[arin-ppml] Revised -- Policy Proposal 2009-4: IPv4 Recovery Fund

[Leo Bicknell]

In a message written on Fri, Apr 10, 2009 at 10:48:19PM -0400, Martin Hannigan wrote:
> Do you disagree that a buy back is likely to cause a fee increase?
> Hard to second guess without the staff summary and an actual cost, but
> I think its a reasonable assumption.

I'll be the first to admit this proposal is hard to understand in
writing, but the simple answer is no.

This proposal causes those getting new IPv4 resources to fully cover
ARIN's cost for the "buy back", as you put it.  ARIN fees, as in
the yearly renewal costs would not need to change to cover these
costs, and as such there should be no fee increase from this activity.

Under this proposal, if ARIN pays $5 to recover a /16, and then has
an approved buyer for a /16, they pay $5 + ARIN's cost to recover
(e.g.  staff time, and other overhead of the transaction), let's
call it $6.  They also pay ARIN's normal yearly fees, in the fee
schedule, now and going forward.

One of the things the community was clear about in earlier discussions
was that those who had planned ahead should not have to pay for
those who did not plan, and this proposal took that into consideration.

The complexity in this policy all comes from the fact that you have
to cover a number of corner cases, like ARIN gets a /16, but only
has two /17 qualified buyers, or ARIN gets 4 contiguous /24's and
only has a /22 qualified buyer.  Indeed, both are the interesting
things to having ARIN "in the middle" as some folks have put it.
I think there is no chance of a random buyer finding 4 contiguous
/24's on the open market and turning them into a /22.  With ARIN
in the middle though I think there is a decent probability of some
of that occurring.

Lastly, a comment on the black market.  While I agree it is important
to track the black market, and take appropriate measures to reduce
the size of the black market, I feel strongly that policy should
be made for those who want a white market.  We should design whatever
we do for those who are going to obey the rules, not out of fear
that some will break them.

-- 
       Leo Bicknell - bicknell at ufp.org - CCIE 3440
        PGP keys at http://www.ufp.org/~bicknell/
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