<div dir="ltr">Hi Douglas<div><br>We have thought - and lived through some of the issues you raise. Allow me to reinforce our case using the points you raise.</div><div class="gmail_extra"><br><div class="gmail_quote">2018-10-04 9:15 GMT+00:00 Douglas Onyango <span dir="ltr"><<a href="mailto:ondouglas@gmail.com" target="_blank">ondouglas@gmail.com</a>></span>:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">Hi Coenraad,<br>
I admire your interest in bringing more ISPs on board, however, I have<br>
a serious problem with your proposal to use financials to classify<br>
members.<br>
<br>
First, I think it places AFRINIC in a rather precarious situation.<br>
Several members already have a problem with AFRINIC probing their<br>
network design. How do you think they will receive probes on their<br>
financials?<br></blockquote><div><br></div><div>Our proposal is simply to offer those members who wish to apply for the discount, the option of volunteering their audited/reviewed financials. If they don't wish this, there is no need. </div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<br>
Second, this proposal places a direct financial burden on AFRINIC to<br>
extend the assessment to financials. I suspect that to do this,<br>
AFRINIC would have to either hire a fulltime resource with expertise<br>
in accounting/finance or outsource to some other finance authority.<br>
The total cost of implementing either one of these interventions will<br>
most likely exceed the anticipated $100k you think AFRINIC will make<br>
in the long term.<br></blockquote><div><br></div><div>While I think some financial literacy is necessary, <span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">standard reporting formats show revenues clearly and I am sure all current Afrinic staff should be perfectly capable of interpreting it. <br><br>The only burden, perhaps, is to verify the credentials of the accounting firm that has signed off on it with their relevant authority. A</span>uditors and accountants are held to a high standard by the bodies of which they are required by law to be members, and will lose their credentials and livelihood if they are found to misrepresent any information. <br><br></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
Third, some organizations, especially small one like the ones you wish<br>
to represent, might not have audited financials – In fact some of them<br>
may not even be incorporated. To ask them for audited financials would<br>
be to inadvertently exclude them from being eligible for allocations.<br></blockquote><div><br></div><div>This is something that I have lived through with several organizations - allow me to use this to reinforce our case:<br>1) An organization that is financially competent is stronger and better positioned to administer funding and become sustainable and grow in the long run.</div><div>2) While there is a cost to achieve this, it is perhaps the best single investment that an organization can make</div><div>3) The possibility of achieving a discount serves as further incentive for an organization to prioritize this important function<br><br></div><div><span style="font-size:small;background-color:rgb(255,255,255);text-decoration-style:initial;text-decoration-color:initial;float:none;display:inline">In short, start-up businesses are in many ways already excluded - and they need all the help they can get - every bar that is lowered increases their chance at success. An organization that can only afford the one or the other, will be better served to spend what they have on incorporating and becoming financially prudent first. M</span>any accounting professionals offer their own discounts, and many organizations exist to help such ventures.<br><br>In our case, knowing what is possible, we will advise community networks and start-up ISPs accordingly - and it will stretch the funding we do manage to obtain substantially further.</div><div><br></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<br>
The negative consequences of your proposal seem to outweigh the positives<br></blockquote><div><br></div><div>Considering our perspective, do you still believe this?<br><br>Regards</div><div> </div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div><div class="h5"><br>
<br>
On Fri, 28 Sep 2018 at 13:30, Coenraad Loubser <<a href="mailto:coenraad@zenzeleni.net">coenraad@zenzeleni.net</a>> wrote:<br>
><br>
> Dear AfriNIC community<br>
><br>
> According to the ITU (2017) Africa has 739 million individuals without access to internet infrastructure.<br>
><br>
