We may eventually get to that point of ARIN being a registration only operation, but I do not think we are there.

In the beginning of IPv4 it was a registration only operation with no fees, and it was in those days easy to get a class A or B assigned to you with little effort or cost. Most of the conservation measures that were adopted for IPv4 was in reaction to the fact that we could see that IPv4 and the available class A networks would fill up, and in fact it did. Many of those early players were able to put part or all their original address space back up for assignment which delayed runout. In the case of Stanford University, they turned the space back in for reassignment without any payment, and their block ended up assigned to APNIC. Later players I believe got cash for portions of their assignment, such as MIT. Today, noone turns the addresses back, since others are willing to pay them money to provide via a directed transfer.

I believe a true registration only RIR can only operate in an enviroment where there is plenty of resources, and there are no shortages that tend to give the resources "value", even if they are not "sold". IPv6 today would be a good example. Even the smallest registrant receives more numbers than the entire IPv4 numbering space, and current policies in every RIR region are quite generous with numbers. Very few RIR customers have had to come back and ask for more, and for the few that have, sparse allocation policies often permit simply expanding the existing block. Any size LAN can be set up on the standard /48 given out to each site, and there is no need to ever have to play the slide the netmask game as is the case in IPv4.

So far only 2000::/3 has been used in IPv6. If it ever looks like a shortage may happen, measures like giving out /56's or /60's instead of /48's or using part of the /64 for local addressing may be considered. ISP's might do this on their own if there is a cost to expanding their IPv6 space. I doubt anything like this will happen worldwide until we get to the point of more than 1/2 of the unicast space is assigned.

IPv4 started generous in the early days when there were just a few nodes, but currently is the exact opposite of what I have described for IPv6.

Maybe I should not think of it this way, but I always felt that the "special" IPv4 policies enacted because of numbering shortages is not forever. While it might take 100 years to get there, eventually IPv4 will join NCP and IPX in the the world of protocols that are no longer being in regular use and IPv6 will take its place as the primary transport on the Internet. Eventually we will reach a tipping point past 50% where nearly everything can be done in an IPv6 only network, and at that point as it is slowly abandoned, the price per address will fall.

Because of the shear size of the IPv6 address pool, I doubt there will EVER be a directed transfer market like exists in IPv4. Why would someone seek to get numbers from someone else, when there are plenty for the asking from the RIR's? Does anyone know of such a market for IPv6 addresses currently, or is that like a unicorn?

In any case, even in days of old, there has always been an understanding that you are obtaining numbers for yourself or your downstream customers. It was always understood you were supposed to turn back in unused numbers. The market is one way to do that, by turning your unused addresses over to someone who can use them. Leasing does not meet that standard in my mind.

Numbers are for operational networks, not for speculators.

Albert Erdmann
Network Administrator
Paradise On Line Inc.



On Mon, 30 Sep 2019, Mike Burns wrote:

Hi Fernando,

Let me address the two items highlighted in your reply below.

First is the reduction of ARIN to nothing more than a registration operation. 
What is wrong with that? RFC2050 said the primary purpose of an RIR is 
registration. We need to keep the numbers unique or everything fails. ARIN 
should indeed reduce itself to registering transfers and doing what it can to 
maintain accurate registration per our primary stewardship role. All else is 
subservient, including conservation. But we have addressed conservation.  RIPE 
has been reduced to a registration operation, to use your term. What is so 
wrong with RIPE?

Second is the point that one of the business cases for leasing is for spamming. 
This is something to consider, but I would like for you to put yourself into 
the position of a Lessor. The Lessor knows  his blocks will lose value if they 
are blacklisted, so they take steps to mitigate this. For example, one notable 
lessor charges a $20 fee for every abuse complaint on a leased block. The 
Lessee pays the $20 fee and most of it is paid to the Lessor as compensation. 
This disincentivizes spamming on leased blocks. A Lessor who gets tricked into 
leasing to a spammer will find his block devalued significantly. He can get it 
delisted one, maybe twice if he can spin a good story. After that, no more for 
that owner. So the owners have penalties and usage terms built into the lease 
contract, or they get prepayment for many months in advance, or they lease 
large blocks which are not appealing to spammers. The point is this is a valid 
argument against changing policy to support leasing!
, but the problems are long-known and the market has applied corrections.  On 
the other hand, spammers like to hijack too, and having the ability to define a 
hijack as being non-compliant with a lease policy will enable ARIN to pressure 
the address holder for a policy violation if pressure from that side helps.

Regards,
Mike



-----Original Message-----
From: ARIN-PPML <arin-ppml-boun...@arin.net> On Behalf Of Fernando Frediani
Sent: Monday, September 30, 2019 4:36 PM
To: arin-ppml@arin.net
Subject: Re: [arin-ppml] Draft Policy ARIN-2019-18: LIR/ISP Re-Assignment to 
Non-Connected Networks

On 30/09/2019 15:36, hostmas...@uneedus.com wrote:

Currently, the ability to obtain IPv4 resources is constrained by the
requirement to prove to ARIN that you need the addresses for your
operational use in a network, which will be claimed to be no unneeded
once the "operational use" requirement is gone, leaving ARIN to be
nothing more than a registration operation.
Excellent point raised. Couldn't agree more !

