Funny Money: 1+1=$50M??

[Jim Fleming]

On Sunday, March 30, 1997 7:00 AM, Randy Bush[SMTP:randy at PSG.COM] wrote:
@ Bunch of meaningless numbers intended to create hysteria sans fact.
@ 
@ There are good historical data from RIP and APNIC.  They differ by an order
@ of magnitude from the fantasies folk are blathering here.  And, bottom line,
@ all these organizations are not for profit, with actual price reduction when
@ needed.
@ 
@ It would be helpful for purposes of getting one's point across if folk
@ attempted to stick within shouting distance of reality.  The alternative
@ is to have folk ignore the fantasy/hysteria as Jim Flemming et alia are
@ ignored.
@ 
@ randy
@ 
@ 

Maybe the U.S. Government and the NSF/InterNIC you should hold
an auction for ONE /8 and see how much it raises.

You apparently think it will bring $5 million.
I claim that $50 million is more likely.
An auction is one way to find out and the NSF
(or the FCC) could raise some money.

Are the costs of renumbering taken into account when
	valuing IP blocks ?
	How much has renumbering cost ISPs over the years ?
		As an example, 3,000 ISPs spending $10,000
		per year on this nonsense is $30,000,000.
		Some ISPs report it costs them $100,000/year.
	Who is going to be responsible for those costs ?
	Will ARIN be addressing those costs ?

What do corporations value their /8s at on their books ?
	Why do large companies get to avoid renumbering costs ?
	What advantage does that give large companies over small
	companies and what is the value of those advantages ?
	Will ARIN be addressing these issues ?

Why are small ISPs forced to be tied to upstream providers ?
	Who is going to be responsible for those policies ?
	What happens when small ISPs are put out of business
		by large upstream providers who raise rates after
		binding the ISP to their service by locking them
		out of the IP allocation opportunities?
	Will ARIN be addressing these issues ?

To summarize:
	1. Renumbering costs are significant to ISPs and
		should be considered when valuing IP adddresses.
	2. Large, legacy corporation advantages over small ISPs are
		real and need to be addressed by the government.
	3. Upstream provider allocations to ISPs are a severe
		handicap and need to be reduced via PI allocations.


--
Jim Fleming
Unir Corporation
http://www.Unir.Corp

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