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

hostmaster at uneedus.com hostmaster at uneedus.com
Wed Sep 15 18:47:00 EDT 2021

I think he is saying the categories did not change.  He never said that 
everyone pays the same.  For as long as I can remember, us little ones pay 
LOTS more per IP than the big guys.  When this is brought up, they always 
point out those large guys pay a whole lot more than us.  What they fail 
to consider is that they ALSO get a better price per IP.  As the example 
you noted, they are paying 64 times LESS per IP than your /19.

I have always considered that unfair.

Albert Erdmann
Network Administrator
Paradise On Line Inc.

On Wed, 15 Sep 2021, Mark McDonald 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.  Those holding a /8 are paying $0.0038/IP/Year - *64X* less than our company per IPv4 resource.  Someone over there failed math class if the
> goal was to level the costs among all users.
> If ARIN’s goal is to get everyone paying the same per/resource, our bill should go down to $31.13/year so we’re paying the same per resource as those issued /8’s.
>  For an organization that’s trying to promote IP conservation, your metrics show you’re promoting the opposite - the larger the block, the less I pay.
> I broke it all down for you here:
> CIDR Number of IP's Service Category Fee Fee per/IPv4 (Resource) % of full cost (/24) per/resource
> /24 256 3X-Small $250.00 $0.9766
> /23 512 2X-Small $500.00 $0.9766 100.00%
> /22 1,024 2X-Small $500.00 $0.4883 50.00%
> /21 2,048 X-Small $1,000.00 $0.4883 50.00%
> /20 4,096 X-Small $1,000.00 $0.2441 25.00%
> /19 8,192 Small $2,000.00 $0.2441 25.00%
> /18 16,384 Small $2,000.00 $0.1221 12.50%
> /17 32,768 Medium $4,000.00 $0.1221 12.50%
> /16 65,536 Medium $4,000.00 $0.0610 6.25%
> /15 131,072 Large $8,000.00 $0.0610 6.25%
> /14 262,144 Large $8,000.00 $0.0305 3.13%
> /13 524,288 X-Large $16,000.00 $0.0305 3.13%
> /12 1,048,576 X-Large $16,000.00 $0.0153 1.56%
> /11 2,097,152 2X-Large $32,000.00 $0.0153 1.56%
> /10 4,194,304 2X-Large $32,000.00 $0.0076 0.78%
> /9 8,388,608 3X-Large $64,000.00 $0.0076 0.78%
> /8 16,777,216 3X-Large $64,000.00 $0.0038 0.39%
> /7 33,554,432 4X-Large $128,000.00 $0.0038 0.39%
> /6 67,108,864 4X-Large $128,000.00 $0.0019 0.20%
> I sincerely hope ARIN re-thinks this before implementation.  That’s what would be fair and equitable for all.
> -Mark McDonald
> President/CEO
> Siteserver, Inc.
>       On Sep 15, 2021, at 1:05 PM, John Curran <jcurran at arin.net> wrote:
> Mark - 
> In April of this year, we announced a consultation on the matter of harmonizing ARIN’s fees and many of the issues you raised were discussed at that time on the
> ARIN-consult mailing list - https://lists.arin.net/pipermail/arin-consult/2021-April/date.html
> As noted in that discussion, 3621 end-user customers will see their fees decrease as a result of change.  4431 end-users (those with larger IP address holdings)
> will see their fees increase.  After the fee changes, all customers will be paying the same fees based on their total IPv4 resources held. 
> Regarding ISP/EU fees distribution, note that ARIN’s expected total fees paid in 2021 are approximately $21 million – with ISP’s paying the overwhelming
> majority of the costs at approximately $17M annually. 
> Thanks,
> /John
> John Curran
> President and CEO
> American Registry for Internet Numbers
> On 15 Sep 2021, at 3:21 PM, Mark McDonald <markm at siteserver.com> wrote:
>       Mr. Curran,
>       It’s unfortunate to learn about ARIN’s proposal to increase our rates by 650% from one year to the next from your EMail.  It would have been nice to
>       receive this when this measure was being proposed.  In looking through various member forums, it appears we aren’t alone.  While I can appreciate
>       your desire to standardize rates between End Users and ISP’s, it’s obvious that ARIN provides a different set of services for ISP’s as it does End
>       Users.  For us, ARIN stores < 50k of data in a database - similar to a Domain Registration from Network Solutions.  They’re somehow able to perform
>       these services for about $9/year.  ARIN has historically charged us $300/year for this service, and is now raising rates by 650% to $2000.00/year.
>        And for what?  The IPv4 pool is depleted so there is no value in attempting to obtain additional IPv4 resources, while IPv6 resources are
>       limitless, and are charged accordingly.
>       For End Users, there are no ongoing SWIP assignments or ongoing actions from ARIN that require ARIN’s resources and for those that there are, ARIN
>       charges for those services (new assignments, transfers, etc).  We maintain numerous resources with ARIN through a different ISP account for
>       resources used for ISP services and pay fees (and utilize services) accordingly.
>       When ARIN, or any organizational body, sends out an email stating rates are raising 650%, it makes me question how an organization that could do
>       something for a a set fee for so long suddenly can’t and needs to implement drastic measures to “recoup” these fees.  It wreaks of inefficiency as
>       ARIN’s number of resources managed is going up, not down and with any business, the cost to provide services goes down as the number of customers
>       (resources) goes up.
>       I was trying to look through the ARIN organizational documents and recent Annual Reports to see how ARIN’s income is represented (percentage of ISP
>       vs End-User, RSP vs Non-RSP) as your Email lacks this important information, however I was unable to find this.  It would be much appreciated if you
>       could provide it.  As a user of ARIN’s services, it would be nice to see exactly how much of a rate increase this is (increasing ARIN revenue) vs
>       standardizing rates, which would re-rate *everybody* (raising some, lowering others) so that ARIN’s revenue remained neutral while equally balancing
>       costs to provide services.
>       In owning and operating businesses in the IT space, I’ve always viewed ARIN as a fair and equitable organization.  Until today.  Your email lacked
>       critical information that would have shown this as a “standardization of rates” vs a rate hike on what appears to be all legacy customers.  Perhaps
>       the rates ARIN is charging them isn’t too low, but the rates you’re charging ISP’s is too high, or perhaps somewhere in between.
>       From the Emails I’ve already received from other parties this affects, it appears the courts will ultimately decide what is legitimate and what is
>       not, however I feel this could have all been avoided with better communication.
>       Sincerely,
>       Mark McDonald
>       _______________________________________________
>       ARIN-PPML
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