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IPv4	Transfers	
Analy'c	View	
Alain Durand, February 24th 2016
| 2
Questions For This Study
A.  IPv4 Transfer Market Health
1)  What	is	the	concentra'on	of	address	holders?
2)  Is the transfer market dominated by a few buyers?
3)  Is there a regional direction of transfer?
4)  What is the size distribution of transferred blocks?
5)  How are things changing over time?
B.  Impact on the routing table
Do transfers impact the size of the routing table?
C.  Registry Accuracy
Does the WHOIS database accurately reflect who controls
resources?
| 3
Herfindahl-Hirschman Index (HHI) Source: Investopedia.com
Investopedia:	
	
The	Herfindahl-Hirschman	index	(HHI)	is	a	commonly	accepted	measure	of	
market	concentra=on.	It	is	calculated	by	squaring	the	market	share	of	each	firm	
compe'ng	in	a	market,	and	then	summing	the	resul'ng	number.	
	
The	HHI	number	can	range	from	close	to	zero	to	10,000.	
	
The	U.S.	Department	of	Jus'ce	considers	a	market	with	
	a	result	of	less	than	1,000	to	be	a	compe==ve	marketplace;	
	a	result	of	1,000-1,800	to	be	a	moderately	concentrated	marketplace;	
	and	a	result	of	1,800	or	greater	to	be	a	highly	concentrated	marketplace.
| 4
A.1) Share of the Top 10 Address Holders per
Region: 01/01/2016: ARIN, APNIC & RIPE
Total: 1.7 billion
Top 10: 32%
HHI = 248
Total: 863 million
Top 10: 32%
HHI = 147
Total: 802 million
Top 10: 20%
HHI = 61
ARIN RIPEAPNIC
Source: delegated-extended files from ARIN, APNIC & RIPE
Top 10
Others
| 5
Total: 180 million
Top 10: 44%
HHI = 289
Total: 87 million
Top 10: 44%
HHI = 262
LACNIC AFRINIC
A.1) Share of the Top 10 Address Holders per
Region: 01/01/2016: LACNIC & AFRINIC
Source: delegated-extended files from LACNI & AFRINIC
| 6
A.2) IPv4 Address Transfer Recipients: 2014/2015
Total: 38.9 million
Top 10: ??%
Total: 10.2 million
Top 10: 61%
Total: 18.3 million
Top 10: 42%
RIPEAPNIC
Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
RIPE does
not report
on
“legacy”
transfers
ARIN	sta's'cs	
do	not	provide	
any	data	about	
the	iden'ty	of	
transferors	
and	transferees.	
?
ARIN
?
| 7
A.2) IPv4 Address Transfer Recipients: 2014/2015
Total: 38.9 million
Top 10: 83%
HHI >1980
Total: 10.2 million
Top 10: 61%
HHI > 1470
Total: 18.3 million
Top 10: 42%
HHI > 260
ARIN RIPEAPNIC
Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
Source: : variations of delegated-arin-extended
RIPE does
not report
on
“legacy”
transfers
Reversed	
Engineered	
?
| 8
A.3) IN-Region vs OUT-of-Region
2014-01-01 to 2015-12-31 Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
Addresses are flowing from ARIN to the other regions.
ARIN	
38.9	million	
APNIC	
10.2	
million	
RIPE	
18.3	million	
From 11/23/2015
to 12/31/2015
| 9
A.3) How “Old” Were ARIN Addresses Transferred
to APNIC? 2014-01-01 to 2015-12-31 2014-2015
0	
500000	
1000000	
1500000	
2000000	
2500000	
3000000	
1986	 1988	 1989	 1990	 1991	 1992	 1993	 1994	 1995	 1997	 1998	 1999	 2001	 2002	 2006	 2007	 2008	 2009	 2012	 2014	 2015	
Addresses	Transferred	By	Previous	Registra=on	Date	
Pre-ARIN	 ARIN	 Pre-ARIN	via	ARIN	transfer	
Legacy	addresses	
transferred	to	ARIN	in	
2014-2015	prior	to	
being	re-transferred	to	
APNIC	to	a	subsidiary	
4%	
Legacy	
addresses	
79%	
ARIN	
addresses	
17%	
ARIN	
crea'on
| 10
A.4) Distribution of Address Block Size in Transfers
2014-01-01 to 2015-12-31
	-				
	2,000,000		
	4,000,000		
	6,000,000		
	8,000,000		
	10,000,000		
	12,000,000		
	14,000,000		
	16,000,000		
	18,000,000		
/8	 /9	 /10	 /11	 /12	 /13	 /14	 /15	 /16	 /17	 /18	 /19	 /20	 /21	 /22	 /23	 /24	
Addresses	Transferred	per	Size	of	Address	Block	Transferred	
ARIN	 APNIC	 RIPE	
Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
Larger transfers Smaller transfers
| 11
A.5) Evolution Over Time
2014-01-01 to 2015-12-31
	-				
	5,000,000		
	10,000,000		
	15,000,000		
	20,000,000		
	25,000,000		
	30,000,000		
	35,000,000		
	40,000,000		
	45,000,000		
Cumula=ve	Number	of	Transferred	Addresses	
ARIN	 APNIC	 RIPE	
Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
| 12
B) Growth of RIRs IPv4-Delegated Table Source: delegated files
Why is this important to track over time?
The global BGP table derives from the RIR table and contains about 600,000 entries
on Jan 1st 2016, roughly 4 times the number of entries in the RIR table (due to
factors including internal de-aggregation and traffic engineering). Any increase in
the RIR table could then create a significant surge in the BGP table.
	ARIN..	 APNIC..	 RIPE..	 LACNIC..	 AFRINIC..	 Total..	
1/2012	 	43,739		 	19,806		 	44,130		 	3,714		 	1,926		 	113,315		
1/2013	 	45,410		 	21,144		 	48,643		 	4,001		 	2,145		 	121,343		
1/2014	 	52,047		 	22,742		 	50,004		 	7,800		 	2,382		 	134,975		
1/2015	 	54,438		 	26,773		 	51,319		 	9,373		 	2,582		 	144,485		
1/2016	 	56,852		 	31,616		 	56,105		 	10,798		 	2,857		 	158,228		
4	Years	later:	 +30%	 +60%	 +27%	 +191%	 +48%	 +40%	
Counting increases of IPv4 assigned or allocated entries over the last 4 years
| 13
RIR Contributions to IPv4-Delegated Table Growth
Year over Year
0%	
2%	
4%	
6%	
8%	
10%	
12%	
2012	 2013	 2014	 2015	
ARIN	 APNIC	 RIPE	 LACNIC	 AFRINIC	
0%	
10%	
20%	
30%	
40%	
50%	
60%	
70%	
80%	
90%	
100%	
2012	 2013	 2014	 2015	
ARIN	 APNIC	 RIPE	 LACNIC	 AFRINIC	
Relative Contribution Absolute Contribution
Source: delegated files
| 14
C) Need-Based Policies and Private Contracts
The	effect	of	need-based	policies	is	to	limit	the	size	of	the	address	
block	being	transferred	to	the	actual	assessed	need	of	the	recipient.	
	
