Category: Blog

Introduction, IPv4 Scarcity Requires Strategic Decisions

IPv4 address exhaustion has fundamentally changed how organizations acquire public IP address space. Where IPv4 addresses were once assigned directly and quickly, today companies must carefully choose between leasing IPv4 space or becoming a RIPE NCC member to request allocations themselves.

At first glance, RIPE NCC membership may appear attractive due to direct control and long term ownership. However, once membership fees, waiting lists, and upfront sunk costs are taken into account, leasing IPv4 often proves to be the more practical and economical choice, especially for smaller deployments.

This article compares leasing a /24 IPv4 block with becoming a RIPE NCC member, focusing on cost, timing, control, and long term strategic considerations.

What Is RIPE NCC Membership

The Role of RIPE NCC

RIPE NCC is the Regional Internet Registry responsible for managing IP address space in Europe, the Middle East, and parts of Central Asia. Organizations that become members, also known as Local Internet Registries, can request IPv4 and IPv6 resources directly from RIPE NCC.

Membership allows organizations to manage their own address space, configure routing security, and maintain full autonomy over their internet number resources.

RIPE NCC Membership Costs

Under the current RIPE NCC Charging Scheme, becoming a member involves the following costs:

• a one time sign up fee of 1,000 euros
• an annual membership fee of 1,800 euros

To receive an initial IPv4 /24 allocation, new members must first join the IPv4 waiting list. During this waiting period, the organization must remain an active paying member.

The waiting time is typically around two years, during which no IPv4 address space is usable.

Total Cost to Obtain the First /24

Over the first two years, the total cost is:

• year one membership fee, 1,800 euros
• year two membership fee, 1,800 euros
• one time setup fee, 1,000 euros

This results in a total of 4,600 euros paid before receiving the first /24 IPv4 block.

After the allocation is received, the organization continues paying 1,800 euros per year to retain membership and keep the address space, subject to future changes in RIPE NCC billing schemes.

This makes the initial cost a sunk investment with delayed return.

Leasing IPv4 Address Space

How IPv4 Leasing Works

IPv4 leasing allows organizations to rent address space from providers that already hold IPv4 allocations. The addresses are routed to the customer and can be used immediately, without becoming a RIPE NCC member.

A typical market price for leasing a /24 IPv4 block is:

• 119 euros per month
• 1,428 euros per year

There are no setup fees, no waiting lists, and no long term contractual obligations in most cases.

Cost Comparison Between Leasing and Membership

For a single /24 IPv4 block, the cost comparison looks as follows:

• RIPE NCC membership costs 4,600 euros over the first two years, with no usable IPv4 during the waiting period
• IPv4 leasing costs 2,856 euros over two years, with immediate usability

After the waiting period, RIPE NCC membership continues to cost 1,800 euros per year, while leasing remains at approximately 1,428 euros per year.

From a purely financial perspective, leasing remains cheaper for at least the first several years.

Operational Control and Flexibility

Benefits of RIPE NCC Membership

RIPE NCC membership provides:

• full administrative control over IP address space
• direct access to RIPE database management
• native RPKI and routing policy control
• independence from third party leasing providers

This level of control is particularly valuable for internet service providers, network operators, and organizations with strict routing or compliance requirements.

Advantages of Leasing IPv4

Leasing IPv4 offers:

• immediate availability of address space
• lower upfront costs
• predictable monthly expenses
• flexibility to scale up or down

For hosting companies, SaaS platforms, startups, and short term projects, leasing aligns well with operational and financial flexibility.

IPv6 as a Strategic Factor

IPv6 Allocation Through RIPE NCC

An important advantage of RIPE NCC membership is access to IPv6 address space. Members can request an IPv6 allocation, typically ranging from a /29 to a /32.

There is no additional cost for IPv6 allocation, no waiting list, and no need to lease IPv6 separately.

For organizations deploying IPv6 or planning a transition, this can significantly improve the overall value of membership.

When RIPE NCC Membership Makes Sense

Becoming a RIPE NCC member is generally justified when one or more of the following apply.

