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INTERNET ADDRESS SPACE: ECONOMIC CONSIDERATIONS IN THE MANAGEMENT OF IPv4 AND IN THE DEPLOYMENT OF IPv6

One of the major challenges for all stakeholders in thinking about the future of the Internet is its ability to scale to connect billions of people and devices. The objective of this report is to raise awareness among policy makers of capacity and limitations of the Internet Protocol version 4 (IPv4), to provide information on the status of readiness and deployment of the Internet Protocol version 6 (IPv6) and to demonstrate the need for all stakeholders, including governments, to play a part in IPv6 deployment. The Internet has rapidly grown to become a fundamental infrastructure for economic and social activity around the world. The Internet Protocol. | r r ORGANISATION FOR ECONOMIC XX c V lx CO-OPERATION AND DEVELOPMENT Directorate for Science Technology and Industry Committee for Information Computer and Communications Policy internet Address Space Economic Considerations in the Management of IPv4 and in the Deployment of IPv6 Ministerial Background Report DSTI ICCP 2007 20 FINAL OECD Ministerial Meeting on the Future of the Internet Economy Seoul Korea 17-18 June 2008 Hosted by KOREA COMMUNICATIONS COMMISSION DSTI ICCP 2007 20 FINAL FOREWORD The report provides an analysis of economic considerations associated with the transition from IPv4 to IPv6. It provides background analysis supporting the forthcoming ICCP-organised Ministerial-level meeting on The Future of the Internet Economy to take place in Seoul Korea on 17-18 June 2008. This report was prepared by Ms. Karine Perset of the OECD s Directorate for Science Technology and Industry. It was declassified by the ICCP Committee at its 54th Session on 5-7 March 2008. It is published under the responsibility of the Secretary-General of the OECD. This paper has greatly benefited from the expert input of Geoff Huston from APNIC David Conrad from the IANA Patrick Grossetête from CISCO Systems Bill Woodcock from Packet Clearing House Marcelo Bagnulo Braun from the University of Madrid Alain Durand from Comcast and Vincent Bataille from Mulot Déclic although interpretations unless otherwise stated are those of the author. 2 DSTI ICCP 2007 20 FINAL TABLE OF CONTENTS FOREWORD.2 MAIN POINTS.4 INTRODUCTION.7 I. AN OVERVIEW OF INTERNET ADDRESSING.12 Overview of major initiatives in Internet addressing and routing to-date.13 IPv4 address depletion forecasts.16 IPv6 characteristics.17 Current status of IPv6 deployment.18 II. MANAGING THE IPV4 DEPLETION.22 III. DRIVERS AND CHALLENGES OF IPV6 DEPLOYMENT.30 DRIVERS .30 Scalability and demand for IP addresses.30 Public procurement mandates.31 Innovative applications including sensor networks and embedded systems.31 Less .