They	do	not	prevent	private	contracts	between	par'es	such	as	
Le[er	of	Authoriza=ons	and	Op=ons.	
	
Such contracts and are not recorded publicly, thus it is impossible
to measure the number of IPv4 addresses under those contracts
and evaluate the concentration of this derivative market.
| 15
Note about Statistics Collection
ARIN,	APNIC	&	RIPE	report	different	data	about	transfers.	
This makes data analysis across regions difficult.
Origin	
Org	
Id	
Dest.	
Org	
Id	
Original	
Block	
Transferred	
Block	
Previous	
Registra=on	
Date	
	
New	
Registra=on	
Date	
	
Country	
of	
Origin	
Country	
of	
Des=na=on	
	
Format	
ARIN	 ✔	 ✔	 WEB	
APNIC	 ✔	 ✔	 ✔	 ✔	 ✔	 ✔	 ✔	 TXT	
RIPE	 ✔	 ✔	 ✔	 ¢	 ✔	 JSON	
Note:	¢	RIPE does not report transfers of legacy blocks

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IPv4 Transfer Analytic View

  • 2. | 2 Questions For This Study A.  IPv4 Transfer Market Health 1)  What is the concentra'on of address holders? 2)  Is the transfer market dominated by a few buyers? 3)  Is there a regional direction of transfer? 4)  What is the size distribution of transferred blocks? 5)  How are things changing over time? B.  Impact on the routing table Do transfers impact the size of the routing table? C.  Registry Accuracy Does the WHOIS database accurately reflect who controls resources?
  • 3. | 3 Herfindahl-Hirschman Index (HHI) Source: Investopedia.com Investopedia: The Herfindahl-Hirschman index (HHI) is a commonly accepted measure of market concentra=on. It is calculated by squaring the market share of each firm compe'ng in a market, and then summing the resul'ng number. The HHI number can range from close to zero to 10,000. The U.S. Department of Jus'ce considers a market with a result of less than 1,000 to be a compe==ve marketplace; a result of 1,000-1,800 to be a moderately concentrated marketplace; and a result of 1,800 or greater to be a highly concentrated marketplace.
  • 4. | 4 A.1) Share of the Top 10 Address Holders per Region: 01/01/2016: ARIN, APNIC & RIPE Total: 1.7 billion Top 10: 32% HHI = 248 Total: 863 million Top 10: 32% HHI = 147 Total: 802 million Top 10: 20% HHI = 61 ARIN RIPEAPNIC Source: delegated-extended files from ARIN, APNIC & RIPE Top 10 Others
  • 5. | 5 Total: 180 million Top 10: 44% HHI = 289 Total: 87 million Top 10: 44% HHI = 262 LACNIC AFRINIC A.1) Share of the Top 10 Address Holders per Region: 01/01/2016: LACNIC & AFRINIC Source: delegated-extended files from LACNI & AFRINIC
  • 6. | 6 A.2) IPv4 Address Transfer Recipients: 2014/2015 Total: 38.9 million Top 10: ??% Total: 10.2 million Top 10: 61% Total: 18.3 million Top 10: 42% RIPEAPNIC Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files RIPE does not report on “legacy” transfers ARIN sta's'cs do not provide any data about the iden'ty of transferors and transferees. ? ARIN ?
  • 7. | 7 A.2) IPv4 Address Transfer Recipients: 2014/2015 Total: 38.9 million Top 10: 83% HHI >1980 Total: 10.2 million Top 10: 61% HHI > 1470 Total: 18.3 million Top 10: 42% HHI > 260 ARIN RIPEAPNIC Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files Source: : variations of delegated-arin-extended RIPE does not report on “legacy” transfers Reversed Engineered ?
