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

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  • Subject: [sig-nir] Proposal_Abolishing IPv6 per address fee for NIRs
  • From: "MH Billy Cheon" <cmh at nic dot or dot kr>
  • Date: Mon, 28 Mar 2005 15:11:58 +0900
  • Cc: sig-nir-chair at apnic dot net,=?ks_c_5601-1987?B?SVDB1rzSsPy4rsbA?= <ip-all at nida dot or dot kr>
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    • Dear  NIRs,

      The following is draft proposal regarding IPv6 fee.

      It was drafted by the members of NIRs who had interests in drafting the proposal. 
       
      I am sending the draft to NIR mailing list on behalf of NIRs for more discussions, comments, and more proposals.

      I hope we come up with a consensus regarding IPv6 fee by next APNIC meeting.

      Best regards
      Billy
       
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       o Proposal : "Abolishing IPv6 per address fee for NIRs"
       
        - APNIC does not charge IPv6 per address fee for NIRs until it is necessary

      o Reasons

       1. Fee schedule for NIR is not fair compared to that of APNIC direct member.
          Only NIRs/NIR members are paying per address fees while other APNIC
          members are not. It does not seem good having different fee scheme
          between members. Therefore, a new reasonable NIR fee scheme should be set up.

       2. Current IPv6 per address fee scheme leads NIRs/NIR members paying
           unexpectedly large amount of fees. For example, recently JPNIC has paid
           $63,574 to APNIC for /21 allocation. This is much lager amount of money
           than annual membership fee which is $40,000.
       
           Current IPv6 fee scheme will cause the same problem for other NIRs as well.
           It needs to be changed.

       3. Considering the current status of IPv6 address deployment in AP region,
           it will take some time before it is fully deployed and commercialized.
           Most of ISPs in AP region are not providing connectivity service with
           IPv6 addresses. Charging per address fee on IPv6 may hinder
           the deployment of IPv6 in the region.

       4. 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."

           And 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."

       * 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

       o Benefits

        - Abolishing per address fee on IPv6 will get rid of unfairness between NIRs and other APNIC members.

        - Abolishing per address fee on IPv6 will lessen NIRs' burden.

        - Abolishing per address fee on IPv6 may aid deploying IPv6 address in the AP region

       o Disadvantage
       
        - None
       
       o Effect on APNIC
       
        - Abolishing per address on IPv6 won't affect APNIC's budget.

        - according to APNIC's annual report of 2004, per address fee(IPv4 &IPv6)
           covers about 8% of APNIC's total revenue. This means the revenue portion
           from IPv6 per address fee is minimal.

        e.g) Research on per address fee portion out of APNIC annual budget

        ====================================================================
         Revenue                            2001         2002            2003           2004
        --------------------------------------------------------------------  
         Membership fees           2,712,050     2,843,750     3,436,773      3,652,438
         Per Allocation fees           400,000      418,057         288,368       421,740
         Non-members fees            40,000      34,945           66,917         75,580
         Start-up fees                   175,000
         IP Resource app fees                        125,000         334,241         308,000
         Sundry income                    35,000       45,584          28,400           37,749
         Interest received                186,869       150,193        196,545         266,871
        --------------------------------------------------------------------
         SUB-TOTAL REVENUE       4,351,245   4,762,377
         FX gain(loss)                      -443,953         0
         TOTAL REVENUE                3,548,919     3,617,529    3,907,291   4,762,377
        ====================================================================
       
      * References

         [APNIC budget 2001]
          http://www.apnic.net/meetings/12/docs/apnic_update_dg.ppt
         [APNIC budget 2002]
          http://www.apnic.net/meetings/14/amm/docs/amm-pres-wilson-apnic.ppt
         [APNIC budget 2003]
          http://www.apnic.net/meetings/16/programme/docs/amm-pres-wilson-apnic-rpt.ppt
         [APNIC budget 2004]
          http://www.apnic.net/meetings/18/docs/amm/amm-pres-pwilson-opening.ppt

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