[rpd] Some thoughts, and some actions required

[Andrew Alston]

> I see this working for bigger players with $$$ and not startups who ought to manage operational cost during inception... have you considered [1]

Yes, I’ve considered it, and found the argument wanting.

IP Addresses in a secondary market become a cost of doing business.  You cannot run a network without CAPEX and without OPEX, and if you are a business that is sustainable, you recover both of those from your customers albeit over different periods of time.  Hardware you depreciate which gives you a longer period to pay it off, OPEX you take a hit on and eat the cost when you incur it, but if you wanna be sustainable, eventually you cover your costs off what you charge your customers.

IP Addresses in the secondary market and in a commercial sense are no different (other than the fact that I wouldn’t recommend holding an asset value on the books for IP addresses, unless you’re applying a fairly short depreciation period), but if you’re leasing them to supply them to the customers, its nothing more than another OPEX expense, if you’re buying them, then you could treat it as OPEX as you would a software license, or you could depreciate it over 24 or 36 months potentially, but either way, you get the money back.

Hence, the argument falls flat

Andrew

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