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Dynamic IP vs Static IP rates
Why/How are dynamic IPs cheaper than static IPs?
Tried googling about this but all I got are definitions of what dynamic/static IPs are but economically, why though?
For residential connections, wouldn't it be cheaper to just allocate an address and be done with (until the user cancels their subscription or something) rather than dealing with the whole IP pools & recycling addresses?
Comments
Dynamic IPs allows for not allocating an IP when network isn't in use. Hence, there isn't a need for one IP per actual client.
That's my guess. Not based on any knowledge.
The reason why dynamic IPs are also cheaper is because if the amount of users decreases, you can easily move people off subnets to resell or reallocate them where users are growing. Most broadband ISPs operate this way.
With static IPs you can't easily consolidate subnets if users decreases, hence more wasted IPs.
I doubt that a majority of internet subscribers would just unsubscribe at random times tbh. I think this whole rotating IPs shenanigan has more to do with selling static IPs at a premium rate rather than because of easier reallocation or migration.
While that may be true, there is still a case for residential ISPs.
Say many people moved from California to Texas, Spectrum or AT&T could reallocate IP addresses to Texas, or vice versa. If all the CA IPv4 was static, they'd need to buy a lot more IPv4 in order to keep up with demand until they hit a wall.
Or if CenturyLink lost a lot of broadband customers due to never-got-fiber, they could sell huge swaths of IPv4 to AWS instead of having to keep a few rural dwellers happy.
For v6, we can easily do 100% static for home broadband and cloud hosting, but mobility needs dynamic IPv6 mainly since you could connect to any cell tower with a different IP range, especially if you travel far (e.g. road trip across the US).