[arin-ppml] Policy Proposal: Equitable Distribution of IPv4Resources before IPv4 Run out

michael.dillon at bt.com michael.dillon at bt.com
Thu May 22 12:51:26 EDT 2008

> One could make the argument that the present 
> pricing structure plays favorites to the Extra Large 
> organizations when you factor a cost per-IP

Not at all. Cost is not a mystical magical mathematical thing.
It is real.

Does ARIN buy the IP addresses? NO!
Does ARIN incur costs to allocate a block of addresses? YES!
Are these costs incurred on a per-address basis? No.
Are these costs proportional to the number of addresses allocated? No.

In fact, the costs involved are rather similar to what accountants
call "Cost of Sales" except that no sales are taking place. In the
context of what ARIN does, it would be more accurate to call this
a "Cost of Services" and I believe that the fee structure does
fairly allocate such costs across the different member categories.

If someone could show that these costs were not allocated fairly
then I would support doubling or tripling the annual fee for the
largest member category, but not a fee proportional to the number
of IP addresses in the allocated blocks.

By the way, the PPML and the AC have no say whatsoever over fees. 
That is decided by the members so there isn't much point in continuing
a discussion on fees and fairness on PPML.

--Michael Dillon

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