Scott, the point is that we should not be spending much time and should dismiss such proposal because although it may not look like it is willing to change a fundamental thing about IP address usage based on justification, something that doesn't require to much debate such obvious it is. Fundamentally we are not dealing with an irrevocable asset that someone purchased and may dispose or sell it at he/she wishes, but about a right to use which may be revoked if used against the rules. Therefore it should not need too much debate to find out that anyone using this scarce resources, that doesn't belong to anyone individually MUST always justify for that need.

There is already a neutral and well established entity tasked to evaluate those justifications, the RIR, and we all assume they do this in the most impartial way. And better they do this directlly with those who are really using the resources, not via a 3rd party who have financial interest in it.

For those that for a moment believe a lessor may be able to justify to the RIR that "their clients are really using it" (just look how absurd this is!), it is a lot simple and removes any points of doubt to just have any unjustified space to be returned to the RIR and they, according to the current agreed rules will re-distribute those addresses to those who are really building operational networks in a most neutral and fair way, not to those who are able to pay more for it.

If for some reason a resource holder realizes doesn't need any addresses anymore there are always the Transfer policies in place. As long the receiver can justify the need and building networks ARIN will proceed with the transfer. We do not need 3rd parties making it even more complex something that can remain simple in the hands of the RIR - and avoids pretending leasing is a normal and legitimate thing. At the end that only beneficiaries are the companies who intermediate these type of business and have financial interest in it, not the organizations who need IP addresses.

I don't care that leasing "makes it cheaper" in short time for those without IP addresses to get some, but only that those who really justify for those resources do that directly with the RIR which is the fairer thing to all involved - all the community - which is the most important. We if let these 3rd parties turn something unnecessary in something normal we all know where it is going to end basically because their interest is not a better and fair distribution of IP addresses to those who really need or who are building networks, but simple to those who are willing to pay more.

Regards
Fernando

Em 11/03/2022 15:43, Scott Leibrand escreveu:
It seems that lots of people oppose this policy based on their assumptions about what it will do to the economics of the IP address transfer market, but no one is making those assumptions explicit or describing what exactly they think would happen if it were passed.

Right now https://auctions.ipv4.global/prior-sales is showing recent prices of about $55 per IP (to buy them on the transfer market), up from about $30/IP a year ago.

Right now https://www.heficed.com/lease-ipv4/ is quoting $0.50/mo per IP ($546 for 1024 addresses). The data at https://www.ipxo.com/blog/leasing-vs-buying-ip-addresses/ is a bit older, but indicates that in late 2020, prices were in a similar range of $0.34 - $0.67 per IP.

If someone buys addresses at $55 each and leases them out at $0.50/mo, it would take 110 months (9 years) to cover the cost. That would be a lousy business, so clearly, entities leasing space are expecting IPv4 purchase prices to continue rising more quickly than their cost of financing, and expect to be able to sell any addresses they buy at a profit.

Leasing is clearly already happening. Right now it has to be done using RIPE space or by an entity that has (at least nominal) network connectivity.

If you oppose or support this policy on grounds that it will affect the supply and demand of addresses, can you be more specific as to what effects you expect relaxing the justification requirements for those offering IP leasing who want to buy more space to lease out would have? How would this policy affect the demand and price of IPv4 addresses bought and sold on the transfer market? How would that affect the supply, demand, and price of IPv4 addresses available for lease? How would that affect network operators? Would more of them switch from purchasing addresses to leasing them? With leasing (currently) being cheaper than purchasing (because a purchase is also an investment in a currently-appreciating asset), would it help or hurt network operators for leasing to be considered a more legitimate option?

-Scott

On Fri, Mar 11, 2022 at 10:02 AM Fernando Frediani <[email protected]> wrote:

    On 11/03/2022 14:56, Tom Fantacone wrote:
    Bill,

    We can quibble about semantics, but let's go with your verbiage:

    If I run a network and qualify for an /18 right now, can I go to
    ARIN and lease one?   I must either /pay someone to release their
    addresses to ARIN to lease to me/ or lease one from a (non-ARIN)
    3rd party.
    And that should always be the expected, release them to ARIN which
    should be the only actor taking care of it.
    I really fail to understand how can one consider legit that a 3rd
    party could be doing this job otherwise.

    If everybody sticks that what is expected, things work better, is
    much better to trust ARIN to do this plus in the end doing in such
    way doesn't least space for speculation, price rises and community
    have the assurance that the one who is intermediating it is
    someone really neutral and with no other interests to the business
    other than make sure the policies are being followed.

    Fernando


    And the amount I must pay (commonly referred to as the Purchase
    Price in most IPv4 transfer contracts, whether I'm technically
    "buying" it or not), is significantly more than either typical
    lease rates or ARIN's annual fees.  My point is that 3rd party
    lessors do provide a service that ARIN does not.

    Regards,

    Tom Fantacone



    ---- On Fri, 11 Mar 2022 12:42:52 -0500 *William Herrin
    <[email protected]> <mailto:[email protected]>* wrote ----

        On Fri, Mar 11, 2022 at 9:40 AM Tom Fantacone
        <[email protected]> wrote:
        > If I run a network and qualify for an /18 right now, can I
        got to ARIN and lease one? I must either buy one on the
        transfer market

        Tom,

        I think you misunderstand the transfer market. You don't buy
        addresses
        on the transfer market. You lease addresses from ARIN and
        then pay
        someone on the transfer market to release their addresses to
        ARIN for
        lease to you.

        Regards,
        Bill Herrin


-- William Herrin
        [email protected]
        https://bill.herrin.us/




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