The Economic Crisis and effects on
RIRs and RIR Registrations
Jochem de Ruig
Chief Financial Officer
RIPE NCC
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
1
Some effects of the Economic Crisis
• Financial Crisis
• Decrease in GDP
Economic Activity
• Increase in bankruptcies/liquidations
• Decrease of inflation
• Increase in unemployment
• …..for the first time since 1945 Electricity use
worldwide will decrease estimated by 4%
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
2
Effect areas on the RIPE NCC
• Financial effects
• Membership development effects
- New LIR growth
- LIR closures
• Because of liquidation / bankruptcy
• Increase in mergers for Service Fee cost efficiency
• Due to “cost saving”
• Business effects
- Work load changes due to lower economic activity
- Decrease of inflation
- Increase of unemployment
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
3
Financial effects
• Increased interest rates on deposits – higher income
• Mid term will show a decrease in interest income
Eurior 3 months rate
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
4
Membership Effects
New LIR development 2006 - 2009
140
120
100
80
Applications
60
New Members
growth
40
20
-
2006
Jochem de Ruig
2007
2008
28 May 2009 / UKNOF / Sheffield
2009
http://www.ripe.net
5
Conversion rate New LIRs
80%
70%
60%
Avg 05-09
Nov-08
Dec-08
50%
Jan-09
Feb-09
40%
Mar-09
30%
20%
< 1 mth
< 2 mths
< 4 mth
Number of
members growth
Number of
Applications
2009
92
397
B 2009
190
332
2008
218
382
At 30 April 2009
Jochem de Ruig
< 3 mth
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
6
12 Months New LIR growth average
1.20%
1.10%
1.00%
0.90%
0.80%
0.70%
0.60%
0.50%
2006
Jochem de Ruig
2007
28 May 2009 / UKNOF / Sheffield
2008
2009
http://www.ripe.net
7
LIR Closures
• Currently 150 LIRs closed (30 April 2009) vs 113 in
2008
• Increase of 30% but only 2% of members
• So no significant increase in bankruptcies yet….
• So no significant increase in mergers / takeovers yet…
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
8
UK Membership effects
Top 5 countries 2001 – May 2009
701
1000
900
800
700
ru
600
uk
500
de
it
400
nl
300
200
100
0
2001
Jochem de Ruig
2002
2003
2004
2005
2006
28 May 2009 / UKNOF / Sheffield
2007
2008
2009
http://www.ripe.net
9
UK member info per 24 May 2009
• Currently 701 UK members (24 May 2009)
• UK members growth 15 (2008: 21)
• UK applications 40 in 2009 (2008: 45)
Members per country 2009
New members per country 2009
Other
38%
RU
15%
UK
10%
Other
35%
RU
16%
UK
11%
DE
7%
CZ
3%
TR ES
4% 4%
Jochem de Ruig
IT
4%
PL
5%
FR
NL 5%
5%
PL
CH ES SE
3%
3% 3% 4%
28 May 2009 / UKNOF / Sheffield
FR
4%
NL
5%
IT
6%
DE
10%
http://www.ripe.net
10
Demographics of LIRs in the UK
32%
LONDON
MANCHESTER
SHEFFIELD
57%
CAMBRIDGE
READING
BIRMINGHAM
BELFAST
3%
2%
1%
EDINBURGH
BRISTOL
Other cities
1%
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
11
Business effects
General indicator of workload
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
2009-03
2008-03
2007-03
2006-03
2005-03
2004-03
2003-03
2002-03
2001-03
2000-03
1999-03
1998-03
1997-03
1996-03
1995-03
“Number of requests”
http://www.ripe.net
12
Summary & Conclusions
• Financial effects– impact increase income in 2008
• New LIR growth – lower because of low conversion rate
• LIR closures – increased but not significantly
• No work load changes due to lower economic activity
• Low inflation positive for RIPE NCC expenses
• Easier recruitment
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
13
Questions ?
Jochem de Ruig
28 May 2009 / UKNOF / Sheffield
http://www.ripe.net
14