Policy Manual (v2.1 - 25/03/2014)

2. IPv4 Addresses

2.1. Scope

This chapter describes the Internet resource management system in the region of Latin America and the Caribbean. In particular, it describes the rules and guidelines that govern the allocation of the IPv4 address blocks assigned to Latin America and the Caribbean. In the case of IP addresses, the rules established in this chapter apply to all IPv4 address blocks allocated or assigned through LACNIC as well as to those previously allocated and assigned by ARIN.

This chapter does not describe private Internet address space or multicast address space. Neither does this chapter describe IPv6 address space management, a topic that is dealt with in the chapter titled "IPv6 Address Allocation and Assignment Policies." A distinction is made in this document between IP address allocation and assignment. IP addresses are allocated to NIRs and ISPs so that they may in turn assign them to their end users.

2.2. IPv4 Address Space and the Internet Registry System

2.2.1. Types of IPv4 Addresses

For the purpose of this chapter, IPv4 addresses are 32-bit binary numbers that are used as addresses in IPv4 protocols used in the Internet. There are three types of IPv4 addresses.

2.2.1.1. Public IPv4 Addresses

Public IPv4 addresses constitute the Internet address space. These addresses are globally unique and allocated in accordance with the objectives that will later be described herein. The main objective of this address space is to allow communication using IPv4 on the Internet.
A secondary objective is to allow communication between interconnected private networks.

2.2.1.2. Private IPv4 Addresses

Certain IPv4 address ranges have been reserved for the operation of private networks. Any organization may use these IPv4 addresses in their private networks without the need of requesting them from an Internet Registry. The main requirement established for the use of private IPv4 addresses is that the hosts that use these IPv4 addresses do not need to be reached through the Internet.
For a more detailed description of the private IPv4 address space, see RFC 1918.

2.2.1.3. Special and Reserved IPv4 Addresses

These are IPv4 address ranges reserved for applications such as multicasting. These IPv4 addresses are described in RFC 1112 and are beyond the scope of this chapter.

2.2.2. The Internet Registry System

The Internet registry system has been established with the aim of enforcing the objectives of exclusivity, preservation, routability and information. This system consists of hierarchically organized Internet registries (IRs). Typically, IPv4 address space is assigned to end users by ISPs or NIRs.

This IPv4 address space is previously assigned to NIRs and ISPs by Regional Internet Registries.

Under this system, end users are organizations that operate networks that use IPv4 address space. Just as LACNIC, NIRs maintain IPv4 address space for making assignments to end users or allocations to Internet Service Providers. Assigned IPv4 address space is used to operate networks, whereas allocated IPv4 address space is kept by Internet Registries for future assignment to end users.

2.3. IPv4 Address Allocation and Assignment Policies

2.3.1. Introduction

This chapter describes how an Internet Registry (for future reference, this concept encompasses Internet Service Providers and National Internet Registries) may obtain an IPv4 address allocation and how that allocated space must be administered.
IPv4 address space is allocated to Internet Registries (IR) using a slow-start model. Allocations are based on justifiable need, not only on the grounds of client prediction. Due to the fact that the number of IPv4 addresses is limited, many factors must be considered for the delegation of IPv4 address space. As previously mentioned, LACNIC's allocations to IRs are based on the slow-start procedure described in RFC 2050. The idea is to allocate IPv4 address space to Internet Registries in the same proportion as they will assign the IPv4 addresses to their users.
The size of an allocation to a particular IR is based on the rate with which it has previously assigned IPv4 address space to its clients. The aim is to avoid the existence of large blocks that are not assigned to end users. Due to technical restrictions and the possibility of overloading routing tables, certain policies must be implemented in order to ensure that the preservation and routability objectives are fulfilled.
This chapter mentions prefix sizes and block sizes. Standard notation implies that longer prefixes reference blocks of smaller size. For example, when it is said that a certain policy applies to a prefix longer than a /20, this means that a block smaller than 16 /24s is being discussed.

