We re continuing the better broadband momentum with the new offers from 1 October:

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1 PHASE TWO PAGE

2 What s happening? We re continuing the better broadband momentum with the new offers from 1 October: From our Current Broadband Upgrade Offer 1. You received credits for new connections and upgrading your customers. 2. Your marketing activity focussed on fibre connections, so we want to continue supporting you. To the Fibre Upgrade Offer and Better Broadband Offer 1. It s a continuation of what our current offer includes, only more targeted. This ensures focus on areas that help both of us achieve better broadband targets. This is also supported by our better is here marketing activity 1. Targeted ATL marketing campaigns. 2. Continued goal to promote education and awareness. 3. Content focused on helping Kiwis better understand their broadband options. 2 October 2017 PAGE 2

3 What is the impact of transition to new offers? Migrating your customer From To Broadband Upgrade Offer up to end of Sept Fibre Upgrade and Better Broadband offers from 1 Oct Post 1 Oct changes ADSL VDSL Same credit, only target * addresses will qualify ADSL Fibre Same credit, $150 introduction of BAU threshold, unless $150* qualifies under target list UCLL Fibre New credit added for migrations to fibre $150 Fibre Upgrade Offer Better Broadband Offer Acquiring a customer from another RSP Acquiring a customer new to broadband ADSL VDSL Same credit, only target addresses will qualify ADSL Fibre $150 * $150* n/a ADSL New addition (as Best available Broadband $200* only) n/a VDSL Increased credit, only $200* target addresses will qualify n/a Fibre * Payments made from Targeted Lists only under the Better Broadband Offer $200*

4 Benefit comparison between old and new offers The new offers are an extension of the old offer, but more targeted. Broadband Upgrade Offer (3 APRIL SEPTEMPBER 2017) Fibre Upgrade Offer (1 OCTOBER MARCH 2018) Better Broadband Offer (1 OCTOBER JUN 2018) Coverage Nationwide (where our network is available) Nationwide migration volumes above BAU run rate inflight by 31 March 2018 Chorus UFB Only - Address list derived from: non Chorus network list and Targeted upgrade list Offer ends 30 Sept March Jun 18 ADSL > VDSL (Change Plans + Transfers) (+ transaction costs waived) - (+ transaction costs waived) ADSL/UCLL* > Fibre 100Mbps+ $150 above BAU = $150 $150 New connection > to Chorus: ADSL (connection only / best available) - - $200 (+ transaction costs waived) New connection > to Chorus: VDSL (connection only) (+ transaction costs waived) - $200 (+ transaction costs waived) New connection > to Chorus: Fibre 100+ (includes intact) Crediting conditions: $150 - $200 BAU transactions Monthly credit Bitstream 2 fibre 100Mbps + Volumes above BAU threshold Eligible connections orders received by 31/03/2018 paid on service given only Each targeted list avail 3 months to connect Eligible connections orders received but paid on service given only post 30 days Monthly credit (next avail bill run) * UCLL connections eligible for Fibre Upgrade Offer only 2 October

5 Chorus can provide ongoing support and tracking against the offers to you What we can do to help: Account Managers will provide you with monthly updates on how you are tracking against the offers. Sample of the report we will provide each month: From here we can discuss what we can do to support you to achieve your required outcomes. This means each month you will be able to monitor the success against your own activities BROADBAND UPGRADE OFFER 2 October

6 Fibre Upgrade Offer 2 October 2017 PAGE 6

7 Order Volume The details Fibre Upgrade Offer - we ll contribute $150 for qualifying connections. Migration plan Incentive payment REVIEW AGREE CONNECT Propose offer and provide feedback BAU threshold set. Sign up by 30 September 2017 Bitstream 2 fibre 100Mbps+ $150 credit on service given Agreed BAU threshold PERIOD 1 October March 2018 Month How we plan to do this The offer is designed to incentivise upgrades of your capable ADSL/UCLL base to fibre, at volumes above your agreed average monthly BAU threshold The offer will run for 6 months from 1 October March 2018 The terms and conditions available on our service provider website You will have until 30 September to sign up to the offer. Eligible connections will be based on orders received within the time period that are above your BAU volume and the credit will be applied on service given. No payments will be made if the volumes do not exceed the BAU run rate. 2 October

8 Better Broadband Offer 2 October 2017 PAGE 8

9 The details We want these addresses on our network, and will fund up to $200 contribution for qualifying connections. The Better Broadband Offer supports you in growing your customer base. We re incentivising you to convert these addresses back onto our network, and better broadband. This offer will have 2 approaches: Win back to our network Connect Credit BS2 Fibre 100+, VDSL and some ADSL* $200 + waive transaction costs Target A list of addresses extracted from our non Chorus network address file Managing targeted Upgrades Connect Credit BS2 Fibre 100+, VDSL $150 fibre/ VDSL + transaction costs Target A new list created from network data that assumes addresses/geographical areas likely to require more encouragement to upgrade to better broadband How we plan to do this The Better Broadband lists will be released quarterly providing two targeted address lists that we will refresh monthly to remove any converted addresses. Each list we will pre filter and post office clean which will likely be approx 50k to 100k once uploaded. Each release will give Service Providers 3 months to submit any connections that are eligible and from that targeted address list. Credits will be applied to eligible addresses, once service given. It will appear on the next bill run once the 30 day criteria is met. Offer available 1 October June 18. The first release of the lists will be provided by mid-september, to service providers who signed up. We will continue to monitor qualifying orders, and credit on a service given status up until 30 Sept *ADSL will only be eligible if best available or a fibre order is placed and service given in the agreed period. BETTER BROADBAND PHASE II - FINAL 2 October 2017 PAGE 9

