Dear SIG members

A new version of the proposal "prop-116: Prohibit to transfer IPv4
addresses in the final /8 block" has been sent to the Policy SIG for
review.

It will be presented at the Open Policy Meeting at APNIC 44 which will 
be held in Taichung, Taiwan on Wednesday and Thursday, 14 & 15 September 
2017.

Information about earlier versions is available from:

    http://www.apnic.net/policy/proposals/prop-116

You are encouraged to express your views on the proposal:

 - Do you support or oppose the proposal?
 - Do you see any disadvantages in this proposal?
 - Is there anything in the proposal that is not clear?
 - What changes could be made to this proposal to make it more effective?

Please find the text of the proposal below.

Kind Regards,

Sumon, Bertrand, Ching-Heng
APNIC Policy SIG Chairs



-------------------------------------------------------

prop-116-v004: Prohibit to transfer IPv4 addresses in the final /8 block

-------------------------------------------------------

Proposer:       Tomohiro Fujisaki
                fujisaki@syce.net


1. Problem statement
--------------------

There are a lot of transfers of IPv4 address blocks from 103/8
happening, both within the APNIC region and among RIRs.

Then number of transfer from 103/8 block are about 200, which is about
12% of the total number of transfers. This looks so high since APNIC
manages about 40/8.

And based on the information provided by APNIC Secretariat, number of
transfers from the 103/8 block are increasing year by year.

Updated by APNIC Secretariat on 27 January 2017:

1) M&A transfers containing 103/8 space

+------+-----------+-----------+-
|      |   Total   | Number of |
| Year | Transfers |   /24s    |
+------+-----------+-----------+-
| 2011 |         3 |         12 |
| 2012 |        10 |         46 |
| 2013 |        18 |         66 |
| 2014 |       126 |        498 |
| 2015 |       147 |        573 |
| 2016 |        63 |        239 |
| 2017 |        45 |        178 |
+------+-----------+------------+-

2) Market transfers containing 103/8 space

+------+-----------+-----------+
|      |   Total   | Number of |
| Year | Transfers |   /24s    |
+------+-----------+-----------+
| 2011 |         2 |         2 |
| 2012 |        21 |        68 |
| 2013 |        16 |        61 |
| 2014 |        25 |        95 |
| 2015 |        67 |       266 |
| 2016 |       103 |       394 |
| 2017 |        70 |       288 |
+------+-----------+-----------+

And also, transfers from the 103/8 block include:
  - Take place within 1 year of distribution, or
  - Multiple blocks to a single organization in case of beyond 1 year.

Further, there is a case where a single organization have received 12
blocks transfers from 103 range.

see:  https://www.apnic.net/transfer-resources/transfer-logs

From these figures, it is quite likely that substantial number of 103/8
blocks are being used for transfer purpose.

This conflicts with the concept of distribution of 103/8 block
(prop-062), which is intended to accommodate minimum IPv4 address blocks
for new comers.

prop-062: Use of final /8
  https://www.apnic.net/policy/proposals/prop-062


2. Objective of policy change
-----------------------------

When stated problem is solved, distribution from 103/8 block will be
consistent with its original purpose, for distribution for new entrants
to the industry. Without the policy change, substantial portion of 103/8
blocks will be consumed for transfer purpose.


3. Situation in other regions
-----------------------------

None.


4. Proposed policy solution
---------------------------

Prohibit transfer IPv4 addresses under /8 address block (103/8) which
have not passed two years after its allocation/assignment. If the
address block allocated to a LIR in two years is not needed any more, it
must return to APNIC to allocate to another organization using final /8
policy. This two years requirement will apply both market and M&A
transfers.

5. Advantages / Disadvantages
-----------------------------

Advantages:
  - It makes 103/8 blocks available according to the original purpose, 
    as distribution for new entrants (rather than being consumed for 
    transfer purpose)

  - IPv4 addresses under final /8 are not transferred to outside APNIC.

  - By prohibiting transfer, them, it is possible to keep one /22 for 
    each LIRs state, which is fair for all LIRs.

Disadvantages:
None.


6. Impact on resource holders
------------------------------

  - LIRs cannot transfer address blocks under 103/8. No big impact while
    they use it.

  - Organizations which needs to receive transferred IPv4 can continue
    to do so, outside 103/8 blocks (which should be made available for 
    new entrants)


7. References
-------------




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