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

[John Springer]

Hi Jimmy,

I usually like to read and respond to posts in rough chron order, but
I am kind of skipping to the front to respond to this post because you 
have hit on something pure here. Delay. Inline.

On Tue, 24 May 2011, Jimmy Hess wrote:

> 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.

Magnificent. I can see how this might be desirable to some. This does not 
seem to be currently possible except in end game positioning scenarios. I 
don't like the sound of it.

Nice catch.

John Springer

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