Marko Bonac

Possible change in the fee system for certain countries

TERENA GA – Rhodes June 10-11 2004

Marko Bonac

The problem

• TERENA fee system is based on the GNI of a country.

• Countries with smaller GNI pay smaller fee.• As the relation is not linear, countries with small

GNI pay relatively more (compared with their GNI)• The problem is acute for small countries with low

per-capita income (the fee for TERENA could be larger than the yearly cost for their staff)

• As the consequence TERENA could lose some of its members and not attract some possible ones

Marko Bonac

A small adaptation would be usefull

• A small adaptation in the fee structure is proposed for low income and small countries.

• Definitions:– A country is low income country if it is not in high

income group (GNI per capita) in WB statistics– A country is small if it is in the smallest TERENA

category (one vote,one unit contribution)

• For the current TERENA members Estonia, Latvia, Lithuania and Macedonia fall in this group.

Marko Bonac

The proposal

The proposal would be to• reduce the membership fee with 25 %

for those countries which fall in the upper middle group (WB) (these are Estonia, Latvia and Lithuania)

• reduce the membership fee with 75 % for those countries which fall in the groups bellow that (WB) (this is Macedonia)

Marko Bonac

Consequences for TERENA budget

Probably neutral

• The maximum cost could be 1,5 units (thus currently EUR 7,050)

• Potential benefit would be – Some countries will continue to be members

(and continue to pay (smaller) fee)– Some new countries could join and pay the fee

(Bulgaria, Serbia and Montenegro, Bosnia and Herzegovina, Albania etc)

Marko Bonac

Should a formal proposal be prepared for the next GA ?

• If GA approves the suggestion the TEC can develop a formal proposal for the next GA meeting, so the amended rules can become effective from the 1.1.2005