[ARIN-consult] Fee restructuring

Jimmy Hess mysidia at gmail.com
Sat Oct 27 09:40:45 EDT 2012

It's interesting the change in language "Registration Services
Subscription Plan (RSSP) provides Internet service providers of all
types (ISP, hosting companies, etc.) "

So hosting companies will  be ISPs now, instead of End users,  even
when they assign IP addresses to their own network and devices?

On 10/27/12, Owen DeLong <owen at delong.com> wrote:
> On Oct 26, 2012, at 2:48 PM, Jo Rhett <jrhett at netconsonance.com> wrote:
>> On Oct 26, 2012, at 7:18 AM, Andrew Dul - andrew.dul wrote:
>>> On 2012-10-25 14:35, Owen DeLong wrote:
>>>> This fee restructuring places a number of incentives in the exactly
>>> In general, I support the new fee schedule.  There is one area which I
>> First, I don't believe that $300 is any significant amount of money to any
>> operating business, profit or non-profit. I do believe that individuals
> You are, in fact, incorrect about the first half of that statement.

I don't believe he's incorrect about that.  The significance of
maintenance of IP address resources at  $300 for an end user or any
other price,  is to be compared  to other costs of maintaining the
network of the size those resources are assigned to;  including shared
and per-device costs;  including capital expenses,   and including
operational expenses and labor costs required to install, maintain,
repair those devices,  implement the network,  and  daily costs of any
staff or people the organization has using the devices to accomplish

Try "$300 is not a significant amount of money compared to other
capital and operating costs for an operating organization,  who has
purchased and has to maintain all the hardware required to need an RIR
end user allocation"

Since the end user allocates start at a /22; approximately averages
$0.30 per IP address,  and maintaining anything close to computers and
network devices requiring 1000 IPs annually  is otherwise so costly,
that $300  won't likely be a significant percentage of the

The electricity cost alone is likely $8 -  $15 / year per host device
that is a computer,    assuming  30W usage, powered on  4 hours a day;
 in actuality, if devices are powered on that infrequently,  the
number of devices supported by a DHCP pool with that many IPs should
be much larger    than 1000,   so you could double the electricity
cost per IP from that,   except that some of those IPs  may  be
low-power devices  such as  smart phones.

So if the annual electricity cost per node averages $8;  that puts
the  $0.30 IP allocation  cost per node at  a measly  3.7%.

And you haven't started to calculate the costs of labor; the
staff/person using the node during that time.

Networks typically require repair of nodes,  when hardware and
software components fail;  human efforts to maintain and administer
nodes,  including software maintenance cost,  to keep nodes updated
and supported.


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