The RIPE NCC income from service fees is The industry will be going through a period of change, as the exhaustion of IPv4 addresses draws nearer. This is reflected by the development of policies and service introductions around this issue, some of which are expected to increase as a result of the increase in membership in 2011 and the expected continued increase in membership in 2012. the workload for the RIPE NCC in the coming years. As a result of

the rejection of the Charging Scheme 2012, the income presented in the budget is based on the Charging Scheme 2011, which will continue to apply.

In the near future, the RIPE NCC will deplete its free IPv4 address pool. This will have a substantial effect on the RIPE NCC budget and its cost development over the coming period. Generally speaking, the RIPE NCC budget will increase because of the IPv4 depletion. This is a result of the increased work on ensuring accuracy of registration, including additional audits, thorough review of IPv4 requests and the impact of the "Run Out Fairly" policy.

The

this, the budgeted costs for 2012 are 7% 2010 are 13% higher than the budgeted costs for 2011. This is caused by increased outreach and training activities to support IPv6 adoption, increased costs to cater for IPv4 depletion and the enhancement of Information Services and Measurement activities. 2009. This is the result of the increased staff levels and greater operational expenses necessary to support the expected increase in the RIPE NCC's workload. For the particulars, please see: "RIPE “RIPE NCC Activity Plan

2012".

RIPE NCC Budgeted 2010”.RIPE NCC Statement of Income & Expenditure 2012

Expenses per Activity

Below is an overview of the full-time equivalents (FTEs), operational expenses and capital expenses per activity. FTEs are rounded to absolute numbers. All amounts are in kEUR. The overview is presented on two levels.

In kEUR	Budget
LE	Budget	Difference
Income	2012	2011		2011	12/11	12/B11
Existing Member Fees	16,725	15,950		16,031	775	694
New Member Fees	1,676	1,900		1,160	(224)	516
Estimate	Difference
Income	2010	2009	2009	10/B 09	10/09
Service Fees	15,919	14,457	14,214	1,462	1,705
End User Fees	250	200		232	50	18
RIPE Meetings	250	250		250	-	-
Other Income	250	250		218	-	32
Total Income	19,151	18,550		17,891	601	1,260
167	199	99	(32)	68
RIPE Meeting	281	255	208	26	73
Other Income	215	255	175	(40)	40
Total Income	16,582	15,166	14,696	1,416	1,886
Expenditure
Personnel Expenses	10,958	10,000		10,268	958	690
Housing	774	725		750	49	24
Office Costs	587	450		500	137	87
Marketing / ER	488	500		666	(12)	(178)
Contributions	399	400		382	(1)	17
IT Infrastructure	886	800		857	86	29
Travel	885	850		820	35	65
Consultancy	982	655		690	327	292
RIPE Meetings	748	800		857	(52)	(109)
Training Courses	363	290		383	73	(20)
Regional Meetings	322	402		263	(80)	59
Financial Expenses	118	120		108	(2)	10
9,259	8,232	8,400	1,027	859
General Operating Expenses	4,651	4,224	3,803	427	848
RIPE Meeting	809	606	631	203	178
Training Courses	337	399	306	(62)	31
Regional Meetings	160	190	190	(30)	(30)
Financial Expenses	98	85	85	13	13
Subtotal Operational Expenses	17,510	15,992		16,544	1,518	966
Miscellaneous Expenses	250	150		250	100	-
Depreciation	1,823	1,750		1,481	73	342
Subtotal Miscellaneous Expenses & Depreciation	2,073	1,900		1,731	173	342
Total Expenses	19,583	17,892		18,275	1,691	1,308
15,314	13,736	13,415	1,578	1,899
Miscellaneous Expenses	370	248	200	122	170
Depreciation	1,621	1,307	1,020	314	601
Total Expenses	17,305	15,291	14,635	2,014	2,670
Surplus/Deficit before interest income	(723)	(125)	61	(598)	(784)
Interest Income	400	365		300	35	100	855	775	(455)	(375)
Surplus / Deficit	(32)	1,023		(84)	(1,055)	52
Capital Expenditure	2,278	1,525		2,540	753	(262)
Number of FTEs	129	127		130.5	2	(1.5)

