[173143] in North American Network Operators' Group

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Re: Inevitable death, was Re: Verizon Public Policy on Netflix

daemon@ATHENA.MIT.EDU (Owen DeLong)
Thu Jul 17 07:49:38 2014

X-Original-To: nanog@nanog.org
From: Owen DeLong <owen@delong.com>
In-Reply-To: <20140715062403.GE17452@hezmatt.org>
Date: Thu, 17 Jul 2014 04:47:40 -0700
To: Matt Palmer <mpalmer@hezmatt.org>
Cc: nanog@nanog.org
Errors-To: nanog-bounces@nanog.org


On Jul 14, 2014, at 23:24 , Matt Palmer <mpalmer@hezmatt.org> wrote:

> On Mon, Jul 14, 2014 at 10:05:21PM -0600, Brett Glass wrote:
>> At 09:40 PM 7/14/2014, John Curran wrote:
>>=20
>>> Myself, I'd call such fees to be uniform,=20
>>=20
>> Ah, but they are not. Smaller providers pay more per IP address than =
larger ones. And a much
>> larger share of their revenues as the base fee for being "in the =
club" to start with.
>=20
> While the "share of revenue" argument is bogus (as John's =
cup-of-coffee
> analogy made clear), you do have a point with the cost-per-IP-address
> argument:
>=20
Annual Fee   Max CIDR    $/IP
$500         /40         <0.01
$1000        /36         way<0.01
$2000        /32         way way<0.01
$4000        /28         far <0.01
$8000        /24         way far <0.01
$16000       /20         tremendoulsy <0.01
$32000       > /20       Mastercard!

> Then again, the vast majority of businesses have discounts for volume
> purchases.  I note that even LARIAT does this.  You charge $60 for
> 1000Kbps, but $80 for 1500Kbps.  Shouldn't that be $90 for 1500Kbps, =
to
> ensure everyone pays the same price per Kbps?

More importantly, in those cases, you are paying for units of a product.

ARIN is a registry, kind of like your local DMV. Have you noticed that =
if you own more than one vehicle, you don't pay the same amount for =
those vehicles? Did you know that most DMV's have fleet registration =
discounts where you pay less per vehicle to register multiple vehicles?

In the case of ARIN, you are not buying IP addresses from ARIN. You are =
paying ARIN for the service
of registering the block(s) to you for uniqueness among cooperating =
entities.

So arguing about ARIN fees in terms of cost per IP is absurd.

Oh, and I've taken the liberty of correcting the prefix sizes in the =
above table to reflect the modern internet, rather than the antiquated =
prefix and pricing data presented before.

Owen


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