[ARIN-consult] Community Consultation: Future Direction for the ARIN Fee Schedule

[John Curran]

On Oct 11, 2014, at 2:05 PM, William Herrin <bill at herrin.us> wrote:

> On Sat, Oct 11, 2014 at 9:13 AM, John Curran <jcurran at arin.net> wrote:
>> On Oct 11, 2014, at 12:00 AM, William Herrin <bill at herrin.us> wrote:
>>  The panel had no obligation to respond to each idea that was
>>  suggested for evolution of fees; they chose to work on set of
>>  proposals which they felt were of interest to the community
>>  and would aid discussion.
>
> Hi John,
>
> Apparently one that collected actual votes was of less interest to
> them than their own pet theories. This disappoints me. What other
> ideas were arbitrarily disregarded? Or do I have the pleasure of being
> singly snubbed?

Bill -

  I was probably unclear in my earlier reply - the panel's objective was to
  provide a starting set of proposals to aid the discussion; i.e. we are
  at the beginning of a discussion, and additional proposals are certainly
  welcome.

> I propose that the first or single IPv6 allocation/assignment
> requested and held by an organization not be considered during the fee
> calculation, period. At all. In any way, shape or form.

  We do not readily have access to the assignment date for blocks in the
  billing information presently used, but such could be added if that is
  necessary.

  I was able to readily model if _all_ IPv6 holdings were not considered for
  purposes of billing, ARIN's revenues would be reduced by approximately
  $997,000 annually ($13.476M today vs $12.475M revised w/o IPv6 holdings)
  I have attached this model of ISP billing categorization when set only by
  IPv4 holdings (using the same format as proposals contained in the report)

> ...

> For now. Make it clear that when IPv6 overtakes IPv4, the fees will
> change. If you're comfortable predicting it, state what those fees are
> likely to become. But until IPv6 supercedes IPv4, support ARIN with
> IPv4 fees where registrants' revenues and needs easily justify the
> cost.

  Until such time as IPv4 address blocks are being actively returned by
  organizations (seeking to lower their fees), there is no impact to ARIN's
  receipts.  After that point, ARIN's annual ISP billings drop from approx
  $12.5 million to zero as increasing number of IPv4 resources are returned.
  While costs are expected to be lower at that time, some billing adjustment
  would certainly be necessary.

>>  To be clear, the fees we are referring to are not "for an allocation",
>>  they are simply a share of ARIN's total costs recognizing the benefit
>>  to the community in having a registry for the region.
>
> The free pool is empty for some uses and will soon be empty for most.
> Right now, today, stewarding IPv4 on behalf of the public is by far
> the most important thing ARIN does. Everything else ARIN does today
> finds priority at a distant, distant second. If you accept that
> statement, how could it be -fair- to spread ARIN's cost based on some
> other factor than the consumption of that scarce and valuable
> resource?
>

> When the IPv4 free pool was still large, this was not the case.
> Hopefully it won't be the case for IPv6 within my lifetime -- I don't
> want to see the end of the IPv6 free pool. Nevertheless, while IPv4
> remains the driver and its free pool remains gone, I can imagine no
> fairer way to spread ARIN's cost than by registrants' consumption of
> IPv4.

  The entire Internet community in the region benefits from having
  registry services and there are likely a very large number of
  fair and equitable approaches to distribution of costs.

/John

John Curran
President and CEO
ARIN

=== ARIN-anon-orgs-FeeModels-ARIN2013-1-noIPv6.pdf



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