Orbit

Dear NIRs,

The following is draft proposal regarding IPv6 fee.

It was drafted by the members of NIRs who had interests in drafting the proposal.

I am sending the draft to NIR mailing list on behalf of NIRs for more discussions, comments, and more proposals.

I hope we come up with a consensus regarding IPv6 fee by next APNIC meeting.

Best regards Billy

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o Proposal : "Abolishing IPv6 per address fee for NIRs"

- APNIC does not charge IPv6 per address fee for NIRs until it is necessary

o Reasons

1. Fee schedule for NIR is not fair compared to that of APNIC direct member. Only NIRs/NIR members are paying per address fees while other APNIC members are not. It does not seem good having different fee scheme between members. Therefore, a new reasonable NIR fee scheme should be set up.

2. Current IPv6 per address fee scheme leads NIRs/NIR members paying unexpectedly large amount of fees. For example, recently JPNIC has paid $63,574 to APNIC for /21 allocation. This is much lager amount of money than annual membership fee which is $40,000.

Current IPv6 fee scheme will cause the same problem for other NIRs as well. It needs to be changed.

3. Considering the current status of IPv6 address deployment in AP region, it will take some time before it is fully deployed and commercialized. Most of ISPs in AP region are not providing connectivity service with IPv6 addresses. Charging per address fee on IPv6 may hinder the deployment of IPv6 in the region.

4. 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."

And 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."

* 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

o Benefits

- Abolishing per address fee on IPv6 will get rid of unfairness between NIRs and other APNIC members.

- Abolishing per address fee on IPv6 will lessen NIRs' burden.

- Abolishing per address fee on IPv6 may aid deploying IPv6 address in the AP region

o Disadvantage

- None

o Effect on APNIC

- Abolishing per address on IPv6 won't affect APNIC's budget.

- according to APNIC's annual report of 2004, per address fee(IPv4 &IPv6) covers about 8% of APNIC's total revenue. This means the revenue portion from IPv6 per address fee is minimal.

e.g) Research on per address fee portion out of APNIC annual budget

==================================================================== Revenue 2001 2002 2003 2004 -------------------------------------------------------------------- Membership fees 2,712,050 2,843,750 3,436,773 3,652,438 Per Allocation fees 400,000 418,057 288,368 421,740 Non-members fees 40,000 34,945 66,917 75,580 Start-up fees 175,000 IP Resource app fees 125,000 334,241 308,000 Sundry income 35,000 45,584 28,400 37,749 Interest received 186,869 150,193 196,545 266,871 -------------------------------------------------------------------- SUB-TOTAL REVENUE 4,351,245 4,762,377 FX gain(loss) -443,953 0 TOTAL REVENUE 3,548,919 3,617,529 3,907,291 4,762,377 ====================================================================

* References

[APNIC budget 2001] http://www.apnic.net/meetings/12/docs/apnic_update_dg.ppt [APNIC budget 2002] http://www.apnic.net/meetings/14/amm/docs/amm-pres-wilson-apnic.ppt [APNIC budget 2003] http://www.apnic.net/meetings/16/programme/docs/amm-pres-wilson-apnic-rpt.pp... [APNIC budget 2004] http://www.apnic.net/meetings/18/docs/amm/amm-pres-pwilson-opening.ppt

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