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  1. #1
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    Question ARIN Membership-> Told we need to purchase for our upstream to get address space?

    Good morning,

    We have approximately 100 servers at our data center in Miami, FL and currently have IP allocations from several sources. One of these is a /23 of address space owned by WBS Connect , provided by IPTelligent / Brainus, a reseller of WBS's bandwidth which we use for 95% of our transit.

    We recent requested additional IP allocations, from IPTelligent. Unfortunately, this request was denied, not based upon a technical merit, but rather because they do not have any remaining allocations available to assign us (they are in use by other clients). IPTelligent has informed us that the solution is to pay the sum of $1750, which will be used to cover the cost of their ARIN membership for a 2 year period.

    While I'm familiar with the concept of "leasing" portable blocks of space from those willing to resell it (we do have an additional /22 for a client who's IP usage was questioned, they provided these as a result), my belief was ISP's will grant (justified) requests of at least a /20 before sending you directly to ARIN for your IP justifications. Granted, my knowledge in this is dated a few years, before IP exhaustion became something folks worried about (again).

    I want to stress that the technical merits of our IP allocation request are not being questioned - IPTelligent / Brainus is aware that our request is legitimate and we're not setting up 31337-irc-hostnames.

    I'd like to get some feedback from others for this situation, as it's not one I've dealt with or even heard of before.

    Thanks!
    Last edited by jcy1978; 08-14-2009 at 09:51 AM.

  2. #2
    Join Date
    Jul 2005
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    139
    The keys to this whole situation are:

    - knowing the rules
    - organizations effectively communicating

    WBS Connect regularly gets IP addresses from ARIN. They know the rules, they know how everything works, and they get the addresses they need when they need them.

    A search of ARIN WHOIS finds no direct allocations from ARIN to any entity named IPTelligent or similar or Brainus or similar. From that we can conclude that they do not pay ARIN any fees related to IP addressing (at least, under the IPTelligent or Brainus names). WHOIS does tell us, however, that IPTelligent/Brainus gets addresses from WBS Connect. ARIN policy indicates they can get more addresses from WBS Connect any time they need them as long as they can show they have used 80% of the addresses they already have.

    So we know the rules: WBS Connect can assign more addresses to IPTelligent/Brainus when IPTelligent/Brainus has efficiently used what they've already been assigned.

    Now we need the communication: IPTelligent/Brainus has to go to WBS Connect and show them they meet the rules and ask for more space. Then they can give you what you need to continue growing your business with them.

    Hope that helps

  3. #3
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    In Europe, we have something called Provider Independent (PI) address space. I think in ARIN, you have something called 'Direct Allocation' (correct if I'm wrong). I think you can request this with ARIN before apply for membership (equivalent to LIR/PA address space in RIPE NCC).

    Edit: The IP allocation will be made directly to you from ARIN without any membership. Will be much cheaper (I think around $200-$500) depending on space.

  4. #4
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    Jul 2005
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    The smallest ARIN allocation to a hosting provider is a /22. It costs USD1,250.00 per year.

  5. #5
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    Quote Originally Posted by garp74 View Post
    The smallest ARIN allocation to a hosting provider is a /22. It costs USD1,250.00 per year.
    So it's pretty much $1 per/IP per/Year?
    Jacob Wall

  6. #6
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    Pittsburgh, PA
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    There are certain requirements that you have to have to get IPs directly from ARIN, correct? I haven't thought about getting any, but heard about having 2 uptream providers and maintaining a bgp network? I could be 100% wrong, I don't know.
    Jon Stephenson

  7. #7
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    Lesson here, don't use a middleman when you can just goto the source.
    Yellow Fiber Networks
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  8. #8
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    Quote Originally Posted by Jacob Wall View Post
    So it's pretty much $1 per/IP per/Year?
    Depends what you request/qualify for/receive/etc.
    If you are allocated and pay for:
    a /22 then it'd be ~$1.22/ip/yr
    a /21 then it'd be ~$0.61/ip/yr
    a /20 then it'd be ~$0.55/ip/yr
    a /19 then it'd be ~$0.27/ip/yr
    and so on and so forth...

    That's just for initial allocations... I believe you can receive additional allocations without the fee mid year, pending justification.
    Daved @ Lightwave Networking, LLC.
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  9. #9
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    Quote Originally Posted by CompuSite View Post
    having 2 uptream providers
    maintaining a bgp network
    ISTR the requirement was that you operated an ASN, so yes ...