10 Non-Chorus network targeting list - win back to our network Our goal is to get 85% of Kiwis on our network, on to better broadband. The first release of the Non-Chorus win back list has been created. This pack presents some high level analysis of the list to assist with winning New Zealanders back to our network. Regional breakdown, including top 10 metro suburbs. Demographic segmentation (Mosaic). Product availability. Time offnet. Address details such as MDU / SDU, Right of Way, Consent status. Each target lists release will also have additional marketing insights. These support you on how to market to these addresses. September 2017 PAGE 10

11 Appendix 2 October 2017 PAGE 11

12 FAQs The Fibre Upgrade Offer Question Answer When will the Fibre Upgrade Offer be available? The offer will run for 6 months from 1 October 2017 to 31 March If I signed up to the current Broadband Upgrade Offer, do I need to sign a new agreement? How did you come up with the BAU volume? When will you provide my average BAU volume? Why aren t you continuing with incentives for VDSL? Will you provide the contribution, where fibre is already intact at an address? Will the credit apply if I m paid on another offer? Will the contribution credits in the previous/current offers still apply? Are business plans included under this offer? Yes, there is a new agreement you ll need to sign to be eligible. This is available until 30 September2018 to sign. We ve calculated the BAU volume by: Taking the gross NGA new connection orders received for the month. Only included the order if the address (SAM ID) had ADSL (BUBA/EUBA) on it at the end of the previous month. Excluded the order if there was a change in service provider - changed between the end of last month and the end of the previous month (based on SAM ID). Exclude any cancelled orders that occurred within the first 30 days. We ve shared this with you (including an overview of how this was calculated), through your account manager in August. If you need to review this again please talk to your account manager. The purpose of providing a contribution is to assist with removing barriers to upgrade from ADSL. The current Broadband Upgrade Offer has shown an increase in fibre orders over the last 3 months. While we ll continue to support migration activity from ADSL to VDSL, the proposed next phase focuses on getting customers onto our new fibre network. We believe that VDSL connections are in a ready state now, to migrate to fibre where capable. Yes, we ll credit an address with an inactive intact ONT where you have an active ADSL connection that you upgrade to fibre 100Mbps+ (above your BAU run rate). Some addresses may meet the criteria for multiple offers. However, any credits applied for an address under another offer (eg Better Broadband offer) will not be eligible to receive a credit under this offer. Yes, any historical transactions that have commitments to credit connections under the VDSL Upgrade Offer or Broadband Upgrade Offer still apply. Bitstream 2 business segment plans are included. 2 October

13 FAQs Better Broadband Offer Question When will the new Better Broadband Offer be available for signing? Can I sign up to this offer and the new Fibre Upgrade Offer? What does release refer to? What is an eligible connection? When will the contribution (and if applicable, install charge) be credited? Will you provide the contribution if fibre is already intact at an address? Will the credit apply if I m paid on another offer? Will the contribution credits in the previous/current offers still apply? Are business plans included under this offer? What is a transaction cost? Answer The new agreement is now available for signing until 30 September The offer is valid from 1 October - 30 June Yes, you can sign both offers. However any credits applied in this offer, means that address isn t eligible for another offer. We will provide a list of addresses. You ll then have 3 months to submit an order from this list. We ll monitor completed orders (service given) for a given period. These will be referred to as Release 1. The next list ( Release 2 ) will commence at the end of the initial 3 month period. We ll monitor and credit all orders with a service given status, up till 30 September For each release list, we ll provide a database of addresses you can convert to a Chorus connection. We will accept orders received for the duration of each release, and continue to track connections completed ( service given ) until 30 September The contribution of up to $200 and any waived transaction costs will be applied to the first bill run. Each connection needs to be active 30 days. This only applies to connections that are service given (fibre) or orders in date (copper) status, within the specified terms of the offer period. Yes, we ll credit an address with an inactive intact ONT if there s either no; Chorus network connection or there s an active ADSL connection that you upgrade to VDSL or fibre BS2 100Mbps plan or above. Some addresses may meet the criteria for multiple offers. However, any credits applied for an address under this offer will be ineligible to receive a credit for another offer. Yes, any historical transactions that have commitments to credit connections either under the VDSL upgrade offer or Broadband upgrade offer will still apply. Bitstream 2 business segment plans are included. This includes any transaction charges from ADSL to VDSL including change plan, transfers or install fees for connection only requests. 2 October