The industry will go 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 The RIPE NCC income from service fees is expected to increase

the workload for the RIPE NCC in the coming years.As

as a result of this, the the increase in membership in 2011 and the expected continued increase in membership in 2012. 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 budgeted costs for 2011 are 6% 2012 are 7% higher than the budgeted costs for 2010. This is a result of the increased staff levels and greater operational expenses necessary to support the expected increase in the RIPE NCC's workload. 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. For the particulars, please see: “RIPE "RIPE NCC Activity Plan

2011 Link: /publications/docs/ripe-506/ ”.RIPE NCC

2012".

RIPE NCC Budgeted Statement of Income & Expenditure 2012

Development of

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	Difference
Income	2011	2010	2010	11/B 10	11/10
Service Fees	17,191	15,919	16,250	1,272	941
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
End User Fees
232	167	150	65	82
RIPE Meeting	250	281	245	(31)	5
Other Income	218	215	186	3	250	200		232	50	18
RIPE Meetings	250	250		250	-	-
Other Income	250	250		218	-
32
Total Income	17,891	16,582	16,831	1,309	1,060	19,151	18,550		17,891	601	1,260
Expenditure
Personnel Expenses	10,268	9,259	9,266	1,009	1,002
General Operating Expenses	4,665	4,651	3,929	14	736
RIPE Meeting	857	809	950	48	(93)
Training Courses	383	337	308	46	75
Regional Meetings	263	160	225	103	38
Financial Expenses	108	98	100	10	8
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
Subtotal Operational Expenses	16,544	15,314	14,778	1,230	1,766	17,510	15,992		16,544	1,518	966
Miscellaneous Expenses	250	370	140	(120)	110
Depreciation	1,481	1,621	1,400	(140)	81
Total Expenses	18,275	17,305	16,318	970	1,957
Surplus/Deficit Before Interest Income	(384)	(723)	513	339	(897)
Interest Income	300	400	325	(100)	(25)
Surplus/Deficit	(84)	(323)	838	239	(922)
Capital expenditure	2,540	2,766	1,440	(226)	1,100
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
Interest Income	400	365		300	35	100
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 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.

Year	Surplus/ Deficit	Capital at 31 December	Total Expenses Per Year	% Capital of Expenses
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	842	17,229	14,683	119%
Estimated 2010	838	18,067	16,318	111%
Budget 2011	(84)	17,983	18,275	98%
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	99%

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

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

Expenses per Activity

Overall, expense levels increase in 2011. For Membership Services, this increase is a result of the expected increase in the number of resource requests caused by RIPE policy Proposal 2009-03, Run Out Fairly. In addition, the RIPE NCC will further enhance its data quality and the procedures around its data quality and registration. For 2011, a continuous high level of Coordination Activities is planned to cater for all activities surrounding the depletion of the IPv4 address pool.

In line with one of the key strategies of the RIPE NCC to further the RIPE NCC as a trusted source of data, the cost for Information Services is increased in 2011. This increase is caused by the enhancement of the successful RIPE Labs platform and additional efforts will be made to further develop the RIPE Labs community. In 2010, the development of an active measurement network started, and in 2011 this development will continue. In mid-2011, the prototype will be analysed and a decision will be made on whether or not to develop a service from this prototype.

	Budget 2011		Budget 2010		Difference
Amounts in kEUR	Amount	%	Amount	%	Amount	%
Membership Services	7,347	45%	6,623	43%	724	11%
Coordination Activities	6,316	38%	6,605	43%	(289)	-4%
Information Services	2,881	17%	2,086	14%	795	38%
Total Operational Expenses	16,544		15,314		1,230	8%

The table below shows new or significantly developed activities for 2011. The figure presented is the direct allocated costs and does not include an overhead or management fee.

Activity	Operational Expenses	Capital Expenses
Active Measurements	271 kEUR	110 kEUR

Income and Fees per Billing Category (Based on the Proposed Charging Scheme 2011)

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 Local Internet Registries (LIRs)	Annual Fee in EUR	Amount in kEUR
New Members
Sign-up Fee	620	2,000	1,240
Service Fee, Extra Small	620	1,300	485
Existing Members
Extra Small	1,589	1,300	2,066
Small	3,875	1,800	6,975
Medium	1,409	2,550	3,593
Large	282	4,100	1,155
Extra Large	70	5,500	387
Independent Resources			1,200
Miscellaneous Income			90
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
Total Service Fees			17,191			18,401
End User Fees		€1,300	250
RIPE Meeting Fees			250
Other Income			250
Total Income			19,151