On Jun 13, 2013, at 8:35 AM, <l...@mwtcorp.net> wrote:

> On Wed, 12 Jun 2013 22:05:12 -0400
> 
> Hi Mike,
> 
> It feels like we have been here before,
> 
> "Mike Burns" <m...@nationwideinc.com> wrote:
>> Hi Brian,
>> I understand that there is a danger of overpurchasing (by whomever's 
>> definition) that comes from the removal of a needs test for transfers.
>> In most cases we rely on the price of the addresses to provide some check on 
>> this practice, as it would for the overpurchasing of any other asset a 
>> corporation may choose to invest in. I think we should leave those 
>> definition of what an overpurchase is to the buyers, who will have a range 
>> of intended purposes, projected growth rates, planning horizons and other 
>> considerations. At least with a cap of some sort we limit the overpurchase 
>> risk to overall address usage efficiency.
> 
> Here is where we disagree somewhat. To a deep pocket, I derive utility from 
> the
> IP I deploy, and the IP that I prevent my competitors from deploying. We have
> seen this in the RF spectrum. Vast amounts of spectrum are unavailable and
> unused in the Rocky Mountain West due to a small number of national companies
> purchasing the spectrum at auction and then choosing not to use it. It wasn't
> done to increase it's value. It was done to stifle competition and to some 
> degree
> it has been successful.

What percentage of the spectrum did each company have to buy to have that 
effect? A /12 maximum would limit any one org to 0.02% of the total IPv4 space 
before needs justification kicks in.  

There are other valid concerns here, but I think the /12 limit does address the 
concern about anticompetitive behavior. 

-Scott
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