North American Network Operators Group

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Re: Co-lo best practices on IP allocations

  • From: Steve Gibbard
  • Date: Wed Mar 19 17:11:25 2003

On Tue, 18 Mar 2003, Andy Dills wrote:

> 
> On Tue, 18 Mar 2003, Daniel Abbey wrote:
> 
> >
> > Are there any suggestions/ideas on best practices when it comes to co-lo
> > allocation of addresses to its customers? Is there any site that may have
> > some pointers? The dilemma is whether to charge or no to charge separate for
> > the IPs. Should it be a cause built into their overall contract? Any ideas?
>
> [...]
> 
> But only give them what they can justify, unless they are potentially a
> huge revenue customer, to who you would give whatever they want (within
> reason).

I would be extremely cautious about following that advice.  It's pretty
simple to get more IP addresses from ARIN if you follow their processes,
do your allocations according to their guidelines, and keep good
documentation.  Those who don't follow the ARIN guidelines tend to run
into a lot of trouble when it comes time to get more IP addresses,
especially when the customers for whom they ignore the guidelines stand
out as their really big allocations.

As far as whether to charge goes, that's really a business decision rather
than an operational one.  Arin charges somewhere between 60 cents and a
tenth of a cent per IP address, depending on how big you are.  The process
of obtaining the IP address blocks costs you something, as does processing
the paperwork associated with the justifications, setting up and
maintaining the routing, and so forth.  Meanwhile, you're also charging
your customers for various other services.  You may or may not be making a
sufficient amount to cover your costs in dealing with IP address
allocation, and you may or may not be in a situation where your customers
would be willing to pay you more.

-Steve

--
Steve Gibbard
Steve Gibbard Consulting -- IP network consulting services
Office: 510 528-1263
Cell: 415 717-7842
http://www.gibcons.com/