[arin-ppml] Draft Policy ARIN-2021-6: Remove Circuit Requirement

[Mike Burns]

Hi Bill,



You are completely neglecting risk in your assumption that no value is added.

I add value by transferring cash to somebody else in the hope I can lease the purchased IPv4 out for a profit before China and the DoD dump addresses on the market.

It's basic economics. Does an apartment builder add no value because he charges rent?



You also seem to be merging the concept of renting with the concept of rent-seeking, which have different definitions.



I'm not sure if you responded to the points that your opposition to this policy serves only to benefit lucky incumbents and large networks, while providing RIR-shopping incentives and failing to financially incentivize accurate assignment information. 



Can you address those points since I think you realize the futility of trying to actually ban leasing?



Also please remember in the dire descriptions of rent-seeking and the market disruptions, that this is all perfectly fine in RIPE and has been ongoing for many years.





Regards,

Mike









---- On Thu, 23 Sep 2021 18:49:17 -0400 William Herrin <bill at herrin.us> wrote ----



On Thu, Sep 23, 2021 at 2:41 PM David Farmer via ARIN-PPML 
<mailto:arin-ppml at arin.net> wrote: 
> I have a question for those that oppose the leasing or loaning of IPv4 addresses to other entities absent connectivity; Is it the rent-paying or that lack of connectivity provided with the addresses that offend you? Or, both? 
 
Hi David, 
 
The defined Economics term is "rent seeking." Just renting something 
to someone is not "rent seeking." The term has a specific meaning. 
Briefly, it means exploiting a rule-making process (such as law, 
regulation or other public policy) often by changing it to let you 
make money without adding value. 
 
Address transfers are at least notionally not rent seeking - the 
recipient isn't paying for the addresses, he's paying the former 
registrant's one-time cost to reconfigure to stop using them while the 
addresses themselves convey to the new registrant for exactly the same 
cost as the original registrant. Yes I know that's ridiculous. Call it 
a "legal fiction." 
 
Address leasing, on the other hand, is unapologetically rent seeking. 
I have them only because the regulatory agency allowed it. I add no 
value by letting you pay me to use them but you have no choice because 
the regulatory agency has no more to offer. I and my contemporaries 
took them all. 
 
 
What's wrong with a little rent seeking? Rent seeking is 
anticompetitive behavior. Quoting from 
https://www.investopedia.com/terms/r/rentseeking.asp : 
 
"Rent seeking can disrupt market efficiencies and create pricing 
disadvantages for market participants. It has been known to cause 
limited competition and high barriers to entry. 
 
Those that benefit from successful rent seeking obtain added economic 
rents without any added obligations. This can potentially create 
unfair advantages, specifically providing wealth to certain businesses 
that leads to greater market share at the detriment of competitors." 
 
Regards, 
Bill Herrin 
 
 
-- 
William Herrin 
mailto:bill at herrin.us 
https://bill.herrin.us/ 
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