LIR vs PI: Which is Right for You?

One of the most important decisions organizations face when planning their IP address strategy is choosing between becoming a Local Internet Registry (LIR) or obtaining Provider Independent (PI) resources. Both approaches provide portable, provider-independent IP addresses, but they differ significantly in cost, flexibility, and suitability for different use cases.

This comprehensive guide will help you understand the key differences and determine which option is right for your organization.

Understanding the Two Options

What is LIR Membership?

A Local Internet Registry (LIR) is an organization that has a direct membership relationship with a Regional Internet Registry (RIR), such as RIPE NCC. LIRs receive allocations of IP address space that they can use for their own infrastructure or assign to customers.

Key characteristics:

• Direct membership with the RIR
• Receive allocations (larger blocks intended for further assignment)
• Can sub-allocate or assign to customers
• Pay annual membership fees to the RIR
• Full autonomy over resource management

What are PI Resources?

Provider Independent (PI) resources are IP address blocks assigned directly to end users by the RIR, but managed through a sponsoring LIR. Organizations receive specific address blocks for their own use without becoming full LIR members.

Key characteristics:

• Specific assignments (for organization's own use)
• Require a sponsoring LIR to facilitate
• Cannot be sub-allocated or assigned to others
• Pay annual fees to the sponsoring LIR
• Provider-independent but not fully autonomous

Detailed Comparison

1. Financial Considerations

LIR Membership Costs (2025)

Initial costs:

• Sign-up fee: €1,000 (one-time)
• Annual membership: €1,800 (pro-rated first year)
• First year total: ~€2,800

Ongoing annual costs:

• Annual membership: €1,800
• ASN assignment fees: €50 per ASN
• PI sponsorship fees: €75 per sponsored resource
• Base annual cost: €1,800+

What you receive:

• IPv4 /24 (256 addresses) from final /8 pool
• IPv6 allocation (typically /32 or larger)
• Right to request ASNs
• Ability to sponsor PI resources for others
• All membership benefits (training, meetings, support)

PI Resource Costs

Initial costs:

• Application fee through sponsoring LIR: €300-800 (varies by provider)
• RIPE NCC evaluation fee: Included in sponsoring LIR fee
• First year total: ~€500-1,300

Ongoing annual costs:

• Sponsoring LIR service fee: €200-500/year (varies by provider)
• RIPE NCC independent resource fee: €75/year (via sponsor)
• Annual cost: €275-575

What you receive:

• Specific IPv4 or IPv6 assignment (size based on justified need)
• Provider independence for those addresses
• Registration in RIPE Database
• Right to request ASN (with additional justification and fees)

Cost Comparison Over Time

Time Period	LIR Total Cost	PI Total Cost	LIR Premium
Year 1	€2,800	€800 (avg)	€2,000
Year 2	€4,600	€1,200	€3,400
Year 3	€6,400	€1,600	€4,800
Year 5	€10,000	€2,400	€7,600
Year 10	€19,000	€4,400	€14,600

Key insight: LIR membership costs significantly more, but provides greater value if you need multiple resources or serve customers.

2. Resource Allocation Differences

LIR Allocations

IPv4:

• Standard allocation: /24 (256 addresses) from final /8 pool
• Additional allocations: No longer available due to IPv4 exhaustion
• Sub-allocation rights: Can assign to customers or infrastructure
• Transfer restrictions: Cannot transfer within 2 years of allocation

IPv6:

• Initial allocation: /32 (standard) to /29 (for larger networks)
• Additional space: Available based on justified need
• Virtually unlimited: IPv6 abundance means LIRs can get substantial space
• Sub-allocation rights: Full flexibility to assign to customers

ASNs:

• Can request multiple ASNs with justification
• €50 annual fee per ASN (2025)
• Full control over BGP routing policies

PI Assignments

IPv4:

• RIPE stopped issuing new IPv4 PI assignments in September 2012
• Must acquire existing PI space through:
  • Transfers from other PI holders
  • Sponsoring LIR's available resources
  • Secondary market purchases
• Typical sizes: /24 or larger based on justified need
• Cannot subdivide or assign to others

IPv6:

• Standard assignment: /48 (for most end users)
• Larger assignments: /44 or /40 for larger infrastructure
• Must justify specific needs
• Cannot be sub-allocated

ASNs:

• Can request ASN with appropriate justification
• Requires demonstration of BGP routing need
• €50 annual fee (2025)
• Processed through sponsoring LIR

Key difference: LIRs receive allocations intended for further distribution, while PI resources are assignments for the organization's exclusive use.

