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

William Herrin bill at herrin.us
Thu Sep 23 22:57:59 EDT 2021

On Thu, Sep 23, 2021 at 5:54 PM Owen DeLong <owen at delong.com> wrote:
> > On Sep 23, 2021, at 16:25 , William Herrin <bill at herrin.us> wrote:
> >
> > On Thu, Sep 23, 2021 at 4:15 PM Mike Burns <mike at iptrading.com> wrote:
> >> 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.
> >
> > Hi Mike,
> >
> > ARIN leases addresses to you. You turn around and lease them to
> > someone else at a higher price. You add nothing in the process, no
> > network services or anything like that. The lessee can't rent them
> > directly from ARIN, not because of cost or risk or whatever but ARIN
> > doesn't have any left to rent. It's about as straightforward an
> > example of rent seeking as you can get.
> That’s not likely the real situation, however…
> Likely, Mike does research and fines underutilized addresses and approaches
> the current registrant and asks if they’d be interested in receiving MRC in
> exchange for the ability to use those addresses. Mike then takes a risk and
> begins paying said registrant monthly/quarterly/yearly/whatever for the
> use of those addresses at some wholesale leasing price. Then he turns
> around and tries to find an entity with need that (for whatever reason,
> capital intensity, temporary need, etc.) wants to lease rather than buy
> a block of addresses and provides them. Yes, for all the obvious reasons,
> the price he charges to lease to his customer is higher than the price
> he pays to his supplier, but he’s basically a retailer adding value in the
> form of acquiring the wholesale goods and matching them to the needs
> of the retail customer.
> ARIN is not finding the sources of addresses who are willing to lease,
> but not sell… ARIN Is not even finding the sources of addresses who
> are willing to sell. Brokers are fulfilling that role for sales and are the
> most likely ones to be fulfilling that role for leasing as well.
> Owen

William Herrin
bill at herrin.us

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