Unlocking Hidden Value: How Telecentras Leased 90% of Its Unused IP Resources
Industry: INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS
The COVID-19 pandemic has spurred digitalization across industries, resulting in a greater dependence on digital technologies. This trend has led to an increase in demand for IPv4 addresses, causing prices to skyrocket to around $50 per IP address.
Despite the base consisting of 4.3 billion addresses, it was depleted by 2011 when the Internet Assigned Numbers Authority (IANA) announced its exhaustion. Unfortunately, approximately one-third of the IP addresses, or 1.3 billion, remain underutilized within certain companies while others are in high demand.
The surge in demand has made it more challenging for businesses to acquire the necessary number of IP address blocks to support their growth, leading to significant capital expenditure. As a result, IP address leasing has emerged as an attractive solution to address the global IPv4 shortage crisis.
Leasing IPv4 addresses is a cost-effective and sustainable solution for businesses looking to expand, while also allowing lessors to generate effortless revenue as the value of these addresses continues to rise. Consequently, the popularity of IP leasing has grown substantially, raising the question of which providers are best suited for leasing these resources.
The significance of IPv4 lease provider
In 2020, Telecentras (Lithuanian Radio and Television Centre) sold its subsidiary business Mezon and was left with many unused IPv4 addresses. Telecentras needed to find a convenient way to transfer these IPs while ensuring the highest value and easy administration. After conducting a search, they determined that they needed a trustworthy, transparent, and automated lease provider.
That’s why we decided to work not directly with end customers but through an intermediary platform. And to manage the periodically changing information about the leased IP addresses, we decided to use IP management service.
As a company that provides data storage and ITT services, Telecentras understood that these unused IP addresses might be needed in the future, perhaps in five years or so. Therefore, the company decided to lease its IP space for the time being.
After evaluating several options, they chose IPXO because of the professional response to the request and a detailed clarification of the principles of working through the monetization and lease platform.
IP address migration process
The process of IP address migration began with meetings between the teams of IPXO and Telecentras. It was important to clarify the company’s requirements and present programs designed to integrate with Telecentras systems.
“We wanted the processes to go smoothly, so we constantly exchanged knowledge and experience. When necessary, IPXO held repeat meetings to resolve issues that arose,” says Kaminskas.
Telecentras team was receptive to various suggestions, that allowed to easily overcome technical and commercial challenges that arose during the project.
Once all the parts of the system were created, both teams participated in the transfer of IP addresses. This was an important step: once the data was transferred to Telecentras, the company switched to the new systems. To ensure smooth operation, IPXO also installed monitoring functions and notified if there were any disruptions.
IP reputation upkeep
IPv4 addresses are valuable assets that require careful management, and one crucial aspect of the latter is IP reputation or “cleanliness.” As a result, IPXO takes responsibility for monitoring who uses its platform and ensures that only clients who have passed strict Know Your Client (KYC) verification can access the resources.
To maintain a good IP reputation, IPXO regularly checks blacklists and swiftly responds to any incidents of abuse by blocking them. This is important because IP addresses can be misused for various malicious activities, such as spamming, malware distribution, or phishing scams. By proactively preventing such activities, IPXO ensures that its IP resources are used only for legitimate purposes and contributes to maintaining the overall trust and reliability of the Internet.
In the case of Telecentras, IPXO played a crucial role in cleaning their IP resources and making sure that they were impeccable before leasing them to other companies. The Communications Director of Telecentras noted that all they had to do was upload the already “cleaned” IP addresses to the IPXO platform, where they could easily monitor their status.
The entire process of leasing out the unused IPv4 resources took a couple of months. It involved organizing meetings, approving the architecture, installing and testing the platform, and finally transferring the IP addresses. The outcome was remarkable, with more than 90% of unused Telecentras IP resources leased, and a fixed commitment.
“Although IP address rental is only a side activity that does not affect the company’s operations, additional income from leasing out our unused IPv4 resources was well worth the effort,” believes Kaminskas.
Top benefits for Telecentras
- Automated and easy-to-use platform
- Flexible IP lease conditions
- Professional communication
- Reduced workload for IT administrators
- Automated IP management
- Smooth IP migration process
- IP reputation upkeep
- Monetized resources
- Trustworthiness and transparency
JSC Lithuanian Radio and Television Centre (Telecentras) is a state-owned joint-stock company that provides radio and television program transmission, TV broadcast transmission, data transmission, and data center services throughout Lithuania. Telecentras delivers high-quality services thanks to skilled specialists, advanced ITT technologies, and a customer-focused approach.