Scott wrote:
It seems to me that this proposal actually simplifies things a lot more than it 
appears at first glance.  Obviously it expands section 8 with a lot more words. 
 But it does so in order to almost completely remove the dependencies on 
section 4 (leaving just a reference to the minimum allocation size).  So once 
the ARIN free pool is exhausted, that will mean that the policy under which 
most people get IPv4 space will be dramatically simpler than it is today.  It 
will also open up the way to dramatically simplifying section 4 after free pool 
exhaustion. 

I haven't yet worked through all the situations I can think of to make sure 
this is better than current policy in all cases, but on first pass it appears 
to me to be a significant improvement on the status quo.

-Scott


Hi Scott and Jason,

Maybe it would help to understand WHY there is a need to separate the needs 
policy for transfers before we endeavor to create an all-new and separate 
policy.
What is it about transfers that changes justifiable need of recipients?
Is there any difference between free-pool and transferred addresses?
Is it the $500 transfer fee?
Why do you support dramatically simplifying the needs test policy now?

My understanding is that we chose to utilized the existing needs regime for 
transfers, but extended the horizon from 3 to 24 months for the purposes of 
providing some incentive to get the STLS system operational. Or was it some 
other reason?
If there is some qualitative difference between transfers and free pool 
allocations, why is there an RFC2050 principle requiring needs tests for 
transfers as well as free pool allocations?

My answers to these questions have been offered, and I believe they are 
consistent with the thought processes at the time of RIR creation:
“We are responsible for growing the Internet through dissemination of IP 
addresses.
We want to give addresses out, we want to grow the Internet, but we can’t just 
allow anybody to take all the addresses.”
So, RFC2050 required needs testing of allocations to prevent plunder of the 
free pool.
RFC2050 also required needs tests for transfers, because without them, there 
would be plunder of the free pool.

But conservation is a natural mechanism of a market, and the price of 
transferred IPv4 addresses imposes a natural conserving force absent from the 
RFC2050 environment.
That is why there is in fact a qualitative difference between free pool and 
transfer addresses. The one has no natural conservation force and requires the 
needs test. The other has a natural conservative force which does not require 
the needs test.

That is my rationale for 2014-14, which removes needs tests from small 
transfers. It has the benefit of addressing all the scenarios addressed by 
2014-20, and does so in a more streamlined fashion.

TL’DR:
What is the rationale behind 2014-20’s call for a different needs test for 
transfers versus free pool allocations?
Didn’t we have small, medium, large, slow growing, fast growing, and every 
other business scenario in the past?

Regards,
Mike










On Sat, Sep 13, 2014 at 5:34 AM, Mike Burns <[email protected]> wrote:

  Hi Jason,


     
    However, assuming that 2014-14 is discussed first and does not pass, would 
you still oppose 2014-20?

    Possibly. 

     
    Would you agree that 2014-20 a movement in the direction as it is in the 
middle ground between current needs based and transfers without need?

    It seems like you are removing the 24month distinction between transfers 
and free pool allocations and replacing it with a more complex, although 
possibly more expansive mechanism. I would have to consider more analysis of 
the various scenarios and balance my support against my opposition to NRPM 
bloat and transfer policy complexity.

    Would you agree that while 2014-20, in your opinion does not go far enough, 
it is still better than the status quo?

    Well the status quo has changed, with minimums reduced to /24, and I have 
not had time to analyze sufficiently. One of the real problems I had 
encountered with transfers was related to the /20 minimum and I have not had 
problems with transfers due to explosive growth. Unfortunately!


    2014-20 does in fact separate the needs test for transfers from the needs 
test for ARIN allocations and assignments.
    WRT transfers, at any time, an org that can demonstrate 80% utilization on 
average across all their IP space, is eligible to completed 1 or more transfer 
and up to double their holdings.  This is very different from demonstrating 80% 
utilization of your most recent block, and efficiently using all your older IP 
space, and only getting double what you used in the last 12 months.

    This however does not help orgs with no resources 2*0=0, nor does it help 
orgs that have a history of slow growth with recent rapid growth.

    To help orgs that have no resources, I wanted to make it fairly easy for 
them to get what ever the minimum assignment/allocation is (the only tie back 
to ARIN issued IP space) up to a /24 for end-sites and up to a /21 for ISPs.  I 
wanted at the same time to disqualify orgs that have no actual plan on having 
stuff to number.  Once they get their initial space that can use it to 80% and 
then double, us that to 80%, and double again, and so on.

    For orgs with only recent rapid growth, and for new orgs who don't want to 
keep doubling, they can choose a look back window between 3 and 12 months, and 
calculate a two year supply.

    So a new org may transfer in a /24, show 80% utilization after 45 days, 
transfer in an additional /24, show 80% utilization of both blocks after 90 
days, and then qualify to transfer in up to the equivalent of  16 * /24s.

