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Re: [NRO comment on ULA 3] Needed changes



> |and the principle that the charges of 
> |registration under any given registration model should reflect the costs 
> |associated with the operation of the service,

> One of the big benefits of the permanently allocated addresses being
> discussed is that the costs of maintaining their database can be
> made extremely small.  The registration charge (if any) should
> reflect that low cost of operation.

One thing that needs to be considered (by the entity providing this
service) is how it can recover costs on an on-going basis over the
long term (say, 15 years from now). If there are a lot of
registrations up front (first 5 years) and then they slowly drop off
to a trickle, who is going to pay for the recurring costs in the years
that follow?  They may be relatively small, but they are not 0. What I
think the RIRs are saying is that they can't provide this service by
having its costs subsidized by some other RIR income not related to
these addresses (its membership would rightly object). Indeed, the
number of organizations willing to take on such a burden is probably
somewhat limited.

So, while the registration fee should be as low as reasonable, it also
needs to be realistic, in the sense that the long-term funding model
for the service needs to be stable.

Looked at in this light, a recurring cost model may not be so
horrible. The key is minimizing the cost/hassle of renewals. And even
the costs/terms could be adjusted over time (e.g., downward) as it
becomes more clear just what the actual costs of the service are and
(more importantly) just how many subscribers there are. It's hard to
say at this point whether there will be 10K such assignments or 1M or
more. It may turn out to be much lower than we think, if the randomly
generated approach is viewed as adequate in practice.

(Note: I'm not necessarily advocating that a leased model is an
appropriate one, but feel obligated to point out that the business
model for providing the service where there is a single one-time fee
does raises considerations about long-term stability of income
source.)

Thomas

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