Inevitable death, was Re: Verizon Public Policy on Netflix

Tue Jul 15 16:50:30 UTC 2014

If you're an ISP and you can't afford even the highest price per IP on 
that list, you have bigger problems than how much it costs to bring 
Netflix traffic to your customers.

Matthew Kaufman

On 7/15/2014 7:58 AM, Brett Glass wrote:
> 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.