I am not aware that anywhere in the goals of ARIN policy is there a goal to 
have a "salutary effect on the market".  We should not be making ANY policy 
with the express or even incidental  purpose of supporting the IP market or IP 
brokers.    If the reason for removing needs tests is to support the "market" 
then that is an invalid consideration.  

Kevin


-----Original Message-----
From: arin-ppml-boun...@arin.net [mailto:arin-ppml-boun...@arin.net] On Behalf 
Of Mike Burns
Sent: Friday, June 14, 2013 8:25 AM
To: Jimmy Hess; bjo...@vt.edu
Cc: arin-ppml@arin.net; Mike Burns
Subject: Re: [arin-ppml] A Redefinition of IPv4 Need post ARIN 
run-out(was:Re:Against 2013-4)

Hi Jimmy,

An increased annual fee on transferred addresses would indeed increase the 
carrying costs of those addresses.
I suppose this might provide some incentive to return addresses to ARIN, but I 
think that it is more likely they would sell them to someone else.
And by definition, if it is an "over" purchase for whatever purpose, the act 
will be non-competitive and self-correcting in the long run.
Whether extra addresses are held as a result of overpurchase, implementation of 
CGN, lost business, technological change or whatever, the same pressures will 
be placed on the holder- the lost opportunity of directing the otherwise wasted 
value of the addresses towards more productive purpose.
In addition, the impending transition to IPv6 and the resulting loss in value 
of IPv4 addresses provides additional incentive to realize value from unused 
address assets.

In any case, rather than impose an overpurchase restriction via the duration of 
the justification window, as we do now, I am proposing to limit overpurchase 
for every entity to a tiny fraction of the available pool, a fraction way too 
small to manipulate the market. I believe that removing the needs test for most 
transfers would have a salutary effect on the market for minimal risk.

Regards,
Mike



-----Original Message-----
From: Jimmy Hess
Sent: Thursday, June 13, 2013 7:36 PM
To: bjo...@vt.edu
Cc: Mike Burns ; arin-ppml@arin.net
Subject: Re: [arin-ppml] A Redefinition of IPv4 Need post ARIN 
run-out(was:Re:Against 2013-4)

On 6/12/13, Brian Jones <bjo...@vt.edu> wrote:
> Hi Mike,

There could be a risk of overpurchasing,  but I would suggest there is a 
disincentive for doing so:  the cost paid for the resource,  AND, the revenue 
that could be derived by correcting the overpurchase (transferring away the 
overpurchased portion).

Another possibility, one could imagine is,  ARIN establishing a "variable fee 
schedule"  that differentiates  transferred resources from  "free pool 
resources".

Due to the additional costs incurred in managing transferred resources,  it is 
conceivable that transferred resources  could be assessed additional  variable 
annual
fees as a cost   per /24.

With a graduated pricing schedule.       Then organizations that were
holding an excessive number,  would be incentivized to  reduce their 
overpurchase,  by returning resources.


Perhaps  it would make sense in that case to allow transfer recipients to 
_choose_  between  "immediate justified need"  for the entire
allocation or   "higher annual cost per IP address".


[snip]
> It still seems that inefficient use of address space could occur when 
> a bidder buys much larger blocks than needed due to the lack of any 
> structured needs requirements. At a minimum a block of addresses could 
> sit idle and unused while needs exists elsewhere. But really IPv6 
> should be the best solution for those needing addresses moving forward 
> any way... :)


> Brian
--
-JH 

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