment period, likely to be 4 x 3-month (‘quarters’) with an annual balance/wash-up if required. Once you reach the minimum threshold, you’ll be paid for the total eligible fibre new-connects. No credits will be paid if an RSP fails to reach the eligibility threshold.
We’ll also consider paying you a marketing contribution upfront to be used on a minimum level of fibre-focused marketing activity e.g. We pay you an amount upfront equal to 30% of the value of the credit pay-out you could earn. The remaining 70% will be paid at the end of each quarter once target is achieved.
Feedback sought on these four potential eligibility thresholds:
Please note we are considering selecting one of these, or possibly a combination of them.
1. New fibre connection plan mix (extending Mix It Up):
We’ve run our Mix It Up incentive programme since April 2019. This focuses on an RSP’s mix of fibre orders and pays credits once certain thresholds are met. One option would be to extend/amend this format.
2. Minimum number of new fibre connects:
Participating RSPs will each get a fibre new-connection target potentially based on:
- A Chorus set industry target (e.g. +10% of last year’s total industry volume), apportioned to individual RSPs based on their share of new fibre connections over the last six months; or
- An RSP’s average new fibre connections (over the last six-month period); or
- The lesser of the two.
3. Portfolio growth:
Using 31 March 2021 as the baseline month (starting point) Chorus will set an industry fibre portfolio growth target (e.g. 10%) for a given point in time (end point) which individual RSPs will need to meet in order to be eligible for credits.
4. Minimum level of fibre focused marketing activity.
Participating RSPs must submit to Chorus:
- A plan outlining their marketing activity for fibre (with dates, channels and expected volume) at scale, and
- Copies of relevant marketing assets (e.g. DM, eDM, call centre/radio/TVC scripts, website banners) highlighting fibre. Note: this does not extend to any Chorus approval of marketing collateral, and
- A method to validate planned activity has taken place at the scale you (the RSP) indicate.
- To qualify for this incentive, relevant marketing must be positioned to promote and feature fibre as the broadband solution. As a minimum standard we would be requiring you to heavily feature “Fibre” and “Fibre Broadband” in your marketing activity. We are also considering other options such as asking for alignment with Chorus-led campaign activity “Fibre. It’s how we internet now.” It would be good to understand any challenges you may see in meeting these alignment options.
Using the five questions above as a guide, please provide feedback to your Chorus account manager by 9 April 2021. Please refer to the resources section below for illustrative examples.