Transcript TWNIC’s New Fee Structure 13th APNIC Open Policy Meeting Chia-Nan Hsieh [email protected] Taiwan Network Information Center.

TWNIC’s New
Fee Structure
13th APNIC Open Policy Meeting
Chia-Nan Hsieh
[email protected]
Taiwan Network Information Center
CONTENT





Current TWNIC Fee Structure
Comparison with APNIC and other NIRs
Why Change?
Proposals
Conclusions
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TWNIC’s current fee
structure
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1. TWNIC’s current fee structure

Established in Dec.1999
–

Didn’t charge anything for IP allocations/assignments
Current fee structure (started Jan. 2001)
–
–
Allocation fee
NT$5,000 per /20
Annual maintenance fee
Tier
Large
Address Space
Over /17
Maintenance fee
NT$ 60,000
Medium
Small
/19 - /17(include)
/19(include)
NT$ 30,000
NT$ 7,500
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Comparison with APNIC
and other NIRs
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APNIC’s fee structure
1.
2.
3.
First Allocation Fee (One time)
USD$2,500 = NT$ 87,500
Per Address Fee (only for confed. members)
USD$0.02 = NT$ 0.7
(35:1)
Address
Membership fee Membership
US$
NTD$
Tier
space
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Associate
None
$625
$21,875
Very small
< /22
$1,250
$43,750
Small
/22 - /19
$2,500
$87,500
Medium
/19 - /16
$5,000
$175,000
Large
/16 - /13
$10,000
$350,000
Very large
> /13
$20,000
$700,000
Extra large
> /10
$40,000
$1,400,000
KRNIC’s fee structure
1.
2.
Start-up Fee (One Time)
2,200,000 Won = NT$ 59,459
Annual fee
Tier
The allocated IP addresses
Level 1 /14 (1024)
<X
Level 2 /15 (512)
<X=
Level 3 /16(256)
Won
(1:37)
NTD
$30,000,000
$810,811
/14(1024)
$20,000,000
$540,541
<X=
/15(512)
$15,000,000
$405,405
Level 4 /17(128)
<X=
/16(256)
$8,000,000
$216,216
Level 5 /18 (64)
<X=
/17 (128)
$5,000,000
$135,135
Level 6 /19 (32)
<X=
/18 (64)
$3,000,000
$81,081
Level 7
<X=
/19 (32)
$2,000,000
$54,054
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JPNIC’s fee structure
1.
2.
3.
Contract Fee (One time)
250,000 Yen = NT$ 67,568
Per Assignment Fee
Category
/11
4,500 Yen = NT$ 1,216 Over
Under /11
Annual maintenance fee Under /12
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(1:3.7)
Yen
NTD
3,600,000
972,973
3,600,000
972,973
2,800,000
756,757
Under /13
2,160,000
583,784
Under /14
1,600,000
432,432
Under /15
1,120,000
302,703
Under /16
720,000
194,595
Under /17
400,000
108,108
Under /18
240,000
64,865
Under /19
200,000
54,054
Under /20
100,000
27,027
Fees comparison (I.)
- one-time fee & allocation fee
APNIC
One time fee
NT$ 87,500
Allocation fee
NT$ 0.7 / per address
KRNIC
JPNIC
NT$ 59,459
NT$ 67,568
n/a
NT$1,216 / per allocation
TWNIC
n/a
NT$1.22 / per address
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Fees comparison (II.)
- annual maintenance fee
Category
APNIC
JPNIC
KRNIC
Average
TWNIC
Over /10
1,400,000
972,973
810,811
1,061,261
60,000
17.69
Under /10
700,000
972,973
810,811
827,928
60,000
13.80
Under /11
700,000
972,973
810,811
827,928
60,000
13.80
Under /12
700,000
756,757
810,811
755,856
60,000
12.60
Under /13
350,000
583,784
810,811
581,532
60,000
9.69
Under /14
350,000
432,432
540,541
440,991
60,000
7.35
Under /15
350,000
302,703
405,405
352,703
60,000
5.88
Under /16
175,000
194,595
216,216
195,270
60,000
3.25
Under /17
175,000
108,108
135,135
139,414
30,000
4.65
Under /18
175,000
64,865
81,081
106,982
30,000
3.57
Under /19
87,500
54,054
54,054
65,203
7,500
8.69
Under /20
87,500
27,027
54,054
56,194
7,500
7.49
TWNIC charges 7 – 17 times less than 3 NICs’ average
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Times
Why Change?
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1. APNIC’s new fee structure

2001/8/31, 12th APNIC Open Policy Meeting
–
–
–
New tier ‘Extra Large’ approved
TWNIC’s tier
Very Large -> Extra Large
Annual fee
US$20,000 -> US$40,000
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2. IP Dept. cost recovery


