[sig-nir] Introduction of Proposal at NIR SIG: "Abolishing IPv6 peraddre

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  • Subject: [sig-nir] Introduction of Proposal at NIR SIG: "Abolishing IPv6 peraddress fee for NIRs"
  • From: Izumi Okutani <izumi at nic dot ad dot jp>
  • Date: Mon, 04 Apr 2005 14:37:23 +0900 (JST)
  • Cc: sig-nir at lists dot apnic dot net
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    • 
      
      I would like to introduce a proposal at NIR SIG which proposes a
      change in the APNIC fee scheme for NIRs.
      
        "Proposal : "Abolishing IPv6 per address fee for NIRs" "
         http://www.apnic.net/mailing-lists/sig-nir/archive/2005/03/msg00002.html
      
      Since its impact on APNIC budget must be considered by APNIC
      membership as a whole, comments are very much welcome from non-NIRs
      members of the community as well as NIRs.
      
      Please join us in the discussions at "sig-nir-chair at apnic dot net".
      
      You will be able to subscribe or view archives from:
          http://www.apnic.net/community/lists/index.html
      
      
      Best Regards,
      Izumi Okutani
      NIR SIG Chair
      
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          Draft Proposal    Draft Proposal    Draft Proposal    Draft Proposal   Draft Proposal    Draft Proposal
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       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
       
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