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IPv4 Pricing: The 4 most significant factors affecting the cost of IPv4 blocks.

  • Posted at 2020-04-10 15:05:39
  • By Prefixx Team

IPv4 Pricing: The 4 most significant factors affecting the cost of IPv4 blocks.

IPv4 market history

IPv4 the foremost system of assigning internet addresses right now. Historically, experts have warned about the exhaustion of IPv4 addresses since the late ’80s and by the turn of the millennium, IPv4 addresses became scarce with eventual exhaustion of the free pool by 2011. The underlying reason was the fact that IPv4 was a 32-bit number which could only generate a maximum of 4.3 billion addresses.

The entire internet can be distinguished into five Regional Internet Registries (RIRs), wherein 4 RIRs have already used up their free pools of IPv4 addresses and the 5th RIR i.e. the registry of Africa, has stated that it has entered the very 1st phase of IPv4 address exhaustion.

Currently, the following key factors can be attributed to

1. As of 2019, the total count of internet users has crossed the 4.3 billion mark i.e. far more than the total IPv4 addresses.

2. IPv6 has not been able to service this high demand as well as high growth in demand. IPv4 remains as the in-demand address system. This Demand for IPv4 addresses has been rapid, especially due to the high demand by IoT based technologies. IoT technologies assign addresses to machines too.

3. Many IPv4 addresses are not available for use in the open market and new addresses can no longer be generated by it.

The IPv4 market in its present state grapples with an ever-widening gap between supply and demand that continues to make it harder for buyers, sellers and temporary users to get ownership, control or administrative access of an IPv4 address.

IPv4 depletion affecting IPv4 sales

IPv4 has run out and IPv4 blocks prices are undergoing a continuous escalation unless one avails the service of an IPv4 broker. IPv4 prices are mainly affected by four factors, which are listed below:

1. Market Demand: The demand for IPv4 is ever increasing. Apart from the demand for IoT and cloud computing, the current Corona pandemic has resulted in Government advisory for work from home and this too is expected to further inflate demand. Naturally, this is a factor that will only inflate prices further, while other factors attempt to regulate this upswing.

2. RIR protocol: RIR populate and aggregate unwanted, misused or unused IPv4 and then assign them to exclusive paying members based on the principle of non-repetition. Due to this selection process, it reduces the stress on the price, which may have ballooned further under an auctioning process.

3. Use of CGN: Carrier Grade Nat, is a technology that helps extend the possibility of generating new IPv4 addresses and gives temporary relief to the demand-supply gap. Even then, it is not sufficient to actually service the entire demand for IPv4 addresses.

4. IPv6 compatibility: IPv6, the much talked about the intended replacement for IPv4 has no reverse compatibility. Yet, companies are trying to incorporate systems that allow for compatibility between IPv4 and iPv6 and help them function seamlessly without having to worry about IPv4 exhaustion of their own reserves. Although effective, it is still more costly than availing an IPv4 address through a registered broker.

Getting IPv4 from RIR

1. You can register yourself with an RIR and await allotment in a long waiting list.

2. You can seek quick service of your IPv4 requirement by availing the services of Prefixx, an ARIN and RIPE registered IP brokerage company.

Buy & Sell IPv4 from Registered IP brokers

Whether it is an IPv4 purchase or a transaction involving IPv4 sales, the advantages of doing it with a Registered IPv4 broker are obvious:

1. Legitimate & Transparent Transaction: You are not liable to any criminal charges by any government and the transparency of the entire process with the full disclosures makes for guaranteed delivery of contractual obligations of the broker.

2. Affordable & Secure Process: You actually save on short term and long term costs while payments and IPv4 blocks are validated to fit your needs in a secure manner.

Prefixx Advantages

Prefixx emerges as an unmatched Registered Broker because:

1. The services are independent of any bias or influence of any preceding organization and customer service is the supreme agenda

2. The team has 12+ years of experience of consistent delivery of bespoke outcomes in network design, anywhere, across 5 continents.

3. Customers can access the cross-functional and multi-regional capabilities of the entire team to get the best possible value for their investments in securing the right IPv4 address block.

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