3. Operational Flexibility

LIR: Maximum Flexibility

Resource management autonomy:

• Complete control over how you use your allocation
• Freedom to create your own assignment policies
• Ability to sub-allocate to subsidiaries, customers, or partners
• Direct relationship with RIPE NCC

Business model flexibility:

• Can operate as an ISP or hosting provider
• Able to assign addresses to customers
• Can offer IP resources as a revenue-generating service
• Option to sponsor PI resources for others (with fees)

Technical flexibility:

• Multiple ASNs if needed
• Complex routing scenarios
• Full BGP policy control
• Infrastructure design freedom

PI: Focused but Limited

Resource management:

• Use only for your own infrastructure
• Cannot assign to others or create sub-allocations
• Must work through sponsoring LIR for changes
• Less direct control

Business model limitations:

• Not suitable for assigning addresses to customers
• Cannot operate as ISP or hosting provider with these resources
• Resources tied to your organization only

Technical constraints:

• Generally limited to single ASN
• Resources sized for specific justified use case
• Changes require sponsoring LIR involvement

Key difference: LIRs have full autonomy, while PI resource holders depend on their sponsoring LIR for administrative functions.

4. Administrative Requirements

LIR Responsibilities

Database maintenance:

• Maintain accurate records in RIPE Database
• Update registration data when changes occur
• Create and manage database objects
• Maintain contact information

Compliance obligations:

• Follow all RIPE policies
• Respond to RIPE NCC audits
• Ensure proper resource usage
• Document assignments and allocations
• Submit reports as required

Technical requirements:

• Maintain necessary technical expertise
• Manage BGP routing if applicable
• Keep up with policy changes
• Participate in training and education

Time investment:

• Initial setup: 20-40 hours
• Ongoing maintenance: 2-5 hours/month minimum
• Audit responses: 5-20 hours when required
• Training and updates: Ongoing

PI Resource Holder Responsibilities

Database maintenance:

• Provide information to sponsoring LIR
• Request updates through sponsor
• Keep contact details current
• Limited direct database access

Compliance obligations:

• Follow RIPE policies for resource usage
• Cooperate with sponsoring LIR requirements
• Respond to audits (coordinated through sponsor)
• Maintain agreement with sponsoring LIR

Technical requirements:

• Implement and maintain routing for PI space
• Coordinate with sponsoring LIR for technical issues
• Basic understanding of IP addressing and routing

Time investment:

• Initial setup: 5-10 hours
• Ongoing maintenance: 1-2 hours/month
• Sponsor coordination: As needed
• Lower overall administrative burden

Key difference: LIRs have direct responsibility and more administrative work, while PI holders outsource much of the administration to their sponsoring LIR.

5. Switching and Portability

LIR Resources

Provider switching:

• Complete portability of your IP resources
• No need to change addresses when switching ISPs
• Maintain continuity during provider transitions
• Can multi-home to multiple providers simultaneously

Sponsoring LIR changes:

• Not applicable – you are the LIR

Resource transfers:

• Can transfer resources to other organizations (subject to policy)
• Participate in IPv4 transfer market
• 2-year hold period for new allocations

PI Resources

Provider switching:

• Fully portable between service providers
• Primary benefit of PI resources
• No renumbering required
• Independent routing possible

Sponsoring LIR changes:

• Can change sponsoring LIR at any time
• Relatively simple process through RIPE NCC
• No technical disruption
• May need new sponsoring LIR agreement

Resource transfers:

• Can transfer PI resources (subject to policy)
• Must maintain end-user status
• Cannot convert to PA or LIR resources directly

Key difference: Both offer provider independence, but LIRs have more flexibility in resource management and transfers.