    Quote Originally Posted by jcy1978
    IPTelligent has informed us that the solution is to pay the sum of $1750, which will be used to cover the cost of their ARIN membership for a 2 year period.
    What a fantastic idea - getting someone else to pay their membership fees ... this is presumably as their upstream has either said no, or wants money for the IP addresses ...
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  10. #10
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    What a fantastic idea - getting someone else to pay their membership fees ...
    Yeah, maybe new businesses should do the same. Start offering services, then have the first customer foot the bill for all that's needed to start up the business.

  11. #11
    Join Date
    Apr 2001
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    Montana USA
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    When we requested an expansion to our allocation from ARIN last year, they made us first retire 2 class-Cs we were leasing from one of our upstreams. Lots of work, but we got it done and got the expansion -- and an IPv6 allocation while we were at it.
    John Masterson
    Former Hosting Company Owner

  12. #12
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    Just got a /22 PI allocation from RIPE. Like 3-4 days back.

    Around 250 EUR/yr administrative costs. Nothing big.

  13. #13
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    Getting a bit too late on this, but needing to clarify:

    1. Brainus is not IPTelligent. The first was a direct WBS Connect _customer_ (not white-label reseller). The second was a customer of Brainus and then later acquired all customers from Brainus.

    2. Even with provided justification as per the ARIN rules, some carriers (as WBS Connect, or Cogent and Savvis that I can remember of) have _extra_ allocation rules (whether disclosed on the contract or not, but as the contracts always say that it is under their own discretion...); some of them (like Savvis or Cogent) base a maximum allocation size they will give out in relation to the total amount of bandwidth you buy from them (so that you don't have an abnormal /20 out of a 100Mbps purchased link and start spamming from it); some of them (like WBS) will give you a fixed maximum /22 allocation then tell you to go directly to the ARIN if you need any more.

    3. At that time, nor Brainus nor IPTelligent required more IP allocations for any other customer or their own use. Half of Brainus' allocations with WBS Connect were reassigned to IGSoBe. There was no commercial or financial interest on the part of any of both companies to foot those ARIN membership and initial allocation fees at that point in time, for somethng they weren't in need of.

    4. In the specific case, also the specific customer's monthly ticket amount/revenue wasn't considered sufficient enough in order for any of the two companies to make a business decision of investing in those allocations. It would be like giving the customer 4 months of free bandwidth in order to pay for the allocations that the customer needed also. Who would be "footing the bill" from this standpoint? Unfair to transmit to the customer the charges that weren't being expected, accounted for or needed, because of his own needs?

  14. #14
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    What does a monthly ticket revenue have to do with ip's? Your ASN shows nothing and your domains ip 189.38.90.53 is a ripe ip address not arin.

    If what the OP posted was correct you tried to get him to buy you an arin membership.

    There might be some confusion here in 2009 since often times Arin may ask or tell you to first seek ip's from your upstream(s) rather then going directly to them.

    It may be cheaper to get them from your upstream vs arin. Also not all relationships will permit the routing of your own ip's.
    James Paul Woods
    Operations Manager
    HostKitty Internet Services

  15. #15
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    woods01: I don't know where you are researching our ASN, but it's been quite a few time (2 months more or less) since it was assigned to us by ARIN. Prior, we were running solely single homed and having allocations from an upstream carrier, who had their own EXTRA rules in regards to allocation assignments. And yes, our website is hosted in Brazil (LACNIC, not RIPE) as it was developed there.

    Yes, read my reply again as I think you did not understand:
    1. We were on the limit of our maximum allocation our single-homed carrier would offer us before denying any additional requests and making us go through ARIN. We forwarded the justified request to the upstream and it was denied by their internal policy, as at that point they only issued a /22 maximum to their customers prior to making them go through ARIN directly.

    2. We didn't need more IPs for us or our other customers, other than solely to satisfy the OP needs.

    3. At that time we were single-homed. ARIN policies states the minimum allocation for ISPs on single-homing is a /20 (needing to prove usage of a /21) and we had only a /22 in use. They WILL NOT allocate blocks smaller than those.

    4. We would then have the expenses of adding a second carrier (setup fees and minimum recurring fees for bandwidth) and multihoming so that the minimum allocation would drop to a /22 instead of a /20 so we would have justifiable resources as per ARIN rules. We would have the expenses of getting the ARIN membership for the ASN and IP block that we didn't need at all to start, other than to satisfy this specific customer needs. As far as I know, no hosting or colo company are forced to be an ASN or have direct ARIN allocations.

