IP Address News

Providing you with a single site about IP Addresses News and Usage

IP Address News - Providing you with a single site about IP Addresses News and Usage

IPv4 Transfer Market pricing transparency

Since most IPv4 transfers so far have occurred as private transactions the price for the address blocks has generally not been known.  There are various economic methods and theories which could predict the value of the underlying IPv4 address rights, but those models may not bear much resemblance to the actual market due to the model’s inability to take into account all the factors effecting the IPv4 marketplace.

There are a few public exceptions to the pricing data, notably bankruptcy cases (Nortel @ $11.25/address & Borders @  $12/address) where the pricing was made public as a part of the court filings.

Hilco Streambank which is an ARIN registered transfer facilitator has started a new auction service which is openly posting pricing for the IPv4 blocks.  According to their website, six blocks ranging in size from a /17 to a /24 have been sold in the past couple of months through this site.  (Their site reports the auctions have closed, but the actual transfer may not have occurred.) (copy)

Looking at the pricing information that they have posted, there is a clear premium being paid currently for smaller blocks.  The /24 block sold for $ 6,225 or $24.31 per address whereas the larger /17 & /20 blocks sold for between $7.25 – $7.32.  The actual bid information is not released publicly on their site, so we do not know how many organizations were bidding for the blocks or if the blocks sold for the minimum listed price.

It will be interesting to continue to watch to see how pricing for blocks changes over time and if other trends develop based upon source or destination RIR region for the transfers.

Links to sites on IPv4 pricing models and theories:

IPv6 Deployment in the UK

I was pointed to this report from OfCom, the UK communications regulator, through this commentary.

The report is dated 2012 and has some interesting statistics comparing the deployment of IPv6 in various countries.

I found the following quote (emphasis mine) from the report interesting as I read through.

The report finds that by any measure, the UK lags behind its peers in IPv6 deployment. Whether in comparison with; economies of a similar size, G20 and EU member states, or with Asian economies, the UK is behind in IPv6 adoption.  IPv4 address exhaustion and a failure to transition to IPv6 has a significant impact on innovation as it is the essential building block for any technology that connects to the Internet. Failure to keep up with competitor economies will have an impact on the UK’s consumer access to broadband, on eGovernment, […]

The report includes a brief discussion of the IPv4 exhaustion & transfer market, IPv6 deployment experiences, and deployment costs.

Internet Protocol Version 6 Deployment Study  (copy)

July 2013 Update

I’ve been taking some vacation in the past month so the posting has been quiet here.  Catching up on news, it does not appear there is a lot of notable news in the IP address arena.  However, here are a few links & notes that I’ve found catching up on the happenings in the past couple of weeks.

 

ARIN 31 Draft Policy preview and predictions

ARIN 31The spring ARIN 31 meeting is fast approaching.    The final meeting agenda has recently been published. There are also opportunities to participate remotely for those who are unable to make the meeting in person.

Here is my short commentary on the policy proposals being discussed at the meeting.  In this blog entry, I’ve also attempted to make some predictions on the discussion and outcome…

2012-2 IPv6 subsequent allocations

Policy Summary: Changes the way utilization is determined for ISPs who return to ARIN for additional IPv6 allocations.

Issues: Since the initial IPv6 policy was implemented, it has been  understood that the IPv6 policy would need to be modified as implementation experience was gained.  Since the idea of hierarchy is important in IPv6 networks, this policy allows a network’s regions which grow at different speeds to retain the hierarchy structure and still allow fast growing regions to obtain the needed additional IPv6 address space.  Since the draft policy’s introduction there was strong consensus that the existing policy needed to change, the challenge has always been the details of policy text.

Prediction: This policy will finally reach consensus at this meeting and will be sent to last-call for approval.

2013-1 Inter-RIR transfers of ASNs

Policy Summary: Allows organizations to request to transfer an autonomous system number (ASN) from one RIR to another.

Issues: ARIN recently adopted policies which both allow the directed transfer of IPv4 between regions and also allowed the directed transfer of ASNs within the ARIN region. This policy extends this trend to allow ASNs to transfer between RIRs.  Some stakeholders in general disagree with the idea of allowing IP resources to trade and will likely oppose this policy.  On the other side are those who will argue that this policy is a logical extension of the existing policy to allow resources to be transferred to where they are needed.

Prediction: This policy will have signification discussion about the need for the policy and the role of inter-RIR relationships, but I suspect the final consensus at the meeting will be to proceed with the implementation of this draft policy.

2013-2 3GPP IP Resource Policy

Policy Summary: Allows organizations to use a lower utilization requirement for provisioning their 3GPP networks when requesting additional IP addresses.

Issues: Wireless operators have been using space beyond RFC 1918 (such as 1.0.0.0/8) to solve their addressing needs and now that this is becoming part of the “Internet” they need to move off of that space. With ARIN’s /8 inventory currently at approximately 2.5, I’m skeptical that any policy using global IPv4 unicast space can actually solve this problem.   The policy text of this draft policy is also not complete at this time and if consensus is achieved on the concepts of the policy change this draft policy would have to return for discussion at another ARIN meeting.

Prediction: This policy will be abandoned by the AC following the meeting.

2013-3 Tiny IPv6 Allocations for ISPs

Policy Summary: Allows ISPs to request smaller than normal IPv6 address blocks or return larger IPv6 blocks to reduce their IPv6 holdings.

Issues: This draft policy addresses an issue where ISPs are being moved into a larger ARIN fee category under the new fee schedule and allows them to return address space to move to a smaller IPv6 fee category.  There has been significant discussion on the PPML mailing list about this issue and at this point it seems unclear if this proposal will achieve consensus at the meeting.   The primary argument against this policy is that this policy undermines the best current practices for IPv6 subnetting, the intended hierarchical addressing structure defined by the IETF in the IPv6 RFCs, and generous nature of intended IPv6 assignments to end-users.  Some stakeholders will argue that ARIN’s fees shouldn’t be used as a force to dictate a network’s IPv6 architecture.   Arguments for the policy are that some small ISPs don’t need and never will use the current minimum block size of a /32 or /36 and should be able to get a /48 which meets their network needs.

Prediction: This policy will be sent to last call by the AC following the meeting.  (I suspect it is possible that the /48 option will be removed from the draft policy as part of the discussion)