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Should new gTLDs be first-come, first-served?

Kevin Murphy, November 3, 2016, 14:10:23 (UTC), Domain Policy

Who needs rounds? The idea of allocating new gTLDs on a first-come, first-served basis is getting some consideration at this week’s ICANN 57 meeting.

Such a move could have profound implications on the industry, creating new business opportunities while scuppering others.

Whether to shift to a FCFS model was one of many issues discussed during a session today of the GNSO’s working group tasked with looking at the next new gTLD round.

Since 2000, new gTLDs have been allocated in strict rounds, with limited application windows and often misleading guidance about when the next window would open, but it’s not written in stone that that is the way it has to be.

The idea of switching to FCFS — where any company could apply for any gTLD at any time — is not off the table.

FCSC would not mean applicants would merely have to ask for a string and automatically be granted — there’d still be multiple phases of evaluation and opportunities for others to object, so it wouldn’t be just like registering a second-level domain.

Depending on how the new process was designed, doing away with rounds could well do away with the concept of “contention” — multiple applicants simultaneously vying for the same string.

This would basically eliminated the need for auctions entirely.

No longer would an applicant be able to risk a few hundred thousand bucks in application expenses in the hope of a big private auction pay-day. Similarly, ICANN’s quarter-billion-dollar pool of last-resort auction proceeds would grow no more.

That’s potentially an upside, depending on your point of view.

On the downside, and it’s a pretty big downside, a company could work on a solid, innovative gTLD application for months only to find its chances scuppered because a competitor filed an inferior application a day earlier.

A middle way, suggested during today’s ICANN 57 session, would be a situation in which the filing of an application starts a clock of maybe a few months during which other interested parties would be able to file their own applications.

That would keep the concept of contention whilst doing away with the restrictive round-based structure, but would present plenty of new opportunities for exploitation and skulduggery.

Another consequence of the shift to FCSC could be to eliminate the concept of Community gTLDs altogether, it was suggested during today’s session.

In 2012, applicants were given the opportunity to avoid auction if they could meeting exacting “Community” standards. The trade-off is that Community gTLDs are obliged to be restricted to their designated community.

If FCSC led to contention going away, there’d be no reason for any applicant to apply for a Community gTLD that could unnecessarily burden their business model in future.

For those strongly in favor of community gTLDs, such as governments, this could be an unwelcome outcome.

Instinctively, I think FCSC would be a bad idea, but I think I’d be open to persuasion.

I think the main problem with the round-based structure today is that it’s unpredictable — nobody knows when the next round is likely to be so it’s hard to plan their new gTLD business ideas.

Sure, FCSC would bring flexibility, allowing companies to apply at times that are in tune with their business objectives, but the downsides could outweigh that benefit.

Perhaps the way to reduce unpredictability would be to put application windows on a predictable, reliable schedule — once a year for example — as was suggested by a participant or two during today’s ICANN 57 session.

The discussions in the GNSO are at a fairly early stage right now, but a switch to FCSC would be so fundamental that I think it needs to be adopted or discarded fairly quickly, if there’s ever going to be another application round.

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Comments (1)

  1. Rubens Kuhl says:

    We need to start making a difference between TLD run with community interests in mind and TLDs run by the community itself. Let’s take .accountant for an example: the way this has been done so far was to have an association of accountants suggest such a TLD and operate it with policies that passed CPE and it eliminated competitors in the contention set.

    A different approach would be the accountants association making a community objection and if they prevail, instead of the application being killed, prevailing would get the PICs they wanted into whoever’s agreement, with the applicant agrees to proceeding.

    That would have to advantage of adding a “double jeopardy” concept to the process, so communities wouldn’t have to refil objections at each round someone applied for a string that is dear to them. As long as someone suggested a TLD accepting those PICs, the community wishes for how a TLD should be run were fulfilled.

    Note that this community mechanism can be used either in rounds or FCFS, but while CPE depends on the contention, this one doesn’t so it would be also compatible with FCFS.

    I think that is a feature we should strive for: policies that can endure implementation changes.

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