That is precisely one of the main points: to disincentivize
organizations from joining the waitlist in order to sell for a profit later.
If an organization acquires space from the waitlist no longer needs it
it should not be able to sell the space given that space was already
'acquired' in a scenario that doesn't allow anymore any ease the selling
of it. These tiny spaces available should really be for those who don't
have absolutely any space to allow them to exist in the Internet and
undertake.
If an organization has space acquired from the waiting list and not
longer need or justify it should return it to ARIN voluntarily or
forcibly. And there should be the necessary provisions in the policies
to support ARIN to take that space back in order to allocate to those
who really need. Sometimes when this is mentioned some people don't
like to read maybe because they put themselves in a future hypothetical
scenario so them get scary to agree but that is the correct thing to do
in the sense o proper fairness. No organization should be allowed to
hold unused or space that lost its justification while there are plenty
of other organizations waiting to use it properly to connect people to
the Internet, specially for space received via the waiting list.
The most important thing to change about the waiting list is to only
allocate them to organizations that do not have any space at all. Those
who have already can live with it or alternatively go to the transfer
market.
Fernando
On 22/11/2022 13:46, Nick Nugent wrote:
Re: Preventing waitlist recipients from transferring their space
indefinitely (instead of only a five-year lockout)
The point of this change seems to be to disincentivize organizations
from joining the waitlist simply to acquire space they can later sell
for a profit.
That makes sense. But it helps to consider how changing the lockout
period affects other incentives.
If an organization acquires space from the waitlist and no longer
needs it (assume the five-year period has elapsed), that org has a
strong financial incentive to sell the space. For example, if the
market price per address at that time is, say, $37, a /22 might be
worth ~$38,000. (Not making any statements about market price; just
picking an arbitrary price for the sake of this hypothetical.) Selling
that space would put it in the hands of another entity that would
actually use it, improving the efficient allocation of space.
On the other hand, if the organization that acquired waitlist space no
longer needs it, and ARIN restricts the org indefinitely from
transferring that space to another entity, then it would cost that org
only $500/year to hold onto it instead of returning it to ARIN. The
organization might think, "Well, I don't currently need this space.
But it's possible I might need it in the future. Better to pay
$500/year and keep it just in case rather than return it to ARIN and
go to the back of the waitlist if I need IPv4 space in the future."
(Invitation to supplement/correct my fee assumptions here)
In other words, permitting resale after some period might promote the
more efficient use of space. What is the right resale lockout period
to promote the efficient use of space while discouraging entities from
joining the waitlist solely to get space they can resell? Hard to say.
But I don't think an indefinite lockout period adequately balances
those competing incentives.
Nick
On Tue, Nov 15, 2022 at 2:30 PM Brian Jones <[email protected]> wrote:
Alison,
As I stated at the ARIN50 meeting, in light of the report John
Sweeting gave
(https://www.arin.net/participate/meetings/ARIN50/materials/1020_policyimplementation.pdf)
I would be in favor of reducing the minimum allocation size to a
/24. I am not necessarily in favor of lowering the maximum
holdings for eligibility. I would not favor eliminating the
transfer of Waitlist blocks. I think five years serves the purpose
for that.
Brian Jones
Virginia Tech
ARIN Advisory Council
On Nov 14, 2022, at 4:42 PM, WOOD Alison * DAS
<[email protected]> wrote:
Hello!
The Policy Experience Report Working Group has been working on
the Policy Experience Report from ARIN 50. I would appreciate
your feedback on the following issue regarding transferring
waitlist space.
The current wait list criteria is:
* Must have a /20 or less in total IPv4 holdings.
* May request up to a /22.
* Removed from list if IPv4 received via 8.3/8.4 transfer.
* Received ip space is eligible for needs-based transfer after
five years.
The Policy Experience Working Group would like your feedback on a
potential policy that would restrict the transfer of IP space
that has been obtained from the waiting list. In other words,
any IP address space received from the waiting list would be
ineligible for transfer indefinitely and encouraged to be
returned to ARIN if not in use. This policy would be specific to
transfers and not M & A’s.
The working group appreciates your feedback.
Thank you!
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