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    • The problem of the impact of ipv4 deficit on the development of national and European it industry, and solutions.

      April 12, 2022

      If we study in detail, where European buyers of IT services such as vpn, voip, vps, proxy and others, get the ip address necessary for their functioning, the search will inevitably lead us to large U.S. corporations, such as for example AWS, Google and others.

      Also the main providers of ip are the major international tier-one Internet service providers, such as Cogent, Level 3, Verizon, and others.

      This is due to several factors:

      First , the U.S. has 2 times the number of ip ranges allocated by the regulator in Europe. So historically, because the primary distribution came from there.

      Secondly, selling services, large corporations also impose the sale of their ip addresses.

      Existing deficit of ip among European operators and services, including pushing customers into the arms of Internet giants, which of course limit the development of national markets it services.

      Understanding this fact, how the availability of free ipv4 resources affects the market, large international corporations are buying up ip resources on the secondary market (only in 2019 AWS has recently purchased ipv4 for about 100 million dollars, increasing its grouping of IPv4 addresses to a whopping 100 million IP).

      And what about national players? For them buying such resources is not realistic, large companies like Deutsch Telecom, although they have huge stocks of IP, they are not an operator of massive IT services (hosting, vps, and on), except telephony and internet access they do not provide other services. If operator wants to rent IP address, he will face the cost of 5 euros per month for 1 IP, it is comparable to the cost of virtual machines.

      It turns out that if an operator can not get additional IP-addresses he can not develop their services, and buying them from large companies is unprofitable.

      As a result, small and medium-sized it business is limited in IP and can not develop, large American companies with sufficient stocks ip perfectly cope with the expansion of sales, and national operators are sitting on stocks ip and do not redistribute them.

      There is another huge source of free IP addresses, educational and scientific institutions, industrial concerns, government agencies.

      All their networks have a surplus of free IP. According to IEDN in Germany is about 39-40% of all ipv4 addresses. In reality, their disposal is not more than 10%.

      Thus, it turns out that in order for the national Internet service providers have significant impetus to the development they need to give access to the volume of ipv4 addresses.

      This can be done only with the joint work of public and private institutions, which can effectively identify surpluses, point to them and offer an effective mechanism of secondary redistribution.