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Proposal for Adjusting Membership Fees in TERENA: Addressing Fee Discrepancies for Low-Income Countries

This document discusses a proposal to adjust the fee structure in TERENA to address inequalities for low-income and small countries. The current system, based on GNI, disproportionately affects small countries with low per-capita income. The proposed adjustment includes reducing fees for countries falling in specific income groups. The aim is to retain existing members, attract new ones, and maintain financial balance for TERENA. The potential impact on budget is expected to be neutral, with maximum savings estimated at 1.5 units. Overall, the proposal seeks to ensure fairness and inclusivity within the organization.

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Proposal for Adjusting Membership Fees in TERENA: Addressing Fee Discrepancies for Low-Income 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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