[arin-ppml] Policy Proposal: IPv4 Recovery Fund
Member Services
info at arin.net
Mon Nov 24 12:09:34 EST 2008
> The AC will assign shepherds in the near
> future. ARIN will provide the names of the shepherds to the community
> via the PPML.
AC shepherds are Cathy Aronson and Bill Darte.
Regards,
Member Services
American Registry for Internet Numbers (ARIN)
Member Services wrote:
> ARIN received the following policy proposal. In accordance with the ARIN
> Internet Resource Policy Evaluation Process, the proposal is being
> posted to the ARIN Public Policy Mailing List (PPML) and being placed on
> ARIN's website.
>
> The ARIN Advisory Council (AC) will review this proposal at their next
> regularly scheduled meeting. The AC will assign shepherds in the near
> future. ARIN will provide the names of the shepherds to the community
> via the PPML.
>
> In the meantime, the AC invites everyone to comment on this proposal on
> the PPML, particularly their support or non-support and the reasoning
> behind their opinion. Such participation contributes to a thorough
> vetting and provides important guidance to the AC in their deliberations.
>
> The ARIN Internet Resource Policy Evaluation Process can be found at:
> http://www.arin.net/policy/irpep.html
>
> Mailing list subscription information can be found at:
> http://www.arin.net/mailing_lists/
>
> Regards,
>
> Member Services
> American Registry for Internet Numbers (ARIN)
>
>
> ## * ##
>
>
> Policy Proposal Name: IPv4 Recovery Fund
>
> Author: Leo Bicknell
>
> Proposal Version: 1
>
> Submission Date: 21 November 2008
>
> Proposal type: New
>
> Policy term: Permanent
>
> Policy statement:
>
> (Create new section in section 4, which would be 4.10 based on the
> current NRPM):
>
> 4.10 IPv4 Recovery Fund
>
> 4.10.1 Implementation Timing
>
> Upon receiving a valid request for a block larger than ARIN
> can satisfy from its existing free pool, or, by obtaining
> additional space from IANA, ARIN shall begin offering monetary
> incentives for returned IP blocks according to this policy.
>
> 4.10.2 Recovery of IPv4 Space
>
> ARIN still believes that organizations should voluntarily
> return unused and/or unneeded IP resources to the community.
> However, upon implementation of this policy, ARIN will offer
> monetary incentives for the return of IPv4 resources to ARIN.
>
> 4.10.2 Distribution of Recovered Space
>
> Once approved for IPv4 space ARIN will ask the requester to
> specify an amount they are willing to pay for a block or the
> specified size.
>
> ARIN will use this bid in determining what incentives ARIN
> may offer for return of space. If ARIN recovers space and
> offers it to requester at or below the specified price, the
> bid shall be binding on requester.
>
> If space becomes available from ARIN at a higher cost, ARIN
> shall still offer the space to the requester(s) in the order
> of approval of the requests, but, requester shall have the
> right to refuse any offer at a price higher than bid.
>
> ARIN shall match bidders first on best prefix length, but,
> in no case shall ARIN provide a partial-fill offer.
>
> 4.10.3 Transparency
>
> ARIN staff shall make public the current and historical
> prices of asks, bids, and executed transactions. ARIN staff
> must regularly report on the amount of address space obtained
> and distributed via this mechanism.
>
> 4.10.4 Cost Recovery
>
> It is anticipated that ARIN may need to provide some seed
> money to obtain space before it can be given out. The money
> raised through successful bids will fund the purchase of
> additional blocks to supply any ongoing demand. While there
> may be a surplus of money or of IPv4 resources at any one
> time, asking prices should be managed in such a way as to
> be revenue neutral to ARIN.
>
> Rationale:
>
> Many have recognized that in order for unused or poorly used IPv4
> resources to be returned to the free pool that monetary compensation
> will be required. This is particularly the case in poorly used
> assets where the current holder may have to expend time and money
> to renumber in order to free the blocks.
>
> This proposal sets up a fund administered by ARIN to encourage the
> return of space. Effectively ARIN will offer monetary incentives to
> return unused or poorly used IPv4 resources and place them back into the
> IPv4 free pool.
>
> The intention is for this activity to be revenue neutral to ARIN. To
> achieve that goal those requesting IPv4 resources will be requested to
> bid on a one-time payment to the recovery fund to cover the cost of the
> resources they have received.
>
> The proposal is intentionally vague on the exact implementation details
> to staff because:
>
> - Transactions with those returning space and obtaining space may
> occur in any order.
> - The bidding process may need to evolve over time, and may not
> be as simple as highest bidder wins. It may include aspects such
> as a dutch auction style format (all winners pay the lowest winning
> price), or may include other factors such as which size blocks
> ARIN has free in an effort to limit deaggregation.
> - ARIN will have to develop contracts and procedures around this
> activity that are better suited for staff and legal than the
> policy process.
>
> Compared to other "transfer proposals", this proposal has the following
> benefits:
>
> - Maintains that IP addresses are not property.
> - Maintains the concept that unused addresses should be returned to
> the free pool.
> - Maintains need based addressing.
> - Removes the need for those with excess resources to find those
> without resources. There is no need for any sort of listing
> service, eBay, etc.
> - All transactions are two party transactions with ARIN as one of
> the parties. The potential for multi-party legal disputes is
> reduced.
> - ARIN can absorb spikes in supply or demand, creating more level
> prices over time.
> - ARIN can provide transparency across all transactions in this
> system.
> - Reduces confusion to new entrants over where they should go to
> receive address space.
>
> To illustrate the intent of section 4.10.2, let's say that ARIN has
> the following requests in the following order:
>
> 1. a /22 for XYZ Corp. ($300)
> 2. a /15 for BIll's Bait and Hosting Megacorp. ($2500)
> 3. a /19 for John's Host Hideaway ($2000)
> 4. a /21 for Piner Klerpin's New Net ($800)
>
> Example 1:
> ARIN receives a /18 from someone, but, pays an incentive of
> $2200 for that /18.
>
> ARIN would offer a /19 to John's Host Hideaway for $1100
> ARIN would then satisfy Piner Klerpin's request for $225
> ARIN would then satisfy XYZ Corp's request for $112.50
> ARIN would still have a /20, /21, and /22 for future requests.
>
>
> Example 2:
> ARIN receives a /19 from someone, but, pays an incentive of $2500
> ARIN would offer the /19 to John's Host Hideaway for $2500.
> If John's turned down the $2500 price, they would remain in
> the queue, but, ARIN would subsequently satisfy request 4
> at 625 and offer a /21 to requester 4 for 312.50.
>
> Finally an example of what happens with several requests
> for the same size:
>
> 1. a /20 for DEF Corp. ($1800)
> 2. a /20 for Frank's Swizzler ($1500)
> 3. a /20 for Jim's Compushop ($2100)
>
> ARIN manages to obtain a /19 from someone, but, pays $4200
> for it.
>
> ARIN would first offer a /20 to DEF for $2100.
> ARIN would also offer a /20 to Frank's for $2100.
> If either of them refused, Jim's would receive their /20 for $2100.
>
> Timetable for implementation:
>
> Staff should begin developing procedures and updated templates
> immediately. Policy would not go into effect until the criteria
> listed occurs.
>
>
>
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