Update the policy on transfers due to mergers/acquisitions

Original Language Português Date Published 07/02/2018 Last Modified 02/02/2018
Last Call for Comments Period Does not apply Date Ratified Does not apply Implementation Date Does not apply
Status Abandoned Download TXT PDF XML DOCX
See other versions 1.0 2.0 3.0 4.0 (compare)

Authors

Name: Ricardo Patara
Email: patara@registro.br
Organization: NIC.BR

General opinion

Proposal Data

Policy Type: LACNIC
Id: LAC-2018-2
Last version: 4
Presentations:

Summary

Proposal to add some items included in transfer policy 2.3.2.18 which, for consistency, should also be included in policy 2.3.2.17.

Rationale

The policy on IPv4 address transfers due to mergers or acquisitions already existed when the policy on transfers for other reasons (2.3.2.18) was implemented. The latter incorporated some important observations that are not included in the former, even though some of them are present in documents other than the policy documents. For example, the fact that transferred resources will no longer be considered as legacy resources. This is described in the LACNIC Bylaws.

For reasons of consistency, this should also be reflected in the policy.

The same is true for the restriction of two consecutive IPv4 address transfers, as already specified in policy 2.3.2.18.

Text

Add a paragraph at the end of section 2.3.2.17

It is important to note that:
- Once transferred, resources previously considered to be legacy resources will no longer be considered as such.
- A block that has previously been transferred under sections 2.3.2.17 or 2.3.2.18 may not be transferred again for a period of one year as of the date on which the previous transfer was concluded. This also applies to sub-blocks, i.e., any group of addresses contained in the block that is transferred.
- Blocks and sub-blocks from initial or additional allocations or assignments received directly from LACNIC or its NIRs may not be transferred for a period of three years as of their date of allocation or assignment.

Additional Information

-

Timetable

Immediate implementation

References

-

Public Comments by LACNIC Staff

LACNIC STAFF´S IMPACT ANALYSIS - Proposal LAC-2018-2 - version 1

LACNIC Staff's Interpretation of the Proposal
---------------------------------------------
Applicability
------------

This section applies when an organization requests that LACNIC transfer its resources as the result of a merger or acquisition among ISPs or End Users.

Modifications to the current text

--------------------------------
The Policy Manual would be modified as follows:

• Addition of the following paragraph at the end of section 2.3.2.17. Mergers, Acquisitions or Sales among ISPs or End Users.

It is important to note that:
- Once transferred, resources previously considered to be legacy resources will no longer be considered as such.
- A block that has previously been transferred under section 2.3.2.17, may not be transferred again under section 2.3.2.18 for a period of one year as of the date on which the previous transfer was concluded. This also applies to sub-blocks, i.e., any group of addresses contained in the block that is transferred.
- Blocks and sub-blocks from initial or additional allocations or assignments received directly from LACNIC or its NIRs may not be transferred under section 2.3.2.17 for a period of one year as of their date of allocation or assignment.

LACNIC Staff Comments:
------------------------

LACNIC understands that modifying the current text would have no significant impact on the implementation of the first point regarding legacy resources.

As for the other two points, waiting one year to transfer (under 2.3.2.18) a block that has previously been transferred (due to a merger or acquisition) and waiting one year to transfer a block directly assigned by LACNIC, we find this would have no significant impact other than those of transfers under 2.3.2.18.

The only issue LACNIC would like to highlight is the following:
If a company that receives IP addresses from LACNIC later undergoes a merger, it would have to wait one year before being able to use those addresses. 
In this case, what would be the status of those blocks during this period of time? The merged company would not be able use them. This is also an important point that should be taken into consideration.

Impact of the policy on the registration system and address management
------------------------------------------------------------------------
This proposal would not require any modification to the registration system.

LACNIC STAFF´S IMPACT ANALYSIS - Proposal LAC-2018-2 - version 4

LACNIC Staff's Interpretation of the Proposal
---------------------------------------------
Applicability
------------

This section applies when an organization requests that LACNIC transfer its resources as the result of a merger or acquisition among ISPs or End Users.

Modifications to the current text

--------------------------------
The Policy Manual would be modified as follows:

• Addition of the following paragraph at the end of section 2.3.2.17. Mergers, Acquisitions or Sales among ISPs or End Users.

It is important to note that:

- Once transferred, resources previously considered to be legacy resources will no longer be considered as such.

- A block that has previously been transferred under section 2.3.2.17, may not be transferred again under section 2.3.2.18 for a period of one year as of the date on which the previous transfer was concluded. This also applies to sub-blocks, i.e., any group of addresses contained in the block that is transferred.

- Blocks and sub-blocks from initial or additional allocations or assignments received directly from LACNIC or its NIRs may not be transferred under section 2.3.2.17 for a period of one year as of their date of allocation or assignment.

LACNIC Staff Comments:
------------------------

LACNIC understands that modifying the current text would have no significant impact on the implementation of the first point regarding legacy resources.

With respect to the other two points, LACNIC understands that only 20% of a block that has been transferred due to a merger or acquisition (2.3.2.17) can be transferred before 12 months have elapsed (after the merger). 
Once 12 months have elapsed, the block can be transferred in full.

Impact of the policy on the registration system and address management
------------------------------------------------------------------------
This proposal would not require any modification to the registration system.

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