<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; "><DIV><BLOCKQUOTE type="cite"><BLOCKQUOTE type="cite"><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Should it be a bell curve distribution?<SPAN class="Apple-converted-space"> </SPAN>Half-bell?<SPAN class="Apple-converted-space"> </SPAN>Linear?</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">In other words, if there are about 3000 members, should the<SPAN class="Apple-converted-space"> </SPAN></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">distribution be (for XXL/XL/L/M/S) 15/500/2000/500/15 or</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">15/100/250/600/2000 or 15/300/600/900/1200?</DIV> </BLOCKQUOTE><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Why in the world should anyone in ARIN community accept the current fee</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">structure or a bell curve fee structure.</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">I would remind everyone of this excerpt from a message from Stephen Sprunk</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">on 5/31/07:</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><Begin Excerpt></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Current stats per ARIN Member Services:</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><FONT class="Apple-style-span" face="Monaco"><BR></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco"># Members </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">% Members </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">% v4 space </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">% fees</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Monaco">Xtra Small</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">390</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">14.8 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">0.29 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">5.7</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Monaco">Small </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">1,571</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">59.8 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">4.64</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">42.6</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Monaco">Medium</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">518</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">19.9 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">8.92</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">28.0</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Monaco">Large</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">71 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">2.7 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">6.87 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">7.7</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Monaco">Xtra Large </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">73 </FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">2.8</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">79.28</FONT><SPAN class="Apple-converted-space"><FONT class="Apple-style-span" face="Monaco"> </FONT></SPAN><FONT class="Apple-style-span" face="Monaco">15.8</FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><FONT class="Apple-style-span" face="Monaco"><BR></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">(The last column didn't come from ARIN, but I calculated it from the fee</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">schedule.)</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><End Excerpt></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV></BLOCKQUOTE>Your calculation leaves out a couple of factors, and, if you're going to</DIV><DIV>put a % fees amount up, you should also put up a % costs column.</DIV><DIV>Indeed, if it were possible for ARIN to develop those two columns,</DIV><DIV>I think it would be interesting to see the data. However, I suspect</DIV><DIV>that ARIN does not track the exact time spent on each request, so, it</DIV><DIV>would probably be hard to track that number.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>I think that the argument for a flat fee structure based on IP utilization</DIV><DIV>is no more valid than the argument for a flat membership fee.</DIV><DIV>After all, theoretically, people are paying for membership in the</DIV><DIV>organization and for registration services, not for the amount of space</DIV><DIV>they receive. Most membership organizations have a single annual</DIV><DIV>membership fee. The ones that do not, usually have something</DIV><DIV>very close to a bell-curve similar to that of ARIN. For example, they</DIV><DIV>may have student, youth, individual, family, corporate, sponsor, and</DIV><DIV>other membership categories at different prices. Generally, the higher</DIV><DIV>you go on the pricing structure, the fewer members you find, although</DIV><DIV>you also tend to find relatively few members in the very bottom categories</DIV><DIV>as well. Most members tend to be found in the middle area, much</DIV><DIV>like ARIN.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV><BLOCKQUOTE type="cite"><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Note that 73 Xtra Large members control over 79 percent of ARIN allocated IP</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">space and they pay 15.8 percent of the allocation fees. There are several</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">obvious issues here, including conservation and fair-play. I am surprised</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">that 2300 victims do not have anything to say on the issue.</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><BR></DIV></BLOCKQUOTE>Looking at this from a different perspective, why should those 73 members</DIV><DIV>have to subsidize so much of the cost of those other 2300 members?</DIV><DIV>Why should 2.8% of the members pay 8 times as much as the other</DIV><DIV>97.2% of the membership?</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>The current fee structure is an effort to balance the discrepancies on both</DIV><DIV>sides of this equation. It's a little bit a case of large+ members</DIV><DIV>subsidizing the membership costs of the smaller ones based on increasing</DIV><DIV>prices for greater consumption, and, a little bit a case of the largest</DIV><DIV>consumers receiving some level of volume discount.</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Lee, what would the fee per year look like if ARIN charged a single flat</DIV><DIV>fee to all subscriber members (LIR/ISP members)?</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Also, Lee, is it possible to get some idea of what percentage of ARIN's</DIV><DIV>annual costs are fixed and what percentage are incremental per</DIV><DIV>allocation. Finally, would it be possible to get the average number</DIV><DIV>of allocations and the average number of email/telephone interactions</DIV><DIV>per year for each size category (I suspect the latter is more Leslie's</DIV><DIV>domain).</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Thanks,</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV>Owen</DIV><DIV><BR class="khtml-block-placeholder"></DIV><DIV><BLOCKQUOTE type="cite"> </BLOCKQUOTE></DIV><BR></BODY></HTML>