[arin-ppml] Will the price per IP really be affected by thetransfer market introduced in 2009-1?

[Ted Mittelstaedt]

> -----Original Message-----
> From: Martin Hannigan [mailto:martin.hannigan at batelnet.bs] 
> Sent: Thursday, May 14, 2009 10:39 AM
> To: Ted Mittelstaedt
> Cc: ARIN PPML
> Subject: Re: [arin-ppml] Will the price per IP really be 
> affected by thetransfer market introduced in 2009-1?
> 
> 

> >
> > A transfer market, as we have been discussing here, isn't 
> "monthly leasing"
> > I am not sure where your getting this idea from.
> 
> The PPML discussion (by some) demonstrates how broken that "transfer"
> process is and leasing is one of many methods to exploit that process.
> I take my /8, I carve it up into /16's to be a good 
> net.citizen, I allocate (lease) them myself passing LOA
>

Why is this "broken"

It is stated several times in the NRPM that if you are small and
cannot justify a large block that you need to go to an upstram
ISP and obtain your IP addresses from them, NOT ARIN!

The only difference between your ISP A "leasing" of it's /16's and
some other ISP B "leasing" of it's /16's, is that your ISP A is
too stupid to require it's "lessors" to buy Internet
connectivity from it, as a condition of obtaining their /16
so your ISP A is cutting itself out of most of the profits it could
make.

But hey, if ISP's want to be stupid, why should ARIN make policy
to prevent it?
 
> Are you actually saying that there are no markets operating 
> and that the circumventions being described won't/don't, or 
> are you simply playing word games with me to elongate the thread?
>

Martin, there is ONLY ONE justification for supporting a transfer market in
ARIN policy.  That is, to pull UNUSED IPv4 out of storage and have someone
use it.

It is NOT so that someone can make a pile of money.  That may or may not
happen, it may or may not have bad side effects.  It is to get the unused
IPv4 in use.

If that unused IPv4 is ALREADY being used by people who to
use your terminology "lease" out (ie: give away most of the potential
profit they can make off having those numbers) then there is NO need
for a transfer market in the first place, because the IPv4 IS BEING
USED.
 
The important thing is usage.  This is why if prices go out of sight
in a transfer market, it fundamentally undercuts the entire reason
for allowing transfers in the first place.  Since what happens is
now few people can afford it so the "sellers" just end up sitting on
what they have, waiting for that once-in-a-blue-moon spectacular sale
they can make a killing on.  That ties up the IPv4 and we are right
back where we started.

Ted