diff --git a/srsepc/epc.conf.example b/srsepc/epc.conf.example
index fe8a48735..7dd211a0c 100644
--- a/srsepc/epc.conf.example
+++ b/srsepc/epc.conf.example
@@ -41,4 +41,4 @@ db_file = user_db.csv
 
 [spgw]
 gtpu_bind_addr=127.0.1.100
-sgi_if_addr=172.0.0.1
+sgi_if_addr=172.16.0.1
diff --git a/srsepc/hdr/spgw/spgw.h b/srsepc/hdr/spgw/spgw.h
index 00d2ebd12..047a5db9a 100644
--- a/srsepc/hdr/spgw/spgw.h
+++ b/srsepc/hdr/spgw/spgw.h
@@ -87,6 +87,8 @@ private:
 
   srslte::error_t init_sgi_if(spgw_args_t *args);
   srslte::error_t init_s1u(spgw_args_t *args);
+  srslte::error_t init_ue_ip(spgw_args_t *args);
+
   uint64_t get_new_ctrl_teid();
   uint64_t get_new_user_teid();
   in_addr_t get_new_ue_ipv4();
@@ -112,6 +114,8 @@ private:
   std::map<uint32_t,spgw_tunnel_ctx*> m_teid_to_tunnel_ctx;         //Map control TEID to tunnel ctx. Usefull to get reply ctrl TEID, UE IP, etc.
   std::map<in_addr_t,srslte::gtpc_f_teid_ie> m_ip_to_teid;          //Map IP to User-plane TEID for downlink traffic
 
+  uint32_t m_h_next_ue_ip;
+
   /*Logs*/
   srslte::log_filter  *m_spgw_log;
 
diff --git a/srsepc/src/spgw/spgw.cc b/srsepc/src/spgw/spgw.cc
index a69ff04d5..afd7efef4 100644
--- a/srsepc/src/spgw/spgw.cc
+++ b/srsepc/src/spgw/spgw.cc
@@ -104,6 +104,13 @@ spgw::init(spgw_args_t* args, srslte::log_filter *spgw_log)
     m_spgw_log->console("Could not initialize the S1-U interface.\n");
     return -1;
   }
+  //Initialize UE ip pool
+  err = init_ue_ip(args);
+  if (err != srslte::ERROR_NONE)
+  {
+    m_spgw_log->console("Could not initialize the S1-U interface.\n");
+    return -1;
+  }
 
   //Init mutex
   pthread_mutex_init(&m_mutex,NULL);
@@ -237,6 +244,13 @@ spgw::init_s1u(spgw_args_t *args)
   return srslte::ERROR_NONE;
 }
 
+srslte::error_t
+spgw::init_ue_ip(spgw_args_t *args)
+{
+  m_h_next_ue_ip = ntohl(inet_addr(args->sgi_if_addr.c_str()));
+  return srslte::ERROR_NONE;
+}
+
 void
 spgw::run_thread()
 {
@@ -395,7 +409,8 @@ spgw::get_new_user_teid()
 in_addr_t
 spgw::get_new_ue_ipv4()
 {
-  return inet_addr("172.0.0.2");//FIXME Tmp hack
+  m_h_next_ue_ip++;
+  return ntohl(m_h_next_ue_ip);//FIXME Tmp hack
 }
 
 void