2.3.2. Aspects to Consider in Relation to IPv4 Address Administration

This section describes a number of aspects on which the relationships both between Internet Registries and their clients as well as between Internet Registries and LACNIC must be based.

2.3.2.1. IPv4 Addresses are Delegated

LACNIC shall allocate Internet resources according to a delegation plan. This resource allocation plan shall be valid for one year. This allocation is renewable, and shall be subject to the conditions established at the time of renewal.

2.3.2.2. Slow-Start Policy

IPv4 address blocks are allocated to IRs using a slow-start procedure. Internet Service Providers applying for portable (provider-independent) IPv4 address blocks for the first time shall receive a minimal amount based on immediate requirement, with the exceptions established in Section 2.3.3.3 ("Direct Allocations to Internet Service Providers".)

After this initial allocation, allocated blocks may be increased based on the verification of block utilization according to information provided to LACNIC. Thus, LACNIC shall be responsible for determining initial and subsequent allocations. Initial IPv4 address allocations shall enable IRs to operate for at least twelve months without requiring further allocations.

Initial allocations shall not be based on any current or future routing restrictions, but on actual and demonstrated use of IPv4 addresses.

Likewise, the number of IPv4 addresses projected by the applicant is useful for planning future requirements.

2.3.2.3. Allocated Blocks

In order to ensure an efficient implementation and use of classless technologies (CIDR), LACNIC shall allocate IPv4 address blocks based on the limits supported by this technology. In order to facilitate the efficient deployment of CIDR, Internet Service Providers (ISPs) and End Users are encouraged to initially request IP address space from their upstream providers. Upstream providers shall maintain control of the assigned blocks upon termination of their clients' contracts.

2.3.2.4. Avoid Block Fragmentation

Under the CIDR scheme, IP addresses are allocated to IRs in blocks. It is recommended that the publication of these blocks on the routing tables remain intact. More specifically, ISPs shall treat IP address assignments to their clients as a loan for the duration of the connectivity. Upon termination of the Internet connectivity contract, e.g., if a customer moves to another ISP, the client shall return the IPv4 addresses currently in use and renumber its systems using the new IPv4 addresses of the new provider. New requests for IP addresses shall be conditioned to the completion of this task. The IR shall allow sufficient time for the renumbering process to be completed before these IP addresses can be used again by another client.

2.3.2.5. Documentation

Internet Registries shall use the IPv4 addresses they have been allocated in an efficient manner. To this end, IRs shall document the justification for each IPv4 address assignment. At the request of LACNIC, the corresponding IR shall make this information available. LACNIC shall not make complementary allocations to those Internet Registries that have not properly documented the use of the blocks already allocated. In these cases, existing allocations may also be reviewed.

The documentation LACNIC may require includes:

  • Engineering plans.
  • Subnetting and aggregation plan.
  • Description of network topology.
  • Description of network routing plans.
  • Receipts documenting investments (equipment).
  • Other relevant documents.

2.3.2.6. Use of Classless Technology (CIDR)

Due to the requirement to increase the efficiency in the use of IPv4 address space, all allocations and/or assignments are made under the assumption that organizations use variable-length subnet masks (VLSMs) and classless technology (CIDR) within their networks.

The use of classful technologies is generally unacceptable due to the limited availability of free IPv4 address space.

2.3.2.7. Static Addressing

Due to restrictions on the availability of IPv4 addresses, LACNIC shall in no way endorse the use of static IPv4 address assignments for dial-up users (e.g., one address per customer). It is understood that the use of static addressing may simplify certain administrative aspects. However, the current rate of consumption of IPv4 addresses does not allow the assignment of static addresses for administrative reasons. Because of this, organizations that are considering the use of static IPv4 address assignment are encouraged to investigate and implement dynamic assignment technologies.

