Australia's Telstra switches mobile users to IPv6-only

High cost of IPv4 address blocks necessitated interim use of CGNAT

Australian telecom service provider Telstra has switched its mobile users to IPv6-only. The move comes after mobile service providers in South Korea and Vietnam decided to migrate tens of millions of customers to IPv6-only, while counterparts in India and China now have hundreds of millions of users connected to IPv6-only services. Telstra has a total of 18.3 million mobile connections. However, not all of them are migrating to IPv6-only; BYOD tablets, modems, smart devices and the like are not included in the move.

Telstra has been switching users to IPv6-only since February 2020, when migration began in the state of South Australia. The whole process was complete by the end of the month, meaning that Telstra customers' mobiles and tablets are no longer assigned IPv4 addresses when they connect to the internet.

464XLAT, DNS64 and NAT64

Because many of the servers on the internet don't yet have IPv6 addresses, Telstra is using 464XLAT. For an explanation of how a DNS64 server and a NAT64 gateway configured in tandem enable IPv6-only clients to access IPv4-only servers, see this article. Although such a configuration is now recognised as the most future-proof route to an internet infrastructure running exclusively on IPv6, the use of 464XLAT technology does have drawbacks. Because the first translation step is performed by the DNS64 resolver, the procedure doesn't work with literal IPv4 addresses (e.g. 192.0.2.5). Also, if there is no true IPv6 address for a given server (i.e. no AAAA record is published on the authoritative server), there will of course be no DNSSEC signature (RRSIG record) either.

From dual-stack to IPv6-only

Telstra introduced its existing dual-stack service for mobile customers in summer 2016. Even back then, the ultimate goal was migration to IPv6-only [1, 2, 3]. However, that was eighteen months after Telstra had announced that it had no more IPv4 addresses and was therefore obliged to start implementing CGNAT, with all the attendant drawbacks.

Rising price of IPv4 address blocks

By 2018, Telstra had hundreds of thousands of mobile devices using IPv6, mainly dual-stack iPads. Despite claiming that as a success, later in the year Telstra decided to accelerate its transition to IPv6. The trigger for that decision was the need to spend hundreds of thousands to acquire new IPv4 address blocks. The cost of investing in new CGNAT hardware was calculated at 4.3 million euros, compared with 11.5 million to obtain the IPv4 addresses needed for a period of three years. Unsurprisingly, therefore, CGNAT has played a prominent role at Telstra in the intervening years.