1. A CONTINUOUS THREE BIT FEE MODEL TWNIC

2. Content THE GOAL THE ASSUMPTIONS THE THREE BIT CONTINUOUS MODEL INCREMENTAL ADDITIONS FROM NIRS AND UNION MEMBERS FEEDBACK TO LDC

3. THE GOAL TO INCREASE THE APNIC REVENUE WITHOUT SIGNIFICANTLY CHANGING THE CURRENT FEE STRUCTURE TO INCREASE THE STABILITY OF APNIC FEE STRUCTURE CARE FOR LDCS

4. ASSUMPTIONS ALL MEMBERS UNDER NIR ARE TREATED AS A UNITY TO APNIC NIR IS TREATED AS A LARGE LIR WITH SOME ADDITIONAL CONTRIBUTIONS

5. THE THREE BIT CONTINUOUS FEE MODEL THE THREE BIT CONTINUOUS FEE MODEL IS A MODIFICATION OF THE CURRENT STEPWISE MODEL TO A CONTINUOUS MODEL ACCORDING TO THE FOLLOWING FORMULA: PARAMETERS FOR IPv4 –Minimum prefix (MP = /21) –Minimum fee level (MF = 2500) –Prefix factor (PF = 3)

6. ADDITIONAL CONTRIBUTION FROM NIRS INSTEAD OF USING YEARLY INCREMENT OF ADDRESS PER YEARS AS A BASIS, ONE CALCULATES ALL THE ADDRESSES LOCATED TO MEMBERS OF NIRS SINCE 2003. THE FEE WILL BE CALCULATED ACCORDING TO THE AVERAGE OF THE TOTAL ADDRESS OVER THE NUMBER OF YEARS SINCE 2003 AND α VALUE.

7. COMPARE DIFFERENT MODELS

8. Prefix (/) IPv4 address Current Lump sum 3 bit Increase of Lump Sum 3 bit v2.3 Increase of v2.3 6671088644000080000.00100.00%204,800412.00% 8167772164000050396.8425.99%102,400156.00% 1041943042000031748.0258.74%51,200156.00% 1210485762000020000.000.00%25,60028.00% 142621441000012599.2125.99%12,80028.00% 166553650007937.0158.74%6,40028.00% 181638450005000.000.00%3,200-36.00% 20409625003149.8025.99%1,600-36.00% 22102412501984.2558.74%800-36.00% 2425612501250.000.00%400-68.00% non 625

9. IMPACT – APNIC REGULAR MEMBERS Prefix(/)number Current Membership IPv4 address Average Prefix Currentv2.3 Lump Sum 3 bit 6140,00043,515,6596.6240,000164,91669,243 8140,00011,272,1358.5740,00083,93544,140 9340,0005,561,0449.59120,000176,864104,633 10120,0002,252,76110.9020,00037,52325,807 11620,0001,391,47211.59120,000176,941131,868 121520,000733,14212.52300,000321,089266,267 131610,000395,11313.41160,000251,432231,130 142810,000181,65614.53280,000298,348312,180 153610,00093,35715.49360,000274,990321,501 16695,00051,64516.34345,000392,015505,850 17595,00025,67117.35295,000236,328342,634 18905,00012,65118.37450,000253,075412,842 192282,5007,06319.21570,000479,052861,199 202562,5003,59620.19640,000383,802772,126 212242,5001,65721.31560,000227,942521,798 22651,25093422.1381,25049,650125,061 23601,25049523.0575,00033,37593,440 24721,25025624.0090,00028,80090,000 non94625 58,75017,00058,750 4,605,0003,887,0775,290,469

10. THE CALCULATION FROM THE THREE BITS MODEL THE CALCULATION FROM THREE BITS MODEL IS AS FOLLOWS: Current APNIC Proposal v2.3 Lump Sum 3Bit Model LIRs4,605,0003,887,0775,290,469 NIRs Membership fee (NIR’s version) 200,000 451,453 (NIR Pools) 304,963 NIRs Additional (NIR’s version) 489,680 1,290,712 (NIR Members) 512,381 (ex: α=1.3) Total5,294,6805,629,2426,107,813 Increase 6.32%15.36%

11. LDC ISSUES TO HAVE A DISCOUNT TO THE APNIC FEE MIGHT NOT BE RIGHT TO THE POINT AND SUFFICIENT IN ORDER TO BRIDGE THE DIGITAL DIVIDE, IT IS SUGGESTED THAT APNIC ALLOCATE X% OF ITS REVENUE TO PROJECTS INVOLVING LDC. APNIC SHOULD ENCOURAGE NIRS TO WORK WITH THEM IN THE LDC ISSUE

12. SCALABLE MECHANISM IF IT IS DETERMINED THAT APNIC HAVE A FUND SHORTAGE, A SCALABLE FACTOR TO ADJUST THE FEE IS POSSIBLE SUBJECT TO APPROVAL FROM ECS AND MEMBERS MEETING CALCULATE FROM SUM MODEL APPROVAL FROM APNIC BUDGET ß %