2.3.2.8. Webhosting

The development of the HTTP 1.1 protocol has eliminated the need of reserving an IP address for each web domain in case of multiple websites on the same server. LACNIC promotes the development of webpage hosting based on name usage, as opposed to IPv4 addresses.

Therefore, this latter case shall not be accepted as justification for IPv4 address utilization. LACNIC shall consider exceptions where applications require the use of web hosting based on IPv4 addresses, which must be duly described and justified.

2.3.2.9. Non-Guaranteed Routability

Portable (provider-independent) IPv4 addresses allocated by LACNIC or NIRs are not guaranteed to be globally routable.
These problems shall be solved between the holders of the IPv4 addresses involved and their connectivity provider or providers. In those cases deemed necessary, LACNIC shall provide the necessary guidance.

2.3.2.10. Validity of IPv4 Address Allocations

IPv4 address allocations are valid as long as the objectives of exclusivity, preservation, routability and information continue to be met. LACNIC may invalidate any IPv4 address allocation if it is determined that the requirements for IPv4 address space no longer exist or that any of the objectives stated in this document have ceased to be satisfied.

There are a number of practices that might be considered grounds for losing the allocations that have been received. These are:

  • Failure to use the allocated IPv4 address space during a period of one month following registration.
  • Failure to update the reverse resolution registry of the IPv4 address space.
  • Failure to update the allocation and assignment information on LACNIC's Whois database.
  • Failure to comply with contractual obligations towards LACNIC.
  • Failure to correctly apply LACNIC's policies in relation to allocations and assignments and the administration of the resources received from LACNIC.

In the event of IPv4 address space invalidation, reasonable effort shall be made by LACNIC to inform the community that the IPv4 addresses have been returned and are once again available IPv4 address blocks.

2.3.2.11. Submission of Application Templates

IRs shall request IPv4 address space from LACNIC through address application templates for IRs or End Users. Any application deemed as lacking information or insufficiently detailed shall be returned to the applicant for its completion.

2.3.2.12. Supervisión de asignaciones

  • 2.3.2.12.1. Supervision of Assignments

ISPs may assign to their clients blocks smaller than 16 /24s, i.e. prefixes longer than /20, in accordance with the policy defined by LACNIC in the present document. In some cases, the assignment shall be consulted with LACNIC or with the corresponding NIR in order to ensure optimization of the use of IP address space and the correct application of LACNIC policies.

LACNIC defines an allocation window as the assignment of blocks larger than or equal to 2 /24s, i.e. prefixes shorter than or equal to /23. These assignments shall be consulted with LACNIC or the corresponding NIR. Communication between the ISPs and LACNIC or the corresponding NIR shall include the same information and justifications required in this document for end users.

  • 2.3.2.12.2. Allocations to NIRs

NIRs are exempt from complying with Section 2.3.2.12.1. Instead, they shall be subject to more severe audit programs in accordance with the provisions of the contracts between LACNIC and the NIRs.

These audits shall be carried out at least once a year and, if necessary, with greater frequency.

2.3.2.13. Submission of Assignment Information

All IPv4 address block assignments of a /29 or larger block made by an ISP to customers connected to their network and users of services provided must be registered on LACNIC's WHOIS database no more than 7 days after the assignment.

he information available in the WHOIS database will also be used by LACNIC when analyzing additional IPv4 address block requests made by the ISP.

Assignment registration is also necessary for the following reasons:

  • To ensure that the IR has completed or is close to completing address space allocation such that the allocation of additional space is justified.
  • o inform the Internet community which organization is using the IPv4 address space, including the point of contact in case of operation problems, security issues, etc.
  • To assist in the study of IPv4 address allocation within the region.
  • 2.3.2.13.1 Required Information

Assignments registered on LACNIC's WHOIS database must include the following information regarding the assignee: organization name; address; administrative contact, technical contact, and contact in case of abuse, with their updated telephone numbers and email addresses.

  • 2.3.2.13.1.1Residential Customers

ISPs that provide services to residential customers may register on LACNIC's WHOIS database address blocks that are being used by equipment or customer service areas, by service.

