[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.
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
> 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.
> 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.
> Mark McDonald
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