Published on February 14th, 2017
Watch the video below:
Hi this is Sandra Brown at NANOG 69 in Washington DC. It’s Wednesday at the meeting and it has been an interesting meeting speaking with various people interested in the IPv4 market.
Many people are interested in IPv4 price trends. But this is a deeper story of IPv4 demand versus supply. IPv4 Market Group has seen an acceleration of demand and a tightening of supply and this is perhaps best illustrated by the drop in IPv4 trading in 2016 over 2015. Global transfers through the RIRs fell from 52 Million IPs in 2015 to 33 Million in 2016, which is a remarkable decline. We think this is all due to supply.
The other cause could, of course, have been stockpiling in 2015.
This, in turn has affected prices. Looking at /16s we have seen a significant spike, from $5 per IP two years ago, to $9 six months ago, to $11 to $12 per IP now. We foresee $12 prices very soon. And larger blocks such as /12 to /10 command even higher prices.
There is another interesting feature in the marketplace. ARIN publishes a list of approximately 350 companies waiting to get free IPs whenever ARIN gets IPs returned from the IANA. It would seem to us that the companies toward the bottom of this list will never get free IPs, as the IANA may never get supply. So, these companies would be wise to enter the transfer markets now, if they truly need IPs.
Lastly, one of the things IPv4 Market Group has looked at is the impact of the inter-RIR transfer market. As discussed in our last blog, 18% of ARIN transfers are exported, and RIPE and APNIC retain almost all IPs.
This is IPv4 Market Group reporting from NANOG69.