Registered information must specify the service area, address of the ISP's main offices, its administrative contact, technical contact, and contact in case of abuse, including their updated telephone numbers and email addresses.

Assignments must be made in address blocks totalizing the number of customers served in the area or by the equipment.

  • 2.3.2.13.1.2 Residential Customer Privacy

Residential customers receiving /29 and larger IPv4 block assignments do not need to have their data registered on LACNIC's WHOIS database.

The ISP whose residential customer receives an IPv4 assignment of a /29 or larger block may choose to register the assignment on LACNIC's WHOIS database by entering its own data or a code used as internal reference. The administrative contact, technical contact, and contact in case of abuse must be those of the ISP.

2.3.2.14. Security and Confidentiality

LACNIC shall maintain systems and practices that oversee and protect the confidentiality of all information entrusted to LACNIC in the documentation submitted to justify the allocation or assignment of IPv4 addresses.

2.3.2.15. Equal Processing of All Applications

LACNIC shall process every application strictly in the order in which they are received, regardless of geographical factors, demographic factors, language, etc. Under no circumstance shall LACNIC grant special treatment or make exceptions to the norm established for application processing. For this purpose, LACNIC shall use an application numbering system that will allow their proper administration.

2.3.2.16. Micro-Assignments

LACNIC shall make micro-assignments of prefixes longer than the standard (smaller blocks) in the special cases listed in Section 2.3.3 - "Initial IPv4 Address Space Allocation Policies".

2.3.2.17. Mergers, Acquisitions or Sales of ISPs or End Users

LACNIC's policies do not recognize the non-authorized sale or transfer of IPv4 address space and therefore such transfers shall be considered invalid, with the exception of those subject to the provisions of section 2.3.2.18, such transfers shall be considered invalid.

Should an ISP or end user change ownership due to a merger, sale, or acquisition, the new entity shall register these changes with LACNIC. If the name of the company is modified, legal documentation validating this change of name shall be submitted.

The information that may be requested includes, but is not limited to, the following:

  1. A copy of the legal document validating the transfer of assets.
  2. A detailed inventory of all assets used by the applicant for maintaining the IPv4 address space in use.
  3. A list of the applicant's clients that use portions of the allocated space.

2.3.2.18. Transfer of IPv4 Blocks within the LACNIC Region

NOTE: This section will come into force when LACNIC or any of its NIRs becomes unable, for the first time, to cover an IPv4 block allocation or assignment because of lack of resources.

IPv4 block transfers shall be allowed between LIRs and/or End Users within the LACNIC region (hereinafter organizations) in accordance with the conditions set forth in this section.

  • 2.3.2.18.1.- The minimum block size that may be transferred is a /24.

2.3.2.18.2.- In order for an organization to qualify for receiving a transfer, it must first go through the process of justifying its IPv4 resource needs before LACNIC. That is to say, the organization must justify before LACNIC the initial/additional allocation/assignment, as applicable, according to the policies in force.

  • 2.3.2.18.3.- Upon receiving an IPv4 address block transfer request, LACNIC shall verify that the organization transferring the block is in fact the holder of said block according to LACNIC's records. The approved applicant and the organization transferring the resources must present before LACNIC a copy of the legal document supporting the transfer.
  • 2.3.2.18.4.- LACNIC shall maintain a publicly accessible transfer log of all IPv4 address block transfers registered before LACNIC. Said log shall specify the date on which each transaction took place, the organization from which the transfer originated, the receiving organization, and the block that was transferred.
  • 2.3.2.18.5.- The organization in which the transfer originated shall automatically be ineligible to receive IPv4 resource allocations and/or assignments from LACNIC for a period of one year as of the transaction date registered in the transfer log.
  • 2.3.2.18.6.- A block that has previously been transferred may not subsequently be transferred again for a period of one year as of the transaction date registered in the transfer log. The same applies to its sub-blocks, which are blocks that group a subset of the IPv4 addresses contained in the block.
  • 2.3.2.18.7.- Once the transfer is complete, LACNIC shall modify the information on the transferred resource in order to reflect the change of holder.
  • 2.3.2.18.8.- The receiving organization must comply with all LACNIC policies in force.
  • 2.3.2.18.9.- Blocks and their sub-blocks from allocations or assignments from LACNIC, being initial or additional, can not be transferred for a period of one year as of the allocation or assignment date.
  • 2.3.2.18.10.- Transferred legacy resources will no longer be considered as such.

