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Re: [sig-nir] Proposal_Abolishing IPv6 per address fee for NIRs



Dear Billy, and all,

JPNIC supports this proposal as a possible solution for the current
problem of NIR per address fee scheme without serious impact on APNIC
budget, I believe.

Thanks and best regards,
Toshi
--
Toshiyuki Hosaka
Japan Network Information Center (JPNIC)


On Mon, 28 Mar 2005 15:59:29 +0900 (JST)
Izumi Okutani <izumi@nic.ad.jp> wrote:

> Dear Billy,
> 
> 
> Thank you for submitting a proposal on a revision of the fee scheme
> for NIRs.
> 
> This issue will concern APNIC membership as a whole, so comments are
> welcome from NIRs as well as from other APNIC members and the APNIC
> secretariat.
> 
> 
> Regards,
> Izumi
> NIR SIG Chair
> 
> From: "MH Billy Cheon" <cmh@nic.or.kr>
> Subject: [sig-nir] Proposal_Abolishing IPv6 per address fee for NIRs
> Date: Mon, 28 Mar 2005 15:44:49 +0900
> 
> > Dear All,
> > 
> > Please ignore the previous mail. I think I made a mistake.
> > This is the final version.
> > 
> > Sorry for causing confusion :-)
> > 
> > Billy
> > 
> > -------------------------------------------------------------------------------------------------
> >     Draft Proposal    Draft Proposal    Draft Proposal    Draft Proposal   Draft Proposal    Draft Proposal
> > -------------------------------------------------------------------------------------------------
> > 
> >  o Proposal : "Abolishing IPv6 per address fee for NIRs"
> > 
> >     This paper proposes that APNIC should not charge per address fee
> >     for IPv6 allocations to NIRs until it is necessary.
> >  
> >  o Background
> > 
> >     The current APNIC fee scheme for NIRs consist of "Annual Membership Fee"
> >     and "Per Address Fee".
> > 
> >     Annual Membership Fee:
> >     Fee charged annually to all APNIC members based on the amount of
> >     address space that member holds. The annual membership fee is
> >     determined by the same method as that of standard APNIC members.
> > 
> >     Per Address Fee: (additionally charged to NIRs)
> >     Fee charged to NIRs for every IPv4 and IPv6 allocations made to
> >     NIRs/NIR members. It is calculated with a defined formula which
> >     allocation size set as a variable. Refer to "Sec 3.4 Per-address
> >     fee for confederation member" in APNIC Fee Schedule Document
> >     for more details.
> > 
> >    e.g.) 
> >    A "very large" member(NIR) pays the following per fee for:
> > 
> >    /17 IPv4 allocation  $983.04(32,768 x $0.03)
> >    /30 IPv6 allocation  $648.57(21,619 x $0.03) 
> > 
> >  o Reasons
> >  
> >  1. Fairness
> >      Fee schedule for NIRs disadvantages NIRs/NIR members compared to
> >      APNIC direct members. NIRs/NIR members are obliged to pay per
> >      address fees for allocations received from APNIC, while APNIC direct
> >      members are not required to pay such fees. It is not desirable to
> >      have different fee conditions between NIRs/NIR member and APNIC direct 
> >      members for the same resource.
> >  
> >   2. Amount of Fee
> >       In addition to the issue of fairness, the current IPv6 per address
> >       fee scheme leads NIRs/NIR members to pay unexpectedly large amount
> >       of fees. For example, one of the NIRs has paid $63,574 to APNIC
> >       for a /21 IPv6 allocation in year 2004, which is even larger in
> >       amount than the annual membership fee of the NIR(US$40,000). Other
> >       NIRs are also expected to face the same problem under the current
> >       fee scheme, and this is clearly disproportionate not only for
> >       NIRs, but also from APNIC's budget planning perspective. 
> >       Therefore, a new reasonable NIR fee scheme should be set up.
> >  
> >   3. Deployment of IPv6
> >      Considering the current status of IPv6 address deployment in the
> >      AP region, it will take some time before it will be fully deployed
> >      and commercialized. Most of ISPs in the AP region are not
