[57587] in North American Network Operators' Group

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Re: Independent space from ARIN

daemon@ATHENA.MIT.EDU (Yakov Rekhter)
Mon Apr 14 17:20:43 2003

To: davei@algx.net
Cc: Brandon Ross <bross@sockeye.com>,
	Kris Foster <Kris.Foster@telus.com>, nanog@merit.edu
In-Reply-To: Your message of "Mon, 14 Apr 2003 16:47:07 EDT."
             <16027.7755.789534.805408@biohazard.demon.algx.net> 
Date: Mon, 14 Apr 2003 14:20:13 -0700
From: Yakov Rekhter <yakov@juniper.net>
Errors-To: owner-nanog-outgoing@merit.edu


Dave,

> On 4/14/2003 at 16:33:34 -0400, Brandon Ross said:
> > 
> > On Mon, 14 Apr 2003, Kris Foster wrote:
> > 
> > > Was this tongue in cheek?
> > 
> > Nope.
> > 
> > > I am not an economist, but this is a sure fire way to destroy the interne
t
> > > as we know it today.
> > 
> > Why is this so hard to believe?  Real estate is mostly a free market, and
> > that seems to perform pretty well for the most part.  How is address space
> > that different?  Please explain how you believe this would destroy the
> > internet.
> 
> There's a lot more available real estate than available v4 address
> space.  That's the biggest one.  Second, groups that make the Internet
> go aren't necessarily the ones who can afford the address space.
> Third, there's no root owner of the address space, so who is going
> to sell it?
> 
> But really, you just need the first one: small space.  The relatively
> small pool means that a large company with lots of money could buy the
> whole ARIN chunk of the Internet.  Speculators would probably buy
> address space and leave it unused, much like they do for domain names.
> Address space would have to be bought and sold on arbitrary borders,
> resulting in massive fragmentation of the tables.
> 
> On the good side, address-based lawsuits would revitalize our flagging
> litigous economy ;-)

(in a shameless self-promotion) there was a paper written a while
ago by  myself, Paul Resnick and Steve Bellovin on the topic of
charging for IP addresses:

  Rekhter, Y., Resnick, P., Bellovin, S., "Financial Incentives for
  Route Aggregation and Efficient Address Utilization in the Internet",
  Coordination the Internet, MIT Press, 1997

Yakov.

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