2.3.2.19. Inclusion of origin ASN in the WHOIS database when available

When available, LACNIC shall include in its WHOIS database the origin ASN of all prefixes directly assigned by LACNIC.
Block holders may enter the origin ASN of their blocks through LACNIC's resource administration system. Providing this information shall be the members' responsibility.
When a block's origin ASN is not specified, the WHOIS response shall explicitly state this fact

2.3.3. Initial IPv4 Address Allocation and Assignment

LACNIC shall allocate IPv4 addresses to organizations covered by the following cases:

  • Allocations to Internet Service Providers.
  • Micro-assignments to Critical Infrastructure.
  • Direct allocations to Internet Service Providers.
  • End user Assignments.

This section contains a detailed description of the policies LACNIC shall apply for the initial allocation of portable (provider-independent) IPv4 addresses in each of the cases listed above.

Due to the fact that the number of IPv4 addresses available on the Internet is limited, many factors must be considered for determining IPv4 address space allocation. Therefore, IPv4 address space is allocated to ISPs based on a slow-start model. Allocations are based on current justifiable need, not on prediction of number of clients, market research, etc.

2.3.3.1. Initial Allocations to ISPs

The minimum initial allocation size applicable to Internet Service Providers established within LACNIC's service region is a /22.

  • 2.3.3.1.1. Requirements for a /22 prefix (block of 4/24s)

In order to qualify for the allocation of a /22 prefix, the requesting ISP must satisfy the following requirements:

  1. Prove utilization or immediate necessity of a /24.
  2. Submit a detailed one-year utilization plan for a /23.
  3. Agree to renumber out of the previously assigned block and return those IPv4 addresses to their ISPs no later than 12 months after the allocation of the /22. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.
  4. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.
  • 2.3.3.1.2. Requirements for a /21 or shorter prefix (block of 8/24s or more)

Should the requesting ISP require an initial IPv4 address allocation of a /21 prefix or larger space, the following requirements must be satisfied:

  1. Provide information on assignments with prefixes equal to or shorter than /29 (more than 8 IPv4 addresses) on LACNIC's WHOIS database.
  2. Provide documentation that justifies the initial address space allocation (Completion of the IPv4 address application template for ISPs). This must include detailed information showing how this resource will be used within a period of three, six and twelve months.
  3. Agree to renumber out of the blocks obtained from their providers within a period no longer than 12 months and return the space to its original provider.
  4. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.

In addition, depending of the multihomed or non-multihomed status of the applying ISP, the following requirements shall be considered:

If the applicant is a multihomed ISP, is planning to become one, or has interconnection needs:

Efficient utilization of at least 25% of the requested address space (contiguous or not). If the applicant is multihomed, specify the names and autonomous system numbers of its providers. If the applicant is planning to become multihomed or needs to interconnect with other autonomous systems, describe in detail the corresponding plan and timeline (presenting signed contracts or letters of intent is recommended).

Si el solicitante es un ISP no multiproveedor:

Efficient utilization of at least a 50% of the requested address space (contiguous or not).

2.3.3.2. Micro-Assignments to Critical Infrastructure

Micro-assignment is the name given to those assignments that involve prefixes longer than /20 but shorter than or equal to /24.
LACNIC may grant this type of assignment in case of projects and network infrastructure that are key or critical for the region, such as IXPs (Internet Exchange Points), NAPs (Network Access Points), RIRs, ccTLDs, among others.