    __Jason

       
    It sounds better to me than the current system, but I definitely prefer 
2014-14. My concern is that whenever verbiage is added to the NRPM it opens new 
doors to misinterpretation which have to be addressed through more verbiage. In 
addition, whenever new issues or problems are discovered when applying this new 
mechanism to different business-case scenarios, more verbiage would be 
necessary to restore "fairness". And considering the myriad ways that 
businesses can find themselves in need of IPv4 space I think we are taking the 
first steps down a dangerous path with your proposal. On the other hand 2014-14 
addresses the needs of fast and slow growing companies, and the needs of small 
companies, with less of this danger and less risk of out-of-policy transfers 
which hold their own separate dangers. 

    Regards,
    Mike




     

     



    On Fri, Sep 12, 2014 at 1:19 PM, Mike Burns <[email protected]> wrote:

      Hi Jason,

      I apologize for not commenting on this earlier, I decided to sit back and 
see what other input was received.

      I think that you have correctly identified in your problem statement 
certain issues we face at the near-exhaust stage and beyond.
      ARIN allocation policy was always premised on the free pool, and we have 
decided to borrow the same policy and apply it to the wholly new environment of 
a trading market.
      You correctly identify issues like transactional costs which are imposed 
on recipients as a result of free-pool premised policies whose authors did not 
consider these implications.
      You note that ARIN policy does not efficiently accommodate various 
recipient growth profiles, especially as any wiggle-room is squeezed out of 
every allocation by a team of ARIN reviewers.

      We can expect more such problems as market forces tend to diverge from 
ARIN policy prescriptions, and it is my belief that the weight of these 
distortions puts a strain on Whois accuracy as more money flows into this 
market.  When business needs are faced-up against ARIN policy, at a certain 
point the business risk of inadequate allocation overrides the risk of an 
out-of-policy transfer. And these out-of-policy transfers can happen by 
multiple means, including phased-contracts, permanent leasing,  and zombie 
corporations which ARIN policy can’t touch. ARIN policy is a market distortion 
which will likely grow larger over time.

      Rather than try to put our finger in the dyke through more and more NRPM 
verbiage, isn’t it time we acknowledged that a separate allocation paradigm 
exists in the trading market which requires a separate (or absent) needs-test 
for transfers? 

      I believe that every circumstance elucidated in your proposal is answered 
by the much more streamlined 2014-14, which removes needs testing from 
transfers smaller than a /16, once per year. 

      I am against further un-necessary clutter in the NRPM, and if we seek to 
match every unknown and unknowable vagary of the impending transfer market with 
new policy, we open the door to a virtual tax code of text. Here is one of your 
new sections:

      8.3.2.3.2.1 Calculation of Monthly Average Use Rate
      An organization may choose a look-back window of any number of months 
between 3 and 12, inclusive, from the date of the current request. ARIN will 
calculate the total amount of new addresses acquired, during the look-back 
window, by the organization from non-M&A transfers, direct allocations or 
assignments from ARIN, or reallocations or reassignments from an ISP. That 
total will be divided by the number of months in the look-back window to 
calculate the organization’s monthly average use rate. 

      8.3.2.3.2.1?

      While I support the recognition of the problems Jason identified, I am 
opposed to 2014-20.  
      (Also I would counsel against regarding silence as approval.)

      Regards

      Mike Burns


      From: Jason Schiller 
      Sent: Friday, September 12, 2014 12:13 PM
      To: [email protected] ; Kevin Blumberg ; David Farmer 
      Cc: [email protected] 
      Subject: Re: [arin-ppml] Draft Policy ARIN-2014-20: Transfer Policy Slow 
Start and Simplified Needs Verification

      It has been a week, and there has been no discussion on this thread. 

      I take the silence to mean the suggested "option 2" rewrite is 
non-controversial and meets all of Bill's concerns.

      I also take the silence to mean that all three options I have suggested 
all result in the same implementation, 
      and since no one believes any of the three options differ in 
implementation, there is no preference.

      I humbly submit we should go with option 2, as it is closest to Bill's 
suggestion, and keeps 8.2 and 8.3 in line 
      (setting the ground work for a future unification of 8.2 and 8.3).

      Will there be discussion now?  Or should we just silently move forward?


      Thanks,

      ___Jason




      On Thu, Sep 4, 2014 at 11:34 AM, Jason Schiller <[email protected]> 
wrote:

        Bill, 

        Thank you.

        The intent was NOT to remove the requirement for in-region recipients 
of transfers to sign an RSA.


        My apologies.  


        There is a lot or parallel structure in 8.3 and 8.4 and in my mind 8.4 
is identical to 8.3 except 8.4 has a clause "Except when the recipient is out 
of region then that region's policy applies", and " Except when the source is 
out of region then that region's policy applies".  I really wanted to 
completely merge 8.3 and 8.4 to remove the parallel structure but as an 
editorial re-write only and not part of this discussion. 


        in 8.4 there are a separate bullets for 24-month supply and sign the 
RSA:

        "> Recipients within the ARIN region will be subject to current ARIN 
policies and sign an RSA for the resources being received.
        > Recipients within the ARIN region must demonstrate the need for up to 
a 24-month supply of IPv4 address space." 