While this is claimed to reduce one problem with leasing IPv4
addresses (lack of registration and associated abuse contacts) it
causes other issues.  Often network abusers lease addresses for abuse,
dumping them and leasing others when they get blacklisted.
And this too. Actually this is a well known issue.




On Mon, 30 Sep 2019, Mike Burns wrote:


Hi Fernando,



You said “RIR is and has always been the one who drives the resources
to be efficientlly assigned by analysing justifications not private
transfer companies. If an organization is not using resouces
efficiently it either may change its resource assignment strategy
otherwise it doesn't justify for those addresses anymore and should
return them back to the RIR.”



There is no policy in ARIN to return un-needed space.  IPv4 resource
holders own something of value, which is what economists call an
“alienable asset”.  It is possible for such resource holders to
return such space to ARIN, but you don’t have to be an economist to
understand why they don’t and haven’t for the most part.



Your method has been tried, and it was really a good try. The effort
was decades-long, yet recognized a failure by the clear evidence of
the routing table.
So much space allocated, yet not routed. Not enough to be explained
away by internal use; this is unconvincing. No, the space sat on the
sidelines, it was not returned to ARIN. Until the market provided the
missing incentive to action, and that action is also quite visible in
the routing table and transfer logs.  The profit incentive, the draw
of lucre, the absurd effect of price have led to an increase in the
efficient use of the IPv4 address universe.  Geoff Huston did a good
analysis of the source of transferred addresses and showed the market
brought many never-routed addresses into efficient use.
https://blog.apnic.net/2017/01/09/studying-ipv4-transfer-market-repor
ted-transfers/




You also said “It is pretty reasonable to think that in no RIRs you
are able justify more IP space by saying ‘I need these addresses in
order to lease them to someone else’. If that is never a possible
justification that can be used therefore leases don't make any
sense.”



Anybody can indeed purchase RIPE addresses via transfer solely for
the purpose of leasing them out. That is because RIPE does not have a
needs justification for transfers (nor policy forbidding leasing).
And that is because, in my opinion, the RIPE community realized that
their intrinsic role of conservation would now be undertaken by
market forces. These can be relied upon to bring un- and
under-utilized addresses to their “highest and best use”, again as
economists say.



But you do bring up the relevant question in the context of this ARIN
policy proposal, which is whether leasing to a “connected” customer
is all that different from leasing to a “non-connected” customer when
it comes to justifications. In the first case, the ISP normally
registers the assignment of this block to his customer in Whois and
can use it as justification. In the second there is no such
registration requirement and the lease can’t be used as a
justification.  To me this is a problem, and I think there is a
solution.



Conservation and Registration are our lodestars. In this case pricing
will handle conservation, but what about registration? What about
when pricing drives Conservation at the expense of Registration?  I
am on record as supporting the RIPE model, which allows for lessors
to purchase lease inventory, with registered transfers, and also
allows them to record leases as assignments that include access to
important contact information.



The simple and straightforward answer here is to end the needs-test
for transfers. RIPE has shown us the way, taken the “risk” and now we
can look at years’
and thousands of transfers’ worth of data. Anybody see any problems
resulting from the dropping of the needs test in RIPE?



Absent dropping the needs test for transfers, the logical step in the
context of this policy allowing leasing, is to allow certain leases
to be used for justifications while at the same time providing policy
requiring registration (SWIP) and documentation (Letter Of Agency).
It’s my opinion that this carrot and stick approach will induce
Lessors to properly register their leases while also providing a
clear demarcation of leasing versus hijacking that will empower our
community and potentially law enforcement.  You want to purchase
addresses because you think you can make money in their rental? Fine,
show  us that you are efficiently using your prior allocations and
properly registering assignments.



There should be no difference in the way we treat those who assign to
“non-connected” or “connected” networks. ARIN calls a VPN a
connection. Times have moved on, and any two networks can be easily
“connected” for the purposes of policy-compliance only. So why trade
the lack of insight into IPv4 block contact information for the
maintenance of this fig-leaf?



Regards,
Mike Burns















From: ARIN-PPML <arin-ppml-boun...@arin.net> On Behalf Of Fernando
Frediani
Sent: Saturday, September 28, 2019 7:20 PM
To: arin-ppml <arin-ppml@arin.net>
Subject: Re: [arin-ppml] Draft Policy ARIN-2019-18: LIR/ISP
Re-Assignment to Non-Connected Networks



I strongly oppose this proposal.



Leasing of IP addresses in such way should never be permmited and is
a distortion of the way IP addresses must be used by organizations.



