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

Kevin Kargel kkargel at polartel.com
Thu May 14 13:37:48 EDT 2009

> -----Original Message-----
> From: Martin Hannigan [mailto:martin.hannigan at batelnet.bs]
> Sent: Thursday, May 14, 2009 12:11 PM
> To: Kevin Kargel
> Subject: Re: [arin-ppml] Will the price per IP really be affected by
> thetransfer market introduced in 2009-1?
> On Thu, May 14, 2009 at 11:09 AM, Kevin Kargel <kkargel at polartel.com>
> wrote:
> >
> >>
> >> The transfer market already exists.
> >
> > The sanctioned transfer market does not exist.  How many IP's did you
> buy in
> > a "transfer market" this year?  How many eBay auctions for netblocks
> have
> > you seen?
> We didn't all choose the blue pill, Kevin.

Blue pill schmue pill..  There is no sanctioned IP market today.  
> > Of course you won't "absorb" anything..  the cost will be passed to the
> end
> > user.  That doesn't make it right.
> You should explain how that works to Ted.
> Best,
> Martin

I think Ted understands it.  He also understands that if you are in
competition with a company that doesn't carry the added burden then you need
to find a way to cover the cost.  

So if you and ISP"B" are in competition, and you are both selling DSL to
100,000 subs at $19.95/month, and you run out of IP space and pay $1mill for
more IPv4 and ISP"B" doesn't, how are you going to compete with ISP"B"?

Is the extra $10/sub going to cause you to raise your rates?  If you
amortize the increase over 5 years and raise your DSL rates to $21.95 (gross
oversimplification) do you think you are going to lose business to your
competition who is still offering DSL at $19.95?

Or are you going to choose to make $2/sub less profit than ISP"B"?  If you
do that are you going to be able to keep up with ISP"B" technologically and
offer the same or better services than they do?  Are your customers going to
notice?  Is ISP"B" going to notice and mount an advertising campaign?

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