Matt: Here's the thing. With physical goods, there are economies of scale in shipping and delivering them in bulk. But IP addresses are simply numbers! Since there's already a base fee to cover the fixed costs, there's no reason for the cost per IP to be different. And, in fact, good reason for it not to be. Big carriers waste a lot of IPs compared to little guys, who get disproportionate scrutiny. --Brett Glass At 12:24 AM 7/15/2014, Matt Palmer wrote:
While the "share of revenue" argument is bogus (as John's cup-of-coffee analogy made clear), you do have a point with the cost-per-IP-address argument:
Annual Fee Max CIDR $/IP $500 /22 0.49 $1000 /20 0.24 $2000 /18 0.12 $4000 /16 0.06 $8000 /14 0.03 $16000 /12 0.02 $32000 > /12 Mastercard!
Then again, the vast majority of businesses have discounts for volume purchases.