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ARIN’s new fee to be proportional to the IPV4 block size

  • Posted at 2023-03-23 12:50:53
  • By Prefixx Team

ARIN’s new fee to be proportional to the IPV4 block size

ARIN, the American Registry for Internet Numbers has announced a new fee transfer processing fee to be paid by the recipient. This fee will be effective from the 1st of January 2023 and has been decided based on the decision of the ARIB Board of Trustees. The key highlight of this fee is that the new fee would be proportional to the IPV4 aggregate block size that is being transferred.

New transfer processing fee

While all other fees remain the same, a new fee has been introduced by ARIN that would come into effect from the beginning of next year. This is a transfer processing fee that needs to be paid by the recipient of the transfer. It is important to know the reason for the new fee being imposed by ARIN.

The ARIN board was of the opinion that it important to recover equitable costs for all services provided to customers. It was felt that at present this was not happening. When IPv4 NRPM 8.3/8.4 transfers take place, the fees charged by ARIN does not fully cover the risks and efforts involved in the transaction.

It was therefore decided that a fee had to be charged to the recipient, so the risks and efforts behind each transaction are suitable covered. The transaction processing fee would be levied in an equitable way. The fee to be paid would not be the same for all customers. It would be directly proportional to the IPv4 aggregate block size. Depending on the block size, the transfer processing fee would be calculated and levied.

An important point to note is that this fee comes into effect from 1/1/23. ARIN has informed customers early about the proposed changes. Since there is time left for the new fee to come into effect, customers can take advantage of it. They can try and complete their IPv4 NRPM 8.3/8.4 transfers immediately. By doing so, they would save on the transaction processing fee.

If you were looking at going ahead with an IPv4 transaction, then it is best that you complete it immediately. You can save some money by completing the transfer before December 31st, 2022.

New fee structure for recipient transfer processing fee

When a transfer transaction takes place and the transfer is approved, the recipient should then pay the recipient transfer processing fee. It must be noted the fee is to be paid prior to the resource being allocated.

As mentioned above, the NRPM 8.3/8.4 recipient transfer processing fee would depend on the aggregate size of the IPv4 block being transferred. The details are as given below:

· For IPv4 transfer of /24 (or anything smaller if permitted by the policy), the transfer processing fee to be paid is $187.50.
· When the transfer size is more than /24 and up to or equal to /22, then the fee would be $375.
· For a transfer where the size is more than /22 and less than or equal to /20, the fee is $750.
· Transfer size larger than /20 and less than or equal to /18, transfer processing fee is $1,500.
· When size is more than /18 and up to and including /16, the fee charged is $3,000.
· For transfer size greater than /16, and less than or equal to /14, transfer processing is $6,000.
· For size more than /14, and equal to or less than /12, a fee of $12,000 would be charged.
· For transfer size larger than /12, and up to or equal to /10, fee is $24,000.
· When size of transfer is greater than /10, and less than or equal to /8, the fee would be $48,000.
· For transfers where the size is more than /8, up to and including /6, fee applicable is $96,000.
· For all transfers, where the size is greater than /6, the transfer processing fee is $192,000.

As can be seen, the transfer processing fee being charged increases in proportion to the size of the IPv4 block. The seller need not pay the fee, it is the recipient who has to pay the fee.

Other points to note

It must be noted there are changed made by ARIN in their Invoice design. One of the change is that the cumulative totals of the number resources an organization has would be added. This is done keeping in view baseline of /24 for IPv4 and /28 for IPv6. There is also an addition detail, which is the service category of the legacy resource holder. Also, the fee that corresponds without the legacy RSA fee cap is printed in the invoice.

There is no change in the registration services plan fee or the transfer initiation fee. The fees being charged is as per the previously notified fee schedule. Registry customers are charged an annual fee to cover the costs of registry operations. When services are not covered under the registration services plan, transactional fee would be charged as per fee schedule.

It must be noted that any fee that is paid to ARIN in not refundable. The fees paid cannot be prorated. Further, the fees are not transferable. All fees have to be paid in full. ARIN accepts payments only in USD.

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