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Possible change in the fee system for certain countries

Possible change in the fee system for certain countries. TERENA GA – Rhodes June 10 - 11 200 4. The problem. TERENA fee system is based on the GNI of a country. Countries with smaller GNI pay smaller fee.

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Possible change in the fee system for certain countries

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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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