IPv4 and Auctions

Sat Oct 26 12:28:33 UTC 2019

Speaking strictly on my own behalf and not in any way representing any official opinion or position of
ARIN or the AC…

> On Oct 24, 2019, at 17:29 , Michel Py <michel.py at tsisemi.com> wrote:
> 
>> Matt Hoppes wrote :
>> How is it, then, that we daily for the last 2-3 years have places like Hilco that have sometimes 15-20 large IPv4 blocks up for auction?
> 
> Because now it's worth real money, while earlier it was better to hoard it, just in case.
> 
>> Another thought: being that IPv4 address space is essentially leased to you from ARIN, can you even legally auction your space to
>> someone else? I know it’s happening, but it would almost be like me auctioning my apartment to another random person.
> 
> The difference is that ARIN charges almost nothing for the rent, so what you basically are auctioning is the right too use a free appartment, which is worth money.
> Even if you don't own the IP addresses, the right to use them is a tangible asset.

I’m sure someone from ARIN staff will correct me if I’m wrong about this, but I don’t believe that is the case.

ARIN registration is NOT (to the best of my knowledge):
	+	A right to use
	+	A property right in a set of integers
	+	Any sort of right to have your numbers routed on the internet (or anywhere)
	+	Any sort of exclusive right to control of a set of integers for a particular purpose

ARIN registration is (to the best of my knowledge):
	+	A guarantee of unique association of a set of integers to your organization within a
		cooperating set of databases collectively known as the RIR System.
	+	A guarantee of certain property and control rights over said registration within that
		system. (note that’s the registration, not the registered integers)
	+	Unless you are a non-RSA legacy registrant, it is a contractual relationship between
		you and ARIN (and by extension said RIR system) which provides both rights and
		obligations on your conduct with respect to said registration.
	+	The right and ability to update certain attributes in the records of your registration(s).

So ARIN doesn’t actually rent the right to use an apartment so much as a recording of the fact
that certain entities agree that your name goes on the door of said apartment.

Now, coincidentally and fortunately, the vast majority of ISPs choose to regard the data in the
RIR system as an important record of who they will accept prefix advertisements from, which
makes it much harder to use numbers that are not associated with your organization in the RIR system
for routing on the internet, but that’s actually a coincidental behavior of the ISPs and not actually
any sort of right, privilege, or ability issued or managed by ARIN.

>> I get that -- but if you don't need a /18, don't the ARIN rules require they be returned?
> 
> There are 3 reasons why it does not happen :
> 
> 1. ARIN does not measure how much a block is utilized.
> The block does not even have to be announced on the Internet. How does ARIN know how much of 30/8 is in use ?

ARIN could measure this by pursuing an audit under section 12 of the NRPM.

> 2. Even if they did, there is utilization and there there is "utilization". If an ISP has a produt that gives a /28 to each business aDSL, it is justifiable. Now we all know that all that 99% of business aDSL cares about is ONE static IP, but giving them a /28 is a good method to request large blocks of IPs just in case they are needed later.

It’s not entirely clear whether this practice is truly within ARIN policy or not. On a theoretical level, ARIN could ask said ISP to show that it’s customers are efficiently utilizing those /28s.

On a practical level, a /28 is small enough that it takes a lot of customers to add up to anything I would call a “large block”.

> 3. Why should one spend time returning free ressources that may be of some use later ?

In the past, many of us did so simply because it was the right thing to do and good neighborly behavior.

I realize that in the modern world and the current state of IPv4, such an attitude seems quaint, even naive,
but there were kinder gentler times on the internet when this was more of a behavioral norm.

>> Lee Howard wrote :
>> IPv4.Global is the IPv4 address brokerage operated by Hilco Streambank.
> 
> What I like with Hilco is that it brings transparency to the market. I think that each transfer should list the amount of the transaction between parties.
> For example, I would like to know for how much 44.192/10 went.

If you really feel that this should be data the RIRs collect during transfers and that it should be published, I suggest you submit a proposal
for this into the ARIN policy development process. If you need help doing so, feel free to ask me or any other member of the AC.

Owen