When the American Registry for Internet Numbers (ARIN) ran out of IPv4 address blocks in 2015, it served as a further reminder that if not already, companies should migrate to IPv6. It also led to new heights in the private market for IPv4 addresses. So why should you buy IPv4 addresses today? Well, the answer is simple. Let us delve deeper into why it’s a good idea to buy IPv4 addresses today before the price continues to increase.
The IPv4 address space is still, after all, a finite asset in a very small and developing market. There are only so many IPv4 addresses available (around 4 billion), which was specifically designed to account for the population at the time the internet was being developed in the 80’s. To go even further, only a small segment of those available IPv4 addresses are still actually unused. The good news is that there are large blocks of IPv4 address ranges sitting unused that were allocated to large corporations, schools and governments in the early days of IPv4. These businesses and organizations are just now realizing that they can sell these unused IPv4 for a profit, which can then be used to further invest in the company’s infrastructure and technology upgrades. Now is the time to sell, as the prices are expected to peak within the next few months.
If now is the time to sell, then you’ll need to get to work on purchasing the extra IP address space that you’ll need. Otherwise, you will be stuck either paying massive premiums in the future, or even waiting until something is actually available in the case IPv4 just runs out even on the secondary market. The availability of IPv4 addresses will only continue to decrease now that companies are selling off their unused IPv4 blocks.
Five Steps to Buy IPv4 Addresses
- Pre-Approval — Present ARIN and APNIC with additional address requirements. Provide your current address usage data and projected growth rates and usage of IPs over a 2 years period. RIPE will allow you to transfer RIPE assigned IPv4 address blocks in-between RIPE members without justification. If you a RIPE member is receiving IPv4 from ARIN or ANPIC, they also need to justify IPv4 usage over a 5 year period.
- Choose a qualified and trusted IPv4 partner who has the best relationships, ample supply of IPv4, and a good understanding of the IPv4 transfer policy in ARIN, RIPE and APNIC markets.
- Get a good understanding of prices in each market. IPv4 Prices vary, generally depending on region, IPv4 block size, and whether the IPs are clean. Make sure you have a grasp on these before entering into any agreements. Your IPv4 consultant should be able to provide data, if they have proper industry tools and knowledge.
- Transfer of IPv4 address is one of the areas that can be complicated. Ensure there is a secure payment platform with a IPv4 consultant who has a good reputation. Upon obtaining the confirmed fee, the seller must pass the IPv4 addresses to the buyers account of the registry. They will then validate the pre-approval and ask for the IPv4 block transfer fee. After a 5-10-day review of both the seller and buyer, the RIR approves the transfer and they requested IPv4 will show up in the buyers Whois record
- Once the IPs are transferred, you update DNS records, Firewalls, border ACLs, BGP and Geo-IP services. Some of these post sale activities can vary from a couple of days to a month.
So you might be thinking that this is all fine and well, but why buy IPv4 addresses today? Let’s take a look at this market data graph of IPv4 transfers in the ARIN to ARIN region in 2015 and then again in 2019. You should begin to understand why…
2015 IPv4 Transfer Market Summary
How about we start by taking a look at the graph beneath which presents IPv4 transfer information from 2015. This represents the initial time when ARIN declared that IPv4 was finally depleted. You can see the panic and massive need of IPv4 as the 8.3 exchange demands expanded quickly throughout the year. Generally observable, the 200+ solicitations for IPv4 in Q4 of 2015, which was 250% higher than the normal of the initial 3 quarters.
This was the principal sign that we had solid market request really taking shape. The IPv4 market was still fresh and unknowns, with generally little data accessible. Contrasted with the high number of solicitations, the quantity of finished IPv4 requests was only around 60% for the whole year. This left more than 130 organizations that required IPv4 looking out for the consistently extending rundown of underserved move demands.
2019 IPv4 Transfer Market Summary
Throughout the maturing of the IPv4 market, 2019 has been the most fascinating to see unfurl. The interest in IPv4 began somewhat slow with just a 5% expansion in Q1 over Q4 of 2018. Even though the increase was only 5%, IPv4 was still not fully served with only 96% of solicitations really filled.
Q2 2019 information showed the most demand with 554 requests for IPv4 in any single quarter since the introduction of this market in 2015. The completed requests were likewise the most noteworthy with more than 569 requests filled, which compensated for the past quarter’s inadequacy. We seem to now see a fully developed market, with 100% completions after 4 years of development.
In conclusion, IPv4 address space will continue to decline due to a growing number of people coming online in the worlds population, increased use of mobile and always-on phones, and the Internet of Things. There is a huge government subsidy in the US for local ISPs to build out network into rural areas, to further increase the usage of internet all over the USA. Every country wants to have a fully connected ecosystem, which will even more quickly deplete the worlds available IPv4. Get out there and buy IPv4 addresses that you need before the price continues to rise and desirable blocks are no longer available! The time is now.