[arin-ppml] 2008-6: Emergency Transfer Policy for IPv4 Addresses

[Tom Vest]

On Oct 6, 2008, at 9:27 AM, Randy Bush wrote:

>> The significant issue with straight free market approach to IP
>> address distribution is precisely the externality point you cite
>> above. At present, the actual cost incurred from making use of a
>> particular address blocks is not clearly passed back to those
>> receiving the benefit.  Making use of an IP address block in the
>> public Internet requires routing it, and while this results in costs
>> to every default-free network in the Internet, there is no system in
>> place to provide settlement of these additional costs, and it is
>> instead handled indirectly by providers through peering negotiations.
>
> and this is not a problem if you get the space from an rir, only if  
> you
> buy it on an open market.  cool!
>
> randy

That's right Randy. To recap from last week, what makes routing keep  
working under the current paradigm?

1. CIDR  -- which provides the basic tools.
2. Top-level aggregation -- which the RIR community-system provided,  
and kept flexible over time as technology improved and RIR community  
practices changed.
3. Filtering -- which was/is only commercially feasible because of the  
top-level aggregation made possible by the RIR community-system.
4. Open entry for new routing service providers, which the arms-length  
RIR processes also enabled, and which effectively made aggregation and  
filtering "justifiable" and thus palatable to most direct  
stakeholders, as well as to the few indirect stakeholders/outside  
observer who knew that the system existed and understood the basics of  
how it worked.

An uncoordinated market will eliminate (2), which will make (3,4)  
impossible, which will cause the current routing paradigm to fail in  
short order.

Maybe a routing cartel will emerge in time to solve the problem,  
without creating new problems for aspiring new entrants and the ever  
widening audience of attentive external stakeholders. But that's a big  
leap of faith...

TV