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Today's Topics:

   1. Re: Consultation on Proposed 2018 Fee Schedule Changes
      (David Farmer)
   2. Re: Consultation on Proposed 2018 Fee Schedule Changes
      (John Curran)


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

Message: 1
Date: Mon, 9 Apr 2018 10:17:04 -0500
From: David Farmer <far...@umn.edu>
To: "<arin-consult@arin.net>" <arin-consult@arin.net>
Subject: Re: [ARIN-consult] Consultation on Proposed 2018 Fee Schedule
        Changes
Message-ID:
        <CAN-Dau1-cOsok8XfnYtnaZs4fUPKA5qEB4k_PqSuS+xMosb=j...@mail.gmail.com>
Content-Type: text/plain; charset="utf-8"

Sorry, that escaped early, let's try again;

My initial impression is that these increases seem reasonable.  However,
this announcement does not include any data to justify why these two
service areas are the focus for fee increases. Are these service areas
under recovering their associated costs? Are the increased operating costs
mentioned specifically related to these two service areas? Are there
projections for the increased revenue from these changes? Basically, why is
it equitable to increase these two service areas and not others?

Thanks.


On Mon, Apr 9, 2018 at 10:13 AM, David Farmer <far...@umn.edu> wrote:

> My initial impression is that these increases seem reasonable.  However,
> this announcement does not include any data to justify why these two
> service areas are the focus for fee increases. Are these service areas
> under recovering their associated costs? Are the increased operating costs
> mentioned specifically related to these two service areas? Are there
> projections for the increased revenue from these changes? Basically why is
> it e
>
> On Mon, Apr 9, 2018 at 8:43 AM, ARIN <i...@arin.net> wrote:
>
>> ARIN?s Strategic Plan calls for ARIN to recover costs in a fair and
>> equitable manner via appropriate
>> fees to maintain adequate funds for the long-term stability of the
>> organization. ARIN has increased operating costs in recent years to meet
>> customer demand for improved and broader services, and upon review, the
>> Board of Trustees has called for both strategic cost management by the
>> organization and some fee increases in order to preserve long-term
>> organizational reserves.
>>
>> https://www.arin.net/about_us/corp_docs/stratplan-2018-2019.pdf
>>
>> The ARIN Board is proposing the following fee changes:
>>
>>     * Increasing the annual registry maintenance fee paid by end users
>> for each IPv4 address block, IPv6 address block, and Autonomous System
>> Number (?ASN?) from $100 to $150 per object. Registration Services Plan
>> customers do not pay these annual registry maintenance fees as all
>> services are already covered in their plan.
>>     * Increasing the annual Legacy maintenance fee for each IPv4 address
>> block and ASN from $100 to $150 per object ? i.e., the same change as
>> proposed for end-user maintenance fees. The Legacy maintenance fee is to
>> cover costs associated with Internet number resources held under a
>> Legacy Registration Services Agreement (?LRSA?). (Note also that some
>> very early LRSA agreements include a limit on the annual increase of
>> total maintenance fees; ARIN will implement any fee increase consistent
>> with the terms of those agreements.)
>>     * Increasing the initial and annual registration fee for ARIN
>> Transfer Facilitators from $100 to $1,000, in order to cover rising
>> costs associated with services.
>>
>> We are seeking community feedback on these modifications to ARIN?s Fee
>> schedule that we intend to implement sometime mid-year 2018.
>>
>> This consultation will remain open for forty-five (45) days, after which
>> time the Board will evaluate community feedback and determine
>> appropriate changes to the fee schedule.
>>
>> Please provide comments to arin-consult@arin.net.
>>
>> Discussion on arin-consult@arin.net will close on 25 May 2018.
>>
>> If you have any questions, please contact us at i...@arin.net.
>>
>> Regards,
>>
>> John Curran
>> President and CEO
>> American Registry for Internet Numbers (ARIN)
>>
>>
>>
>> _______________________________________________
>> ARIN-Consult
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>
>
>
>
> --
> ===============================================
> David Farmer               Email:far...@umn.edu
> Networking & Telecommunication Services
> Office of Information Technology
> University of Minnesota
> 2218 University Ave SE        Phone: 612-626-0815
> Minneapolis, MN 55414-3029   Cell: 612-812-9952
> ===============================================
>



-- 
===============================================
David Farmer               Email:far...@umn.edu
Networking & Telecommunication Services
Office of Information Technology
University of Minnesota
2218 University Ave SE        Phone: 612-626-0815
Minneapolis, MN 55414-3029   Cell: 612-812-9952
===============================================
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Message: 2
Date: Mon, 9 Apr 2018 15:59:43 +0000
From: John Curran <jcur...@arin.net>
To: Bill Woodcock <wo...@pch.net>, David Farmer <far...@umn.edu>
Cc: "<arin-consult@arin.net>" <arin-consult@arin.net>
Subject: Re: [ARIN-consult] Consultation on Proposed 2018 Fee Schedule
        Changes
Message-ID: <a07646c5-59d0-450e-840c-2972e4369...@arin.net>
Content-Type: text/plain; charset="utf-8"