Level 1	Level 2			FTEs	OPEX	CAPEX
The Registry				44	4,347	881
		Registry		27	2,971	105
		Customer Service		6	623	144
		RPKI		3	139	402
		RIPE Database		8	614	230
The Membership				16	2,420	116
		Training		8	966	101
		Regional Support		2	540	-
		Membership Activities		6	814	15
Technical Coordination				3	469	28
		K-Root Operations		1	135	28
		DNS Services		1	105	-
		ICANN/IETF/NOGs		1	229	-
RIPE - Policy and Community Support				11	1,861	18
		RIPE Policy and Community Support		6	604	-
		RIPE Meetings		5	1,257	18
Outreach and External Relations				4	868	-
		Government, LEA Liaison		1	358	-
		Outreach & PR		2	427	-
		IPv6 Support		1	83	-
Information and Measurement Services				19	2,295	376
		Information Services		10	1,472	210
		Measurement Services		9	823	166
Admin and Support				32	5,350	859
		Housing and IT		14	2,722	798
		HR & Management		7	1,276	21
		Finance & Admin		9	955	40
		Legal & Information Security		2	397	-
Total				129	17,510	2,278

Development of the

(323)

730

836

(1,053)

(1,159)

Development of RIPE NCC Reserves

The table below summarises the RIPE NCC's capital development. The capital consists of the RIPE NCC reserves, reserves including the surplus/deficit for the year at issue.

expenses per year

Year	Surplus/ Surplus / Deficit	Capital at 31 December	Total Expenses Per Year	% Capital of Expenses
2004	2,698	9,986	9,739	103%
2005	2,684	12,670	9,420	135%
2006	2,483	15,153	9,980	152%
2007	1,070	13,764*	11,674	118%
2008	2,623	16,387	11,765**	139%
2009	821	17,409	14,683	119%
2010	714	18,123	16,561	109%
Estimated 2011	1,023	19,146	17,892	107%
Budget 2012	(32)	19,114	19,583
Estimated 2009	836	17,424	14,635	119%
Budget 2010	(323)	17,101	17,305	99%

Note: *The capital in 2007 includes the member rebate of EUR 2.5 million.

**The total expenses 2008 include a payback pay back from the Personnel Fund of EUR 1.5 million

Expenses per Activity

Overall, expense levels increase in 2010. For Membership Services, this increase is a result of enhanced registry services, such as Internet Number Resource Certification, and an increased focus on data quality. The substantial increase in expenses for Coordination Activities is due to the increased External Relations efforts and increased RIPE meeting expenses.

In 2009 substantial investments were made to improve Information Services. For 2010 certain areas continue to be further enhanced but the overall costs for Information Services will decrease with improvement projects being completed. Previously the table below was shown including miscellaneous expenses, these are costs like Bad Debts and Depreciation that not directly attributable to any activity. Therefore for the Budget 2010 these have been excluded.

	Budget 2010		Budget 2009		Difference
Amounts in kEUR	Amount	%	Amount	%	Amount	%
Membership Services	6,623	43%	6,301	46%	322	5%
Coordination Activities	6,605	43%	5,334	39%	1,271	24%
Information Services	2,086	14%	2,101	15%	(15)	-1%
Total Operational Expenses	15,314		13,736		1,578	11%

The table below shows new or significantly developed activities for 2010. The figure presented is the direct allocated costs and does not include an overhead or management fee.

Activity	Direct costs	Capital Expenses
Support for Internet Number Resource Certification	57 kEUR	259 kEUR
Implementation of policy 2007-01	124 kEUR	-
Registration Data Quality	116 kEUR	-
RIPE Labs	214 kEUR	-
Information Services	252 kEUR	150 kEUR

Income and Fees per Billing Category (Based on the Charging Scheme 2009)

Local Internet Registries (LIRs)

members

Note:Income received from new members is estimated on the basis of the budgeted number of new Local Internet Registries (LIRs) per month multiplied by the pro rata annual service fee.

Income	No. of Members	Annual Fee in EUR	Fee	Amount in kEUR
New Members
New Members	600	€2,000 + Service Fee	1,676
Existing Members
XS	1,409	€1,300	1,832
S	4,188	€1,800	7,538
M	1,490	€2,550	3,800
L	299	€4,100	1,226
XL	65	€5,500	357
PI Assignment Charge	28,101	€50	1,405
Miscellaneous Income			100
Sign-up Fee	650	2,000	1,300
Service Fee, Extra Small	650	1,300	524
Existing members
Extra Small	1,459	1,300	1,897
Small	3,540	1,800	6,372
Medium	1,288	2,550	3,284
Large	258	4,100	1,058
Extra Large	64	5,500	352
Independent resources			1,132
Total Service Fees			18,401
End User Fees		€1,300	250
RIPE Meeting Fees			250
Other Income			250
Total Income			19,151
		15,919