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Lessons Learned from the IPv4 Transfer Market

Published on May 13th, 2015

The IPv4 purchase process can be quite complex. As an IPv4 buyer, it is imperative to conduct due diligence, and understand the correct questions to ask, in order to ensure an efficient transaction that meets your business needs.

Start pre-approval process prior to the commercial process.

In ARIN and APNIC regions, you must engage in the pre-approval process to understand the block size your business will be approved for. After understanding this, you will be able to effectively manage your commercial process by finding an appropriate seller. By completing the two steps in this order it will ensure increased transaction efficiency and better utilization of your company’s financial resources.

What should I know about the ARIN needs justification process?

There are many technical intricacies to understand and, if you don’t have internal expertise with this process, leveraging our broker knowledge will be very useful. For example, it is important to note that when you do apply for IPs your existing blocks have to be at least 80% utilized. Furthermore, the utilization number refers to each individual block size, rather than the aggregate.

Additionally, as a buyer, you need to demonstrate to ARIN how the IPs will be used. This can be particularly challenging, and is something that IPv4 Market Group can assist you in completing in a timely manner.

Should I go to ARIN for free IPs or should I purchase them?

As ARIN still has free IP addresses available, the first consideration should be to see if your business needs can be met via this method. At IPv4 Market Group we strongly encourage exploring this option prior to making a purchase. The difference between the two options is the duration the supply will last. Currently, ARIN will only provide businesses with a 3-month supply, whereas a 24-month supply can be purchased on the transfer market. Therefore, if receiving IP addresses from ARIN, it will result in conducting the transfer process 8 times more often.

What factors should I be considering when purchasing IP addresses, other than price?

Although price is a major consideration, it is important to assess these additional factors:

  1. Correct legal agreement jurisdiction- IPv4 Market Group ensures this will occur
  2. IP quality- Check ARIN registry versus seller incorporation for chain of custody, and  investigate whether the IPs have been blacklisted, or have been used to spam
  3. Seller efficiency- Transaction times can range from several days to a year
  4. Correct legal content in the Asset Purchase Agreement- IPv4 Market Group ensures this will occur