In the case of IXPs or NAPs, in order to be eligible for this type of assignment, the organization must meet the following requirements:

Duly document the following aspects:

  1. Prove by means of their bylaws their IXP or NAP capacity. The organization shall have at least three members and an open policy for the association of new members.
  2. Submit a diagram of the organization's network structure.
  3. Document the numbering plan to be implemented.
  4. Provide a utilization plan for the following three and six months. The rest of the applications shall be studied based on the analysis of the documentation justifying the critical and/or key aspects of the project. Organizations receiving micro-assignments shall not sub-assign these IPv4 addresses.
  5. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.

The rest of the applications shall be studied based on the analysis of the documentation justifying the critical and/or key aspects of the project.

Organizations receiving micro-assignments shall not sub-assign these IPv4 addresses.

2.3.3.3. Direct Allocations to Internet Service Providers

LACNIC acknowledges that there may exist circumstances under which there is justifiable need for an initial allocation of a /20 or smaller prefix.

LACNIC may grant this type of allocation to those organizations that meet the following requirements:

  1. The organization is multi-homed or an Internet Service Provider and demonstrates the possibility of interconnecting with other providers or network access points (NAP/IXP).
  2. Submit a detailed description of their network topology.
  3. Submit a portfolio with a detailed description of the services the organization will offer.
  4. Submit a detailed plan of the deployment of address space utilization for three, six, and twelve months.
  5. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.

For these allocations LACNIC may, at any time, request additional information to help justify a minimal allocation.

2.3.3.4. Assignments to End Users

LACNIC shall assign IPv4 address blocks to end users requiring IPv4 address space for internal use, for the operation of their networks, but not for sub-delegation outside their organization.

Typically, end users receive IPv4 address space from their upstream providers, not directly from LACNIC. Portable (provider-independent) IPv4 addresses obtained directly from LACNIC or other Regional Registries are not guaranteed to be globally routable.

For this reason, end users should contact their Internet Service Providers to ensure their connectivity within the network.

End users not connected to an ISP and/or not planning to be connected to the Internet are advised to use private IPv4 addresses. The description of these IP addresses may be found in RFC 1918.

  • 2.3.3.4.1. Required Information

LACNIC shall request the following information from all end users requesting IPv4 address blocks:

  1. Provide detailed information showing how the requested block will be used within the following three, six and twelve months.
  2. Submit subnetting plans for a period not shorter than one year, including subnet masks and host numbers on each subnet. Use of VLSM is required.
  3. Submit a detailed description of the network topology.
  4. Prepare a detailed description of the network routing plans, including the routing protocols to be used as well as any existing limitations.
  5. If the applicant does not already have an IPv6 block assigned by LACNIC, simultaneously request an IPv6 block in accordance with the corresponding applicable policy.
  • 2.3.3.4.2. Utilization Rate

Utilization rate is a key factor that must be justified in order to dimension the size of the assignment. Utilization rate is the percentage of IPv4 addresses that the organization will use within a specified period of time. The rate adopted by LACNIC is:

25% immediate utilization rate of the requested block.
50% utilization rate of the requested block within one year.

A higher utilization rate may be required based on individual requirements. Should the organization presenting the application fail to comply with these parameters, addresses may be withdrawn and a reasonable period negotiated for their renumbering.

  • 2.3.3.4.3. Applicant Status

In addition, the applicant's multihomed or non-multihomed status also affects the evaluation of the application.

If the applicant is a multi-homed end user or can prove interconnection needs with other autonomous systems:

The size of the minimum IPv4 address allocation to a multihomed end user is a /24, while the maximum is a /21. In order to qualify for a block, the applicant must also satisfy the following requirements:

  1. If the user is not yet multi-homed but is planning to become multi-homed within a sixmonth window, or if the user is planning to establish interconnections with other autonomous systems during this window, a detailed justification must be presented.
  2. Justify the requested block size according to the utilization rate (section 2.3.3.4.2).
  3. Agree to renumber all blocks assigned by other ISPs within three months and return them to their original ISPs.

