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 2

Factors Affecting Pricing # OF IP TRANSFERS PER YEAR IN ARIN REGION 18,000,000 16,000,000 IP TRANSFERS 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - 2009 2010 2011 2012 2013 2014 2015 • Supplies are being bought up in ARIN region, following run out in July 2015 3

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 4

Price Trends over Time IPv4 TRANSACTIONS OVER TIME 20.00 18.00 16.00 14.00 PRICE PER IP 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Jan-14 Apr-14 Jul-14 Nov-14 Feb-15 May-15 Sep-15 Dec-15 MONTH-YEAR TRANSACTION AMOUNT • Inflection point in September 2015 when prices increased 5

RIPE Transfer Activity # OF TRANSFERS PER BLOCK SIZE 1200 1000 # OF TRANSFERS 800 600 400 200 0 /24 /23 /22 /21 /20 /19 /18 /17 /16 /15 /14 BLOCK SIZE # OF IPS TRANSFERRED PER BLOCK SIZE 6,000,000 # OF IPS TRANSFERRED 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - /24 /23 /22 /21 /20 /19 /18 /17 /16 /15 /14 BLOCK SIZE 6

RIPE Transfer Activity TO COUNTRY # IPS TRANSFERRED % Iran 3,066,368 18.06% Saudi Arabia 2,708,480 15.96% # OF IP TRANSFERS PER MONTH-YEAR Russia 2,148,608 12.66% 2,500,000 # OF IPS TRANSFERRED UK 1,539,328 9.07% 2,000,000 Romania 857,600 5.05% Spain 791,808 4.66% 1,500,000 Netherlands 773,632 4.56% 1,000,000 Germany 766,208 4.51% Italy 525,824 3.10% 500,000 Portugal 409,088 2.41% - Bulgaria 402,944 2.37% Turkey 338,176 1.99% France 290,816 1.71% MONTH-YEAR Denmark 272,384 1.60% Ukraine 239,616 1.41% 7

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 8