IP Lease for managing IPv4 scarcity - Interlir networks marketplace
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IP Lease for managing IPv4 scarcity

The deficit of the IPv4 addresses closely linked with technological limitation of the 32-bit code of the protocol IPv4, where is possible only 4,3 billion combination of the numbers. But is enough for the modern sector of information technologies, in which the quantity of the nodes in information technology is growing with the exponential rate. We will discuss if IP lease can be solution to fulfil needs of new customers.

The situation on IPv4 market and IP lease.

The companies that manage internet, announce that the addresses of the IPv4 protocol have come to an end. The cost for these sources is growing because of the deficit that has arisen.

According to our opinion, there are some alternative ways for the solving of the deficit issues, that could help to extend the lifetime of the protocol IPv4 and related equipment, and also without considerable investment in the purchase of new equipment and the disposal of the old, to make a gradual transition to the address space of the IPv6. The meaning of these ways is in thrifting the available address space of the IPv4 protocol.

growth in the number of LIRs
IPv4 waiting list

Volume of unused IP addresses and market demand

The reality is that more than 30% of the existing IPv4 address space is in a frozen, unused state, and an equal number of addresses are in a pseudo-used state. It applies to the whole address space IPv4 used in Europe.

The good illustration of the current situation, is for example, Germany, where in the presence of a shortage of IPv4 addresses of some firms and excess free addresses from others, there are practically no transactions between companies for their redistribution, the so-called transfer agreements.

IPv4 addresses hidden market Problems

Let`s go back to 30 years ago to the era, when the address space of the internet began to be shared among participants in the exchange of information. In that period the shortage of IPv4 was not so clear, and the address space was allocated to any organization, that asked for it, irrespective of her current needs.

Research institutes, state agencies and higher education institutes were the first to receive them.

The blocks allocated at that time could not be fully used, since the then participants on the Internet did not have such a number of nodes in their networks. Thus, unused addresses were safely forgotten.

But a huge number of blocks were once given to those who never planned to use them.

As a result, up to 30% of the world’s IP addresses at the disposal of various LIRs (Local Internet Registry), which is almost 1.3–1.4 billion, are now in a frozen state and are actually withdrawn from the world’s address space. 

The feature of accounting for network recycling in the regional RIR (Regional Internet Registry) registry does not allow you to look into the distribution lower than /24 and therefore such a network for the outside world, as well as for everyone who monitors this network from the outside, is considered to be fully occupied, and is not included in world statistics reports.

According to documents and on paper, we have a shortage of IPv4 addresses, but in reality there is no shortage, there are only organizations that use their IPv4 resources inefficiently and economically. These resources could be useful today for the development of the digital economy of any country if they could be shared with other Internet users. IP lease may help to solve this issue.

Lean use of IPv4 space, redistribution of resources on IPv4 market.

First, it is necessary to reach out to the “sleeping” network owners who do not use these networks and offer them IP lease.

It is necessary to use lean approaches, which have recently been gaining popularity in Germany.

How to be „green“ in the market of IP addresses and at the same time to make profit?

The idea of opening up the market of unused IPv4 addresses as a global project which companies can contribute to

  • But here`s what anyone who suddenly discovers their owner can do with their free networks, we will briefly describe.
  • For example, an IP network with a size of /16 (65512 addresses) can bring its owner about 30,000 € per month when leased out with IP lease.
  • For IP lease, special trading platforms, the so-called Market Place, can be effectively used.

INTERLIR Marketplace

One of the few platforms under the jurisdiction of the European Union is the German MarketPlace Interlir.com, which was developed by our company Interlir GmbH.

With the help of our platform, you can redistribute the entire mass of IPv4 resources unused in Europe for practical use, offering everyone who really needs IPv4 addresses to lease them from their owners for a while and as needed on a reimbursable basis.

Interlir ip rent dashboard

Interlir ip rent dashboard

The idea of frugality as an aid to the IT market for further development.

  • In our opinion, it is possible to involve the state itself in the process of thrifty distribution of IP resources, which could, among other things, legally confirm the legitimacy of such an approach and encourage owners who have excess resources to participate in the redistribution.
  • In addition to real practical benefits for the IT industry and accelerating its development, as well as saving huge funds for equipment replacement, this can bring real benefits to those institutions – owners of IP resources that will participate in this.
  • The release of new address space will have a beneficial effect on the development of the IT market in the country and will allow developing and already established companies not to spend significant funds on the purchase of expensive equipment or on the purchase of IP address networks on the open market.
  • The other way is to conduct a global audit program on the use of address space in universities, government agencies and corporations, and develop a detailed plan that would allow moving and consolidating IP resources and freeing up the available address space for each specific enterprise.

The benefits of using the idea of frugality for the governmentand business. Using the Interlir platform in the idea of IPv4 Lean.

  • The vacated address space can also be distributed through the European platform Interlir.com among all participants in the IP resource market.
  • In this case, consumers will be relieved of the need to purchase address space from spontaneous IP brokers, as well as third-party and foreign enterprises at incomprehensible and, at times, non-market prices.
  • The obvious benefit of using the address space redistribution system makes our platform applicable, including at the state level, for the purpose of market regulation of the price of such resources.
  • Given that our system, using unique technologies, provides free access to IP resources to any market participant, we can confidently count on the use of our developments to create a nationwide system for market regulation of the IPv4 address space in Europe.