[ARIN-consult] Consultation on Transfer Fees Now Open

[John Curran]

On Sep 6, 2016, at 4:03 PM, David R Huberman <daveid at panix.com<mailto:daveid at panix.com>> wrote:

John,

Thank you for putting this out for community consultation. I think this is a fairly big shift in both thinking and fees, and it is good that the Board is asking for input.

To provide that input, however, I would like to see more data to have a better understanding of the proposed changes.

Baseline data we already know:

- Audited finncials from last year report $31.8M in reserve.

- FY16 budget is $21.7M

- FY16 revenue is projected at $18.8M (a ~$2.9M deficit)

- The audited financials for FY15 show $276,500 in revenue under "Network
transfers"

Questions that come to mind, to try and be informed:

- assuming this was in place Jan 1, what would the projected revenue be for transfers in FY17?

- what assumptions were made to get to this projection?

David -

Approximately 25% of the transfers do not complete (and therefore fees are not collected)
Per https://www.arin.net/knowledge/statistics/transfers.html, 425 blocks address blocks have
been transferred in the first half of 2016.

Expected Fees collected: 425 * $500 = approximately $212.5 thousand, which annualized
(presuming second half of 2016 resembles the first half) should total about $425 thousand.

Note - this does not consider fees waived for parties who already have resources under
registration services agreement, but that is a small portion either way (i.e.most transfers
are legacy resources)

If 2017 resembles 2016, the revenue from transfers would be $425 thousand, absent
any changes.  If the fee change is made, approximately 33% more revenue would be
collected over FY2017 - an additional $146.6 thousand (total $566.6 thousand)

We presently see transfer processing taking an increasing amount of staff time, and
hence proposed the change to avoid having some of these additional costs (particularly
from those who may not make requests fully in good faith) from being absorbed by the
community at large.   One additional benefit is that we’ll be able to more quickly complete
transfers, as presently and approved transfer goes back into the financial side of the house
until the fee collection is complete, and with the change we will instead be able to directly
proceed with the registry update.

Please let me know if you have any further questions - Thanks!
/John

John Curran
President and CEO
ARIN



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