Rethinking IP strategy in an IPv4-constrained telecom landscape

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Across the Asia-Pacific region, telecom operators are feeling the strain as data consumption keeps climbing and subscriber numbers grow. With global IPv4 exhaustion now a long-standing issue, many networks still depend heavily on carrier-grade NAT (CGNAT) to stretch their existing resources. CGNAT has bought operators time, but its drawbacks are becoming harder to overlook.

Why CGNAT still matters but isn’t enough 

CGNAT lets thousands of customers share a single IPv4 address, allowing operators to postpone a full IPv6 transition. It’s still an effective option for supporting low-bandwidth users across mobile and home broadband services.

But the trade-offs are significant. NAT processing introduces latency and can throttle throughput as systems come under heavier loads. Compatibility issues also arise frequently, particularly with VoIP, gaming, VPN tools, and connected home devices that rely on direct, predictable IP behavior. Compliance adds another layer of complexity, as operators must maintain highly granular logs, including ports and timestamps, to satisfy regulations in countries such as India and Singapore.

In some countries, these retention requirements have dramatically increased operational costs. Storing months or years of port-level logs for large subscriber bases can amount to terabytes of daily data. Responding to legal requests and fraud investigations eats into the savings CGNAT once offered.

Leasing IPv4 as a strategic alternative 

“Rather than depending entirely on CGNAT or tying up capital in IPv4 purchases, more telecoms are turning to leasing as a flexible, scalable option. Leasing gives operators access to clean, reputation-safe IPv4 space whenever they need it, restoring direct connectivity for customers and services that require it,” says Ramutė Varnelytė, CEO of IPXO.

IPXO, a global IPv4 leasing and management platform, helps ISPs source address space from multiple regional internet registries (RIRs). Built-in features such as RPKI support, geolocation updates, and reputation monitoring simplify address administration, speed up deployments, and help operators stay aligned with compliance standards.

Case example: Leasing in action 

APNIC’s 2024 report shows that as IPv4 scarcity intensifies across the Asia-Pacific region, organizations are taking a mix-and-match approach. Many are deploying NAT (45%) or rolling out IPv6 (40%), while others are optimizing their existing IPv4 use (42%). About 15% have already purchased or leased addresses, with East Asia leading in adoption at 27%.

One Southeast Asian ISP, serving over a million subscribers, experienced mounting complaints tied to CGNAT, including higher latency and broken P2P applications. Instead of expanding its NAT footprint or buying expensive address blocks, the provider leased 50,000 IPv4 addresses through a centralized marketplace.

The new addresses were assigned to business customers, remote workers, and heavy-usage residential users. Integration was straightforward, and within six months, the ISP saw a 35% drop in CGNAT-related support tickets, network performance improved, and new premium public IP plans were launched successfully.

A balanced hybrid model 

CGNAT still works well for everyday browsing, messaging, and light video use. However, services that rely on consistent, low-latency connectivity – from gaming to enterprise applications – often suffer under shared IP conditions.

A hybrid architecture enables operators to keep CGNAT in place for general traffic while utilizing leased IPv4 blocks for high-value or high-demand segments, such as B2B clients, content creators, and power users. This approach supports sustainable scaling without compromising performance or visibility.

Efficiency without ownership burden 

Leasing also brings financial and operational flexibility. Instead of committing capital to permanent IPv4 assets, operators can scale address space up or down based on demand. Modern leasing platforms cover key operational needs – including RPKI, reverse DNS setup, and reputation checks – from the start.

Leased blocks can also be used as BYOIP resources in cloud environments like AWS, Google Cloud, and Azure. This enables consistent IP identity across hybrid networks, reducing deployment friction for cloud-native services.

For operators planning 5G rollouts or edge expansion, on-demand access to clean IPv4 becomes essential. Many low-latency and IoT workloads still depend on IPv4, and reputation-clean addresses help ensure service reliability. Leasing offers the flexibility to modernize infrastructure without waiting for IPv6 adoption to catch up.

Time to rethink IP strategy 

Operators across Asia are juggling rising network demand, CGNAT fatigue, and slow IPv6 migration. IPv4 leasing is emerging as a practical way to access compliant, ready-to-use address space that supports new services and eases network pressure.IPXO is leading this shift by combining IP leasing with built-in management tools, including reputation oversight, compliance checks, and geolocation updates. For many telecoms, leasing is becoming more than a temporary workaround – it’s evolving into a core component of a broader, more flexible IP strategy.