ARIN considers 5% fee increase every year amid strategy debates

  • The ARIN board of trustees is actively reviewing two main fee adjustment options for the registration services plan. Option A, which adjusts fees based on periodic community feedback and could lead to significant, unpredictable changes, and option B, which promotes a more stable approach by capping annual increases at 5%.
  • Amidst feedback from the community, there is a discernible shift towards favoring option B for its predictability and stability, which supports better budget planning for community organisations.
  • The ARIN board has implemented a new fee schedule as of January 2024, with initial and annual fees based on the total number of Internet resources held by an organisation, while also offering a temporary IPv6 fee waiver for smaller holders until the end of 2026.

The ARIN board of trustees is currently evaluating how best to adjust the fee schedule for the registration services plan in light of the feedback gathered from the community between April 3 and May 3, 2024. The primary objective is to maintain a balance between operating costs and revenue, ensuring equitable cost recovery among its diverse membership.

ARIN considers capping annual fee increases at 5%

The board is considering two main options for future fee adjustments: Option A, which involves periodic reviews and adjustments based on community consultation, and option B, which proposes a more predictable approach with an annual fee increase capped at 5%, subject to Board approval.

While option A allows flexibility in aligning fees with actual costs, it could lead to substantial and unpredictable increases. On the other hand, option B aims to provide stability and predictability, better supporting community organizations in their budget planning.

The board is leaning toward option B, which would amend the registration services plan fee schedule to permit an annual fee increase of up to 5%, pending board approval.

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

ARIN membership faces changes

Amid discussions at ARIN, there is growing support for implementing a structured annual approach to fee adjustments. However, stakeholders have yet to reach a consensus on the most effective method to apply these changes.

Several additional points were raised for the board of trustees to consider, including defining the timing for announcing any annual fee increase to aid organisations in budgeting and identifying if an index should be used to determine the annual increase.

Also read: ARIN improves RPKI services to enhance routing security

ARIN’s 2024 fee schedule

Although the annual fee has not yet been determined, the board adopted a fee schedule that took effect in January 2024.

Organisations requesting Internet number resources from ARIN must pay an initial fee, which sets the anniversary date for future annual registration services plan (RSP) payments. Annual fees are determined by the organisation’s total internet number resources, with categories ranging from “3X-Small” at $250 to “5X-Large” at $256,000. A temporary IPv6 fee waiver is available for “3X-Small” category organisations until December 31, 2026.

Transactional fees are charged for specific actions like organisation creation, recovery, and resource transfers, varying by transaction type and resource size. Legacy resource holders under a legacy registration services agreement (LRSA) have a capped annual fee of $200 for 2024, increasing by $25 each year thereafter.

As the board navigates these decisions, it is essential to pay close attention to the structuring of service fees. All members are eagerly awaiting the revised fee schedule, anticipating changes that will affect their future financial planning.

The final decision will play a critical role in ensuring that ARIN continues to operate effectively while fairly distributing the financial burden across its membership.

Sylvia-Shen

Sylvia Shen

Sylvia Shen, a news reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to s.shen@btw.media.

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