RIPE NCC TTM Service Fee Proposal

["Henk Uijterwaal \(RIPE-NCC\)" <]

Dear Test-Box hosts,

Please read this mail carefully, as it contains important information
about the way the Test Traffic Measurement Service is operated by the
RIPE NCC.  If you are "only" the technical contact for the Test-
Box(es) at your site, please pass this mail on to appropriate person.

Comments, questions, flames and general abuse to the tt-wg@localhost list
in the next 2 weeks please.

Kind regards,

Henk

============================================================================

RIPE NCC TTM Service Fee Proposal
---------------------------------

This mail is a follow-up to the discussion on this topic at various
RIPE meetings over the last year.  As you probably remember, the RIPE
NCC membership agreed in October 2000 that the RIPE NCC should start
to charge the costs for operating the test-boxes to the sites hosting
them.

However, it later became unclear if charging a service fee was
possible under the present tax status of the RIPE NCC. We meanwhile
have discussed this with the Dutch tax authorities and the outcome of
this discussion is:

* BTW (or Dutch VAT) will have to be paid on any new TB-hardware, the
  exact rates depend on the location and legal status of the customer.
  This does not affect the RIPE NCC tax status.

* VpB (aka CIT or "Corporate Tax"): Provided that the RIPE NCC
  includes TTM in a clearing house system, the potential results from
  TTM will not be charged and the RIPE NCC can charge a service fee
  for test-box operations.   Again, this does not affect the RIPE NCC
  tax status.

This means that the RIPE NCC can start to charge the service fee for
the Test-box operations as planned.

Last month, we checked the numbers for the operational costs for the
test-boxes in 2001.  Our conservative (high) estimate was around Euro
370,000 in 2001.  Assuming an average of 100 boxes in 2001, this
results in the following service fees:

 - 3000 Euro/year        
 - 1500 Euro/year: The 2nd through 9th box operated by the same legal
                   entity, even if they are at different PoP's.
 -    0 Euro/year: The 10th and further boxes

The service fee will be pro-rated for sites joining later in the year.

These service fees are first guess based on a conservative estimate.  
After the first year, the numbers for the operational costs will be
revised and adjusted.  If the service fee was too high, then any
profit will be returned to you using a clearing house construction.
This is the same model as used for the LIR-service, however, TTM and
LIR operations will be financially completely independent.

Starting date
-------------

At RIPE39, we proposed to start charging on JULY 1, 2001.

There were no objections against this, however, as not all current TB
hosts were represented in that meeting, we decided to take this point
to the mailing list.  This email is therefor your chance to comment
on this date.

No budget?
----------

We are aware that a number of the first generation test-boxes
(numbers tt01 through tt47) are hosted by sites interested in network
research or similar activities.  These sites often have no or a
limited budget for test-box operations.  However, they are essential
for creating a world-wide network of test-boxes and the RIPE NCC does
not want to lose any of those test-box hosts.

For these sites, we have some possibilities to lower or drop the
service fee.  If you think that your site qualifies for this, please
send me a short email explaining why and we can discuss things from
there.

Implementation details: Test-boxes tt01 - tt47
----------------------------------------------

As announced before, the sites hosting one of these boxes will get
the hardware that is currently installed at their site for free, as
is.  There will be no warrantee on these test-boxes.  Also, no
service fee will be charged for the first 6 months of 2001, so for
the remainder of 2001 one pays 1500 Euro for the first test-box, 750
for the next ones.

In order to establish a formal business relation with your site, it
will be necessary to sign a service contract.  The text of this
contract can be found in RIPE document 214, available from the RIPE
document store at:

  http://www.ripe.net/ripe/docs/ripe-214.html

To generate a customized version of this contract, go to

  http://www.ripe.net/ripencc/mem-services/ttm/Host_testbox/

and fill out the form.  In section 1.2, check the "no" box, in
section 1.6, select the "0 Euro/no hardware" and the "0 Euro/Test-box
already installed" options.

After you have filled out the form, press "check", then press "order
a test-box" on the next page.  This will generate the necessary
documents.  Please print 2 copies, sign them and send them to the
RIPE NCC.  We will sign them as well and return one copy to you,
together with an invoice for the service fee.

There is no deadline for this, but the sooner we have the contracts in
place, the better that is for us.  However, we fully understand that you
may need time to discuss this with your manager before signing.

Test-boxes tt48 and higher
--------------------------

No service fee will be charged for the first 6 months of 2001.  You
will receive an invoice for the remainder of 2001, for half the
yearly fee. No action from your site is required at the moment.

Questions, Comments
-------------------

Please send questions and comments on this email to the
tt-wg@localhost list.  Note that you have to be subscribed to this
list before your mail is accepted.



------------------------------------------------------------------------------
Henk Uijterwaal                    Email: henk.uijterwaal@localhost
RIPE Network Coordination Centre     WWW: http://www.ripe.net/home/henk
Singel 258                         Phone: +31.20.5354414
1016 AB Amsterdam                    Fax: +31.20.5354445 
The Netherlands                   Mobile: +31.6.55861746  
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