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

[michael.dillon at bt.com]

> 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?

No. There are several options.

1. Multilayered NAT to put more users behind each IPv4 address.

2. Just pirate some addresses from another region. For instance APNIC
allocated all of 126.0.0.0/8 to Softbank, a Japanese cable provider. If
an American ISP decided to "borrow" these addresses, then few of their
customers would notice that they cannot contact consumer cable customers
in Japan. 130.0.0.0/8 is another interesting block as are the various
military allocations.

3. IPv6 is always an option.

4. Shop for an upstream provider that will provide the needed addresses.
Since IPv6 deployment is likely to come first from larger ISPs, who are
more likely to act as upstreams, this should supply everyone's needs
once they start selling IPv6 services in earnest.

> Small ISPs might be able to buy address space from larger 
> ISPs, especially ones that are migrating to v6. 

I don't know about the USA, but in Europe, the largest ISPs come from a
telco background and these companies are members of an association
called ETNO which does various things like fixing broken standards, and
issuing joint position papers. ETNO recently released a position paper
saying that IP addresses should not be sold, which I would interpret to
mean that these companies will *NOT* sell surplus IP addresses. Giving
them to a customer who needs them is just business as usual so I expect
that the only way to access this surplus will be to buy service from
such companies.

Clever readers will have noticed that under today's rules were private
transfers are not allowed, a company needing IP addresses could pay an
ISP for service and get some addresses for free. Under the market
scenario that some are promoting, a company needing IP addresses could
pay an ISP for addresses and get no service at all. One of the reasons
for promoting this is that they fear some companies today are paying an
ISP for service and getting IP addresses, but passing on the services
that they paid for. It seems strange...

--Michael Dillon