IPv4 Pricing and Transfer Update Sandra Brown IPv4 Market Group - - PowerPoint PPT Presentation

IPv4 Pricing and Transfer Update

Sandra Brown IPv4 Market Group January 19, 2016

IPv4 Life Cycle

• Events

– ARIN Runout – RIPE Inter-RIR Transfers – /8s come to market – IPv6 Adoption

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Factors Affecting Pricing

• Supplies are being bought up in ARIN

region, following run out in July 2015

• 2,000,000

4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 2009 2010 2011 2012 2013 2014 2015

IP TRANSFERS

# OF IP TRANSFERS PER YEAR IN ARIN REGION

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Factors Affecting Pricing

• RIPE Inter-RIR Transfers: Possible since

September 2015; Prices have equalized across regions

• IPv6 Deployment: Will reduce demand for IPv4 in

the long term; Applications still need to support IPv6

• Use of CGN: Stretches use of IPv4 and reduces

price pressure

• Supply of IPv4: As more IPv4 comes to market,

such as /8s, prices are pushed down

• Demand for IPv4: Increased demand for cloud

applications; population growth

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Price Trends over Time

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00

Jan-14 Apr-14 Jul-14 Nov-14 Feb-15 May-15 Sep-15 Dec-15

PRICE PER IP MONTH-YEAR

IPv4 TRANSACTIONS OVER TIME

TRANSACTION AMOUNT

• Inflection point in September 2015

when prices increased

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RIPE Transfer Activity

200 400 600 800 1000 1200

/24 /23 /22 /21 /20 /19 /18 /17 /16 /15 /14

# OF TRANSFERS BLOCK SIZE

# OF TRANSFERS PER BLOCK SIZE

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

/24 /23 /22 /21 /20 /19 /18 /17 /16 /15 /14

# OF IPS TRANSFERRED BLOCK SIZE

# OF IPS TRANSFERRED PER BLOCK SIZE

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RIPE Transfer Activity

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000

# OF IPS TRANSFERRED MONTH-YEAR # OF IP TRANSFERS PER MONTH-YEAR

TO COUNTRY # IPS TRANSFERRED % Iran 3,066,368 18.06% Saudi Arabia 2,708,480 15.96% Russia 2,148,608 12.66% UK 1,539,328 9.07% Romania 857,600 5.05% Spain 791,808 4.66% Netherlands 773,632 4.56% Germany 766,208 4.51% Italy 525,824 3.10% Portugal 409,088 2.41% Bulgaria 402,944 2.37% Turkey 338,176 1.99% France 290,816 1.71% Denmark 272,384 1.60% Ukraine 239,616 1.41%

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Predictions for the Future

• We are not at the top of the IPv4 Price

Curve: Prices will continue to rise somewhat

• /8s will continue to come to market,

keeping prices reasonable

• There is a shortage of IPv4 addresses in

RIPE region that is starting to be filled from ARIN region

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