Full and Permanent Control Is Required

Membership is suitable if you need:

• complete ownership and control of IP resources
• long term routing stability
• independence from commercial leasing arrangements

Native IPv6 Is a Priority

If your infrastructure requires:

• permanent IPv6 address space
• no recurring IPv6 leasing costs
• direct resource management

RIPE NCC membership becomes more attractive.

Multiple IPv4 /24 Blocks Are Involved

Membership can also make sense if you are acquiring multiple IPv4 /24 blocks via the transfer market. In this case, the annual membership fee is spread across more address space, lowering the effective recurring cost per /24.

This does require a higher upfront investment, but can be cost efficient for larger operators.

When Leasing IPv4 Is the Better Option

Leasing IPv4 is usually the better choice if you:

• only need one or a small number of /24 blocks
• require immediate deployment
• want to avoid large upfront costs
• operate in a dynamic or short term environment

For many organizations, leasing remains the most economical and operationally simple solution.

Conclusion, Choosing the Right Strategy

The decision between leasing IPv4 and becoming a RIPE NCC member should be based on strategy rather than sentiment.

Leasing IPv4 offers speed, flexibility, and lower short to medium term costs. RIPE NCC membership offers autonomy, native IPv6, and scalability, but requires a significant upfront investment and patience.

For a single /24 IPv4 block, leasing is usually the rational choice. For long term growth, IPv6 adoption, or ownership of multiple IPv4 blocks, RIPE NCC membership can become strategically sound.

Aligning your choice with your technical needs and financial horizon is the key to making IPv4 scarcity work in your favor.

Introduction

IPv4 addresses have become a scarce and valuable resource. While IPv6 adoption continues, many businesses still depend on IPv4 for compatibility and reachability. Organizations such as hosting providers, cloud platforms, ISPs, and SaaS companies must therefore decide how to obtain IPv4 space: by buying address blocks on the secondary market or by leasing them on a monthly basis.

Both approaches have advantages and trade-offs. The right choice depends on cost, flexibility, expected duration of use, and risk tolerance. This article compares buying versus leasing IPv4 addresses, explains the role of RIRs and the aftermarket, and helps determine which strategy makes sense in different situations.

IPv4 Availability at the RIRs

Contrary to popular belief, Regional Internet Registries still distribute IPv4 addresses, but availability is extremely limited and subject to strict conditions.

RIPE NCC IPv4 Waiting List

RIPE NCC operates an IPv4 waiting list, where Local Internet Registries can apply for a single /24 allocation.

As of 29 January, there are 744 LIRs waiting for a /24 block, and the first applicant has already been waiting 449 days, well over a year.

More details can be found here:
https://www.ripe.net/manage-ips-and-asns/ipv4/ipv4-waiting-list/

This makes RIPE allocations unsuitable for organizations that need IPv4 space quickly or in larger quantities.

ARIN IPv4 Waiting List

ARIN also maintains an IPv4 waiting list with periodic distributions based on returned address space.

Information about the ARIN waiting list is available here:
https://www.arin.net/resources/guide/ipv4/waiting_list/

While ARIN continues to distribute IPv4 blocks, availability is unpredictable and often insufficient for growing demand.

APNIC IPv4 Availability

APNIC still has IPv4 supply available, but allocations are capped at a maximum of a /23 per organization.

Details can be found here:
https://help.apnic.net/s/article/Obtaining-resources

For organizations requiring more address space, this limitation quickly becomes a blocker.

The Aftermarket Reality

If you need more IPv4 addresses than the RIRs can provide, or if you need them quickly, you are effectively bound to work with the IPv4 aftermarket, either through purchases or leases.

Buying IPv4 Addresses

What Buying IPv4 Means

Buying IPv4 addresses means acquiring the long-term rights to use an address block via a transfer recorded in the relevant RIR database. While IPv4 addresses are often treated as assets, it is important to note that they are not technically owned. The RIR retains ultimate authority and can revoke or reclaim resources under certain conditions.

Buying does, however, provide durable usage rights and administrative control for as long as the registration remains valid.

More details are available on our Buy IPv4 page.

Cost of Buying IPv4

At current market rates, IPv4 addresses typically sell for around 26 euros per IP.

