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RE: [registrars] ICANN Budget for 1999-2000

Jason Hendeles wrote:

I know it might be too late to influence change on this issue, but it
seriously concerns me that Arin is sharing such a small % of this budget.
At my last count ARIN was charging an average of about $0.15-$0.30 per IP
number per year.

Now let's make a few assumptions:

1. Assume that the total number of IP numbers = approximately $4.3 Trillion
numbers (256*256*256*256).

2.  Then assume that approximately 60% are being utilized currently (2.58

3.  Then assume that 70% of the utilized IP#'s are grand fathered IP#'s and
pay no fees (remaining IP#s 1.8 Trillion).

4.  Then assume 50% are being utilized by countries and governments
internationally. (remaining IP#'s 450 million IP#s)

5.  Then factor Arin's current rate structure of $0.15-$0.30 cents per IP
(assume you go low with $0.15 per IP).

If these assumptions are correct, than Arin is generating at least $30-$67.5
million dollars per year (possibly quite a bit more).  This doesn't even
factor in growth or revenue generated from IPv6.  Their operating costs and
cost of sales can't be anything significant, so what are they doing with
their money?


-----Original Message-----
From: owner-registrars@dnso.org [mailto:owner-registrars@dnso.org]On
Behalf Of Richard Forman
Sent: Thursday, April 20, 2000 11:02 AM
To: registrars@dnso.org
Cc: Lauren Gaviser (E-mail)
Subject: [registrars] ICANN Budget for 1999-2000

Fellow Registrars --

I wanted to inform you that ICANN is about to make some changes to the
ICANN budget.  The Task Force on Funding agreed several months ago that
the ICANN budget should be allocated as follows:

gTLD registrars -- 50%
gTLD registry -- 5%
ccTLD registries/registrars -- 35%
IP Address Registries -- 10%

In allocating the '99-'00 budget (the ICANN fiscal year ends June 30,
2000), the gTLD registrars were tasked with paying $2,101,000 which was
only 49.1% of the budget.  As a result, they are asking us to pay an
additional $37,500 which brings our contribution up to 50%.

Both Peter Gerrand of Melbourne IT, also a member of the TFF, and I believe
that this
reallocation is acceptable, as long as ICANN does not view the
registrars as the "swing" provider should ICANN have budget shortfalls
in the future.  In those instances, ICANN should look to other groups
for their funding as the gTLD registrars are already contributing the
lion's share.

Please let me know ASAP if you have any questions or concerns with this
change.  The TFF is meeting on either Tuesday or Wednesday of next week,
and I'd like to be able to represent the registrars' point of view.

Richard D. Forman
President & CEO
Register.com, Inc.
Phone: 212-798-9100 (Gen'l)