1. IPv4 space advances from brokers – what you need to know
Ernest Byaruhanga
AFRINIC

2. Why the advances?
IPv4 space ”run out” years ago (IANA/PTI has no more /8s to dole out to the RIRs)
ARIN inventory is empty.
APNIC and LACNIC inventory is near empty.
RIPE and AFRINIC projected runout is soon (or not, depending on who you ask).

3. Available IPv4 /8s at Each RIR
Source:

4. So?
AFRINIC is in “exhaustion” phase – where there are restrictions (through the PDP) on maximum v4 space an entity can acquire. (each RIR has different restrictions).
AFRINIC is using the “Soft Landing” policy to distribute v4 space. We are now in Exhaustion Phase 1, where max = /13
ARIN, RIPE NCC and APNIC introduced a process through which IPv4 space can be transferred between themselves (Inter RIR transfers), through their respective PDPs.

5. Consumption rates

6. Projected Run-Out Dates
Source:

7. So?
During this exhaustion phase 1, you can acquire up to a /13 if need has been demonstrated.
When our inventory hits /11, (or 0.13 of a /8) we enter Exhaustion Phase 2, where the maximum will be /22. (We are currently at ~ of a /8)
Average allocation rate over the last 5 years is about 11 million IP addresses per year. (Or 0.7 of a /8).
It is therefore possible that we may enter phase 2 very soon, where the maximum issuable will be /22.

8. The advances
We have no evidence of this, but it may happen that some entities could request large amounts of space (from AFRINIC) with seemingly genuine needs, then later advance them to other companies for rent or sale.
Some of these entities may be advancing space from outside AFRINIC to entities within Africa (but it’s rare, as such space is highly sought after in the transfer markets outside Africa)

9. Our thoughts
If you need IPv4 space, AFRINIC can still give you up to a /13 if you can demonstrate that you need it!
If your requirements are more than a /13, and/or you have failed to demonstrate your needs to us, and must get v4 space from elsewhere, there a couple of options.

10. Intra-AFRINIC transfers
CPM 5.7 allows for IPv4 address transfers between AFRINIC members.
stipulates that the transfer recipient must demonstrate to AFRINIC the need for the IP addresses to be transferred to that recipient.
A transfer must be initiated by the rightful holder of the space. Legacy resource holders too can transfer their space (it ceases to be legacy thereafter)
After a successful transfer, the transferrer cannot request any space within 12 months thereafter.
We are not interested in money discussions between the parties 

11. Renting or Leasing
Legacy Resource holders are not bound by RSA or policies, and may rent space to other entities, within or outside the continent.
Regular members that acquired space bound by RSA and policies are not allowed to rent out space to other entities. This breaches the RSA and policies as follows:

12. Where’s the renting breach?
RSA: Article 4 c (i) :
The Applicant hereby irrevocably
Commits itself to using the services solely for the purpose for which it was requested.
Commits itself to using the services in full and unreserved compliance with AFRINIC’s policies and mandate.
CPM: art
Assignments remain valid as long as the original criteria on which the assignment was based are still in place and the assignment is registered in the AFRINIC database. An assignment is therefore invalid if it is not registered in the database and if the purpose for which it was registered has changed or no longer holds.

13. Concluding If approached by an entity with an offer of IPv4 space:
Know that you can still get space from AFRINIC
If you must engage that party, establish if it’s a transfer offer or a lease/rent offer.
In case of a transfer, the address space holder must be an AFRINIC member or AFRINIC legacy resource holder. Contact for more guidance.

14. In case of a lease/rent offer:
Most of the time, it will be spam from brokers broadcasting to the whole world. Ignore. If interested though:
The space to be leased must not be under regular RSA, as most likely it does not qualify to be leased, else the lessor breaches the RSA and policies.
If the space is from a legacy resource holder, most likely the lease can go on.
If the space is from out of region and you have concerns, contact the RIR that issued that space for further guidance. The usual address is
We still have not run out of IPv4 space, so not run to brokers just yet 

15. QUESTIONS