[ARIN-consult] [arin-announce] Fee Schedule Change Consultation

John Comfort john at comfortconsulting.com
Wed Nov 14 16:10:36 EST 2012

It seems to me that Jesse is the only one considering the smaller
organizations and the exponential increase in fees over time. With the
additional costs per year, does ARIN intend on providing more services in
addition to IP allocation assistance? Or will ARIN continue with the
status-quo? In other words, how will ARIN really add *benefit* to the SMB
market by instituting this new fee structure?

I see three items with this fee schedule: force the reduction of IPv4 space
allocation requests; penalize organizations with a large number of
smaller IPv4 blocks; encourage organizations to request larger IPv6 blocks
to reduce the number of purchased blocks thus reducing the price-per-year
costs. Why should I order a /40? I might as well order a /32!

Unless ARIN provides some kind of benefit, only the large ISPs seem to
benefit by locking customers into the ISP's own IP blocks due to cost. I
was under the impression that the IPv6 space gave "unlimited" number of
address space, and thus it would be "cheaper" (supply and demand ring a
bell??). But this looks like a monopolistic move to increase prices with no
apparent change in real customer-driven services. How does this encourage
the move to IPv6?


On Wed, Nov 14, 2012 at 12:47 PM, Jesse D. Geddis <jesse at la-broadband.com>wrote:

> John,
> I'm confused. How could paying almost 300x more per IP be construed as
> benefiting smaller organisations?
> Jesse Geddis
> LA Broadband LLC
> ASN 16602
> On Nov 14, 2012, at 12:45 PM, "John Curran" <jcurran at arin.net> wrote:
> > On Nov 14, 2012, at 2:27 PM, John Curran <jcurran at arin.net> wrote:
> >
> >> Be very carefully what you wish for...
> >
> > (and apparently one should also be very careful using spell checkers...
> :-)
> >
> >> As it turns out, the actual effort related to providing those services
> is
> >> _not_ proportional to the number of IP addresses, but rather to the
> address
> >> block entry itself.  (Folks should be very thankful for such, since if
> there
> >> ever were any costs actual proportional to number of addresses, no one
> >> would ever be able to afford to be issued an IPv6 address block... :-)
> >
> > FYI - For folks interested in ARIN's costs based on a functional (as
> opposed
> > to the typical departmental budget model), I presented a breakdown at
> the ARIN
> > Philly meeting -
> > <
> https://www.arin.net/participate/meetings/reports/ARIN_XXVIII/PDF/friday/curran_cost_breakdown.pdf
> >
> >
> >> So, the reality is that each issued IPv4 and IPv6 block (and to some
> >> extent each issued AS number) imputes very similar costs on ARIN as an
> >> organization.  Note also that if we really wanted to be fair regarding
> >> costs, we should treat ISPs via the same model as end-users, and the
> >> annual maintenance fees per block would be higher due to the lack of
> >> the indirect subsidy of these costs by the ISP members, and the costs
> >> for a typical ISP would drop significantly.
> >
> > One reason that having disproportionate costs on the ISPs (to the benefit
> > of end-users) is that ISPs are more likely to obtain some benefit from
> our
> > significant registry development efforts (consisting of both the policy
> > development process as well as the software changes to support same) and
> > our Internet governance outreach activities.  While it is not a direct
> > alignment of fees to costs/benefits, it is a reasonable correlation and
> > avoids the introduction of numerous fees that would be necessary if we
> > tried to directly align the fees with the costs/benefits received.
> >
> > FYI,
> > /John
> >
> > John Curran
> > President and CEO
> > ARIN
> >
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