[arin-ppml] "Leasing" of space via non-connectivity providers

Scott Helms khelms at zcorum.com
Thu Feb 3 15:24:46 EST 2011

>  1. Whatever arrangements work out in the market are fine, including leasing.
>  Pros: Noninterference. Let's the market do its thing.
>  Cons: Contrary to the needs basis we've adhered to for the last 20
>  years. The the end user needs the addresses enough to pay the price
>  and the lessor can spare them then obviously the end user needs those
>  addresses, not the lessor.

We currently (and have for a number of years) leased IP space to
ISPs who didn't have the ability or desire to qualify for their own ARIN
disbursement.  All of our customers for this service are retail ISPs,
mainly small and mid size telco and cable companies, and pass through
all of the requirements for utilization and documentation that ARIN puts
on us.  In all cases the blocks are properly SWIPed (either reassign or
reallocate).  We charge a minimal fee for record keeping on an annual
basis.  Our reason for providing this service was to reduce the
disruption and work that needed to be done every time one of our ISP
customers decided to swap to a cheaper bandwidth provider.

>  2. Address leasing is not allowed. Must get your addresses from a
>  primary or at least major bandwidth provider. Addresses found to be
>  leased or provided in with a paper-tiger transit arrangement are
>  subject to reclamation by ARIN.
>  Pros: Keeps the market more or less honest. IP addresses are a public
>  resource; they don't belong to you. As incentive to put your uneeded
>  addresses back into the supply, you're allowed to sell them at
>  market... but you don't get to be like the landlords of Europe that
>  prompted the 19th century emigration to the Americas, refusing to sell
>  to the folks living on the land at any price.
>  Cons: Unenforceable.
I think its probably unenforceable and I doubt we are the only
organization doing reassigns for legitimate reasons.  How you could
separate out an organization like ours from, which has been providing IP
space for ~5 years at little over cost to organizations jumping in and
trying to profit from their suddenly valuable IPv4 space?  In our case
the smaller ISPs we are providing this service to don't want a direct
disbursement and in the only case we've had where a customer wanted to
convert we helped them do just that.

Scott Helms
Vice President of Technology
ISP Alliance, Inc. DBA ZCorum
(678) 507-5000
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