[arin-ppml] Revised and Retitled - Draft Policy ARIN-2021-6: Permit IPv4 Leased Addresses for Purposes of Determining Utilization for Future Allocations

[David Farmer]

Yes, bundling IPv4 addresses with bandwidth is permitted, and in the past
was common practice, heck even the expected practice. However, the fact
that IPv4 address demand isn't decreasing significantly, the costs to
acquire new IPv4 addresses are increasing significantly, and with the
increasing commoditization of bandwidth, it is no longer economically
viable to bundle bandwidth, and its associated connectivity, with IPv4
addressing. This is driving a structural separation of bandwidth,
connectivity, and IPv4 addressing, from each other, instead of bundling
them together as in the past.

Let me state that differently; ISPs are being driven, buy cost
conscience consumers, to separate the costs of bandwidth and the costs of
the IPv4 addresses needed to utilize the bandwidth from each other.
Minimally this separation is achieved by accounting for the costs on
separate line items of a common bill from a single provider. However, price
competition for bandwidth and IPv4 addresses separately will inevitably
drive a structural separation between the two. Consumers will want the best
price they can get for bandwidth and the best price they can get for IPv4
addresses, regardless of whether they come from a single provider or not.

Some may argue this is being driven by the existence of address brokers,
and their desire to make money, I disagree. While address brokers making
money is the grease that keeps this machine working, the need for the
machine is driven by; IPv4 free pool exhaustion, the increasing cost of
IPv4 addresses, and the lack of adoption of IPv6.
In other words, address brokers wouldn't exist if there wasn't a demand for
their services.

In short, the economic conditions that allowed for and even encouraged the
bundling of IPv4 addresses with bandwidth and connectivity no longer
exist, that world is gone. While I have not personally yet determined if I
support this particular policy text, nevertheless, the time has come to
recognize the next step in this inextricable evolution of IPv4 address
policy by the ARIN policy community and permit IPv4 leasing.

Thanks.

On Fri, Mar 11, 2022 at 5:05 PM John Santos <john at egh.com> wrote:

> I disagree.  The addresses are useless unless they ALSO purchase access
> and
> routing from another network operator.  How is this cheaper?
>
> It is and always has been allowed to lease bundled access of addresses and
> connectivity from a LIR, without any expense for purchasing those
> addresses.
>
>
> On 3/11/2022 12:13 PM, Tom Fantacone wrote:
> > I support the proposal as written.
> >
> > It facilitates the provision of a valuable service to a large swath of
> the ARIN
> > community, namely the ability of network operators with an operational
> need to
> > lease IPv4 addresses from 3rd party lessors at a fraction of the cost of
> > purchasing those addresses.  Too often we have seen network operators
> justify
> > their need for IPv4 space only to find that they can't afford to make
> the
> > purchase.  They end up using CGNAT or some other sub-optimal solution.
> >
> > Bill, regarding your point "B", by providing IPv4 leasing, these 3rd
> parties are
> > certainly performing a function that ARIN does not.
> >
> >
> >
> > ---- On Thu, 10 Mar 2022 17:46:36 -0500 *William Herrin <bill at herrin.us>*
> wrote ----
> >
> >     On Wed, Mar 9, 2022 at 8:24 PM ARIN <info at arin.net <mailto:
> info at arin.net>>
> >     wrote:
> >      > * ARIN-2021-6: Permit IPv4 Leased Addresses for Purposes of
> Determining
> >     Utilization for Future Allocations
> >
> >     I continue to OPPOSE this proposal because:
> >
> >     A) It asks ARIN to facilitate blatant and unapologetic rent-seeking
> >     behavior with changes to public policy.
> >
> >     B) It proposes that third parties perform precisely and only the
> >     functions that ARIN itself performs without any credible compliance
> >     mechanism to assure the third party performs to ARIN's standards or
> in
> >     accordance with the community's established number policy.
> >
> >     Regards,
> >     Bill Herrin
> >
> >
> >     --
> >     William Herrin
> >     bill at herrin.us <mailto:bill at herrin.us>
> >     https://bill.herrin.us/ <https://bill.herrin.us/>
> >     _______________________________________________
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> >
> >
> > _______________________________________________
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> --
> John Santos
> Evans Griffiths & Hart, Inc.
> 781-861-0670 ext 539
> _______________________________________________
> ARIN-PPML
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-- 
===============================================
David Farmer               Email:farmer at umn.edu
Networking & Telecommunication Services
Office of Information Technology
University of Minnesota
2218 University Ave SE        Phone: 612-626-0815
Minneapolis, MN 55414-3029   Cell: 612-812-9952
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