Two economic perspectives on the IPv6 transition

Abstract

Purpose

IPv6 is the replacement for the internet's incumbent protocol, IPv4. IPv6 adoption is required to allow the internet to continue to grow; however, there has been almost no uptake since its standardization in the late 1990s. This paper seeks to explain how this non‐adoption may be a consequence of current policies paradoxically intended to promote IPv6.

Design/methodology/approach

Economic theories of exhaustible resources and permit markets are used to provide an explanation for the lack of adoption of IPv6.

Findings

The current policy approach will not yield a significant adoption of IPv6 until after the IPv4 address space is exhausted and may also constrain internet growth after IPv4 exhaustion occurs.

Practical implications

Current policies intended to promote IPv6 diffusion through the internet must be reconsidered. The economics of permit markets in particular can inform discussions about IPv4 address transfer markets.

Originality/value

Economic analyses of IPv6 adoption are almost non‐existent and very few prior studies are known. This paper helps to rectify this important gap in the literature.

Citation

Dell, P. (2010), "Two economic perspectives on the IPv6 transition", info, Vol. 12 No. 4, pp. 3-14. https://doi.org/10.1108/14636691011057046