Trends
IPv4 investment strategies for forward-thinking ISPs
Discover how forward-thinking ISPs use IPv4 investment strategies to manage scarce address resources and support network growth.
Headline
Discover how forward-thinking ISPs use IPv4 investment strategies to manage scarce address resources and support network growth.
Context
A mid-sized European ISP faced an awkward decision last spring. Her network team needed additional IPv4 space to support a planned broadband expansion. The budget offered two paths: purchase a /20 block outright at prices that had fallen to 10-year lows, or lease equivalent capacity with flexibility to scale. The choice would shape the company’s balance sheet for years. This scenario captures the central challenge facing internet service providers in 2025. IPv4 scarcity remains a strategic reality, but the investment landscape has shifted dramatically. Prices for large blocks have declined — some /16 transactions now fall below $20 per address, down from peaks exceeding $50 just two years earlier. The leasing market is surging, with 24 per cent year-over-year growth projected. IPv6 traffic approaches 50 per cent globally.
Evidence
Pending intelligence enrichment.
Analysis
For ISPs, the question is no longer whether addresses have value. That is established. The pressing question is: what investment strategy best serves your specific circumstances in this maturing market? Before examining specific strategies, ISPs must recognise four fundamental realities shaping investment decisions this year. First, prices have stabilised at lower levels. Large block prices (/16+) decreased significantly through 2025, falling from around $30 per address early in the year to below $20 per IP by mid-year for some /16 transactions. This represents a substantial correction from the $45-50+ peaks observed in 2023-2024. The decline reflects increased supply from unused inventory entering the market, not diminished demand. Second, leasing has become the growth engine. The leasing market is experiencing robust expansion, with industry analysts projecting 24 per cent year-over-year growth in volumes. This shift reflects changing attitudes: IPv4 is increasingly viewed as operational capacity to be accessed, not necessarily as an asset to be owned.
Key Points
- IPv4 prices have fallen to 10-year lows — some /16 blocks now trade below $20 per address, down from $50+ peaks. For ISPs, the question is no longer whether to invest, but how.
- Leasing is surging 24% year-over-year as operators prioritise flexibility over ownership. We examine four investment strategies and a decision framework to help you choose.
Actions
Pending intelligence enrichment.