The main reason is simple: if an organization is "leasing" IP address
it is a clear sign that the organization does not have usage for that
IP space and as it doesn't justify anymore it should therefore return
them back to the RIR in order to be re-assigned to those who really
have a need for it, via waiting list or other methods covered by the
policies.



It is pretty reasonable to think that in no RIRs you are able justify
more IP space by saying "I need these addresses in order to lease
them to someone else".

If that is never a possible justification that can be used therefore
leases don't make any sense.



If an organization needs further IP space for a temporary project it
may just get from the LIR or ISP but if that is not possible and the
organization is an Autonomous System it can just go to market and get
it transfered permanentlly.

Either from the RIR or transfered via market addresses must be
justified and leases are nothing but unused address by who is willing
to lease.



The justification given to allow organizations to facilitate
transition to IPv6 does not apply at all as organizations can go
directlly to the RIR for that (4.10). Why would it get via a lease
bypassing the RIR ?





By allowing leases it is just skipping the RIR's function to fairly
re-distribute them and passing it private companies with financial
interests.



I think 8.5.2 is already properly written and doesn't require any
change.

Also Non-Connected Networks is not properly defined.



Regarding the point about Conservation to be done through market
pricing I will skip to comment such absurd thing.



Regards

Fernando



On Tue, 24 Sep 2019, 17:41 ARIN, <i...@arin.net> wrote:

      On 19 September 2019, the ARIN Advisory Council (AC) accepted
      "ARIN-prop-277: LIR/ISP Re-Assignment to Non-Connected
Networks" as a
      Draft Policy.

      Draft Policy ARIN-2019-18 is below and can be found at:

      https://www.arin.net/participate/policy/drafts/2019_18/

      You are encouraged to discuss all Draft Policies on PPML. The
AC will
      evaluate the discussion in order to assess the conformance of
this draft
      policy with ARIN's Principles of Internet number resource
policy as
      stated in the Policy Development Process (PDP). Specifically,
these
      principles are:

      * Enabling Fair and Impartial Number Resource Administration
      * Technically Sound
      * Supported by the Community

      The PDP can be found at:
      https://www.arin.net/participate/policy/pdp/

      Draft Policies and Proposals under discussion can be found at:
      https://www.arin.net/participate/policy/drafts/

      Regards,

      Sean Hopkins
      Policy Analyst
      American Registry for Internet Numbers (ARIN)



      Draft Policy ARIN-2019-18: LIR/ISP Re-Assignment to
Non-Connected Networks

      Problem Statement:

      Businesses have a need to lease IPv4 space for limited periods
of time,
      as evidenced by a robust (technically prohibited) subleasing
market. The
      lack of legitimization of the subleasing market hinders
innovation,
      research, reporting, and the development of rules/industry best
      practices to ensure identifiability and contactability.

      Policy statement:

      ORIGINAL POLICY LANGUAGE

      2.4. Local Internet Registry (LIR)

      A Local Internet Registry (LIR) is an IR that primarily assigns
address
      space to the users of the network services that it provides.
LIRs are
      generally Internet Service Providers (ISPs), whose customers
are
      primarily end users and possibly other ISPs.

      PROPOSED POLICY LANGUAGE

      A Local Internet Registry (LIR) is an IR that primarily assigns
address
      space to the users of the network services that it provides.
LIRs are
      generally Internet Service Providers (ISPs), whose customers
are
      primarily end users and possibly other ISPs.

      LIRs may also assign address space to other organizations or
customers
      that request it for use in an operational network.

      ORIGINAL POLICY LANGUAGE

      8.5.2 Operational Use

      ARIN allocates or assigns number resources to organizations via
transfer
      solely for the purpose of use on an operational network.

      PROPOSED POLICY LANGUAGE

      Option 1 : Remove 8.5.2 entirely

      Option 2 : Edit as follows

      8.5.2 Operational Use

      ARIN allocates or assigns number resources to organizations via
transfer
      solely primarily for the purpose of use on an operational
network, but
      may allocate or assign number resources to organizations for
other
      purposes, including re-assignment to non-connected networks .

      Comments:

      Timetable for implementation: Immediate

      Anything Else:

      The legitimization of a subleasing market for IPv4 has numerous
business
      and community benefits, including (but not limited to):

      - Allowing organizations to efficiently utilize IPv4 space
without
      transferring space permanently;
      - Allowing organizations to obtain IPv4 space for a limited
time in
      order to facilitate transition to IPv6;
      - Allowing organizations to develop enforceable acceptable use
policies
      in a previously lawless illegitimate space;
      - Allowing the community to develop reporting and recording
standards
      and/or best practices to the benefit of preserving the
integrity of IPv4
      address space.
      - We would like to engage further with the ARIN community to
discuss the
      current state of the unauthorized subleasing market, and how
this
      proposed policy change would both update ARIN policies to
reflect the
      reality of the subleasing market, and positively address
business and
      community concerns.

      _______________________________________________
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