[arin-ppml] quantitative study of IPv4 address market

[John Curran]

On Sep 4, 2012, at 10:26 PM, Steven Ryerse <SRyerse at eclipse-networks.com<mailto:SRyerse at eclipse-networks.com>> wrote:

In Milton’s study he clearly outlines that Microsoft chose to purchase a large number of addresses thru bankruptcy court, even though ARIN has plenty to allocate.  According to Milton’s numbers, Microsoft made a business decision to pay over seven million dollars when they could have gotten the same number of IPv4 addresses from ARIN for less than a hundred thousand dollars.  Microsoft is not a dumb company and they certainly don’t waste over seven million dollars  for no reason.  It is pretty obvious that Milton is right that they did it because they wanted to secure plenty of addresses so that the capital they are investing in their various businesses isn’t at risk for lack of IPv4 addresses.  They did what any sane organization would do and minimized their risk – and it was worth it for them to do that even at the cost of seven million dollars more than what ARIN charges.

To be clear, Microsoft met the same needs-based criteria as any other
transfer recipient and the resources they hold are subject to number
resource policies in the region.

Since that initial transaction, we've had many others (see below, and you
will find that they have much more explicit language in their approved
transfer documents.  Milton is correct that there is an active transfer
market, but his other assertions (extrapolated from the single Nortel -
Microsoft data point) unfortunately ignore the remainder of the data.

FYI,
/John

John Curran
President and CEO
ARIN

===

Begin forwarded message:

From: John Curran <jcurran at arin.net<mailto:jcurran at arin.net>>
Subject: Re: [arin-ppml] ARIN-prop-174 Policies Apply to All Resourcesin the Registry
Date: June 22, 2012 6:23:25 PM GMT+01:00
To: Mike Burns <mike at nationwideinc.com<mailto:mike at nationwideinc.com>>
Cc: "arin-ppml at arin.net<mailto:arin-ppml at arin.net>" <arin-ppml at arin.net<mailto:arin-ppml at arin.net>>

On Jun 22, 2012, at 1:06 PM, Mike Burns wrote:
... Microsoft paid $7.5 million for addresses which ARIN says they could have got from ARIN for free, because they passed the justification test.

Mike -

    If requested resources from the free pool every 90 days, and if the
    pool had held out, then they may have achieved the same goal.

    Many parties seem attracted to the certainty from having a large
    block of number resources to meet their future business needs;
    in addition to Microsoft, the following additional transfers have
    been transferred from bankruptcy estates:

       Borders Group, Inc., et al., (S.D.NY) 12/20/2011 1 /16
       Teknowledge Corporation (N.D.CA) 1/24/2012 1/16
       Northern Telecom Canada, Ltd. (Nortel II – Canada) 2/24/2012 2/16’s
       Bell-Northern Research (Nortel II – Canada) 2/29/2012 1/14 2/29/2012 1/14 4/10/2012 2/16’s

   You'd have to ask the recipients why the value receiving number
   resources through transfer; ARIN simply processes the requests
   per policy.

Thanks!
/John

John Curran
President and CEO
ARIN
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