ARIN is not/is too/is not/is too... blah.

Dirk Harms-Merbitz dirk at power.net
Sat Mar 29 21:57:10 UTC 1997


On Sat, 29 Mar 1997, Aleph One wrote:

> On Sat, 29 Mar 1997, David R. Conrad wrote:
> 
> > Size    Fee             Amt of space    Per address per year fee
> > ------------------------------------------------------------------------------
> > Small   $2500/year      /24 - /19       $9.77 - $0.31
> > Medium  $5000/year      >/19 - /16      $0.61 - $0.08
> > Large   $10K/year       >/16 - /14      $0.15 - $0.04
> > X-Large $20K/year       >/14            $0.08 -> $0.00
> 
>    I'am I the only one that finds that the fact that the prices actually
> *decrease* the larger the address blocks is disturbing? Not only does it
> make entrace into the ISP market more difficult, but it allows the
> creation of a highly profitable market for the resale of IP addresses if
> you buy then in bulk to beging with (yeah, yeah I know about allocation
> policies, but I seen people get large blocks easily).

Yup, I noticed that too.

Of course, according to every network CFO's spreadsheets, the real
Internet money at the moment is in co-location and T1 connections for
businesses. 

The nightmare scenario for UUnet, MCI, Sprint and so on is easy to
imagine. What if small local providers got that business? Unlike almost
any other business, smaller ISPs have *less* costs per user. Larger
routers are *more* expensive per port then smaller routers. What if people
used PCs running Linux instead of Cisco/Bay routers? Economy of scale in
reverse. 

Could we have 4000 10 people companies provide Internet connectivity to
the majority of US business within a couple of years? At $80-200/month for
a T1? This is what "they" are trying to avoid/slow down. 

Seems that the Internet turns some things on its head. Like the need to
have large corporations for providing large scale Internet services.
According to Boardwatch magazine, about 4000 2-10 people ISPs are
providing Internet services to the majority of the US. ATT, Sprint and so
on can't make money at it but it sure is a great way for a technical
person to make $100K/year from with a T1 in a living room.

Dirk

 
> Aleph One / aleph1 at dfw.net
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