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

[Owen DeLong]

While it has always been allowed, it’s becoming less common that LIRs are willing to do so. Many ISPs are starting to add surcharges for IPv4 addresses and in some cases, even for IPv4 service (whether expressed as a discount for IPv6 only or a surcharge for IPv4, it amounts to the same thing).

Since network providers are starting to add line-item billing for addressing and/or encourage their customers to BYO addressing, you now have customers that are seeking to reduce the price they pay per address to go with their connectivity.

If lessors are competitive with service providers, then obviously it is in fact cheaper. If they are not competitive, then likely they will eventually go out of business for lack of customers and whatever addresses they were holding are returned to the RIR free pool when they fail to pay their annual bill.

That doesn’t provide a path whereby lessors can inflate the price of IPv4 addresses.

Now you _COULD_ try to make the argument that lessors acquiring IPv4 addresses are reducing the number of addresses available for transfer and therefore increasing the price of transfers, but the reality is that even with this policy, they are likely noise in that equation compared to the cloud providers that are vacuuming up available IPv4 addresses like they are going out of style. (Which, ideally, they are and then this will no longer be an issue at all).

Owen


> On Mar 11, 2022, at 15:04, 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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> 
> -- 
> John Santos
> Evans Griffiths & Hart, Inc.
> 781-861-0670 ext 539
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