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

[Fernando Frediani]

That is precisely one of the main points: to disincentivize 
organizations from joining the waitlist in order to sell for a profit later.

If an organization acquires space from the waitlist no longer needs it 
it should not be able to sell the space given that space was already 
'acquired' in a scenario that doesn't allow anymore any ease the selling 
of it. These tiny spaces available should really be for those who don't 
have absolutely any space to allow them to exist in the Internet and 
undertake.

If an organization has space acquired from the waiting list and not 
longer need or justify it should return it to ARIN voluntarily or 
forcibly. And there should be the necessary provisions in the policies 
to support ARIN to take that space back in order to allocate to those 
who really need. Sometimes when this  is mentioned some people don't 
like to read maybe because they put themselves in a future hypothetical 
scenario so them get scary to agree but that is the correct thing to do 
in the sense o proper fairness. No organization should be allowed to 
hold unused or space that lost its justification while there are plenty 
of other organizations waiting to use it properly to connect people to 
the Internet, specially for space received via the waiting list.

The most important thing to change about the waiting list is to only 
allocate them to organizations that do not have any space at all. Those 
who have already can live with it or alternatively go to the transfer 
market.

Fernando

On 22/11/2022 13:46, Nick Nugent wrote:

> 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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