Requests for blocks larger than a /21 must also comply with the additional requirements established for non-multihomed end-users as described below

If the applicant is a non-multihomed end user:

The minimum size of IPv4 assignments to a non-multihomed end-user is a /20 block. If their addressing needs are lower than a /20, end users will need to contact their ISPs in order to obtain addresses.

In order to assign a /20 to an end user, the following requirements must also be met:

  1. Have received a minimum assignment of 8 /24 prefixes from its Internet Service Provider.
  2. Agree to renumber out of the previously assigned space within a period of 12 months and return it to its original provider. This requirement is mandatory for obtaining the requested /20 prefix. The assigned /20 prefix must be used to renumber out of the addressing previously assigned by its provider.

Additional assignments shall follow the policies set forth in Section 2.3.4 applicable to end users.

2.3.4. Policies for the Distribution of Additional IPv4 Address Space

This policy is presented with the aim of assisting Internet Registries in the process of applying for additional IPv4 address space. The most important factor in the evaluation of additional IPv4 address space applications is the revision of the current IPv4 address space of the organization presenting an application.

In order to receive additional space, the organization presenting an application must have used at least 80% of the IPv4 address space previously assigned by the corresponding RIR or NIR. This includes the space assigned to its clients. Therefore, it is important that IRs demand that their clients follow the efficient utilization practices described in these policies.

The steps that must be completed for the allocation of new IPv4 address blocks are the following:

  1. The first step of the process is to verify the utilization of at least 80% of previous allocations. This utilization percentage shall be based solely on announced networks with IPv4 addresses connected to the Internet. For IRs that have assigned IPv4 addresses to their clients, the method available to prove this utilization is through the records kept in LACNIC's WHOIS database. Consideration of the application shall not continue until utilization of at least 80% of the previously allocated block is verified. Use of 80% of previously allocated IP addresses also covers those addresses dedicated to internal use and dial-up clients of the company. In this latter case, utilization may be justified through the report included in Appendix 3  [Additional Report for IPv4 Address Space Allocation].Organization making static assignments, may justify utilization through the report included in Appendix 4 [IPv4 Resources Distribution Report].
    The application process for additional space shall continue once the utilization of at least 80% of the previously assigned space has been verified.
  2. Organizations shall prove they are using LACNIC policies in assigning space to their clients, particularly in relation to:
    • Issuing prefixes longer than /24, wherever possible.
    • Verifying that the assignment of blocks within the allocation window were previously submitted to LACNIC for approval.
  3. Organizations shall demand that their clients adhere to the following criteria:
    • The information on assignments smaller than a /29 must be available through WHOIS and they must comply with the 80% space utilization requirement before assigning additional space to their clients.
    • LACNIC policies for the Internet community in general are communicated to and followed by their clients.
  4. When reviewing applications for additional IPv4 addresses, LACNIC shall also review whether the space designated for its return was actually returned in due time as described in this document.
  5. Maintain the reverse resolution registry of the administered IPv4 address space up-to-date. The reverse resolution registry shall also comply with 80% utilization.
  6. For the allocation of additional blocks, LACNIC shall verify that the organization presenting the application is in compliance with its contractual obligations.
  7. The applicant must already have at least one IPv6 block assigned by LACNIC or, if not, must simultaneously request an initial IPv6 block in accordance with the corresponding applicable policy. If an applicant has already been assigned an IPv6 block, they shall submit to LACNIC a brief document describing their progress in the implementation of IPv6.
  8. The final step is to determine the appropriate allocation. In order to determine the size of the allocation, detailed information must be provided showing how the IPv4 address space will be used within the following three, six and twelve-month periods. The policy for determining the size of additional allocations is based on the efficient utilization of space within a time frame of 12 months.