[arin-ppml] FW: Creating a market for IPv4 address space in absence of routing table entry market

[Milton L Mueller]

This issue (consolidation of the ISP market) is something I have been
thinking about and preparing a paper on. 

Assume for a moment, Tom, that address transfers are NOT allowed, ever,
by any RIR. 

When v4 free pool is depeleted is not the only alternative then for a
hungry ISP to acquire a smaller ISP if it wants to expand address space?


Small ISPs might be able to buy address space from larger ISPs,
especially ones that are migrating to v6. But small ISPs are much less
likely to be able to acquire larger ISPs. Usually big fish eat smaller
ones not the other way 'round. 


> -----Original Message-----
> From: Tom Vest [mailto:tvest at pch.net]
> Sent: Sunday, June 15, 2008 3:43 PM
> To: John Curran
> Cc: Milton L Mueller
> Subject: Re: [arin-ppml] Creating a market for IPv4 address space in
> absence of routing table entry market
> 
> I agree with Milton's observation, but that's because I believe that
> transit providers will only/always be on the buy side of any IPv4
> transfer market. In other words, I predict that a transfer market will
> produce a world wherein all of the loose address space constantly
> gravitates to (ever larger and larger) transit providers, henceforth
> to be (increasingly non-aggregatable) PA space forevermore -- i.e., a
> world characterized by all of worst feature of PA, with none of the
> upside.
> 
> I'm sure a few sources will remain for those who are willing to pay
> industrial-size (8-9 significant digit) prices for small PI prefixes
> -- but the institutions capable of doing this (banks, etc.), will also
> have no problem finding someone to accept their money to route them.
> 
> TV
> 
> On Jun 15, 2008, at 10:46 AM, Milton L Mueller wrote:
> 
> > I see no reason why the transacting parties would not be able to
> > internalize the routing externality. Who is going to put down good
> > money
> > for addresses that can't be routed, or that even have a substantial
> > risk
> > of non-routability?
> >
> >> -----Original Message-----
> >>
> >> The arrangement of the address space (in terms of numbers of
> >> blocks, shape of said blocks, and fit to existing holders blocks)
are
> >> all factors which affect the value of some space to a given holder.
> >> i.e. 16 random /28's may not have the same usefulness as a /24)
> >> Most of this consequential to the externality of having to route
> >> the address space before being able to use it for most
applications.
> >> As there is no market for global table routing slots, and yet a
very
> >> real limit on their availability, this externality is extremely
> > difficulty
> >> to assess and creates a continuously iterated prisoner's dilemma
> >> situation with unknown equilibrium points.   Market failure in
> >> this case can result in a truly dysfunctional Internet.
> >
> >
> > _______________________________________________
> > PPML
> > You are receiving this message because you are subscribed to the
> > ARIN Public Policy
> > Mailing List (ARIN-PPML at arin.net).
> > Unsubscribe or manage your mailing list subscription at:
> > http://lists.arin.net/mailman/listinfo/arin-ppml
> > Please contact the ARIN Member Services Help Desk at info at arin.net
> > if you experience any issues.