ARIN allocating /20 netblocks?

Mon May 18 04:58:29 UTC 1998

On Friday, May 15, 1998 11:57 PM, Chris A. Icide[SMTP:chris at abs.net] wrote:
@At 08:59 PM 5/15/98 -0400, Kim Hubbard wrote:
@>> 
@>> Jeremiah Kristal wrote:
@
@<snip>
@
@>> ARIN has made a slight change to make it easier for them to make more
@>> money by allowing anyone to register for IPs.  They will assign a /20 and
@>> reserve the adjacent /20...
@>> 
@
@<snip>
@
@>ARIN just can't win with some people :-)  If we don't change policy, we're
@>evil....if we do, we're greedy.  *sigh*
@>
@
@If I remember correctly (someone correct me if I'm wrong here), ARIN is a
@Non-profit organization.  This classification generally means something to
@the effect that they can't make more money.
@

It is not clear that  ARIN can continue to qualify as a non-profit company
because they are engaged in an activity that other companies carry
on for-profit. Also, as you can see here, break-even does not define
non-profit.

http://www.irs.ustreas.gov/prod/bus_info/eo/index.html

http://www.irs.ustreas.gov/prod/bus_info/eo/bus-orgs.html

@@@@ http://www.irs.ustreas.gov/prod/bus_info/eo/bl-req.html

"No part of its net earnings may inure to the benefit of any private
shareholder or individual and it may not be organized for profit or
organized to engage in an activity ordinarily carried on for profit
(even if the business is operated on a cooperative basis or produces
only sufficient income to be self-sustaining)."

@@@@@@@@@@@@@@@@@@@@@@

@So, if they begin taking in more revenues due to an increased use of thier
@services, they must either spend those revenues, or reduce the price of the
@services.  
@
@Of course increased usage might mean that they may have to add more
@hardware/Software/People, etc.
@
@<here is where I may be seriously wrong, however....>
@
@I do believe that members have a say into how this is resolved, by acting
@through one of the governing boards?
@
@
@-Chris
@

I suggest that you review some actual results from APNIC
which ARIN was supposedly modeled from. ARIN seems
reluctant to post any real financial information.

http://teckla.apnic.net/annual_reports/1997/resource_status.htm#c4_1
http://teckla.apnic.net/annual_reports/1997/financial_status.htm#c3_3

After reviewing this information it should be clear that a non-profit
can spend a lot of money on salaries, travel and other expenses
(such as $50,000 to the IANA) to offset income. Also, in the case
of APNIC, money was spent to subsidize the APRICOT trade-show
and people in the Registry Industry were paid via that vehicle, yet
APNIC claims it is non-profit (or at least it was). APNIC is now
planning to move to Australia and it appears will be for-profit.

If you would like to make an estimate of ARIN's revenues here
is more information.

@http://www.isi.edu/in-notes/imr/
@ARIN Status Report
@------------------
@
@                             January         February        March
@
@     /24's Issued              2176            3265           5547
@     ASNs Issued                 26              60             85
@

Estimated First Quarter Totals

/24s - 10,988 - $858,437
ASNs - 171 - $85,500

Total Estimated Revenue - $943,937

This is based on 32 /24s for $2,500 and $500 per ASN.
No $1,000 membership fees are included.

With 16 employees, this amounts to $58,996 revenue per employee.
Assuming no growth, that is $235,984 per employee on an annual basis.

=====

-
Jim Fleming
Unir Corporation - http://www.unir.net
IPv8 - Designed for the Rest of the Human Race
AM Radio Stations ---> http://www.DOT.AM