> >      providing connectivity service with IPv6 addresses at this
> >      stage. Charging per address fee in IPv6 may hinder the deployment
> >      of IPv6 in the region.
> >  
> >   4. Situation in other RIRs.
> >       Other RIRs, do not charge IPv6 per address fee. For example,
> > 
> >       ARIN's fee schedule for IPv6 is as follows:
> >  
> >       "Organizations that are General Members in good standing
> >        prior to requesting an initial IPv6 allocation are not charged
> >        IPv6 registration fees. Annual renewal fees for IPv6 allocations
> >        are also waived for General Members in good standing.
> >        ARIN will continue to waive these fees as long as
> >        the organization remains a General Member in good standing
> >        at the time of renewal, up until Dec. 31, 2006."
> >        
> >       LACNIC IPv6 Fee Schedule:
> >  
> >       "Currently, and until new LACNIC board decision, organizations
> >        qualifying to receive IPv6 will have the first two years fees
> >        waived. This means, the initial fee and the first annual renewal fee."
> >   
> >  o Effect on APNIC
> > 
> >     It is speculated that abolishing per address for IPv6 allocations
> >     will not affect APNIC's budget. This is based on studying the past
> >     trend of APNIC budget as below:
> >  
> >      Year                      2001       %          2002      %            2003      %           2004   %
> >                              -------------    --------------    --------------    --------------
> >      Member fees      2,472,532 72%     2,871,724 75%       3,409,078 76%    3,510,392 72%
> >      Per Addr v4           523,023 15%        414,301 11%         410,471  9%      569,459  12%
> >      Per Addr v6              4,543   0%           8,232   0%            7,803  0%        65,721    1%
> >      Non-mem fees       37,037   1%          66,105   2%          80,994  2%        27,686    1%
> >      Applic fees            152,401  4%        293,459   8%         351,845  8%      351,188    7%
> >      Other income        245,945  7%         160,667  4%          227,269  5%      363,811   7%
> >                              -------------    --------------    --------------    --------------
> >      Tota                   3,435,482            3,814,488              4,487,461         4,888,257
> >                              -------------    --------------    --------------    --------------
> >  
> >     * APNIC has been running its budget with hardly any revenues from
> >        IPv6 per address fees(approximately 0%) until year 2003. In year
> >        2004, it merely covered approximately 1%(US$65,721) of APNIC's
> >        total budget. This implies that the revenue portion from IPv6 per
> >        address fee is minimal.
> >  
> >    o Benefits
> > 
> >    - Abolishing per address fee for IPv6 allocations solves
> >      "unfairness" between NIRs and other APNIC members.
> >  
> >    - Abolishing per address fee for IPv6 allocations saves NIRs/NIR
> >      members from the burden of paying large amount fees beyond
> >      a reasonable level.
> > 
> >    - Abolishing per address fee for IPv6 may prevent APNIC fee scheme
> >       being the barrier of IPv6 deployment in the AP region.
> >  
> >   o Disadvantage
> > 
> >     - None
> >   
> >   * References *
> >  
> >     [ARIN IPv6 Fee Schdule]
> >      http://www.arin.net/registration/fee_schedule.html#ipv6_alloc
> > 
> >     [LACNIC IPv6 Fee Schdule]
> >      http://lacnic.net/en/registro/table.html
> > 
> >     [APNIC Fee Schedule]
> >      http://www.apnic.net/docs/corpdocs/member-fee-schedule.doc
> >  
> > -------------------------------------------------------------------------------------------------
> >     Draft Proposal    Draft Proposal    Draft Proposal    Draft Proposal   Draft Proposal    Draft Proposal
> > -------------------------------------------------------------------------------------------------
> 
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-- 
Toshiyuki Hosaka <hosaka@nic.ad.jp>