IPv4 Markets

Cogent Communications Offers $206 Million in Secured Notes Backed by IPv4 Addresses

Cogent (CCOI) recently announced that it was offering secured notes for $206M. The unusual part is what it’s using as security: some of its IPv4 addresses and the leases on those IPv4 addresses... Cogent has been leasing out addresses for several years. All internet service providers (ISPs) give IP addresses to their users, but Cogent was among the first to lease those addresses independently of internet access.

The 2023 IPv4 Market in North America

In 2021, the story was price. In 2022, the story was price and large block supply. The story in 2023 is decline -- but with a notable caveat. Spurred by unprecedented unit pricing, the North American IPv4 market in 2022 experienced its second-best year in terms of overall traded volume, and in both 2022 and in 2023, large block market activity was as robust as ever, with sellers trading large blocks at over $50 per number.

What Happened to IPv5, IPv7, IPv8 and IPv9?

The IPv4 market has created serious interest in the protocol far beyond the natural confines of networking professionals. These assets are worth a lot. Marketplaces, IPv4.Global's especially, have grown to be large centers of asset transfer by buyers and sellers of IPv4 addresses. IPv4.Global has helped transfer over $1 billion in IPv4 blocks.

What is Bring Your Own IP (BYOIP)?

An IPv4 address identifies your connection to the online world. IP addresses make it possible to host websites, manage secure communication, and engage in countless other essential, internet-related activities. Typically, when migrating to a new cloud provider, a business has only one path: lease the provider's IP addresses. But what if a business already has a block of IP addresses?

AWS Sets the ROI Benchmark for IP Addresses

In a rapidly evolving digital landscape, the value of IP addresses has surged to the forefront of discussions. Over a month ago, Amazon Web Services (AWS) made a pivotal announcement, reshaping the IP address pricing landscape. Citing the escalating costs of acquiring IP addresses on secondary markets, AWS declared a fundamental shift in its pricing strategy, set to take effect on February 1, 2024.

IPv4 Prices: Supply and Demand in 2023

In early 2022 the discount that had been available for large blocks of IPv4 addresses disappeared. For the first time in years, /16 blocks and larger began to sell at an increasing premium. By Q2-2023, small and medium-sized blocks sold for a 30-35% discount to larger ones. At the same time, the tighter range of prices that had persisted for nearly a decade fractured and blocks traded in wide ranges throughout 2022 and the first half of 2023.

Opinion: IP Leasing Should Become a Market Standard

The Regional Internet Registry (RIR) for the Asia-Pacific region (APNIC) recently held its 55th meeting in conjunction with APRICOT, from 20 February to 2 March 2023, in Manila, USA. One of the critical discussions at the conference was centered on the APNIC policy that does not accept IP leasing and has a questionable understanding of its necessity. According to the APNIC policy manual, which was referenced during the meeting, APNIC allocates and assigns resources based on need, and 'leasing is not allowed' nor does it form a basis for further need.

The 2022 IPv4 Market in North America

In 2021, the story was price. In 2022, the story was price and large block supply. Spurred by unprecedented unit pricing, the IPv4 market in North America experienced its second-best year ever in market history. Nearly double the number of IPv4 addresses were traded in 2022 compared to 2021, predominantly due to the increased flow of large block supply from twelve sellers, five of whom were first-time market participants.

The IPv4 Price Inversion

A curious price inversion has occurred in IPv4 markets. The long-term trend that discounted large blocks has reversed. The graph identifies /15 and /16 (large) block pricing per IP address throughout the period in the form of dark spots. It is evident that, for most of the timeframe here (2014 to the first half of 2021), large blocks sold at a significant discount. One might guess that the administrative chores related to large-network needs were most efficiently and cheaply satisfied with large blocks.

Some Random Notes from IETF 115

The IETF held its 115th meeting in London in November 2022. This was another in the set of hybrid meetings with specific support for online attendees in addition to the normal face-to-face meetings for the week. In no particular order, here are a few of my impressions from the IETF meeting.

The Short History of the Internet: From ARPANET to the Metaverse

Last Saturday marked the 53rd anniversary of the Internet. While the vast majority of its five billion users have been online for less than a decade, the Internet was taken into use on October 29th, 1969, when two computers connected to the ARPANET exchanged a message. Although the Internet has been around for a while, it remained below most people's radar until the late 1990s when the dot com boom started.

Saint Martin Launches Smart-IX Internet Exchange Under CaribIX Project

The recent launch of a new internet exchange point in Saint Martin has propelled the territory towards a better, faster and more resilient Internet. The French Caribbean territory's new IXP, called Smart-IX, was launched in October under the auspices of a recently launched CaribIX project, which is coordinated by the Caribbean Telecommunications Union (CTU), supported by the Caribbean Network Operators Group (CaribNOG), funded by the INTERREG Caraïbes programme...

Hijacked IP Addresses

From time to time, a party can get out of control. Raucous celebration can become careless, even destructive. Combine a critical number of young people, a certain amount of beer and lots of music and damage often happens. Partygoers leave a mess behind them. The same thing happens to some IP addresses. Malicious actors use IP addresses properly registered to someone else.

IP Address Location Data

The last few years have shown us how the Internet shrinks distances between distributed teams, organizations and families. This poses a challenge for some organizations. Many business relationships and contractual agreements involving the Internet have geographical implications and restrictions. This matters to anyone operating a network. It is most important for networks that get new address space.

The Hidden Value of IPv4 Addresses

All devices that connect to the internet need unique addresses. The number of IP addresses is limited, creating a demand for addresses worldwide, particularly from the cloud computing industry. This demand has raised the value of IPv4 to levels that the internet's original developers didn't predict, in part because the internet was considered an experiment at the time. Of course, use - and so demand -- has exceeded anyone's realistic expectations.