[ppml] In$entive$

Jay Sudowski - Handy Networks LLC jay at handynetworks.com
Wed Mar 21 23:05:18 EDT 2007

>-----Original Message-----
>From: ppml-bounces at arin.net [mailto:ppml-bounces at arin.net] On Behalf Of
Leo Bicknell
>Sent: Wednesday, March 21, 2007 8:31 PM
>To: ppml at arin.net
>Subject: [ppml] In$entive$
>I'm going to start a thread with an offshoot idea, although it's not
strictly a policy matter.  People keep >talking about incenting people
to move to IPv6.  What if ARIN were to implement a new fee
>Year Fees for IPv4 Addresses
>2007 Existing rates.
>2008 2 * 2007 Rates
>2009 4 * 2007 Rates
>2010 8 * 2007 Rates
>2011 16 * 2007 Rates
>2012 32 * 2007 Rates
>2013 32 * 2007 Rates
>2014 32 * 2007 Rates
>2015 32 * 2007 Rates
>Per http://www.arin.net/billing/fee_schedule.html, someone with a
single /19 would go from $2,250 a year in >2007 to $72,000 in 2012.
>It's predictable so you can show management, there is a sense of
urgency, and it doesn't happen overnight to >create a run on IPv6
addresses.  It also provides proportional incentive to the largest and
smallest IP's.
>As an alternative, so as not to punish existing address space holders
this could be applied to initial >allocations only.
>I suspect, "hey boss, our IPv4 space is going to cost us 32x in 6
years, and we can get IPv6 space for free" >would be a powerful

Meanwhile, every single small business service provider goes out of
business because their IPv4 space costs just escalated to absurd levels.

I hope you note that costs for IP addresses are already disproportionate
to the number of IPs you are allocated.  A /20 costs 55 cents per IP
address.  A /13 costs 1.71 cents per IP address.  A /8 costs .053 cents
per IP address.  Put another way, a small service provider is already
paying 100 times more per IP address than monster enterprise service
provider with a /8 worth of IPs allocated to them.  After your proposed
cost increases, small business provider with a /20 will be paying $17.60
per IP address, per year and monster enterprise provider will be paying
$.169 per IP address.  

The last thing I need to worry about is ARIN jacking up my rates to
$17.60 per IP address.   That would be a veritable death sentence for my

-Jay Sudowski 

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