Dear colleagues

Version 2 of prop-116: Prohibit to transfer IPv4 addresses in the final
/8 block, did not reach consensus at the APNIC 42 Open Policy Meeting.

The Policy SIG Chair returned the proposal to the author for further
work. The author may propose an amended version of the proposal at a
future meeting.


Proposal details
----------------

The proposal seeks to ensure the distribution of the 'Final /8' (103/8)
block is consistent with its original purpose, for distribution for new
entrants to the industry.

Proposal details, including the full text of the proposal, history, and
links to the APNIC 42 meeting archive, are available at:

         http://www.apnic.net/policy/proposals/prop-116

Regards

Masato and Sumon


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

prop-116-v002: Prohibit to transfer IPv4 addresses in the final /8 block

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

Proposer:       Tomohiro Fujisaki
                [email protected]




1. Problem statement
--------------------

There are a lot of transfers of IPv4 address blocks from 103/8
happening, both within the APNIC region and among RIRs.

Then number of transfer from 103/8 block are about 200, which is
about 12% of the total number of transfers. This looks so hight
high, since APNIC manages about 40/8.

And based on the information provided by APNIC secretariat, number
of transfers from the 103/8 block are increasing year by year.

Provided by George Kuo on the sig-policy ML at 8th September 2016:

1) M&A transfers containing 103/8 space

+------+-----------+-----------+-
|      |   Total   | Number of |
| Year | Transfers |   /24s    |
+------+-----------+-----------+-
| 2011 |         3 |         12 |
| 2012 |        10 |         46 |
| 2013 |        18 |         66 |
| 2014 |       126 |        498 |
| 2015 |       147 |        573 |
| 2016 |        45 |        177 |
+------+-----------+------------+-

2) Market transfers containing 103/8 space

+------+-----------+-----------+
|      |   Total   | Number of |
| Year | Transfers |   /24s    |
+------+-----------+-----------+
| 2011 |         2 |         2 |
| 2012 |        21 |        68 |
| 2013 |        16 |        61 |
| 2014 |        25 |        95 |
| 2015 |        67 |       266 |
| 2016 |        56 |       206 |
+------+-----------+-----------+


And also, transfers from the 103/8 block include:
  - Take place within 1 year of distribution, or
  - Multiple blocks to a single organization in case of beyond 1 year.

Further, there is a case where a single organization have received 12
blocks transfers from 103 range.

see:  https://www.apnic.net/transfer-resources/transfer-logs

>From these figures, it is quite likely that substantial number of 103/8
blocks are being used for transfer purpose.

This conflicts with the concept of distribution of 103/8 block
(prop-062), which is intended to accommodate minimum IPv4 address blocks
for new comers.

prop-062: Use of final /8
https://www.apnic.net/policy/proposals/prop-062


2. Objective of policy change
-----------------------------

When stated problem is solved, distribution from 103/8 block will be
consistent with its original purpose, for distribution for new entrants
to the industry. Without the policy change, substantial portion of 103/8
blocks will be consumed for transfer purpose.


3. Situation in other regions
-----------------------------

RIPE-NCC has been discussing to prohibit transfer under the final /8
address block.


4. Proposed policy solution
---------------------------

Prohibit transfer IPv4 address under /8 address block (103/8).
If the address block allocated to a LIR is not needed any more, it have
to return to APNIC to allocate to another organization.

In the case of transfers due to M&A, merged organization can have
up to /22 IPv4 address in the 103/8 block. The 103/8 IPv4 address
more than /22  have to return to APNIC to allocate to another
organization.


5. Advantages / Disadvantages
-----------------------------

Advantages:
  - It makes 103/8 blocks available according to the original purpose,
    as distribution for new entrants (rather than being consumed for
    transfer purpose)

  - IPv4 addresses under final /8 are not transferred to outside APNIC.

  - By prohibiting transfer them, it is possible to keep one /22 for
    each LIRs state,  which is fair for all LIRs.

Disadvantages:

None.


6. Impact on resource holders
------------------------------

  - LIRs cannot transfer address blocks under 103/8. No big impact while
    they use it.

  - Organizations which needs to receive transferred IPv4 can continue
    to do so, outside 103/8 blocks (which should be made available for
    new entrants)


7. References
-------------
*              sig-policy:  APNIC SIG on resource management policy           *
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