[members-discuss] [ncc-announce] [GM] Publication of Draft Charging Scheme Models 2024

Hello!

Resending the email after subscription to the RIPE NCC Members Discuss mailing list (please see below).

Regards,
Naira

"Have a great day!"  

-----Original Message-----
From: Naira Kuroyan 
Sent: Tuesday, April 18, 2023 11:13 AM
To: 'members-discuss at ripe.net' <members-discuss at ripe.net>; 'Simon-Jan Haytink' <simonjh at ripe.net>; ncc-announce at ripe.net
Cc: Vahagn Melikyan <vahagn.melikyan at telecomarmenia.am>; Aram Khalapyan <AKhalapyan at telecomarmenia.am>; Zaruhi Dadayan <zara.dadayan at telecomarmenia.am>; interconnect <interconnect at telecomarmenia.am>
Subject: RE: [ncc-announce] [GM] Publication of Draft Charging Scheme Models 2024

Dear RIPE NCC Team,

We have reviewed presented three draft models of Charging Scheme 2024 and here presenting our comments on behalf of "Telecom Armenia" OJSC.

We understand Community's need to cover LIRs consolidation risk and to ensure collection of the revenue required to maintain its operations, and aim to fulfil a budget that is the same as 2023.
However something seems inappropriate, in particular with the Model A - Category Model.
Please note that with this model in some cases the cost of membership charge may increase significantly, 6-7 times in particular for our LIR (even more than in model suggested by you in previous communication). There is no sense in increase of charge from current 1600 EUR/year to 10550 EUR/year in the following years, when nothing has changed in our business activities and in resources assigned for us. This is not acceptable for us and anyhow for any business. 
We can not imagine any case in the world when the charge for services increases for several times. We believe that the maximum increase level shall be limited to 20%.
You can imagine how the significant increase will impact the Company's business activities. E.g. we have planned our business cases and budget and requested resources from RIPE NCC with the existing charge level. 
Moreover, we have signed long-term contracts (3 years and more) with customers with prices calculated based on the existing costs, and in some cases it may be challenging or even not possible to change the pricing terms without risking a breach of contracts.
So it is not acceptable to switch from the model where we pay only for Membership and have assigned resources free of charge, to the model where RIPE NCC in fact starts charging for already assigned resources currently in use in our business, and at very high level.
We believe that new charges can be applicable to the new Members or the new resources to be assigned , but not to existing ones. 
As an alternative, discounts or other options for the price adjustment or payment plans offered for a long-standing members can be applied.
After the review of the last three models we believe that Charging Model A application will stimulate even more members with multiple LIR accounts to merge these accounts in the coming year.
One more note is concerning the remark that 67.69% of Members will pay less than they currently do, and 18.22% of Members will pay significantly more then they currently do. So in this situation even any further increase of charge for the minority of Members and corresponding decrease for the 67.69% of Members will encourage the majority to support this Model and vote for it. So we believe that the vote of these 18.22% members should have more weight in the calculation of the voting result.
At the same time it may be reasonable to take into consideration also the current economic situation in the World and the impact on Member's businesses, so we suggest also take a closer look at RIPE NCC's expenses to consider if its operations costs could be potentially optimized to help keep the membership fees at a reasonable level, ex. negotiating better deals, reducing some expenses, etc.
The significant increase of the price level is challenging and stuggleing for the Members (and their customers) from not stable and economically less developed regions. War or instability in the country region, polytical, economical, country development situation can have a significant impact on the local economy, with the ability of their members to pay increased charges, especially during difficult times.

Below you can see also some technical remarks regarding the Models.

In Model A - Category Model:
In this Model we suggest to add a short description for Definition of Category based on assigned multiple IPv4 and/or IPv6 resources.

In models B and C:
Suggested to add in the price list table "ASN Fee" row (similar to "Price List per Separate Charge" table in Model A)

In model C:
Transfer Fee - We suggest to describe that this charge is one-time payment in the year following the transfer. Also we suggest to describe that only one Transfer Fee (Euro 1000) is payable for each transfer application regardless of the number of and different type of transferable resources.

In all models: 
Suggested for avoidance of dual understanding to remove interpretation "AS Numbers are excluded from this charge." from description of  independent Internet number resource assignment charges.