6. Growth and Scalability

LIR: Built for Growth

Suitable for organizations that:

• Plan to assign addresses to customers
• Expect to need additional resources over time
• Want to offer network services commercially
• Anticipate complex network architectures
• May need multiple ASNs
• Want to serve as sponsoring LIR for others

Growth path:

• Request additional IPv6 allocations as needed
• Acquire IPv4 addresses through transfers
• Add ASNs for routing policy needs
• Open additional LIR accounts if necessary
• Expand service offerings over time

Example growth scenarios:

• ISP growing from 10 to 1,000 customers
• Hosting provider expanding services
• Enterprise opening new regional offices
• Telecom launching new service lines

PI: Suitable for Stable Needs

Suitable for organizations that:

• Have well-defined, stable infrastructure needs
• Don't assign addresses to external customers
• Want provider independence without LIR complexity
• Have predictable long-term requirements
• Operate as end users, not service providers

Growth path:

• Request additional PI assignments with new justification
• Each assignment requires separate application and fees
• Can upgrade to LIR if needs change
• More limited expansion options

Example stable scenarios:

• Enterprise with fixed infrastructure
• Data center with predictable capacity
• Educational institution with stable size
• Organization with specific application hosting needs

Key difference: LIRs are designed for dynamic, growing needs, while PI resources suit stable, predictable requirements.

Decision Framework

Choose LIR Membership If:

1. You provide services to customers requiring IP addresses

   • ISPs, hosting providers, managed service providers
   • You need to assign addresses to others regularly

2. You plan to offer network services commercially

   • IP address assignments as a service
   • Sponsoring LIR services
   • Managed infrastructure services

3. You have or anticipate complex networking needs

   • Multiple ASNs
   • Advanced routing policies
   • Multi-region operations

4. You value maximum control and autonomy

   • Direct relationship with RIR
   • No intermediary for resource management
   • Full policy control

5. The economics work in your favor

   • Can leverage IPv4 allocation value
   • Can monetize sponsorship services
   • Need resources that justify the cost

6. You have the technical and administrative capacity

   • Staff with appropriate expertise
   • Time to manage responsibilities
   • Resources for ongoing compliance

Choose PI Resources If:

1. You are an end user, not a service provider

   • Need addresses only for your own infrastructure
   • Don't assign addresses to external customers
   • Operate your own network

2. You want provider independence on a budget

   • Need portable IP addresses
   • Want to avoid LIR membership costs
   • Lower ongoing fees acceptable

3. Your IP address needs are stable and predictable

   • Well-defined infrastructure
   • No plans to become service provider
   • Consistent long-term requirements

4. You prefer outsourced administration

   • Sponsoring LIR handles RIR relationship
   • Less administrative burden
   • Simplified compliance

5. You need a specific address block size

   • /24 for specific application
   • /48 IPv6 for enterprise network
   • Defined, justified requirement

6. You want to minimize complexity

   • Simpler application process
   • Less ongoing management
   • Fewer compliance obligations

Common Use Case Scenarios

Scenario 1: Growing ISP

Situation:

• Currently 50 customers, expecting to grow to 500+
• Need to assign IP addresses to customers
• Want to offer portable IPs as competitive advantage
• Have technical team in place

Recommendation: LIR membership

• Necessary to assign addresses to customers
• Room to grow within allocation
• Can offer additional services
• Economic value improves with scale

Scenario 2: Enterprise with Multiple Offices

Situation:

• Large company with 10 global offices
• Need provider-independent addressing for business continuity
• Don't provide services to external customers
• Want to minimize administrative overhead

Recommendation: PI resources

• Meets provider independence need
• Stable, predictable requirements
• Avoids unnecessary LIR complexity and cost
• Can get sufficient address space through PI

Scenario 3: Hosting Provider Startup

Situation:

• New hosting company launching
• Initial 20 customers, planning rapid growth
• Want to provide customers with portable IPs
• Limited initial budget

Recommendation: Start with PI, transition to LIR

• Begin with PI for initial operations
• Keep costs low during startup phase
• Transition to LIR when customer base justifies it
• Via-Registry can facilitate this progression

Scenario 4: Managed Service Provider

Situation:

• Provides managed IT services to businesses
• Some customers need portable IP addresses
• Want to offer comprehensive services
• Established business with resources

Recommendation: LIR membership

• Enables offering IP resources as service
• Can sponsor customer PI requests
• Adds value to service portfolio
• Costs offset by service revenues

Scenario 5: University or Research Institution

Situation:

• Large campus network
• Research facilities with significant IP needs
• Provider independence important
• Education mission, limited budget

Recommendation: Depends on structure

• If assigning to departments/researchers: LIR
• If purely internal network: PI may suffice
• Consider long-term vs. short-term costs
• Educational status may influence decision

Hybrid Approaches

Some organizations benefit from using both LIR and PI resources:

LIR with Additional PI Resources

Use case: LIR that needs additional specific address blocks

• Main operations use LIR allocation
• Specific applications need additional PI space
• Serves customer with particular routing requirements

