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[sig-nir] Final call for comments: [prop-022-v001] "A proposal toabolish redundant charges in IPv6 allocations"



Dear colleagues

APNIC welcomes comments, questions, and suggestions on the following policy
proposal:


____________________

Final call for comments: [prop-022-v001]
"A proposal to abolish redundant charges in IPv6 allocations"
____________________

This is the final call for comments on policy proposal [prop-022-v001] "A
proposal to abolish redundant charges in IPv6 allocations".

This proposal was presented at APNIC 18 and the following consensus was
reached:

     "to implement the proposal to remove multiple fees charged for the
      same IPv6 address range in allocations made to NIRs"

This proposal is now submitted to the sig-policy mailing list for an eight
week discussion period. At the end of that period, if consensus appears to
have been achieved, the Chair of the NIR SIG will ask the Executive Council
to endorse the proposal for implementation.


*   Send all comments and questions to:   <sig-nir@apnic.net>
*   Deadline for comments:                  12 November 2004

_____________________________________________________________________

Proposal details
_____________________________________________________________________


Introduction:

This paper proposes to revise a method of calculating IPv6 per address fee
so that multiple fees charged for the same address range 
will
be abolished.

Summary:

"Per address fee" is the fee charged for allocations which NIRs or NIR
members receive. Therefore, per address fee should only be charged 
for
newly allocated ranges.

However, the current per address fee scheme defined in APNIC-081 "APNIC 
Fee
Schedule: Membership Tiers, Fees, and Descriptions" ,leads to multiple
charges for the same address range in IPv6 allocations. The following 
how it
is defined in the document:

APNIC-081 "APNIC Fee Schedule: Membership Tiers, Fees, and Descriptions"
   3.4.3  IPv6 address space

         For an allocation of IPv6 address space, the total per-
         address fee is calculated for the prefix allocated according
         to the number of addresses which should be utilised according
         to an HD-Ratio of 0.80.

         (snip..)

         In the case of an allocation which includes a previously
         allocated block of addresses, the total fee calculation is
         based on the size of the prefix allocated, regardless of the
         previous allocation.

Under this scheme, NIRs will be charged for the address space which had 
been
previously charged when they receive subsequent allocations which are
contiguous from previous allocations(see the chart below).

+-----+
| /32 |
+-----+
  (new allocation)
  (charge)


+-----------+
|    /31    |
+-----------+
         (new allocation - /32)
  (charge)

+--------------------------+
|           /30            |
+--------------------------+
               (new allocation - /31)
  (charge)

As a result, NIRs must either come up with a way to cover the redundant
charge without charging their memebrs, or apply the same scheme to their
members. JPNIC applies the same scheme, but we are unable to make a
reasonable justification.

Furtheremore, it  leads to LIRs which conserve address space(requesting 
for
small allocations as a start) have to
pay more fee than LIRs which request for large allocations  at once:

(case-1) /32 initially, then upgrade to /31, /30, until /29

  Initial allocation (/32)              : 7,132 * per address fee
  Second allocation (/32, /31 in total) : 12,417 * per address fee
  Third allocation (/31, /30 in total)  : 21,619 * per address fee
  Fourth allocation (/30, /29 in total) : 37,641 * per address fee
-------------------------------------------------------------------
  Fee total                             : 78,809 * per address fee


(case-2) /29 initial allocation

  Initial allocation (/29) : 37,641 * per address fee

Situation:

N/A

Details:

The proposal is to replace APNIC-081 as below;


   3.4.3  IPv6 address space

         For an allocation of IPv6 address space, the total per-
         address fee is calculated for the prefix allocated according
         to the number of addresses which should be utilised according
         to an HD-Ratio of 0.80.

         (snip..)

         In the case of an allocation which includes a previously
         allocated block of addresses, the total fee calculation is
         based on the difference in the number of /48s  corresponding
         to HD-ratio 0.8, between the previous allocation and the new
         allocation.

         For example, the total per-address fee payable for an
         allocation of /30 including previous /32 allocation to a "Very
         Large" member is calculated as:

            (21,619 - 7,132) x $ 0.03 = $ 434.61

         Note: The number of /48s for /32 under HD ratio 0.8:  7,132
               The number of /48s for /30 under HD ratio 0.8: 21,619

Pros/Cons:

Adopting the proposed method of fee calculation would lead to:

Advantages
1) Multiple fees will no longer be charged for the same address range.

2) Same fee will be charged in total regardless of the size of past
allocations.

(case-1') /32 initially, then upgrade to /31, /30, until /29

  Initial allocation (/32)              : 7,132 * per address fee
  Second allocation (/32, /31 in total) : (12,417-7,132) * per address 
fee
  Third allocation (/31, /30 in total)  : (21,619-12,417) * per address 
fee
  Fourth allocation (/30, /29 in total) : (37,641-21,619) * per addless 
fee
-------------------------------------------------------------------
  Fee total                             : 37,641 * per address fee


(case-2') /29 initial allocation

  Initial allocation (/29) : 37,641 * per address fee
                              = case-1'

Disadvantages:

None.

Effect on APNIC:

No effect on APNIC members.

Effect on NIRs:

NIRs(and indirectly, NIR members) are no longer required to
pay multiple per address fee for the same address range.


____________________

References
____________________

Proposal details including full text of proposal, presentations, links to
relevant meeting minutes, and links to mailing list discussions are
available at:

      http://www.apnic.net/docs/policy/proposals/prop-022-v001.html


______________________________________________________________________
APNIC Secretariat                              <secretariat@apnic.net>
Asia Pacific Network Information Centre (APNIC)   Tel: +61-7-3858-3100
PO Box 2131 Milton, QLD 4064 Australia            Fax: +61-7-3858-3199
Level 1, 33 Park Road, Milton, QLD                http://www.apnic.net
______________________________________________________________________