Re: [sig-nir] Proposal_Abolishing IPv6 per address fee for NIRs
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 at nic dot or dot 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
> -------------------------------------------------------------------------------------------------