[arin-ppml] Open Letter Regarding 650% Rate-Hike for Legacy Users

[John Curran]

On 15 Sep 2021, at 6:20 PM, Mark McDonald <markm at siteserver.com<mailto:markm at siteserver.com>> wrote:

Hi John,

We must be looking at different fee charts.  Can you send me the one you’re referring to?  We hold a /19 and fall under the “Small” service category, paying roughly $0.12/IP/Year.  Right off the bat, we’re in the same service category as someone holding a /18, so we’re paying twice as much per IPv4 Resource as them - but wait, it gets much, much better.

Mark -

The new fee schedule is here - https://www.arin.net/resources/fees/fee_schedule/   It is the same as the prior fee schedule, but starting in January will also apply to end-user organizations (who presently pay a fixed $150/year amount per block regardless of size)

Note that there are two possible extremes of  fee schedules for ARIN cost recovery - we could divide the costs by the number of address blocks in the registry or we could divide them the number of addresses represented in the registry.  Neither of these produce a particularly sensible outcome.    In 2014, ARIN had a community panel look at these two extremes (and several other options) and that resulted in a fee schedule that’s not strictly linear to total address space held but rather increases in geometric proportion to the amount of address space held.

This means that a fourfold increase in IPv4 address space held results in ARIN’s fees doubling.   Note that this still provides for a relatively modest starting point of $250/year and yet goes up over one hundred thousand dollars annually for organizations with the largest address holdings.

(For the arguments in favor or opposed to straight linear fees and the other approaches that were considered, you can review the original Fee Structure Review Panel Final Report here - https://lists.arin.net/pipermail/arin-ppml/2014-September/029075.html)

I will note that the particular change being done in January takes those who currently pay a flat rate (regardless of specific address block sizes held) and makes it more proportionate – i.e. those (such as yourself) with larger total address holdings will pay more than before because you have more IP address than those in the smaller categories.   It’s not linear, but it brings us closer to the goal you espouse of having the fees be more proportionate to the total amount of address space held.

Thanks!
/John

John Curran
President and CEO
American Registry for Internet Numbers


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