Reduce Cross-Subsidies, i.e. more financial
independence
Income (2001)
–
–
–

Maintenance fee
Allocation fee
Total
NT$ 840,000
NT$ 2,430,000
NT$ 3,270,000
Cost (2001)
–
–
–
–
APNIC membership fee
Per Address fee
Operation cost
Total
NT$ 700,000
NT$ 2,511,667
NT$ 3,760,000
NT$ 6,971,667
Net loss: NT$3,701,667
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Personnel`,
Office space,
Sw/Hw,
Training…
Proposals
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Principals


Balancing! - TWNIC is a nonprofit
organization
Total income = Total cost
–
–
–
Variable income = Variable cost
Fixed income = Fixed cost
Calculations based on 2000 data
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Variable income = Variable cost

Variable Income
–

Variable cost
–


Allocation fee
APNIC Per address fee
NT$5,000(per /20) x K1 = NT$0.7(per /32) x 4,096
→ K1 = 0.57
Proposed new IP maintenance fee
NT$ 5,000 x 0.6 = NT$3,000 (per /20)
Allocation fee to decrease 40%
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Fixed income = Fixed cost

Fixed income
–

Fixed cost
–
–

Maintenance fee (Annual)
APNIC Membership fee (Annual)
Operation cost (½ for the first phase) (Annual)
840,000 x K2 = 1,400,000 + 1,880,000
→ K2 = 3.9
Maintenance fee to increase 400%
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Fixed income = Fixed cost (Cont.)
•Target value computation
Annual fee
Adjusted
Annual fee
Tier
No. of ISPs
Large
7
$60,000
$240,000
$1,680,000
Medium
8
$30,000
$120,000
$960,000
Small
24
$7,500
$30,000
$720,000
Total
$3,360,000
Target value
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First Proposal
1.
2.
Allocation fee
NT$3,000 per /20
Maintenance fee
Tier
Address Space
Extra Large
over /13
$480,000
Large
/16 - /13(include)
$240,000
Medium
/19 - /16(include)
$120,000
Small
Under /19(include)
$30,000
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Maintenance Fee
X2
X2
X4
Inputs from ISPs
- 2002.1.24, TWNIC IP delegate meeting
Agreed with fees increase, suggested:
1. More tiers
2. Less fee gap between tiers
Maintenance
3. Economic scale
Fee
4. Request for proposals
$480,000
$240,000
$120,000
$30,000
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X2
X2
X4
Second Proposal
Tier
Address
Space
Maintenance
Fee
Rounded
9
over /12
441,081
441,000
8
over /13
400,982
7
over /14
6
# of
ISPs
1
Increasing
rate*
Total
441,000
1.10
401,000
0
1.20
334,152
334,000
0
1.30
over /15
257,040
257,000
2
514,000
1.40
5
over /16
183,600
184,000
3
552,000
1.50
4
over /17
122,400
122,000
0
1.60
3
over /18
76,500
77,000
6
462,000
1.70
2
over /19
45,000
45,000
4
180,000
1.80
1
over /20
25,000
25,000
23
575,000
39
2,724,000
NT$ 636,000 less than target value
* Maintenance fee increases as the tier gets larger by a rate that decreases 10% every tier
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Inputs from ISPs
- 2002.2.21, TWNIC IP delegate meeting




Two ISPs presented alternative proposals
Consensus was TWNIC’s second proposal
2002.2.22 TWNIC IP Committee approved the
new fee structure on condition that TWNIC
must review and re-evaluate the outcome
after one year
New fee structure began effective from
2002.3.1
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Scenario I. Tier 6


An ISP obtains a /15 address space in a year
With old fee structure
–
–

Tier:
Cost:
Large
Maintenance fee
Allocation fee
Total
NT$30,000
NT$160,000 (32x5,000)
NT$190,000
With new fee structure
–
–
Tier:
Cost:
6
Maintenance fee
Allocation fee
Total
NT$257,000
NT$96,000 (32x3,000)
NT$353,000
(Raised 186
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%)
Scenario II. Tier 4


An ISP obtains a /17 address space in a year
With old fee structure
–
–

Tier:
Cost:
Medium
Maintenance fee
Allocation fee
Total
NT$30,000
NT$40,000 (8x5,000)
NT$70,000
With new fee structure
–
–
Tier:
Cost:
4
Maintenance fee
Allocation fee
Total
NT$122,000
NT$24,000 (8x3,000)
NT$146,000
(Raised 209
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%)
Scenario III. Tier 1


An ISP obtains a /20 address space in a year
With old fee structure
–
–

Tier:
Cost:
Small
Maintenance fee
Allocation fee
Total
NT$7,500
NT$5,000 (1x5,000)
NT$12,500
With new fee structure
–
–
Tier:
Cost:
1
Maintenance fee
Allocation fee
Total
NT$25,000
NT$3,000 (1x3,000)
NT$28,000
(Raised 224
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%)
Conclusions




TWNIC is a nonprofit organization
Fee schedule changes aimed to reflect costs
IP Dept. to be more financially independent
TWNIC to provide higher standard of service
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