November 26, 2021

Factors That Affect The Price Of IPv4 Address Blocks

IPv4 is one of the most predominant internet address assigning systems in use these days. Experts in the internet and networking have warned about the exhaustion of IPv4 addresses and an increase in the price of IPv4 address blocks even before many years. However, IPv4 is a 32-bit number and is capable of generating a maximum of only 4.3 billion IP addresses.

The world of the internet can be divided into five Regional Internet Registries (RIRs). Out of that, 4 RIRs have used up their free pools. The fifth one, that is the registry of Africa, has declared that it has entered the first phase of IPv4 exhaustion. A few factors contributing to this are:

• The total number of people using the internet has gone much beyond the 4.3 billion mark, as of 2019.
• IPv6 is not yet able to service this increasing demand and the growth in demand. IPv4 still remains as the address system in demand. Moreover, the demand for IPv4 addresses has increased rapidly due to an increase in demand by the Internet of Things-based technologies.
• There are many IPv4 addresses that are not available in the open market.

The IPv4 market is struggling hard with the increasing gap between demand and supply. Moreover, that makes it more and more difficult for IPv4 sellers, buyers, and temporary users to get ownership, administrative access, and control of IPv4 addresses.

Price Of IPv4 Address Blocks And IPv4 Exhaustion

IPv4 exhaustion is affecting IPv4 sales and the price of IPv4 address blocks is escalating continuously. Therefore, it can be difficult for a buyer to ensure good prices without the help of IPv4 brokers. There are mainly four factors affecting IPv4 prices. These are discussed below.

Demand

As we all know, the demand for IPv4 addresses is on the rise. Not only the demand from cloud computing and IoT, but also the COVID-19 pandemic has resulted in an increase in demand for IPv4 addresses.

RIR Protocol

The regional internet registries aggregate misused, or unwanted IPv4 addresses. They then assign them to members based on the non-repetition principle. This selection process by RIRs decreases the stress on price. Without that, the prices may have increased much with an auction process.

CGN Use

Carrier Grade Nat or CGN, is a technology that allows extending the possibility of generating new IPv4 addresses. This technology can offer temporary relief to the supply-demand gap. However, CGN is not sufficient to service the complete demand for IPv4 addresses.

Why Price Of IPv4 Address Blocks Increase – Conclusion

Basically, mentioned are the factors that leads to the increasing price of IPv4 address blocks. The increasing demand and unavailability of addresses results in the price hike. Therefore, if you are one in need of an IPv4 address, it is best to get one at the earliest if available.

Need help with buying an IPv4 address? We can help. Contact us today for the best price and other details.