[arin-ppml] ARIN-2011-5: Shared Transition Space for IPv4 Address Extension - Last Call

[Martin Hannigan]

On Fri, Apr 22, 2011 at 8:34 PM, Owen DeLong <owen at delong.com> wrote:
>
> On Apr 21, 2011, at 8:42 PM, Martin Hannigan wrote:
>
>> On Thu, Apr 21, 2011 at 11:25 PM, Jimmy Hess <mysidia at gmail.com> wrote:
>>> On Thu, Apr 21, 2011 at 7:36 PM, Scott Leibrand <scottleibrand at gmail.com> wrote:
>>>> On Apr 19, 2011, at 2:25 PM, "George, Wes E IV [NTK]"
>>>> <Wesley.E.George at sprint.com> wrote:
>>
>> [ clip ]
>>
>>>
>>> That will begin to happen with the /10 reserved,  due to mathematical contraints
>>> applying to ISPs that need IP addresses, especially when the free pool becomes
>>> exhausted; using RFC1918 or /10 space becomes a more reliably,
>>> inexpensively  available option  than trying to find sources of
>>> sufficient global unique
>>> IPv4 addresses available by 8.3 transfer.
>>
>> If 10 entities pooled their resources and acquired a legacy /10
>> through the transfer "process" the addresses would cost them about a
>> $1 each (@ $11.25 ea)  -- a one time fee. That's cheaper than what
>> your average sized member pays right now. (~$1.62 ea.) If they
>> amortized that resource over three years its even better.
>>
>
>> OTOH, the replacement value of that /10 to the average sized member is
>> about $47M.
>>
> Uh, no, the current replacement value if the average sized member
> could qualify for a /10 would be that same $1.62/address.

No, it actually won't be when exhaustion occurs.

>
> Your speculative market value based on a single transaction at $11.25@
> works out to $47M, but, that means that the 10 theoretical organizations
> you mention above would also have to spend $47M to get the addresses
> from the market rather than ARIN.

[ .. ]

> I'm really not seeing a point to your financial statement here.

If there is real need and this proposal does not end up being
implemented, you'll see this group pool their money and acquire
address space. They would likely opt to cost share the transaction and
the divisors would work in their favor.

It doesn't get any simpler.

Best,

-M<


-M<