ARIN’s new fee to be proportional to the IPV4 block size

ARIN’s new fee to be proportional to the IPV4 block size is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• ARIN has introduced a new fee that will take effect at the beginning of next year.
• When the transfer transaction occurs and is approved, the Recipient shall pay the Recipient transfer processing fee.
• It is important to note that any fees paid to ARIN will not be refunded.

ARIN, the American Registry for Internet Numbers has announced a new fee transfer processing fee to be paid by the recipient. This fee will be effective from the 1st of January 2023 and has been decided based on the decision of the ARIB Board of Trustees. The key highlight of this fee is that the new fee would be proportional to the IPV4 aggregate block size that is being transferred.

Also read: What is ARIN? Inside the organisation that runs the internet for North America

New transfer processing fee

While all other fees remain the same, ARIN has introduced a new fee that will take effect at the beginning of next year. This is a transfer processing fee that needs to be paid by the transfer recipient. It is important to understand why ARIN is imposing the new fee.

ARIN’s Board of Directors believes that fair fees must be recovered for all services provided to customers. When IPv4 NRPM 8.3/8.4 transfers occur, the fees charged by ARIN do not fully cover the risks and efforts involved in the transaction.

It is therefore decided that a fee must be charged to the receiving party in order to properly cover the risks and efforts behind each transaction. Transaction processing fees will be levied in a fair manner. The fees to be paid are different for all customers. It will be proportional to the IPv4 aggregate block size.

New fee structure for recipient transfer processing fee

When the transfer transaction occurs and is approved, the Recipient shall pay the Recipient transfer processing fee. It must be noted that costs are paid before resources are allocated.

As mentioned above, the NRPM 8.3/8.4 receiver transfer processing fee will depend on the total size of IPv4 blocks being transferred. Details are as follows:

For IPv4 transfers /24(or smaller transfers as permitted by the policy), the transfer processing fee is $187.50.

· When the transfer size is greater than /24 and reaches or equals /22, the fee is $375.

· For transfers greater than /22 and less than or equal to /20, the fee is $750.

· For transfers greater than /20 and less than or equal to /18, the transfer fee is USD 1,500.

· When the size is greater than /18 and does not exceed /16, a fee of $3,000 will be charged.

· For transfer sizes greater than /16 and less than or equal to /14, the transfer is processed at $6,000.

For sizes greater than /14, equal to or less than /12, a $12,000 fee will be charged.

· Transfer size greater than /12 and not greater than or equal to /10, the fee is $24,000.

· When the transfer size is greater than /10 and less than or equal to /8, the fee is $48,000.

For transfers over /8 and up to /6, the applicable fee is $96,000.

· For all transfers greater than /6, the transfer processing fee is $192,000.

Other points to note

It must be noted that ARIN has made some changes in their invoice design. One of the changes is that the cumulative total of the number of resources owned by the organization will be added. This is to maintain the baseline of /24 for IPv4 and /28 for IPv6. The enrolment service plan fee or transfer initiation fee remains unchanged. The fees charged will be in accordance with the previously notified schedule. Registered customers are required to pay an annual fee to cover the cost of registering for operation.

It is important to note that any fees paid to ARIN will not be refunded. The fees paid cannot be calculated on a pro rata basis. In addition, these fees are not transferable. All fees must be paid in full. ARIN only accepts payments in US dollars.