How Companies Can Monetise Unused IPv4 Space

The demand for IP addresses is skyrocketing as the number of internet-connected devices continues to grow exponentially. Yet, the availability of IPv4 addresses has essentially run out, creating a unique opportunity for organisations with unused IPv4 space to turn these assets into a capital injection. Here’s how companies can effectively monetise their unused IPv4 addresses.

Understanding IPv4 and the Market Demand

IPv4 has been the backbone of internet communication for decades. However, the pool of available IPv4 addresses is limited to approximately 4.3 billion, a number that seemed vast in the 1980s but is now insufficient to meet global demands. Despite the eventual transition to IPv6, which offers an astronomical number of addresses, IPv4 addresses remain highly sought after due to compatibility issues and the slow adoption of IPv6.

Steps to Monetise Unused IPv4 Addresses

1. Stay Calm!

   
   

   Talk to your NOC Team, they will know what IPv4 resources the organisation has, what is required to run their network and what they can consolidate, they will know how they can consolidate and this may be a large project to undertake. So, first, encourage everyone to stay calm! The analogy I often use is think of IPv4 blocks like a block of apartments, imagine you had a whole suburb of apartments, however only a few apartments in each block are occupied, imagine how hard it would be to consolidate all those people into one or two apartment blocks so you could sell the under-utilised space.

   
   

   Once they are calm you can run through an inventory assessment to evaluate what IPv4 space can potentially be made available to sell.

2. Understand the Value

   
   

   Of course this is possibly a large project to undertake, but it more than pays for itself. For example if you end up with a spare /18 for sale that is 16,384 addresses, this could be worth between USD$491,520-$819,200. While a /16 could be worth between USD$1,966,080-$3,276,800. These are rough figured to give you an example to run with.

   
   

   If you are looking for a capital injection this could be a good way to facilitate that. It’s also an easy sell internally to the business.

3. The Internal Sell

   
   

   Your NOC Team are probably asking for network upgrades or new equipment, if they undertake this project you could get them the extra equipment they need and have left over for your other projects.

   
   

   A quick pitch to a CFO would look like, if I undertake this project I can get a capital injection of $X within the new few months. Where $X is the amount of revenue expected from the IPv4 sale, minus the project cost and the equipment cost you promised to the NOC Team.

4. Compliance and Legal Considerations

   
   

   Ensure compliance with any relevant policies and legal requirements. This includes adhering to the regulations set forth by the Internet Assigned Numbers Authority (IANA) and Regional Internet Registries (RIRs).

5. Find a Broker

   
   

   Partner with an experienced IP address broker. Brokers can help navigate the complexities of the marketplace, find potential buyers or lessees, and ensure that transactions are conducted securely and efficiently.

6. Negotiate and Close the Deal

   
   

   Work with the broker to negotiate terms that align with your objectives. Once terms are agreed upon, formalise the transaction to ensure it is legally binding and that all parties are satisfied. I realise these last two steps sound quick, however, when time is considered, often getting the IPv4 ready for sale is a longer process than the IPv4 Transfer Transaction itself.

Best Practices and Considerations

• Security: Ensure that any transfer of IP addresses does not compromise your network’s security. This might involve reconfiguring firewalls or updating security protocols.

• Future Needs: Evaluate your company’s future IP address requirements before selling or leasing a significant portion of your IPv4 space.

• Market Trends: Stay informed about market trends and IPv4 valuations to make informed decisions that maximise your returns.

Conclusion

Monetising unused IPv4 space can be a lucrative opportunity for companies willing to navigate the complexities of the IP address market. By assessing your assets, ensuring compliance, and partnering with the right professionals, you can transform idle IPv4 addresses into a valuable source of income while contributing to the efficient allocation of global internet resources.

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