The more I read the proposed new .COM Registry Agreement,
the less I like it...or even understand why ICANN believes this might
be a good thing for the Internet community (as opposed to a good thing
for ICANN, the corporation). In a public conference call with
registrars last week, ICANN's Vice-President of Business Operations, Kurt Pritz,
claimed that he hadn't heard anything from domain name registrants about the
proposed .COM agreement. Here are a handful of things that
registrants should consider discussing with Mr. Pritz:
1. The Price for .COM names will rise.
Virtually every mass market Internet service I can think of (like
broadband access, VOIP, and hosting, to name just a few) has seen
consumer prices decline over time. ICANN is allowing Verisign to move
the registration of .COM names in the opposite direction, permitting
the registry to raise the $6 base price of .COM registrations by 7%
annually.
2. Verisign will operate .COM in perpetuity...without having to earn the right to do so.
I'm sure that at some time in my lifetime, a new addressing scheme will
come along to replace domain names. Until that happens, however,
Verisign will be selling .COM services, in a virtual monopoly, without
ever having to engage in a competive bidding process for the right to do so. With
no competition, or even the threat of competition, Verisign can raise
prices, year after year, regardless of its costs, regardless of past performance, and without raising
its service levels.
3. The new agreement gives Verisign a perpetual commercial interest in the .COM zone metadata, at no cost. Specifically,
the agreement gives Verisign the right to leverage the .COM zone TLD
servers it operates to "mak[e] commercial use of, or collect, traffic
data regarding domain names or non-existent domain names" for any
purpose. I can imagine dozens of uses for this data, from increasing
the accuracy of search engines, which could weight some sites higher
than others based on the number of queries to the TLD servers for a
given domain name, to more accurately gauging the resale value of a
deleting domain name. If the data is Verisign's to sell, as opposed to
public data available to anyone, you can imagine the bidding war that
could start among Google, Yahoo! and other search engines. And yet,
with this completely new source of revenue, Verisign can still raise
it's price. If anything, Verisign ought to be paying us for this data.
What do you want to bet that Google would volunteer to run the .COM
registry, for free, in exchange for the .COM zone metadata?
4. No checks on ICANN's growth. Perhaps
most importantly, the new .COM agreement will allow ICANN to fund
itself easily and predictably, forever, by taking a 50 cent bite out of
every .COM registration. ICANN also gets a $1,250,000 payment up front
for the cost of "implementing" the new .COM agreement. In the past,
ICANN has had to get approval from registrars for its annual budget.
The new agreements allow ICANN to bypass the registrars, get funding
directly from the .COM registry (which can and will pass the cost back
to the registrars), and completely skip the approval process. In past
years, the budget approval process has been an important check on
ICANN's growth. I can understand why ICANN likes this, but a large,
powerful ICANN is not necessarily in the best interests of the Internet
community.
5. Verisign is rewarded for a dubious record of past performance. Having been rebuked first by the Internet community and then ICANN for initiating several new registry services, like Sitefinder, with no advance notice, Verisign filed a lawsuit against ICANN
last year making allegations of antitrust, unlawful interference with
its business, and other claims. ICANN successfully kicked out the
antitrust claims and then countersued, claiming, correctly, that
Verisign was in material breach of the .COM and .NET registry
agreements. But now, incredibly, the settlement of that lawsuit puts Verisign in a
materially better position than it was previously and, more incredibly, allows Verisign to continue to litigate similar issues in a separate lawsuit filed by Snapnames.
The theme running through all of these is that
ICANN and Verisign are treating the .COM registry as a private
resource. It's not. The root servers and TLD servers are public
resources. We should treat them like that.
I'm sure there are more reasons to be concerned. We're putting together a list of concerns in the At Large Advisory Committee
to forward to ICANN. More comments are welcome in the comment space
below (and send them to the ICANN public comment board, settlement-comments@icann.org, as
well).
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The Impact on Registrants and End-Users
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