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

[Martin Hannigan]

On Fri, Apr 10, 2009 at 11:28 PM, Leo Bicknell <bicknell at ufp.org> wrote:

> 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.


My thought was more along the lines of why would "sellers" agree to an ARIN
sponsored program when they can instead contact their nearest domain name
broker and start negotiating at higher rates? For this to succeed, ARIN
would be forced to recover at those market rates, gray, black, or green, and
passing those costs on will be _more_ expensive due to program costs and
cost of capital even if reimbursed. If there are no "sellers", there is no
ARIN recovery program in the context of the policy, FWIW.

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>
> 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.


I agree that this is beneficial. But this akin to making ARIN a market
maker. This means that we are in agreement that there is a market(and I'm
not trying to twist your words).

[ clip ]


Best,

Martin
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