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Re: [hm-staff] Re: [sig-nir] Proposal_Abolishing IPv6 per addressfee for NIRs



Dear Anne, 


Thank you for the recommendation. It's a good suggestion to post the
proposal on the Policy SIG ML as I believe that are not many non-NIR
people subscribed to this list.

May I clarify that this is to introduce and encourage people to join
the discussions at NIR SIG and not to move the discussions to the
Policy SIG? I understand that it requires approval at AMM after
consensus at NIR SIG.


Regards,
Izumi

From: Anne Lord <anne@apnic.net>
Subject: Re: [hm-staff] Re: [sig-nir] Proposal_Abolishing IPv6 per address fee for NIRs
Date: Tue, 29 Mar 2005 11:05:42 +1000

> 
> Dear Billy,
> 
> Thank you for your proposal. The Secretariat will take a look at the 
> proposal and will provide some feedback.
> 
> Following on from Izumi's point there you may wish to consider posting this 
> proposal to the "sig-policy" mailing list. I would strongly recommend you 
> do this, so that you gather input from APNIC members and other 
> stakeholders, since this proposal will need to go through both the policy 
> process and be voted on by APNIC members at a members meeting.
> 
> regards
> Anne
> --
> 
> 
> At 04:59 PM 28/03/2005, Izumi Okutani 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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