We believe that some constructive adjustments in the new fee structure trying to balance the community's financial needs with the needs of its members will enable to find a solution that works for everyone.

Thank you.

Regards,
 
NAIRA KUROYAN
 
GLOBAL NETWORK CONNECTIVITY MANAGER 
+374 91 20 05 75         
NKuroyan at telecomarmenia.am
	
www.telecomarmenia.am 


-----Original Message-----
From: ncc-announce [mailto:ncc-announce-bounces at ripe.net] On Behalf Of Simon-Jan Haytink
Sent: Wednesday, April 12, 2023 5:46 PM
To: ncc-announce at ripe.net
Subject: [ncc-announce] [GM] Publication of Draft Charging Scheme Models 2024

Dear RIPE NCC members,

I want to thank all those who contributed to the consultation so far on the RIPE NCC Charging Scheme 2024 and the model we should use for the coming years.

We can now share three draft models that we developed based on input from the members on the Members Discuss mailing list and in the Charging Scheme Open House, as well as from the discussions at the recent Executive Board Meeting.

The result is that we are proposing three draft charging scheme models: one category-based and two that are based on the previous "one LIR account, one fee" model. We hope to receive feedback on these models by 19 April so the Executive Board can propose the final versions on 26 April. The members will then vote on those three models at the upcoming General Meeting on 24-26 May.

The three models all aim to fulfil a budget that is roughly the same as 2023 plus general cost increases including inflation, so EUR 42-45 million. By doing this, we can ensure that we can meet the potential budgetary requirements for 2024 while retaining the option for members to redistribute any excess contributions should we receive excess funds. The Activity Plan and Budget will be discussed with members this coming Autumn.

The three models are available to review at:
https://www.ripe.net/participate/mail/member-and-community-consultations/charging-scheme-2024-consultation 

We also provide an updated calculator where members can see for themselves how much they might pay under the draft models:
https://www.ripe.net/participate/mail/member-and-community-consultations/new-calculator-charging-scheme-2024.xlsx 

To summarise the main features of the three models:

Model A - Category Model

This model has ten categories to provide greater granularity. It also charges separately for independent and legacy resources in exactly the same way as in previous years. Additionally, a separate 50 EUR ASN assignment fee has been added. Both separately charged resources do not contribute to the category scores. This means there is no double charging and no specific charging for transfers or administrative work carried out by the RIPE NCC. There is a New /24 IPv4 administration fee to ensure there is a financial consequence to joining the IPv4 Waiting List. The fee would be payable upon receipt of the /24, and members joining the waiting list who do not have an eligible LIR account, would pay the new LIR sign-up fee to open a new LIR account and join the waiting list. 

With this model, approximately 68% of members would pay less than the current annual fee, with the remaining 32% paying more.

The discussion with members helped us to see that a category-based model would receive significant support from members if the version was simplified. Should members see the need to charge for other elements, then that can be incorporated into the category model in the coming years. Any such additional charges could potentially then reduce the fees per category.

Model B - Price increase and ASN fee

This model is the exact same as in the previous ten years, but there is a price increase of EUR 150 and a 50 EUR ASN fee to ensure we can meet our budgetary requirements while retaining the option for members to redistribute any excess contribution should we receive excess funds.

Model C - Transfer fee and ASN fee

This model is the exact same as in the previous ten years, but there is a charge of EUR 1,000 per transfer to be paid by the receiving party and a 50 EUR ASN fee to ensure we can meet our budgetary requirements while retaining the option for members to redistribute any excess contribution should we receive excess funds.

Further information on the charging scheme models is provided at:
https://www.ripe.net/participate/mail/member-and-community-consultations/charging-scheme-2024-consultation/ 

The RIPE NCC Executive Board believes that a category-based model is the best option to help address uncertainty that might be caused by consolidation with multiple LIRs and to provide greater flexibility and fairness in how we charge members in the coming years.

On 26 April, the final versions of the charging schemes that members will vote on will be published for the members to consider and discuss. If you have comments on the draft charging schemes, we therefore ask you to comment on the members-discuss mailing list by 19 April so we have time to incorporate any feedback if necessary.

Importantly, we ask all members to register for the RIPE NCC General Meeting where the final decision will be in your hands. Register to participate and vote at:
https://my.ripe.net/#/meetings/active 

Simon-Jan Haytink
Chief Financial Officer
RIPE NCC