[arin-ppml] ARIN-prop-151 Limiting Needs Requirements for IPv4 Transfers

[Jimmy Hess]

On Tue, May 24, 2011 at 7:25 PM, Mike Burns <mike at nationwideinc.com> wrote:

> And if you are planning on buying addresses to keep your competitor from
> getting them, by definition you need to be at the end of the current pool of
> available addresses, and certain that no more will enter the pool.

Not necessarily.  That depends on how many IPs the competitor needs,
and how fast they will probably need them.
Sometimes _delaying_ a competitor by a few months might be worth
millions or hundreds of millions;
it may undermine the competitor's product or any significant chance
they had to get a foothold.

> And when that happens, the price of addresses will go up, and more will
> enter the pool.

A win in two ways...  (1) the victim competitor has to wait, maybe
months for more addresses
to come to market;  this gives the aggressor a chance to get a bigger
head start.

(2) the aggressor competitor has effectively manipulated the market,
by taking advantage of
the limited size of the market,  they have increased the price -- this
means the victim competitor's
price per IP address goes up.

The large increase in IP address costs (depending how much),  might
derail the victim competitor's
plans entirely --  if IP addresses are too expensive,  their ROI
might change from being excellent,
to being so poor the project must be cancelled.

> OK, I should not have engaged in an analogy, I must have been hungry.
>
> Regards,
> Mike
>

--
-JH