[arin-ppml] Transferring Waiting List Space - Feedback Requested

[Nick Nugent]

Re: Preventing waitlist recipients from transferring their space
indefinitely (instead of only a five-year lockout)

The point of this change seems to be to disincentivize organizations from
joining the waitlist simply to acquire space they can later sell for a
profit.

That makes sense. But it helps to consider how changing the lockout period
affects other incentives.

If an organization acquires space from the waitlist and no longer needs it
(assume the five-year period has elapsed), that org has a strong financial
incentive to sell the space. For example, if the market price per address
at that time is, say, $37, a /22 might be worth ~$38,000. (Not making any
statements about market price; just picking an arbitrary price for the sake
of this hypothetical.) Selling that space would put it in the hands of
another entity that would actually use it, improving the efficient
allocation of space.

On the other hand, if the organization that acquired waitlist space no
longer needs it, and ARIN restricts the org indefinitely from transferring
that space to another entity, then it would cost that org only $500/year to
hold onto it instead of returning it to ARIN. The organization might think,
"Well, I don't currently need this space. But it's possible I might need it
in the future. Better to pay $500/year and keep it just in case rather than
return it to ARIN and go to the back of the waitlist if I need IPv4 space
in the future." (Invitation to supplement/correct my fee assumptions here)

In other words, permitting resale after some period might promote the more
efficient use of space. What is the right resale lockout period to promote
the efficient use of space while discouraging entities from joining the
waitlist solely to get space they can resell? Hard to say. But I don't
think an indefinite lockout period adequately balances those competing
incentives.

Nick

On Tue, Nov 15, 2022 at 2:30 PM Brian Jones <bjones at vt.edu> wrote:

> Alison,
> As I stated at the ARIN50 meeting, in light of the report John Sweeting
> gave (
> https://www.arin.net/participate/meetings/ARIN50/materials/1020_policyimplementation.pdf)
> I would be in favor of reducing the minimum allocation size to a /24. I am
> not necessarily in favor of lowering the maximum holdings for eligibility.
> I would not favor eliminating the transfer of Waitlist blocks. I think five
> years serves the purpose for that.
>
>
> Brian Jones
> Virginia Tech
> ARIN Advisory Council
>
>
>
> On Nov 14, 2022, at 4:42 PM, WOOD Alison * DAS <Alison.WOOD at das.oregon.gov>
> wrote:
>
> Hello!
>
> The Policy Experience Report Working Group has been working on the Policy
> Experience Report from ARIN 50.  I would appreciate your feedback on the
> following issue regarding transferring waitlist space.
>
> The current wait list criteria is:
>
>
>    - Must have a /20 or less in total IPv4 holdings.
>    - May request up to a /22.
>    - Removed from list if IPv4 received via 8.3/8.4 transfer.
>    - Received ip space is eligible for needs-based transfer after five
>    years.
>
>
>
> The Policy Experience Working Group would like your feedback on a
> potential policy that would restrict the transfer of IP space that has been
> obtained from the waiting list.  In other words, any IP address space
> received from the waiting list would be ineligible for transfer
> indefinitely and encouraged to be returned to ARIN if not in use.  This
> policy would be specific to transfers and not M & A’s.
>
> The working group appreciates your feedback.
>
> Thank you!
>
>
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