Milton,

On Sun, Jun 22, 2014 at 6:21 AM, Milton L Mueller <muel...@syr.edu> wrote:
> David
> I don't think an intransigent attitude toward retaining needs testing is 
> justified by anything you have cited here or elsewhere.

None of the folks who support needs-testing are being intransigent.
Most have signaled a willingness to compromise.



RIPE has basically eliminated needs assessment, see this article for
an assessment of the results:
> http://www.internetgovernance.org/2014/06/20/baby-steps-and-big-differences-in-address-transfer-market/
>
> In economics there is the concept of transaction costs. Needs testing is a 
> transaction cost in both free pool allocations and market transfers. If the 
> transactions costs are too high, it is a barrier to transactions happening at 
> all. Basically, it means that you don't spend $5,000 worth of staff time and 
> transacting parties' time to effectuate a transfer that may be worth $4,000 
> or even $6,000.
>
> I think the case that's being made here is that for small transfers, the cost 
> of a full-fledged needs assessment is simply not worth the trouble, as it is 
> disproportionately large relative to the value of the overall transaction.  
> For the smaller transactions, which cannot really pose threats of hoarding 
> and speculation, the value the community gains from imposing traditional 
> needs assessment criteria is pretty minimal compared to the natural form of 
> rationing you are going to get from the market price for the number block.


As David said:

"I don't support fixing the perceived problem and do not agree it is
even a real problem."


"Problem Statement:

ARIN staff, faced with a surge in near-exhaust allocations and
subsequent transfer requests and a requirement for team review of
these, is spending scarce staff time on needs testing of small
transfers..."

Do you have evidence from Registration Services that it is a "real problem"?

The data you provide on the link above doesn't show this at all.

-- 
Cheers,

McTim
"A name indicates what we seek. An address indicates where it is. A
route indicates how we get there."  Jon Postel