> We write to you representing 70 individual community networks from 30 African countries, most whom are not yet AfriNIC members, but who each have part of the solution to making available access to these areas where there is very little formal economic activity and where no alternative options exist, and where the internet can play a vital enabling role.<br>
><br>
> This letter has been under discussion during the past 4 months, and has been the subject of almost 100 messages on external community networks forums.<br>
><br>
> There is a class of Internet Service Provider that is not recognized by AfriNIC. In order to allow us to draw in their resources to help building out the invaluable resource that is the internet, as part of the AfriNIC community, we would like to discuss a mutually beneficial proposal that will play a huge role in setting up the next generation of ISPs in Africa - and promote an excellent platform for ISP- and IPv6 training.<br>
><br>
> We first contemplated proposing a definition for a Community Network or Non-Profit ISP, but having also worked with many small and competent ISPs, we recognize their challenges and the benefits that having them in this community can bring.<br>
><br>
> We would therefore like to propose, in line with simplest change possible, the following additional amendment to the fee schedule that has been under discussion:<br>
><br>
> 3.6.5 An entity with annual revenues less than USD 350 000 that is required to register as an LIR, such as a Wireless User Group, Community Network or ISP will qualify for an additional discount of 40%.<br>
><br>
> Basic modelling shows that this can potentially require AfriNIC to give up up to $40k annually, but could yield a surplus in excess of $100k annually after a few years as these networks mature.<br>
><br>
> Alternately, a profit based model, which has not been explored as thoroughly:<br>
><br>
> 3.6.5 An entity with annual profits of less than USD 100 000 that is required to register as an LIR, such as a Wireless User Group, Community Network or ISP, will qualify for a discount of 75%.<br>
><br>
> Regards<br>
><br>
> --<br>
> Coenraad Loubser<br>
> Co Authored by Dr. Carlos Rey-Moreno<br>
><br>
> Office: +27 (0)43 555 2028<br>
> Mobile: +27 (0) 73 772 1223<br>
> Skype: coenraad_loubser Twitter: @dagelf<br>
><br>
> Zenzeleni Networks NPC <a href="http://zenzeleni.net" rel="noreferrer" target="_blank">zenzeleni.net</a><br>
> - Best Innovation with Social Impact Award winner, Innovation Bridge 2017<br>
> - Community Favorite, Mozilla Equal Rating Innovation Challenge 2017<br>
> <a href="https://www.youtube.com/watch?v=YxTPSWMX26M" rel="noreferrer" target="_blank">https://www.youtube.com/watch?<wbr>v=YxTPSWMX26M</a><br>
><br>
</div></div>> ______________________________<wbr>_________________<br>
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<span class="HOEnZb"><font color="#888888"><br>
<br>
<br>
-- <br>
Douglas Onyango, PRINCE 2, ITILv3<br>
UG: +256 776 716 138<br>
</font></span></blockquote></div><br><br clear="all"><div><br></div>-- <br><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div style="color:rgb(136,136,136);font-size:12.8px"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr"><div dir="ltr">Coenraad Loubser</div><div dir="ltr"><br></div><div dir="ltr"><span>Office:<a href="tel:+27435552028" target="_blank"><span></span><span></span></a><a href="tel:+27435552028" value="+27769863633" style="color:rgb(17,85,204)" target="_blank"> +27 (0)43 555 2028</a><br></span></div><div dir="ltr"><span>Mobile</span>: <a href="tel:+27737721223" value="+27769863633" style="color:rgb(17,85,204)" target="_blank">+27 (0) 73 772 1223</a><br>Skype: coenraad_loubser Twitter: @dagelf</div><div dir="ltr"><br></div><div dir="ltr"><div dir="ltr" style="color:rgb(80,0,80);font-size:12.8px"><font color="#888888"><div><span lang="EN-US"><span style="font-size:12.8px"><b>Zenzeleni Networks NPC </b></span></span><a href="http://zenzeleni.net/" style="font-size:12.8px;color:rgb(17,85,204)" target="_blank">zenzeleni.net</a></div></font><font color="#888888"><div style="font-size:12.8px"><span style="font-size:12.8px">- Best Innovation with Social Impact Award winner, Innovation Bridge 2017</span><br></div><div style="font-size:12.8px"><span lang="EN-US">- </span><span style="font-size:12.8px" lang="EN-US">C</span><span style="font-size:12.8px">ommunity Favorite, </span><span style="font-size:12.8px" lang="EN-US">Mozilla Equal Rating Innovation Challenge </span><span style="font-size:12.8px">2017</span></div></font></div><div><a href="https://www.youtube.com/watch?v=YxTPSWMX26M" style="font-size:12.8px;color:rgb(17,85,204)" target="_blank">https://www.youtube.com/watch?v=YxTPSWMX26M</a><br><br style="font-size:12.8px"></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div>
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