[lacnog] Evolución del mercado IPv4

Lun Jun 26 15:40:15 BRT 2017

There is far too little data to make a good estimate of prices in the LACNIC region, but having brokered a few deals in LACNIC and 400 in the rest of the world, I can say that prices have been rising since late 2016 in every region, for every block size.

ARIN recently announced it had processed over 800 transfers in the first six months of this year. RIPE has over 5,000 transfers in their log, APNIC has over 2,000.

Yet in that time, and after entering the final Exhaust Phase after a prolonged period of /22 maximum-sized allocations, the LACNIC region has completed just 10 transfers in total. (Excluding mergers and acquisitions.)

Which begs the question of why the rate of LACNIC transfers is so low, and I would like to share my thoughts as a broker of transfers involving 60 countries from ARIN, APNIC, RIPE and LACNIC.

*	Transfer fees in LACNIC are too high. In RIPE, they are zero. In ARIN, either $300 or zero. In APNIC, tied to the size of the transfer and equal to 20% of the annual fees for the block. In LACNIC it will cost you $1,000 in transfer fees for a /24! When we are considering (in the linked article below) the prices of addresses, it makes sense to wonder whether an addition $4 per address fee is appropriate at the lowest end of the market, at the /24 level.  I think the fee should be reduced or better indexed to transfer size than the current and blunt $1,000 up to /19, $1500 /19 and larger.
*	LACNIC Registration Services Agreement grants LACNIC the right to “review, at any time, the utilization of previously allocated IP space” and “LACNIC reserves the right to revoke the IP address space … not being used for the purpose allocated and/or assigned.” Unlike the other trading registries, LACNIC retains this language in a contract which binds any potential seller of LACNIC space and which makes offering the space for sale, or even notifying LACNIC of an intent to sell, invites LACNIC to revoke the space. I think this contract needs to be revised to remove the right to revoke for utilization reasons, as was done in ARIN, RIPE, and APNIC in order to foster the market which each registry believes is in the best interest of its stakeholders.
*	LACNIC, despite its natural role as an information exchange point in the IPv4 market, does not actively promote the market by providing a list of registered, fees-paying, and vetted brokers, as does RIPE <https://www.ripe.net/manage-ips-and-asns/resource-transfers-and-mergers/brokers> , APNIC <https://www.apnic.net/manage-ip/manage-resources/transfer-resources/transfer-facilitators/> , and ARIN <https://www.arin.net/resources/transfer_listing/facilitator_list.html> .
*	LACNIC does not host a list for those interested in posting their supply of, or need for, IP addresses, as does RIPE <https://www.ripe.net/manage-ips-and-asns/resource-transfers-and-mergers/listing> , APNIC <https://www.apnic.net/manage-ip/manage-resources/transfer-resources/listing/> , and ARIN <https://www.arin.net/resources/transfer_listing/> .
*	LACNIC region countries seem to exhibit lower trust than those in Europe, North America, or Asia. This is evidenced by longer document review times, insistence on the use of inexperienced (but big name) escrow agents, reliance on paper-mail, resistance to providing information to LACNIC, etc.
*	LACNIC requires all transfers to be intra-regional, removing the largest supply sources from the market
*	LACNIC does not offer a clear pre-approval process to buyers

Some of these issues are within the control of the LACNIC community, some in the control of the LACNIC staff, and some are not in the control of either.  

Here is where I think LACNIC staff can work to effect change:

1.	Set a lower transfer fee
2.	Open a consultation with the community on the revision of the RSA to remove utilization requirements
3.	Define a recognized broker program and solicit community input for broker requirements
4.	Offer buyer pre-approvals with the option of listing them on a public list 
5.	Offer sellers the option of listing available blocks on a public list, immune from revokation

Here is where I think the LACNIC community can work to effect change:

1.	Pass an inter-regional transfer policy
2.	Remove policy language which allows revocation for lack of utilization
3.	Share positive transfer experiences with the community 

I can say, in relation to the article and link posted below, that the pricing is accurate. As to the question about LACNIC pricing, the market is too small to draw conclusions, but I believe prices in LACNIC will stabilize at or near the current market price in the ARIN/APNIC/RIPE marketplace, and those prices have risen dramatically in the last 14 months, nearly doubling in that time.  It is certainly a buyer’s market right now, with very tight supply at block sizes /17 and larger.  The current per-address price range is $12 for a /16 to $16 for a /24.

Regards,
Mike Burns

From: LACNOG [mailto:lacnog-bounces en lacnic.net] On Behalf Of Guillermo Cicileo
Sent: Monday, June 26, 2017 12:36 PM
To: Latin America and Caribbean Region Network Operators Group <lacnog en lacnic.net>
Subject: Re: [lacnog] Evolución del mercado IPv4

Gracias Carlos por el articulo, es muy interesante para tener datos concretos del mercado de transferencias.

Como se ve, los precios por IP se estan incrementando y estan alrededor de USD 15 actualmente. 

Seria bueno poder comparar con los precios de nuestra region, si bien hay pocas transferencias y pocos datos, quizas algunos operadores nos puedan compartir su propia experiencia. 

Seria interesante saber si los costos en LAC son mas altos al tener menor oferta que en otras regiones que permiten las transferencias inter-RIRs.

Saludos,

      Guillermo.

On Mon, Jun 26, 2017 at 9:51 AM, Carlos M. Martinez <carlosm3011 en gmail.com <mailto:carlosm3011 en gmail.com> > wrote:

Un par de links interesantes, con datos numéricos:

http://www.wleecoyote.com/blog/2017prices.htm

https://www.ipv4auctions.com/previous_auctions/

s2

-Carlos
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