[sig-nir] Final call for comments: [prop-028-v001] "Abolishing IPv6 per

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  • Subject: [sig-nir] Final call for comments: [prop-028-v001] "Abolishing IPv6 per address fee for NIRs"
  • From: Save Vocea <save at apnic dot net>
  • Date: Wed, 21 Sep 2005 17:23:53 +1000
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    • Dear colleagues
      APNIC welcomes comments, questions, and suggestions on the following policy
      Final call for comments: [prop-028-v001]
      "Abolishing IPv6 per address fee for NIRs"
      This is the final call for comments on policy proposal [prop-028-v001]
      "Abolishing IPv6 per address fee for NIRs".
      This is a proposal to revise the NIR fee structure by setting a per
      allocation fee charged to NIRs (indirectly to NIR members) at a
      reasonable level including when NIRs make a large allocation to their
      members, by setting an upper limit to the fee.
      This proposal was presented at APNIC 20 and the following consensus was
         "The SIG accepted by consensus the proposed policy process,
          which requires the text proposal to be sent to the mailing
          list one month before the meeting, an eight week comment
          period on the mailing list after the meeting, and final
          endorsement from EC."
      This proposal is now submitted to the sig-nir 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 at apnic dot net>
      *   Deadline for comments:                16 November 2005
      Proposal details
      This paper proposes that APNIC should not charge per address fee
      for IPv6 allocations to NIRs until it is necessary.
      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
      etermined 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.
      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)
      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
      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%
                    ---------       ---------       ---------       ---------
      Total         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.
      - 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.
      - None
      - [ARIN IPv6 Fee Schdule]
      - [LACNIC IPv6 Fee Schdule]
      - [APNIC Fee Schedule]
      Proposal details including full text of proposal, presentations, links
      to relevant meeting minutes, and links to mailing list discussions are
      available at:
      Savenaca Vocea, Policy Development Manager, APNIC   <save at apnic dot net>
      http://www.apnic.net                         ph/fx +61 7 3858 3100/99