Orbit


                        Dear All,
Please ignore the previous mail. I think I made a mistake.
This is the final version.
Sorry for causing confusion :-)
Billy
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    Draft Proposal    Draft Proposal    Draft Proposal    Draft Proposal   Draft Proposal    Draft Proposal
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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
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    Draft Proposal    Draft Proposal    Draft Proposal    Draft Proposal   Draft Proposal    Draft Proposal
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