p.s. the Metropole lobby does a smashing High Tea




>
>
>> -----Original Message-----
>> From: arin-ppml-boun...@arin.net [mailto:arin-ppml-boun...@arin.net]
>> On Behalf Of David Farmer
>> Sent: Tuesday, June 17, 2014 7:21 PM
>> To: ARIN PPML
>> Subject: Re: [arin-ppml] Draft Policy ARIN-2014-14: Removing Needs Test
>> from Small IPv4 Transfers
>>
>> First, While this policy has a clearly formed problem statement, I don't
>> support fixing the perceived problem and do not agree it is even a real
>> problem.
>>
>> Then, the proposed solution to this none problem is "removing needs
>> testing" for small IPv4 transfers.  I can not support the concept of removing
>> needs testing, that is a line I'm not willing to cross.
>>
>> However, some of the ideas for this policy come from comments I've made.
>>   But, for some reason those ideas are spun around to eliminate need,
>> instead of redefining need, which I think can gain community consensus.
>>
>> I support a fundamental reexamination and redefinition of what justified
>> need means in a post (or nearly post) free pool world.  But, fundamentally
>> there has to be need involved, the definition for that need may look 
>> radically
>> different than what we have used for the last 20 years or so.
>>
>> I support redefining justified need for the transfer of a /24 and up to a 
>> /20 as
>> justified by an officer attestation that the resources are needed for use on 
>> a
>> operational network within 6 months and a willingness to expend financial
>> resources necessary to acquire the IPv4 resources on the transfer market.
>> However, this is only one small part of the reexamination and redefinition of
>> justified need that is necessary, but is seems like a reasonable bit size 
>> chunk
>> to start with.
>>
>> Some may argue that is the same thing that this policy does, and I must
>> disagree;  This policy wants to eliminate needs justification, granted only 
>> for
>> small transfers.  But it eliminates need none the less.
>>
>> Where as what I'm suggesting fundamental redefines and simplifies what
>> justified need means in a post (or nearly post) free pool world for small
>> transfers, but does not eliminate need.  Granted, I'm talking about a fairly
>> low bar being set.  But there is a bar and it's not as low as some may think.
>> The fact that IPv4 resources have to be acquired on the transfer market is
>> accounted for as part of the demonstration of need, this is a real constraint
>> for most organizations.  Furthermore, the officer attestation requirement
>> provides organizational commitment that resources are going to be used and
>> not just stockpiled.
>>
>> I think the real problem this solves is failure of slow start when there is 
>> no
>> free pool to prime the pump.
>>
>> So, unfortunately while this policy is at least partially based on my
>> suggestion, I can not support the problem statement given, nor can I support
>> the policy as written.  Therefore, I suggest abandoning this problem
>> statement and policy, and starting over with a problem statement focused on
>> a different issue and not focusing on the elimination of need at a solution.
>>
>> On 5/16/14, 15:20 , ARIN wrote:
>> > On 15 May 2014 the ARIN Advisory Council (AC) accepted "ARIN-prop-204
>> > Removing Needs Test from Small IPv4 Transfers" as a Draft Policy.
>> >
>> > Draft Policy ARIN-2014-14 is below and can be found at:
>> > https://www.arin.net/policy/proposals/2014_14.html
>> >
>> > You are encouraged to discuss the merits and your concerns of Draft
>> > Policy 2014-14 on the Public Policy Mailing List.
>> >
>> > The AC will evaluate the discussion in order to assess the conformance
>> > of this draft policy with ARIN's Principles of Internet Number
>> > Resource Policy as stated in the PDP. Specifically, these principles are:
>> >
>> >    * Enabling Fair and Impartial Number Resource Administration
>> >    * Technically Sound
>> >    * Supported by the Community
>> >
>> > The ARIN Policy Development Process (PDP) can be found at:
>> > https://www.arin.net/policy/pdp.html
>> >
>> > Draft Policies and Proposals under discussion can be found at:
>> > https://www.arin.net/policy/proposals/index.html
>> >
>> > Regards,
>> >
>> > Communications and Member Services
>> > American Registry for Internet Numbers (ARIN)
>> >
>> >
>> > ## * ##
>> >
>> >
>> > Draft Policy ARIN-2014-14
>> > Removing Needs Test from Small IPv4 Transfers
>> >
>> > Date: 16 May 2014
>> >
>> > Problem Statement:
>> >
>> > ARIN staff, faced with a surge in near-exhaust allocations and
>> > subsequent transfer requests and a requirement for team review of
>> > these, is spending scarce staff time on needs testing of small
>> > transfers. This proposal seeks to decrease overall ARIN processing
>> > time through elimination of that needs test.
>> >
>> > Policy statement:
>> >
>> > Change the language in NRPM 8.3 after Conditions on the recipient of
>> > the
>> > transfer: from "The recipient must demonstrate the need for up to a
>> > 24-month supply of IP address resources under current ARIN policies
>> > and sign an RSA." to "For transfers larger than a /16 equivalent or
>> > for recipients who have completed a needs-free transfer in the prior
>> > year, the recipient must demonstrate the need for up to a 24-month
>> > supply of IP address resources under current ARIN policies and sign an
>> RSA."
>> >
>> > Change the language in the third bullet point in NRPM 8.4 after
>> > Conditions on the recipient of the transfer: from "Recipients within
>> > the ARIN region must demonstrate the need for up to a 24-month supply
>> > of
>> > IPv4 address space." to "For transfers larger than a /16 equivalent or
>> > for recipients who have completed a needs-free transfer in the prior
>> > year, recipients in the ARIN region must demonstrate the need for up
>> > to a 24-month supply of IP address resources under current ARIN
>> > policies and sign an RSA."
>> >
>> > Comments:
>> >
>> > Needs testing has been maintained for transfers largely because the
>> > community wishes to ensure protection against hoarding and speculation
>> > in the IPv4 market. This proposal seeks a middle ground between the
>> > elimination of needs tests for transfers altogether, and the
>> > continuance of needs tests for every transfer. This should help ARIN
>> > staff to reduce transfer processing time, since most transfers have been
>> smaller than /16.
>> >
>> > Timetable for implementation: Immediate
>>
>> --
>> ================================================
>> David Farmer               Email: far...@umn.edu
>> Office of Information Technology
>> University of Minnesota
>> 2218 University Ave SE     Phone: 1-612-626-0815
>> Minneapolis, MN 55414-3029  Cell: 1-612-812-9952
>> ================================================
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