Inevitable death, was Re: Verizon Public Policy on Netflix

Brett Glass nanog at brettglass.com
Tue Jul 15 14:58:49 UTC 2014


Matt:

Here's the thing. With physical goods, there are economies of scale in
shipping and delivering them in bulk. But IP addresses are simply numbers!
Since there's already a base fee to cover the fixed costs, there's no 
reason for the cost per IP to be different. And, in fact, good reason 
for it not to be. Big carriers waste a lot of IPs compared to little
guys, who get disproportionate scrutiny.

--Brett Glass

At 12:24 AM 7/15/2014, Matt Palmer wrote:
 
>While the "share of revenue" argument is bogus (as John's cup-of-coffee
>analogy made clear), you do have a point with the cost-per-IP-address
>argument:
>
>Annual Fee   Max CIDR    $/IP
>$500         /22         0.49
>$1000        /20         0.24
>$2000        /18         0.12
>$4000        /16         0.06
>$8000        /14         0.03
>$16000       /12         0.02
>$32000       > /12       Mastercard!
>
>Then again, the vast majority of businesses have discounts for volume
>purchases.



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