[ncc-services-wg] Charges for legacy holders

Dear colleagues,

I'd like to provide some background on the Executive Board's decision to
propose the provisions regarding charges for legacy holders in the 2015
Charging Scheme. The board discussed these at length and wanted to
achieve a balance between meeting the needs of legacy holders and
meeting the needs of RIPE NCC members, who the board is tasked with
representing.

First of all, the four options in the Charging Scheme regarding legacy
space correspond directly to the four options (sections 2.1, 2.2, 2.3
and 2.4) in Policy Proposal 2012-07:
http://www.ripe.net/ripe/policies/proposals/2012-07

Option 2.4, according to the proposal, is for those legacy holders who
meet the criteria to engage with a sponsoring LIR "but cannot find a
Sponsoring LIR with which a mutually satisfactory contract of the kind
mentioned in that section". The board sees this option as being for
legacy holders who are*unable*  to find a sponsoring LIR rather than
those who*do not want*  to find a sponsoring LIR.

The fourth option in the Charging Scheme addresses this need to provide
a direct contract for those who cannot find a sponsoring LIR with which
to engage. For the RIPE NCC to provide this option, a new category of
service provision will have to be established. Aside from the legal and
administrative work involved, the RIPE NCC's support, operating and
business systems will need to be updated.

The board feels that membership should not fully subsidise the cost of
this work but that the costs should mainly rest with those for whom
the service is being provided. The work involved in bringing legacy holders into
the membership requires little work on the RIPE NCC's part by
comparison, hence the waiving of the sign-up fee.

The board is also keen to keep the Charging Scheme in line with
the "one-LIR, one fee" principle accepted by the
membership in 2012. By charging the same fee for LIRs and those legacy
holders who would like to have a direct contract with the RIPE NCC, the
board believes that this does not put the RIPE NCC in a position where
it is competing with its members.

In 2011, when the RIPE NCC previously charged Direct Assignment Users
(DAUs) who wished to have a contract directly with the RIPE NCC rather
than a sponsoring LIR, the DAUs were charged the same sign-up fee as
members as well as an annual fee of 1,300 euros (the same as an Extra
Small LIR at the time). We believe the proposed Charging Scheme 2015
follows this precedent.

The board will set aside as much time as is necessary at the upcoming
General Meeting to discuss the issue of charging for services to legacy
holders. If the membership feels the Charging Scheme 2015 is not
acceptable and decides to vote against it, the board will discuss the
issue over the Summer and present a new Charging Scheme 2015 at the
Autumn GM in London. The 1,600 euro fee for LIRs proposed in the
Charging Scheme would remain the same, so members can still budget for
the year ahead.

On a separate note, the proposed implementation plan for the RIPE Policy
"RIPE NCC Services to Legacy Internet resource Holders" deals with the
contractual changes necessary for the RIPE NCC to implement new
processes and is independent of charging issues.

I hope this helps you to understand the board's thinking in proposing
the charging scheme. We will continue to follow discussions on the
mailing list and look forward to hearing your views at the RIPE NCC
Service Working Group and the RIPE NCC General Meeting on 14 May.

If you would like to contact the board directly, you can email us at
<exec-board at ripe.net>.

Best regards,

Nigel Titley
RIPE NCC Executive Board Chairman

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