  • 8. | 8 A.3) IN-Region vs OUT-of-Region 2014-01-01 to 2015-12-31 Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files Addresses are flowing from ARIN to the other regions. ARIN 38.9 million APNIC 10.2 million RIPE 18.3 million From 11/23/2015 to 12/31/2015
  • 9. | 9 A.3) How “Old” Were ARIN Addresses Transferred to APNIC? 2014-01-01 to 2015-12-31 2014-2015 0 500000 1000000 1500000 2000000 2500000 3000000 1986 1988 1989 1990 1991 1992 1993 1994 1995 1997 1998 1999 2001 2002 2006 2007 2008 2009 2012 2014 2015 Addresses Transferred By Previous Registra=on Date Pre-ARIN ARIN Pre-ARIN via ARIN transfer Legacy addresses transferred to ARIN in 2014-2015 prior to being re-transferred to APNIC to a subsidiary 4% Legacy addresses 79% ARIN addresses 17% ARIN crea'on
  • 10. | 10 A.4) Distribution of Address Block Size in Transfers 2014-01-01 to 2015-12-31 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 /8 /9 /10 /11 /12 /13 /14 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24 Addresses Transferred per Size of Address Block Transferred ARIN APNIC RIPE Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files Larger transfers Smaller transfers
  • 11. | 11 A.5) Evolution Over Time 2014-01-01 to 2015-12-31 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Cumula=ve Number of Transferred Addresses ARIN APNIC RIPE Source: ARIN, APNIC, RIPE: APNIC & RIPE transfer stats files
  • 12. | 12 B) Growth of RIRs IPv4-Delegated Table Source: delegated files Why is this important to track over time? The global BGP table derives from the RIR table and contains about 600,000 entries on Jan 1st 2016, roughly 4 times the number of entries in the RIR table (due to factors including internal de-aggregation and traffic engineering). Any increase in the RIR table could then create a significant surge in the BGP table. ARIN.. APNIC.. RIPE.. LACNIC.. AFRINIC.. Total.. 1/2012 43,739 19,806 44,130 3,714 1,926 113,315 1/2013 45,410 21,144 48,643 4,001 2,145 121,343 1/2014 52,047 22,742 50,004 7,800 2,382 134,975 1/2015 54,438 26,773 51,319 9,373 2,582 144,485 1/2016 56,852 31,616 56,105 10,798 2,857 158,228 4 Years later: +30% +60% +27% +191% +48% +40% Counting increases of IPv4 assigned or allocated entries over the last 4 years
  • 13. | 13 RIR Contributions to IPv4-Delegated Table Growth Year over Year 0% 2% 4% 6% 8% 10% 12% 2012 2013 2014 2015 ARIN APNIC RIPE LACNIC AFRINIC 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 2015 ARIN APNIC RIPE LACNIC AFRINIC Relative Contribution Absolute Contribution Source: delegated files
  • 14. | 14 C) Need-Based Policies and Private Contracts The effect of need-based policies is to limit the size of the address block being transferred to the actual assessed need of the recipient. They do not prevent private contracts between par'es such as Le[er of Authoriza=ons and Op=ons. Such contracts and are not recorded publicly, thus it is impossible to measure the number of IPv4 addresses under those contracts and evaluate the concentration of this derivative market.
  • 15. | 15 Note about Statistics Collection ARIN, APNIC & RIPE report different data about transfers. This makes data analysis across regions difficult. Origin Org Id Dest. Org Id Original Block Transferred Block Previous Registra=on Date New Registra=on Date Country of Origin Country of Des=na=on Format ARIN ✔ ✔ WEB APNIC ✔ ✔ ✔ ✔ ✔ ✔ ✔ TXT RIPE ✔ ✔ ✔ ¢ ✔ JSON Note: ¢ RIPE does not report transfers of legacy blocks