Insights from Lu Heng, CEO of LARUS Ltd
At Capacity Europe 2024 in London, Lu Heng, CEO of LARUS Ltd, delivered a compelling message that could reshape the future of the telecom and cloud industries. In his presentation, Heng made a claim: IPv4 addresses are significantly undervalued and have the potential to surge in value—by as much as 300 times—if companies begin to prioritize their management.
IPv4 Addresses: The Undervalued Digital Asset
IPv4 addresses serve as essential building blocks for the Internet, functioning as service enablers for Internet Service Providers (ISPs) and cloud providers. Despite their importance, Heng argued that these digital assets are “massively undervalued” when compared to other service enablers, like commercial real estate. He estimated that with proper executive oversight, the collective value of IPv4 addresses could skyrocket to a staggering $60 trillion.
“The executives of the company, the board, never even heard about what a Regional Internet Registry is,” Heng stated, underscoring the disconnect between technical staff who manage IP resources and top-level executives who overlook their financial potential.
The Role of Executive Involvement in IPv4 Valuation
According to Heng, a key reason for the current undervaluation of IPv4 addresses is the lack of executive involvement. Decisions about these assets are typically left to technical teams, while company boards remain unaware of the market potential. Heng believes that if telecom and cloud executives actively engaged in IP management, it could unlock trillions of dollars in unrealized wealth.
Regional Internet Registries (RIRs) and Their Impact on IP Ownership
Heng also took aim at the policies of Regional Internet Registries (RIRs), the organizations responsible for managing IPv4 allocation. He argued that these policies limit the true ownership of IPv4 addresses, making it difficult for companies to treat them as fully liquid assets.
By reforming these policies, Heng claimed that IPv4 addresses could be traded more freely, leading to a massive increase in their value. He illustrated this with the example of tier-one telecom companies like Cogent, where IPv4 holdings already represent a significant portion of market value. Even a modest appreciation in IPv4 prices, he suggested, could result in values exceeding the entire market cap of some telecom firms.
Unlocking the Trillions Hidden in IPv4 Addresses
Lu Heng’s vision calls for a major reevaluation of IPv4 addresses as a critical asset in the digital economy. If telecom and cloud companies shift their focus toward managing IP resources more strategically, they could unlock unprecedented financial gains.
In conclusion, Heng urged executives to take control of their IPv4 resources, get involved in the decision-making process, and recognize the hidden value that these digital assets hold. As the market for IP addresses continues to evolve, those who take proactive steps now could find themselves at the forefront of a financial revolution in the telecom and cloud sectors.
Why IPv4 Address Management Matters More Than Ever
With the increasing demand for internet connectivity, the scarcity of IPv4 addresses is becoming more apparent. Companies that own and manage significant IP resources are sitting on potential goldmines, but many are unaware of the financial opportunities. By reforming policies and increasing executive oversight, the market could witness a massive reevaluation of IPv4 addresses, driving new wealth creation for those who act now.
For more insights on IPv4 address management and how your company can capitalize on this undervalued asset, stay tuned to the latest industry updates at Larus
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