On 9 Apr 2018, at 10:07 AM, Bill Woodcock <wo...@pch.net> wrote:
> 
>> On Apr 9, 2018, at 6:43 AM, ARIN <i...@arin.net> wrote:
>> ARIN has increased operating costs in recent years to meet
>> customer demand for improved and broader services
> 
> The membership seem to be relatively clear that they?re not in favor of 
> scope-creep.  And there are already 88 staff, the majority of whom are in 
> Engineering.  The theory was that they were supposed to be temporary 
> contractors, doing one-time projects to automate ARIN registry functions.  
> Yet the ?temporary? part never seems to come to a conclusion.
> 
> Can you present the budget, and explain what specific new services you?re 
> proposing to perform with this additional money, and give us a status-update 
> on the progress being made toward specific goals by the existing 45 engineers?

Bill (and David) -

    Both the specific deliverables accomplished, as well as the upcoming 
deliverables can be found online here
    <https://www.arin.net/features/ <https://www.arin.net/features/>>, and here 
<https://www.arin.net/features/planned.html 
<https://www.arin.net/features/planned.html>> respectively.

    The budget is always available online here 
<https://www.arin.net/about_us/corp_docs/strategic_plan.html 
<https://www.arin.net/about_us/corp_docs/strategic_plan.html>>
    along with the Strategic Plan and two-year operating plans which includes 
our annual objectives.   For 2018,
    we anticipate revenues of $20.9 USD million and expenses of $23.8 USD 
million, thus we are impacting our
    reserves in the short term.  Our base model does (as you note) include 
additional engineering ?surge" staffing
    and this continues through 2018, although this does not continue in 2019.  
Even with that adjustment, ARIN
    will be operating at approximately at $1.3 million USD net-to-reserves 
position each year on a going-forward
    basis.

    So while ARIN?s present medium-term (5 year) financial outlook is solid, it 
not as robust as the Board has
    traditionally sought ? specifically, with present plan and fee schedule 
we?ll be taking our reserves from $25.9
    million to approximately $21.6 million though 2022.  This downward 
trajectory is likely to continue over the
    long-term, and could even accelerate, since our annual revenue includes 
about $1.4M of investment income
    that will drop in a corresponding manner with a declining reserve balance; 
hence why addressing the gap
    is a simpler matter if done sooner rather than later.

    The proposed fee change would provide the following net increase in annual 
revenues:

        ? Facilitator fee - net revenue increase                                
        +      $34,000
        ? End-user Maintenance fee: net revenue increase                + 
$1,400,000
        ? LRSA holders Maintenance fees: net revenue increase   +      $33,500

    The total annual revenue increase with the proposed fee schedule change is 
1.47M USD, which would have ARIN
    be net neutral to the reserves for the foreseeable future.  The increase to 
facilitator fees was deemed appropriate
    because we are seeing significant increased costs related to maintenance of 
that program (specifically in addressing
    parties who are not actual participants but still call themselves ?ARIN 
Facilitators?. )

    Regarding the maintenance fee increases, our end-user community engages in 
significant ongoing interactions with
    ARIN and yet is approximately one fifth of ARIN's total revenue.  Our 
investment in systems (such as ARIN Online)
    benefit the entire ARIN community, and that community is disproportionately 
end-users.  In fact, much of our most
    improvements have been ?easy-of-use? related for the benefit of those 
smaller organizations that are new to ARIN
    and doing requests for the first time.

    For the vast majority end-users, the fee change results in a modest $100 to 
$150 annual increase ?depending on
    whether the organization has only one of IPv4 or IPv6 and an ASN, or both 
IPv4 block, IPv6 block, and an ASN.
    While the total impact is still quite small in terms of individual end-user 
invoice, it is true that it could be deemed
    a very significant increase when viewed on a percentage basis.  This 
increase is not without corresponding value,
    as the  services provided have been quite enhanced over time (including 
improvements to ARIN Online allowing
    easier administration, addition two-factor authentication, streamlined 
request and ticket sections, etc.) so those
    using ARIN services have indeed benefitted from ARIN?s investments in staff 
and systems in recent years.

    I will cover this material in more detail at ARIN 41, but felt that the 
communities consideration of this matter
    would be more productive with some fo the budget, development progress, and 
fee distribution information
    that was being sought in the interim.   Please do not hesitate ask any 
additional questions that would help
    in consideration of this consultation.

Thanks!
/John

John Curran
President and CEO
American Registry for Internet Numbers (ARIN)





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