Multiple PI Assignments Before LIR

Use case: Growing organization accumulates PI resources

• Start with one PI assignment
• Add additional PI assignments as needed
• Eventually transition to LIR when scale justifies
• Can sponsor own PI resources after becoming LIR

LIR for Business, PI for Specific Projects

Use case: Organization with diverse needs

• LIR for main service operations
• PI for specific isolated projects or subsidiaries
• Separation of concerns and accounting

Transition Paths

From PI to LIR

When to transition:

• Customer base grows to justify LIR costs
• Begin offering services requiring sub-allocations
• Need multiple ASNs or complex routing
• Want direct RIR relationship

Transition process:

1. Apply for LIR membership
2. Receive LIR allocation
3. Keep existing PI resources or transition them
4. Begin using LIR allocation for new assignments
5. Eventually may consolidate onto LIR resources

Timeline: 4-8 weeks for LIR approval

From LIR to PI

When to consider:

• Business model changes from service provider to end user
• Downsize operations significantly
• Want to reduce ongoing costs
• No longer need sub-allocation capabilities

Transition challenges:

• May lose control over existing allocations
• Administrative complexity in resource transfers
• Rare scenario – most stay as LIRs once established

Making Your Decision

Step 1: Assess Your Needs

Ask yourself:

• Do I need to assign IP addresses to customers or external parties?
• What are my short-term and long-term IP resource requirements?
• Do I have the technical and administrative capacity for LIR membership?
• What is my budget for IP resource management?
• How important is maximum control vs. simplicity?

Step 2: Calculate Total Cost of Ownership

For LIR:

• Direct fees (membership, resources)
• Internal costs (staff time, systems)
• Value received (allocations, benefits, training)
• Potential revenue (from services enabled)

For PI:

• Application and setup fees
• Ongoing sponsoring LIR fees
• RIR fees (passed through sponsor)
• Opportunity costs (limitations)

Step 3: Consider Your Growth Trajectory

• Where will your organization be in 1, 3, 5 years?
• Will your IP resource needs increase significantly?
• Might your business model evolve to serving customers?
• Can you start small and transition later if needed?

Step 4: Evaluate Your Technical Capacity

• Do you have staff with appropriate networking expertise?
• Can you manage RIPE Database maintenance?
• Are you prepared for RIR audits and compliance?
• Would outsourcing administration be preferable?

Step 5: Make an Informed Decision

Balance all factors:

• Cost vs. value
• Flexibility vs. simplicity
• Short-term vs. long-term perspective
• Current needs vs. future possibilities

Getting Expert Help

The LIR vs. PI decision has significant long-term implications. Via-Registry can help you:

• Assess your specific needs and circumstances
• Calculate true total cost of ownership
• Plan for future growth and changes
• Navigate the application process for either option
• Transition between options if your needs change

Whether you choose LIR membership or PI resources, professional guidance can ensure you make the optimal choice and avoid costly mistakes.

For more detailed information on becoming an LIR, including the complete setup process, read our comprehensive guide: Becoming a RIPE LIR: Setup & Management.

Conclusion

Both LIR membership and PI resources provide valuable provider-independent IP addresses, but they serve different needs:

LIR membership is ideal for:

• Service providers assigning addresses to customers
• Organizations with growing, dynamic IP needs
• Businesses valuing maximum control and flexibility
• Entities that can justify the higher costs with corresponding value

PI resources are best for:

• End users needing provider independence
• Organizations with stable, predictable requirements
• Businesses prioritizing cost efficiency and simplicity
• Entities wanting to outsource administrative overhead

The right choice depends on your specific circumstances, budget, technical capacity, and business model. Many organizations start with PI resources and transition to LIR membership as they grow, while others know from the beginning that LIR membership is necessary for their business model.

Take time to carefully evaluate your needs, calculate the true costs and benefits, and consider your long-term trajectory. The decision you make will impact your network operations and costs for years to come.

---

Sources:

• RIPE NCC Information on Independent Resources: https://www.ripe.net/manage-ips-and-asns/resource-management/number-resources/independent-resources/information-on-independent-resources-for-end-users/
• RIPE NCC LIR Basics: https://www.ripe.net/membership/member-support/lir-basics/
• RIPE Provider Aggregatable and Provider Independent: https://brandergroup.net/2024/07/what-are-ripe-provider-aggregatable-pa-and-provider-independent-pi-ipv4-addresses/

Last updated: [Date will be set automatically]