Broadband

What Is a Dynamic IP Address and How Does It Work?

In most business broadband deals, the IP address of your connection seamlessly changes each day, being reassigned from a pool of addresses managed by your provider.

This dynamic IP address setup contrasts with static IP addresses, which remain constant throughout your broadband contract.

This article delves into dynamic IP addresses and explains why a regularly changing IP enables small businesses to benefit from simplified network management, enhanced security, and privacy.

Here’s what we cover:

Understanding IP addresses
What is a dynamic IP address
Static IP vs Dynamic IP
How Dynamic IP Addresses Work
Advantages of Dynamic IP Addresses
Disadvantages of Dynamic IP Addresses

Understanding IP addresses

Before we explore the world of dynamic IP addresses, it is useful to understand what an IP address is and its importance. An IP address is a unique numerical identifier assigned to every device on a network, including the router itself. It sends and receives data between network devices and the broader Internet.

An IP address is typically a 32-bit number divided into four parts, separated by dots. Each part can have a value between 0 and 255. For example, 192.168.1.1 is a valid IP address.

In a business broadband connection, there are two layers of IP addresses:

Public IP address – When your router connects to the internet, your broadband provider assigns it a public IP address, enabling communication between your local network and the wider internet.
Private IP addresses – All individual devices connected within your local network are assigned private IP addresses to manage internal communications. These addresses are only visible within the internal network.

💡Modern business VoIP phone systems use the IP address system to connect phone calls between two devices over the internet using the SIP signalling protocol.

What is a dynamic IP address

The term “dynamic IP address” refers to the public IP address assigned to your internet connection by your broadband provider.

A dynamic IP address means that the address assigned to your connection is only temporary and will regularly change.

The changes in public IP addresses happen seamlessly and do not affect most internet activities.

Static IP vs Dynamic IP

Two types of IP addresses are used in broadband contracts: static and dynamic.

Static IP addresses do not change and are assigned to a connection throughout the entirety of a business broadband contract.
Dynamic IP addresses regularly change, typically when you connect to the internet or automatically every 24 hours.

Dynamic IP addresses are more common than static IP addresses because they are easier to manage and require less manual configuration. They are also cheaper to implement, making them a better option for business broadband prices.

How Dynamic IP Addresses Work

Dynamic IP addresses are a crucial aspect of the internet infrastructure. Without them, the internet would not be able to support the sheer number of devices that connect to it every day.

Dynamic Host Configuration Protocol (DHCP) is the protocol responsible for assigning IP addresses to devices on a network (i.e. DHCP is a computer program installed inside your business broadband router).

DHCP servers manage and distribute IP addresses to devices that connect to the network. The DHCP server automatically allocates an IP address to a device when it relates to the network.

The Role of DHCP

DHCP plays a crucial role in the allocation of dynamic IP addresses. The DHCP server assigns an IP address to a device from a range of available IP addresses. This range may change depending on the network and the number of connected devices. The DHCP server is responsible for managing the allocation of IP addresses to ensure no conflicts.

The DHCP server also assigns other network configuration information to devices, such as subnet masks, default gateways, and DNS server information. This information is necessary for devices to communicate with each other on the network and access the internet.

IP Address Allocation Process

The IP address allocation process begins when a device connects to the network. The device sends a request to the DHCP server for an IP address. The DHCP server then checks the available IP addresses and assigns one to the device. Users don’t need to do anything.

When the device is assigned an IP address, it is said to have a lease on that IP address. The lease time is how long the device can use the IP address. This lease time can vary depending on the network configuration and the DHCP server settings.

IP Address Renewal and Release

Dynamic IP addresses have a defined lease time, which is the duration for which the device can use the IP address. The device’s IP address is released at the end of the lease time, and the DHCP server can assign it to another device.

If the device is still connected to the network when the lease time expires, the DHCP server renews the lease time and assigns the IP address to the device.

IP address renewal and release are essential aspects of dynamic IP address allocation. Without them, the network would quickly run out of available IP addresses, and devices would not be able to connect to the network.

Dynamic IP addresses are a crucial aspect of the internet infrastructure, and DHCP plays a vital role in their allocation. The IP address allocation process is automatic and seamless, allowing devices to connect to the network without user intervention. IP address renewal and release ensure that the network has a steady supply of available IP addresses for devices to use.

Advantages of Dynamic IP Addresses

When signing up for a new business broadband contract, choosing between a static or dynamic IP address is necessary.

Our experts present the three key advantages of dynamic IP addresses to help you compare SoGEA or full fibre business broadband deals.

Cost-Effectiveness

Dynamic IP addresses are more cost-effective than static IP addresses.

Since the IP addresses are reused, there’s no need to purchase new IP addresses for each device on the network. This is particularly beneficial for small business broadband customers with limited resources, who may otherwise need to purchase multiple static IP addresses.

Business broadband providers often provide dynamic IP addresses as standard in their packages. This means businesses and individuals can save money using dynamic IP addresses instead of static IP addresses.

Simplified Network Administration

Dynamic IP addresses simplify network administration because there’s no need to manage the IP addresses manually. The DHCP server automatically takes care of the allocation and release of IP addresses.

They also allow administrators to easily add new devices to the network without worrying about manually assigning IP addresses.

Enhanced Privacy and Security

Using a dynamic IP address is a useful business broadband cyber security measure, making it more difficult for hackers to track or target a specific device over time.

A dynamic IP helps protect against cyber security threats, making it harder for hackers to exploit known vulnerabilities associated with a specific IP address.

Additionally, dynamic IP addresses make it easier for individuals to maintain online privacy. Similar to the way a VPN works, changing the IP address helps users avoid being tracked by websites and online advertisers.

Disadvantages of Dynamic IP Addresses

Knowing the three key limitations of using a dynamic IP address for your fibre optic business broadband connection is also important.

Inconsistency for Hosting Services

Dynamic IP addresses can cause inconsistency for hosting services since the IP address may change each time the device connects to the network. It can cause issues with services that require a constant IP address.

For example, if you are running a web server from your home, the IP address of your server will change every time your ISP assigns a new IP address to your modem. Your website will be inaccessible once you update the DNS records with the new IP address.

Difficulty in Remote Access

Remote access can be difficult with dynamic IP addresses since the IP address changes. It’s important to use services that support dynamic DNS to overcome this issue. Dynamic DNS is a service that maps your dynamic IP address to a static hostname, which can be used to access your device remotely.

However, not all devices support dynamic DNS, making remote access difficult. For example, if you are trying to access a device that does not support dynamic DNS remotely, you must update the IP address every time it changes manually.

Potential for IP Conflicts

Dynamic IP addresses have a potential for IP conflicts if the DHCP server allocates the same IP address to two different devices.

This can cause issues with network connectivity and requires manual intervention to resolve. For example, if two devices on your network have the same IP address, you may experience intermittent connectivity issues, which can be frustrating to troubleshoot.