[members-discuss] IPv4 - Charging Won't Help You
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Vlad Dascalu
vladd at beetux.com
Wed Dec 18 18:11:36 CET 2013
>> All you’ll do by increasing the costs of IPv4 is make the smaller guys less competitive You're not accounting the logarithmic nature of the "utility" function for IPv4. Having 1 IPv4 is insanely more satisfying than having none compared to 101 IPs instead of 100. We're rapidly approaching a situation where the smaller guys would happily give $100 for an IPv4 but they just get a straight "no". Smaller guys just want a chance to do their web startup by getting one IPv4 from their LIR and they would happily give $100 for that. Whereas getting to keep 16'000 IPs instead of 32'000 when you just need 100 of them would be something a lot of legacy businesses if it cuts their bill in half from 32 grands to 16 (assuming $1/ip -- I do believe you'll see beneficial effects kicking in at much smaller price-points). On Wed, Dec 18, 2013 at 5:51 PM, Jon Morby (FidoNet) <jon at fido.net> wrote: > The main thing holding “large” providers back from rolling out IPv6 across > the board is cost … you’ll have to increase the effective costs of IPv4 to > $100 per IP before you’ll be at a point where the cost savings of switching > to IPv6 outweigh the costs of depreciating the current IPv4 capable kit and > going through natural expansion / upgrades to kit capable of IPv6 > > Vendors have been slow to produce kit which is IPv6 capable .. they’re > starting to do this, but on the whole the big players have been holding off > on the $xx million capex spend until the kit they have in place has > depreciated sufficiently. > > Some of the bigger players here in the UK were almost at the point of > rolling out kit which is v6 capable when they found that this kit also did > CGNAT and rolling out CGN is easier / cheaper than rolling IPv6 “in the > short term” > > Then you have to factor in CPE … from Broadband (and VoIP) perspective not > all kit does IPv6 yet > > Rather than forcing an exponential cost increase in v4 address space, work > to roll out IPv6 now and get a _competitive advantage_ against the big boys > - then make hay while their accountants tell them they can’t spend money on > the v6 kit. > > When they finally do we might find their land grab pricing has to > disappear and they start to cover the costs of the new infrastructure > they’ve had to roll out …. > > All you’ll do by increasing the costs of IPv4 is make the smaller guys > less competitive and drive a few more out of business whilst the big boys > go “oh well another 20c per user on our cost base, c’est la vie > > IPv4 is dead. IPv6 is the future. Roll out IPv6 .. push the vendors to > provide IPv6 compatible kit … harder I know when the big boys aren’t > pushing .. but push never the less .. if enough of us small guys push hard > enough then we stand a chance of getting somewhere and maybe getting a > competitive advantage over the behemoth again .. for a short while > > Jon > > On 18 Dec 2013, at 15:17, Vlad Dascalu <vladd at beetux.com> wrote: > > >> IP Market = resource < demand (charging won’t help) > That's simply not true, it's economy 101 basic stuff: demand adjusts based > on price. If the price is higher, the demand will fall until it's equal to > demand. > > Consider the case of large telecom that have an unique IP for every > telephone line. A higher price is the only motivation that will encourage > them to switch their private VOIP network to IPv6. At that higher > price-point their transition will be feasible for them, why still being > easily affordable by businesses which need a IPv4 for their website or > other critical resources. > > Resource depletion shouldn't prevent an efficient allocation of scarcity. > Vlad > > > -------------- next part -------------- An HTML attachment was scrubbed... URL: <https://lists.ripe.net/ripe/mail/archives/members-discuss/attachments/20131218/329cdccb/attachment.html>
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