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Equitable Fee System Proposal for TERENA Membership - Ensuring Inclusivity

TERENA is considering an adjustment to its fee system for low-income and small countries to ensure fair contributions and maintain membership. This proposal suggests reducing fees by 25% for upper-middle income nations like Estonia, Latvia, and Lithuania, and by 75% for countries in lower income groups like Macedonia. The potential impact on TERENA's budget is likely neutral, with benefits including retaining existing members and attracting new ones such as Bulgaria, Serbia and Montenegro, Bosnia and Herzegovina, and Albania. A formal proposal may be presented at the next General Assembly for implementation in 2005.

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Equitable Fee System Proposal for TERENA Membership - Ensuring Inclusivity

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  1. Possible change in the fee system for certain countries TERENA GA – RhodesJune10-11 2004

  2. 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

  3. 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.

  4. 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)

  5. 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)

  6. 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

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