4.1  Efficiency versus Decentralized Control

   If the Internet plans to support a decentralized address
   administration [4], then there is a balance that must be sought
   between the requirements on IP addresses for efficient routing and
   the need for decentralized address administration. A proposal
   described in [3] offers an example of how these two needs might be
   met.



Rekhter & Li                                                    [Page 5]

RFC 1518          CIDR Address Allocation Architecture    September 1993


   The IP address prefix <198.0.0.0 254.0.0.0> provides for
   administrative decentralization. This prefix identifies part of the
   IP address space allocated for North America. The lower order part of
   that prefix allows allocation of IP addresses along topological
   boundaries in support of increased data abstraction.  Clients within
   North America use parts of the IP address space that is underneath
   the IP address space of their service providers.  Within a routing
   domain addresses for subnetworks and hosts are allocated from the
   unique IP prefix assigned to the domain.

5.  IP Address Administration and Routing in the Internet

   The basic Internet routing components are service providers (e.g.,
   backbones, regional networks), and service subscribers (e.g., sites
   or campuses).  These components are arranged hierarchically for the
   most part.  A natural mapping from these components to IP routing
   components is that providers and subscribers act as routing domains.

   Alternatively, a subscriber (e.g., a site) may choose to operate as a
   part of a domain formed by a service provider. We assume that some,
   if not most, sites will prefer to operate as part of their provider's
   routing domain.  Such sites can exchange routing information with
   their provider via interior routing protocol route leaking or via an
   exterior routing protocol.  For the purposes of this discussion, the
   choice is not significant.  The site is still allocated a prefix from
   the provider's address space, and the provider will advertise its own
   prefix into inter-domain routing.

   Given such a mapping, where should address administration and
   allocation be performed to satisfy both administrative
   decentralization and data abstraction? The following possibilities
   are considered:

      - at some part within a routing domain,

      - at the leaf routing domain,

      - at the transit routing domain (TRD), and

      - at the continental boundaries.

      A point within a routing domain corresponds to a subnetwork. If a
      domain is composed of multiple subnetworks, they are
      interconnected via routers.  Leaf routing domains correspond to
      sites, where the primary purpose is to provide intra-domain
      routing services. Transit routing domains are deployed to carry
      transit (i.e., inter-domain) traffic; backbones and providers are
      TRDs.



Rekhter & Li                                                    [Page 6]

RFC 1518          CIDR Address Allocation Architecture    September 1993


      The greatest burden in transmitting and operating on routing
      information is at the top of the routing hierarchy, where routing
      information tends to accumulate. In the Internet, for example,
      providers must manage the set of network numbers for all networks
      reachable through the provider. Traffic destined for other
      providers is generally routed to the backbones (which act as
      providers as well).  The backbones, however, must be cognizant of
      the network numbers for all attached providers and their
      associated networks.

      In general, the advantage of abstracting routing information at a
      given level of the routing hierarchy is greater at the higher
      levels of the hierarchy. There is relatively little direct benefit
      to the administration that performs the abstraction, since it must
      maintain routing information individually on each attached
      topological routing structure.

      For example, suppose that a given site is trying to decide whether
      to obtain an IP address prefix directly from the IP address space
      allocated for North America, or from the IP address space
      allocated to its service provider. If considering only their own
      self-interest, the site itself and the attached provider have
      little reason to choose one approach or the other. The site must
      use one prefix or another; the source of the prefix has little
      effect on routing efficiency within the site. The provider must
      maintain information about each attached site in order to route,
      regardless of any commonality in the prefixes of the sites.

      However, there is a difference when the provider distributes
      routing information to other providers (e.g., backbones or TRDs).
      In the first case, the provider cannot aggregate the site's
      address into its own prefix; the address must be explicitly listed
      in routing exchanges, resulting in an additional burden to other
      providers which must exchange and maintain this information.

      In the second case, each other provider (e.g., backbone or TRD)
      sees a single address prefix for the provider, which encompasses
      the new site. This avoids the exchange of additional routing
      information to identify the new site's address prefix. Thus, the
      advantages primarily accrue to other providers which maintain
      routing information about this site and provider.

      One might apply a supplier/consumer model to this problem: the
      higher level (e.g., a backbone) is a supplier of routing services,
      while the lower level (e.g., a TRD) is the consumer of these
      services. The price charged for services is based upon the cost of
      providing them.  The overhead of managing a large table of
      addresses for routing to an attached topological entity



Rekhter & Li                                                    [Page 7]

RFC 1518          CIDR Address Allocation Architecture    September 1993


      contributes to this cost.

      The Internet, however, is not a market economy. Rather, efficient
      operation is based on cooperation. The recommendations discussed
      below describe simple and tractable ways of managing the IP
      address space that benefit the entire community.