        I think in my mind I imagined a similar separate bullets in 8.3, one 
for 24-month supply and another for sign RSA, and I intended just to remove the 
24 month part.  

        I think there are a few ways to fix this.

        Option 1 - minimun rewrtite
        - remove only the "24-month" portion of the 8.3 text. This is the 
minimum change, but brings section 8.3 and 8.4 further out of alignment

        Option 2 - single bullet for "meet ARIN policy" and "sign RSA" (8.3 as 
the model text)
        - replace the whole "24-month" text and "meet ARIN policy" text in 8.3 
with a bullet that included "sign the RSA" and "meet ARIN policy" under one 
bullet and is parallel to text in 8.4 (minus within the ARIN region)

        Option 3 - two separate bullets for "meet ARIN policy" and "sign RSA" 
(8.2 as the model text) 
        - replace the whole "24-month" text in 8.3 with a bullet that included 
"sign the RSA"
        -separate the "sign the RSA" and "meet ARIN policy" in 8.4 into two 
bullets and is parallel to text in 8.3 (plus the within ARIN region)

        (If the summary of the options are hard to follow I have a suggestion 
for the specific rewrites below)

        I think your suggestion is roughly Option 2 below (the only difference 
is with your suggested rewrite, there are now two bullets in 8.3 stating the 
recipient is subject to current ARIN policies).  Assuming all the options have 
the same policy implications, I would prefer option 2 or 3, as these bring 
greater alignment of the sections.  

        Do these options all meet your concern?

        Does the community and ARIN staff agree that the thee options have the 
same policy implications?


        Kevin, David,

        I think at this point you own the text?
        I would be supportive of the friendly amendment to modify the draft 
policy as follows:


        OPTION 1:
        Replace the following Section 8.3 text:


        "> The recipient must demonstrate the need for up to a 24-month supply
          of IP address resources under current ARIN policies and sign an
          RSA."

        with:


        "> Recipients will sign an RSA for the resources being received."


        OPTION 2:

        Replace the following Section 8.3 text:


        "> The recipient must demonstrate the need for up to a 24-month supply
          of IP address resources under current ARIN policies and sign an
          RSA.
          > The resources transferred will be subject to current ARIN policies."

        with:


        "> Recipients will be subject to current ARIN policies and sign an RSA 
for the resources being received."


        OPTION 3:
        Replace the following Section 8.3 text:


        "> The recipient must demonstrate the need for up to a 24-month supply
          of IP address resources under current ARIN policies and sign an
          RSA."

        with:


        "> Recipients will sign an RSA for the resources being received."

        and replace the following Section 8.4 text:

        "> Recipients within the ARIN region will be subject to current ARIN 
policies and sign an RSA for the resources being received.
          > Recipients within the ARIN region must demonstrate the need for up 
to a 24-month supply of IPv4 address space."

        With:

        "> Recipients within the ARIN region will sign an RSA for the resources 
being received.
        > The resources transferred to recipients within the ARIN region will 
be subject to current ARIN policies."

        If all the options are indeed the same I would prefer option 2 or 3.
        If the options have different policy implications and we can converge 
on one standard for both 8.2 and 8.3, then I would prefer that.


        ___Jason












        On Thu, Sep 4, 2014 at 8:50 AM, Bill Owens <[email protected]> wrote:

          On Wed, Sep 03, 2014 at 04:55:58PM -0400, ARIN wrote:
          > On 28 August 2014 the ARIN Advisory Council (AC) accepted
          > "ARIN-prop-212 Transfer policy slow start and simplified needs
          > verification" as a Draft Policy.
          >

          . . .

          >
          > Draft Policy ARIN-2014-20
          > Transfer Policy Slow Start and Simplified Needs Verification
          >
          > Date: 3 September 2014
          >

          . . .

          >
          > Policy statement:
          >
          > Remove the following section 8.3 text:
          >
          > “The recipient must demonstrate the need for up to a 24-month supply
          > of IP address resources under current ARIN policies and sign an
          > RSA.”


          Shouldn't that be something like this, instead?

          Replace the following Section 8.3 text:


          "The recipient must demonstrate the need for up to a 24-month supply
            of IP address resources under current ARIN policies and sign an
            RSA.”


          with:

          "The recipient will be subject to current ARIN policies and sign an
            RSA for the resources being received."

          As written it appears to remove the requirement for recipients of 
in-region transfers to sign an RSA.

          Bill.

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        _______________________________________________________

        Jason Schiller|NetOps|[email protected]|571-266-0006






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      _______________________________________________________

      Jason Schiller|NetOps|[email protected]|571-266-0006



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