A /24 block with 256 addresses therefore costs approximately:

256 × 26 euros = 6,656 euros

Pricing transparency can be observed through public marketplaces and brokers such as:

• Hilco Streambank’s IPv4.Global
• Prefix Broker Express

This is a one-time capital expense, excluding transfer fees and possible RIR-related costs.

Advantages of Buying IPv4

Buying IPv4 provides long-term stability, full administrative control, and predictable costs over time. It is often preferred by organizations with permanent IPv4 requirements and a clear long-term infrastructure strategy.

Disadvantages of Buying IPv4

The primary disadvantages are the high upfront cost, reduced flexibility, and capital being tied up in address space. Buying also exposes organizations to long-term market and regulatory uncertainty, including policy changes by RIRs.

Leasing IPv4 Addresses

What IPv4 Leasing Is

Leasing IPv4 addresses means paying a monthly fee to use IP space held by another party. The lessee is authorized to announce and use the addresses, but does not hold the long-term registration rights.

More information can be found on our Lease IPv4 page. We can also assist customers directly in obtaining a lease contract and securing a suitable IPv4 block for their use case.

Cost of Leasing IPv4

Leasing IPv4 is generally more cost-efficient in the short to medium term.

Typical market rates range from 90 to 150 euros per month per /24. A commonly seen rate is around 119 euros per month.

At 119 euros per month, the annual cost is 1,428 euros. Compared to a purchase price of 6,656 euros, the break-even point is reached after approximately 56 months:

6,656 ÷ 119 ≈ 55.9 months

This means leasing remains the cheaper option for nearly five years.

Advantages of Leasing IPv4

Leasing requires no upfront investment, allows rapid scaling, and provides flexibility when demand is uncertain. It is often the most cost-optimized approach for growing companies or temporary projects.

Disadvantages of Leasing IPv4

Leasing involves ongoing operational expenses and does not create long-term usage rights. Over extended periods, total lease costs can exceed the cost of buying. Lease continuity also depends on the stability of the lessor and the contract terms.

Buying vs Leasing IPv4: Cost Comparison

Break-Even Considerations

With current market pricing, buying IPv4 only becomes financially advantageous after roughly four to five years of uninterrupted use.

If IPv4 space is required for a shorter period, leasing is typically the more economical and flexible option. For long-term, predictable usage, buying can reduce total cost over time.

Strategic Considerations: Which Option Makes Sense When

When Buying IPv4 Makes Sense

Buying IPv4 is generally suitable when address requirements are stable and long-term, when administrative control is critical, and when IPv4 is viewed as a strategic infrastructure resource. This is common among ISPs, network operators, and established hosting providers.

When Leasing IPv4 Makes Sense

Leasing IPv4 is often the better choice when minimizing upfront cost is important, when demand is temporary or uncertain, or when rapid scaling is required. Startups, SaaS platforms, and fast-growing environments typically benefit most from leasing.

IPv4 Marketplaces and Third-Party Platforms

Marketplaces such as IPXO and InterLIR provide platforms for leasing IPv4 address space through intermediaries.

While these marketplaces can be convenient, it is important to understand that you are often not contracting directly with the registered holder of the IP space. This can introduce uncertainty around lease duration, renewals, and long-term stability.

For mission-critical infrastructure, direct lease agreements with the address holder usually provide greater clarity and reliability.

The Future Outlook for IPv4

IPv4 Scarcity and Pricing

IPv4 scarcity is expected to persist. Prices on the aftermarket are unlikely to decline significantly, and demand for leased IPv4 space remains strong. IPv4 continues to be necessary for compatibility with legacy systems and large parts of the global internet.

IPv6 and Dual-Stack Reality

Most networks will continue operating in a dual-stack environment for the foreseeable future. IPv4 will remain relevant for many years, even as IPv6 adoption gradually increases.

Conclusion

There is no universal answer to whether buying or leasing IPv4 addresses is the better choice.

Leasing IPv4 is typically the most cost-optimized and flexible solution in the short to medium term. Buying IPv4 becomes more attractive for organizations with long-term, stable requirements and a strategic need for durable usage rights.

Many organizations ultimately adopt a hybrid strategy, leasing IPv4 to support growth while selectively acquiring address space to secure long-term capacity.