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

Mike Burns mike at iptrading.com
Tue Sep 21 18:58:04 EDT 2021

Hi Noah,

"I dont see why a small startup WISP would prefer brokers or IPv4 leasers to an LIR.!"

It's because we are out of addresses here in ARIN.

So the WISP can (only if they have less than a /20) try to get a /24 from the waiting list, but it is no guaranty.

What if they need a /21?

The have to either purchase or lease, and if they are not sure a new territory will work out, it makes business sense to lease rather than purchase.

And that's assuming they can afford to purchase.

If they don't prefer brokers or IPv4 lessors to an LIR, there is no lease business and nothing for you to fret about.


---- On Tue, 21 Sep 2021 18:53:05 -0400 Noah <noah at neo.co.tz> wrote ----

Hi Mike

Majority of LIR are in a position to provide IP transit circuits services to a small startup WISP which through the transit service can also enjoy sub-allocations of /24 or more at no cost beyond the IPT service.

I dont see why a small startup WISP would prefer brokers or IPv4 leasers to an LIR.!


On Wed, 22 Sep 2021, 00:47 Mike Burns, <mailto:mike at iptrading.com> wrote:

Hi Noah, 


Thanks for  your thoughts, my replies are inline.


“Transfers are generally a prerogative of brokers who don't necessarily provide any form of network services. It does make sense for a broker to defend this model.”


Noah that is a meaningless ad hominem, every transfer has a recipient. 



“ What happens in RIPE does not have to trickle down to ARIN or any other region for that matter.”

Correct, but we can use the evidence provided by RIPE in predicting the outcome of this policy. You predicted that RIRs would no longer be needed and I offered RIPE’s continued existence as rebuttal. Your turn, or have you abandoned your objection that this policy would lead to RIR irrelevance?


Opposing this policy means the only lessors are the lucky incumbents.


“How so, last I checked, as an LIR, we continue to sub-allocate/assign every end-user we bring online through every circuit.  For end-users who need more than we can sub-allocate, we refer them to the RIR for such needs. The RIR system has in place policies that have worked for decades so well to the best interest of the community and the internet as we know it.”


It means that the only leasing allowed under ARIN policy today is when current address owners lease their addresses. Does that make my assertion clearer? Do you still deny my assertion?


Opposing this policy means a lack of policy is preferred, despite the open practice of leasing.


“There is already a policy. What do you mean lack of policy yet there is already a policy which has worked well until you folks want to now remove the need for a circuit so that those of you who benefit from the no circuit based service of IPv$ can expand the scope of your business model beyond just RIPE and provide IPv4 a much longer lifeline.”


There is no ARIN policy regarding leasing, that is what I meant by my assertion. So ARIN resource holder are free to lease out their space. By rejecting this proposal you wish to maintain an NRPM with no lease policy at all. I mean that’s okay, but I think it’s asking for problems.

Opposing this policy provides incentive for registry-shopping and address outflow.


“What registry shopping. The widely known practise has always been RIR <> LIR <> END-USER. This has worked and continues too.”


Yes, this might not be clear. Companies who wish to lease address space can purchase RIPE space for this purpose even if they don’t have an immediate need on an operational network. So that increases demand for RIPE space over ARIN space and provides an incentive for addresses to flow, over time, to RIPE because addresses will flow to where the need is. This would be a long term issue, but we should be aware that address owners do have options in their choice of RIR, and policies favorable to owners will provide a lure. There are already significant leasing operations based in RIPE, drawing in addresses that could otherwise feed the local transfer market. In their absence addresses can flow into RIPE from other RIRs.


Opposing this policy reduces the lessor pool and drives up lease rates.


“If your business model is to profit from leasing and not the IP related services which include connectivity, then yes. LIR who focus on providing services and using integers as a means to do so, dont worry much about lease rates since 99% LIR businesses are not those of IPv4 brokerage or leasing with no service.”


I am simply pointing out that prices rise when supply dips and vice versa. By artificially limiting the pool of lessors to those who have already received addresses they are not using, you limit the competitiveness of the lease offers and this naturally leads to higher prices. It would be better for consumers if there were more and not less lessors, as cumbersome as that sounds.


Opposing this policy dis-incentivizes accurate registration.


“99% of LIR business models are such that LIR's provide IP related services that require a numbered circuit. Majority of LIR around the world follow this school of thought. 


Only a handful of profit minded IPv4 brokers and those who subscribe to the IPv4 leasing business model; are into this flawed draft policy whose aim is to profit off limited IPv4 addresses without necessarily providing Internet based services.  


Worse of it is that, we have experienced purported LIR running an IPv$ enterprise without offering any circuit based service. The entity's annual membership contribution to the RIR is hardly $15K yet holds millions of IPv4 addresses it hoards so that it can go about leasing them for significant figures of $30 per IPv4 address.




Please leave your AFRINIC issues outside this discussion, as we  have no free pool here to raid. And also your ad hominems about brokers. My point is that by requiring lessors to register leases as assignments if they want to use them as justification, we are providing an incentive for accurate registration that currently does not exist.


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