    5. The monthly revenue of under $400/mo that the OP was generating, wouldn't justify the investment of $1750 to get the ARIN membership and initial IP allocation just to satisfy his needs - that, in my logic, is the same as giving him 4 months of free service AND another IP block allocation. It would be a risky investment of more than 4 months of the OP revenues, for a month-to-month verbal (non-written) contract with no warranties of any kind, so it was, commercially, totally inviable, and we would be jeopardizing the company's finances if agreeing to that madness. If it was a more solid contract, or a higher monthly ticket, it would be worth the investment as it wouldn't hurt the finances so bad.

    6. That is so true that we got our own ASN two months after the original post, as well as larger IP allocations from the new uplink we added to cater to another project and big customer who paid all the setup fees requested, and then moved into the own ARIN direct allocation. But that was under a different budget with a different customer and project.

    7. We did inform the OP that the allocation would have a setup fee of $1750 - which covered, BTW, only the ARIN's fees, and there were the costs of adding a second uplink and monthly recurring fees from this second carrier, a new routing gear as the one we had in production at that time woulnd't take multiple tables, and man-hours for techs to reconfigure and maintain routers (that weren't even running BGP at that point) and man-hours for administrative and legal/juridical staff to sign and execute the contracts with the new carrier and ARIN itself, and all this just to satisfy his needs. We were happy with the single-homing and maximum IP allocation at that time. We didn't even inform the OP that he would have to "foot our ARIN membership", he took these conclusions by himself and ignored all the other costs involved.

  16. #16
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    Or, in a single financial view:

    Costs:
    $500/yr - ARIN membership we didn't need at all
    $1250/yr - ARIN IP allocation we didn't need at all
    $250/ot - approximate attorney costs to review ARIN and new carrier contracts
    $250/ot - approximate tech costs for setting up new router
    $1000/ot - approximate setup costs of new carrier
    $500/mo - approximate monthly costs of new carrier
    $1500/ot - purchase costs for used routing gear that could do BGP properly
    $200-300/ot - shipping costs of the router

    Setup charged to the OP:
    $1750/ot

    Revenue that the OP brought at that time:
    $400/mo

    Extra revenue the OP would bring in if we invested 4 months of his monthly revenue into just getting the ARIN stuff (and much more than those if you count on the equipment and man hours):
    $0

    equals to

    Probability of doing this investment: 0.0000000001% if I was drunk or on drugs, and as I don't drink alcohol other than in small doses, and as I don't do anu kind of drug, then it falls to 0.0%
    Last edited by cresci; 12-14-2009 at 10:39 PM.

  17. #17
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    I dont think it is appropriate to disclose the customers monthly service cost in a public forum without their permission.

    I might be wrong and perhaps you have a previous arrangement with the OP but you are disclosing some sensitive information here.

  18. #18
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    iptelligent,

    Your also wrong on your arin fees. The last time I checked membership is included if you purchase service.

    fixedorbit.com shows your asn as in-active. the domain you use isn't on your asn. That's where im researching it. Fixedorbit may be slightly behind but generally asns are correctly represented.
    James Paul Woods
    Operations Manager
    HostKitty Internet Services

  19. #19
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    Quote Originally Posted by Dave - Just199 View Post
    I dont think it is appropriate to disclose the customers monthly service cost in a public forum without their permission.
    I might be wrong and perhaps you have a previous arrangement with the OP but you are disclosing some sensitive information here.
    That permission was expressly given via email when the OP wanted to bring this forward in to WHT "for public judgement" for discussion on his own initiative.

  20. #20
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    Quote Originally Posted by woods01 View Post
    Your also wrong on your arin fees. The last time I checked membership is included if you purchase service.
    Yes, I never mentioned "we need to buy ARIN membership" (for the sake of our own pleasure to be member of a club). What was needed was to pay the service fees for getting an ASN ($500) and the minimum allocation ($1250).

    fixedorbit.com shows your asn as in-active. the domain you use isn't on your asn. That's where im researching it. Fixedorbit may be slightly behind but generally asns are correctly represented.
    This time mine is not, as it still shows former ASN holder's website.

  21. #21
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    Quote Originally Posted by woods01 View Post
    Fixedorbit may be slightly behind but generally asns are correctly represented.
    FixedOrbit is so far behind, it's not even funny...
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