<html><head><meta http-equiv="Content-Type" content="text/html charset=windows-1252"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><br><div><div>On Jun 18, 2013, at 7:14 PM, Mike Burns <<a href="mailto:mike@nationwideinc.com">mike@nationwideinc.com</a>> wrote:</div><br class="Apple-interchange-newline"><blockquote type="cite">
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<div>Hi Jason,</div>
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<div>1. It has been argued that the larger ISPs have the prior advantage of
holding highly valuable alienable assets which they received for free, which
provide them with a competitive advantage over less endowed entities seeking to
purchase addresses at a much higher relative price.<span style="font-size: 12pt; "> </span></div></div></div></div></div></div></div></blockquote><div><br></div>Yes, it has been argued. It hasn't necessarily been substantiated, nor has anyone raising said argument provided any real evidence to support it.</div><div><br><blockquote type="cite"><div dir="ltr"><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; "><div style="font-style: normal; display: inline; font-family: Calibri; font-size: small; font-weight: normal; text-decoration: none; "><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; ">
<div>2. It has been argued that larger ISPs have greater experience and
resources required to navigate the justification process, which provides them
with a competitive advantage over less experienced smaller entities.</div></div></div></div></div></div></div></blockquote><div><br></div>Again, argued, but not neither of the above statements has necessarily been substantiated.</div><div><br></div><div>For example, a number of smaller ISPs have hired consultants to help them navigate the justification process. These consultants cost much less than the FTEs employed by the larger ISPs in support of the process, so, it could be argued that smaller ISPs have a competitive advantage because of that reduced cost of expertise.</div><div><br></div><div>I'm not sure that argument holds water, either, but I don't completely buy into all the "competitive advantage" arguments about the larger ISPs. I think there are tradeoffs at any size and that while different sizes bring about different tradeoffs, the ARIN process is, generally, about as fair as it can be.</div><div><br></div><div><blockquote type="cite"><div dir="ltr"><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; "><div style="font-style: normal; display: inline; font-family: Calibri; font-size: small; font-weight: normal; text-decoration: none; "><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; ">
<div> <span style="font-size: 12pt; ">3. Other registries have enacted policies restricting access to their last
/8s to provide an advantage to newer and smaller companies through their /22
maximum restrictions. Applying your logic, this restriction allows the
tiny ISP some years of planning, but larger entities only a few days, so I
assume you also reject these policies for reasons of fairness.</span></div></div></div></div></div></div></div></blockquote><div><br></div>Those policies are actually to provide a disadvantage to any size established company in favor of nonexistent entities.</div><div><br></div><div><blockquote type="cite"><div dir="ltr"><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; "><div style="font-style: normal; display: inline; font-family: Calibri; font-size: small; font-weight: normal; text-decoration: none; "><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; ">
<div>Your post could be read as a plea to remove needs testing transfers
altogether, for both the large and the small, in in the interests of fairness,
which I would also support. I believe the duration of the planning horizon
should be a matter of each business to decide on its own. As of now, that
duration is mandated by ARIN policy, which I believe is unfair and arbitrary.
Unfair and arbitrary for transfers, but not un-necessarily unfair and arbitrary
for free pool allocations.</div></div></div></div></div></div></div></blockquote><div><br></div>I do not think that it is unfair or arbitrary to have a time-horizon limit on the amount of resources one can remove from availability to others with need at one time. In fact, I think it is quite unfair to eliminate that limit.</div><div><br></div><div>I believe that remains true regardless of whether those resources are being made available from a 3rd party or from the registry. </div><div><br></div><div><blockquote type="cite"><div dir="ltr"><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; "><div style="font-style: normal; display: inline; font-family: Calibri; font-size: small; font-weight: normal; text-decoration: none; "><div dir="ltr"><div style="font-family: Calibri; font-size: 12pt; ">
<div> <span style="font-size: 12pt; ">Remember the cap on needs-free transfers is designed to free up the market
to incentivize more transactions, each of which presumably entails the move of
addresses from lower-use states to higher-use states, while providing some
protection for market manipulations. I don’t believe that market manipulation is
a real threat, my discussion of the cap is in the context of providing some
protection for those who do think it is a threat. I do think un-booked
transactions are a real threat, and the lifting of needs-testing transfers is
designed to protect the integrity of Whois.</span></div></div></div></div></div></div></div></blockquote><div><br></div>I challenge you to defend that presumption. I remain utterly unconvinced that money alone can define the "higher-use" of addresses. Further, I see no reason to believe that if the protections put in place (including needs basis) in the current transfer policy are removed that it would be at all unlikely to see addresses purchased purely for purposes of speculating on the value of addresses in the future, thus moving them from under-utilized to perhaps un-utiliized.</div><div><br></div><div>I don't know whether market manipulation is a threat or not. If you reduced the non-needs based cap to /22, I would be willing to accept the experiment. At /12, it's utterly inadequate protection and I cannot support it.</div><div><br></div><div>I don't believe that un-booked transactions are as likely to occur as the anti-regulation zealots have made them out to be. For the most part, it is quite clear that those purchasing addresses want the addresses registered as a condition of purchase, so sellers are forced to go through the RIR system in order to complete the sales. As such, I'm a lot less worried about whois integrity (which so far has not been a problem) than about an unregulated market (which throughout history has proven time and again to be problematic at best in a multitude of contexts).</div><div><br></div><div>Owen</div><div><br></div></body></html>