- IPv4 large block prices hit historic lows as new sellers like universities and banks enter the market, creating fresh trading and investment opportunities.
- Digitalisation and 5G deployments are increasing demand for IP addresses, with operators preferring ownership for greater control and stability.
- InterLIR helps companies manage regional IP scarcity and optimise address utilisation amid a rapidly changing global market.
Alexander Timokhin, CEO of InterLIR, joined us once again for his third interview to share his views on the current situation in the IP address markets and digital infrastructure. Speaking with us during the latest RIPE 90 meeting in Lisbon, which has now become something of a regular occasion, Timokhin discussed the main challenges, market trends, and changing demand that companies are addressing.
Also read: Alexander Timokhin: IPv4 market stability and future strategies
Also read: RIPE 90 closes with calls for ICP-2 update improvements and number portability
Q1. With the rapid evolution of IP address management and IPv6 adoption, what are the main challenges companies face, and how is InterLIR addressing them?
Timokhin: The situation depends a lot on the company, the field they are in, and very much on the country and region where they operate.
Efficient usage of the IP addresses companies already possess is the most difficult and pressing issue.
Alexander Timokhin, CEO of InterLIR
For hosting companies and data centres, the most important and pressing issue is the efficient usage of the IP addresses they already have. In countries like Germany and the United States, it is easier for companies to acquire new addresses, so they do not face the same scarcity problems. But in countries considered ultra high risk, like the Russian Federation, Iran and sometimes even China, it is much harder for companies to get new IP space.
Because of this, they have to be more cautious with what they already possess. For example, I know a data centre in Russia that inherited a lot of IP space from its parent company. They treat the space as a treasure, do not sell it, and try to use it as carefully as they can.
InterLIR helps companies deal with these issues by supporting proper utilisation of the IP space they already have and helping them acquire additional addresses where possible.
Q2. Given the ongoing scarcity of IPv4 addresses, how do you anticipate the market will respond in terms of pricing, regulation, and the development of secondary markets?
Timokhin: There have been some interesting developments over the past year. Many organisations like universities and regional banks that had IP space but did not use it have now realised its value and started to sell it.
Prices for /16, /17 are now traded at historical low levels. It is very cheap right now to acquire big blocks.
Alexander Timokhin, CEO of InterLIR
This has increased the supply and pushed prices for bigger blocks like /16 and /17 to historically low levels. At the same time, prices for smaller blocks like /20 and /21 have stayed around 30 to 32, creating an opportunity. It is now much cheaper to buy large blocks and split them into smaller ones, which can be sold at higher prices.
However, many sellers, such as universities and banks, would rather make a straightforward, one-time sale and are not interested in getting involved in the market. They are not yet aware that splitting blocks can bring them more profit.
Once more organisations realise this, the market could become even more active. But there are still regulations and sanctions that in my view are unjustified. They only make it harder to connect people around the world.
Also read: IPv4 market: A $60T opportunity hiding in plain sight, says LARUS CEO
Q3. As digital infrastructure decentralises with the rise of edge computing, 5G and IoT, how is demand for IP leasing shifting, and how is InterLIR adapting to support this next wave of network expansion?
Timokhin: Due to digitalisation, 5G and other developments, more companies are demanding more IP space. But it is not only about more space — companies also want to use it more efficiently, which was not always the case in the past.
Misallocation and inefficient usage were big problems before, but now companies are managing their IP space more carefully.
When it comes to company policies, big companies, especially telecom operators, still prefer to buy and own IP addresses rather than lease them because it gives them a sense of security. With the current low prices for large blocks, it is a good time for them to increase their IP supply.
InterLIR will continue to support companies by helping them make better use of their IP addresses and assisting in acquiring more space if needed.
About InterLIR GmbH
InterLIR GmbH provides a marketplace designed to address network availability challenges through innovative real-time solutions. The company offers services such as real-time IP address leasing and market visualisation, helping to improve network availability and maximise the value of IP resources. Its goal is to become the world’s most trusted IP address provider and a leading player in the market, by delivering an efficient platform that connects IP address owners with users.
