Why is IPv4 so expensive?

Have you been looking out for an IPv4 address range but finding that all the APNIC ranges are a lot more expensive than you budgeted for?

IPv4 is a non-renewable highly demanded resource. The APNIC region ran out of IPv4 in April 2011, while there are other RIR’s with available IPv4 the inter-RIR transfer process can be a little complicated. Also having address space from another region can create issues if you do not understand how to deal with that.

As IPv4 is a highly demanded non-renewable resource the price is set by the market and basically the highest bidder. At the moment address space will cost between $11-$19 per IP depending on the size of the range and the deal at the time. However, this is only going to go up, we don’t think it will be very long until IPv4 is $25-$30 per IP.

There are five main reasons why IPv4 is so expensive:

  1. Scarcity – there just isn’t much left at the RIR’s
  2. Number of Internet connected devices – the Internet of everything is growing rapidly due to billions of devices coming online
  3. It’s a non-renewable resource – when it’s gone it’s gone
  4. IPv6 adoption is slow – because it is expensive and time consuming people are putting off IPv6 adoption until the last minute
  5. Speculators – people who have excess resources that are stocking up in preparation for the gold rush

Even though we think IPv4 is expensive now it will only be going up and up. We predict Ipv4 will be about $20-$30 per IP in the APNIC region by late next year. So if you are going to buy IP resources buy them sooner rather than later!

If you are interested in buying or selling IPv4 please Click Here to register your interest.