FeeStructure

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APNIC Fee Structure
Membership Fee Structure
IPv6 Fees for Confederations
APNIC Annual Member Meeting
Seoul, 3 March 2000
ASIA PACIFIC NETWORK
INFORMATION CENTRE
Membership Fee Structure
Background
Proposal
IPv4, IPv6 and Combined
Outcome
APNIC and Members
Implementation
Questions
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Background
Proposal presented to AMM 1999 (SG)
Decision deferred to future meeting
Updated proposal published
Wednesday 1 Dec 1999
Membership advised of fee changes
Friday 4 Feb 2000
Updated proposal published 15 Feb 2000
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Background
Current Structure - “Self-determined”
Members choose category
Small, Medium, Large, Very Large
Determines annual fee and number of votes
Problems
“Drift” from larger categories to smaller
No relationship between “size” and “cost”
Unfair distribution of funding burden
Serious concerns about future implications
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Background
Current Structure - “Self-determined”
Members choose category
Category
Small
Medium
Large
Very Large
Total
Ann Fee
2500
5000
10000
20000
Members
326
59
20
8
413
Note: Theoretical figures
Based on current membership only
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Total*
815000
295000
200000
160000
1470000
Share (%)
55
20
14
11
100
New Fee Structure
Proposed Structure - “Deterministic”
Minimum category determined by total IP allocations
Design structure so that...
Minimum conceptual change from current system
Category system maintained
APNIC income is maintained
Minimum number of members affected
System is simple
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New Fee Structure
Proposed Structure - “Deterministic”
Considering IPv4 and IPv6 separately
Category
Small
Medium
Large
Very Large
IPv4 Allocation
Up to and including /19
More than /19 up to /16
More than /16 up to /13
More than /13
IPv6 Allocation
Up to and including /35
More than /35 up to /32
More than /32 up to /29
More than /29
Question: How to deal with members holding IPv6
and IPv4 allocations?
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New Fee Structure
Combined allocations - IPv4 and IPv6
Assess as one membership
Choose larger of IPv4 and IPv6 category
Option: where equal, choose larger+1
Assess as two separate memberships
Recognises likely changes in IPv6 policies/fees
Recommend
 Assess as two separate memberships
Other suggestions?
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Impact - APNIC income
Outcome - IPv4 only
Based on allocations at 1 Feb 2000
Category
Small
Medium
Large
Very Large
Ann Fee
2500
5000
10000
20000
ASIA PACIFIC NETWORK
Members
314
70
22
7
413
INFORMATION CENTRE
Total*
785000
350000
220000
140000
1495000
Share (%)
53
23
15
9
100
Impact - Members
Summary of fee change impact
103 members have fee change (25% of total)
Difference
2500
5000
7500
17500
Total Members Affected
Total Increase or Decrease
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#Decrease
30
6
7
1
44
175000
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#Increase
44
9
6
0
59
200000
Impact - Members
Fee increase
Members with fee increase: 44
Total Fee increase: USD 175,000
Fee decrease
Members with fee decrease: 59
Total Fee decrease: USD 200,000
Net revenue gain: USD 25,000
1.7% increase in total APNIC revenues
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Impact - IPv6
Outcome - IPv6
Based on allocations at 1 Feb 2000
8 allocations so far - all /35
All assessed as Small members
5 allocations to new APNIC members
1 of these elected Medium category
3 allocations to existing APNIC members
Impact depends on treatment of combined allocations
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Implementation
New members
Structure should be effective immediately
Current members
Propose to change from 1 July 2000
All membership renewals after this date would be
assessed according to total allocations
Question: Pro-rata charge for increase in category
during term of membership?
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Summary
Benefits
Prevent “drift” to smaller categories
Members pay fees more fairly:
According to resources consumed
According to burden placed on APNIC secretariat
Fair sharing of APNIC funding
Increased security for future operations
Recommend implementation
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Memberships Fee Structure
Questions?
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APNIC Fee Structure
Membership Fee Structure
IPv6 Fees for Confederations
APNIC Annual Member Meeting
Seoul, 3 March 2000
ASIA PACIFIC NETWORK
INFORMATION CENTRE
IPv6 Fee for Confederations
Background
Proposal
Implementation
Questions
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Background
IPv6 allocations to confederations
NIR
No ‘pool’ of addresses held by NIR
Changing policy environment
Very little global experience
Members of NIR
NIR acts as “Agent” in forwarding request
Liaise with APNIC on behalf of their member
Problem
Determination of an appropriate fee?
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Proposal
IPv6 address architecture
 Every ‘site’ receives a /48
 Note each SLA is 65,536 /64 addresses
 Each /64 address can address a whole LAN and maybe dial up
users
Proposal - ‘per site’ fee under IPv6
Same as ‘per address’ fee under IPv4
e.g. USD 0.03 / site for Very Large members
Will apply where confederation is able to undertake
allocation process
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Implementation
Type
Minimum
SubTLA
Prefix
/35
/32
/29
SLAs
Price (0.03)
8192
65536
524288
USD
245.76
USD 1966.08
USD 15728.64
IPv4 equiv
/19
/16
/13
Different approach required for larger allocations
 Thus explicitly cap fees at /29 level
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Summary
Proposed IPv6 Fees for Confederations
Mirrors existing “per-address” fee structure
Ensures fair contribution to APNIC operating costs
Far lower per-customer cost for ISP networks
Recommendation
Review pricing structure after experience
 As variations in global policy occur
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IPv6 Fee for Confederations
Questions?
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