Latest news of the domain name industry

Recent Posts

Country names to finally be released in new gTLDs

Kevin Murphy, May 24, 2017, Domain Policy

It looks like hundreds of domain names matching the names of countries are to finally get released from ICANN limbo.

The ICANN board last week passed a resolution calling for the organization to clear a backlog of over 60 registry requests to start selling or using country and territory names in their gTLDs.

Some of the requests date back to 2014. They’ve all been stuck in red tape while ICANN tried to make sure members of the Governmental Advisory Committee was cool with the names being released.

The result of these three years of pondering is scrappy, but will actually allow some names to hit the market this year.

The new resolution calls for ICANN to “take all steps necessary to grant ICANN approvals for the release of country and territory names at the second-level”, but only “to the extent the relevant government has indicated its approval”.

And that’s the catch.

Some governments, such as the US and UK, don’t care who registers matching names. Dozens of others want to vet each registry request on a case-by-case basis.

The wishes of each government are record in a GAC database.

The only territories to so far give a blanket waiver over their names are: Denmark, Finland, Ireland, the Netherlands, Norway, Sweden, the UK, the USA, Guernsey and Pitcairn.

Almost 70 other countries have said they need to be told when a registry wants to sell a domain matching their name. Ten others give carte blanche to closed dot-brands, but require notification in the case of open gTLDs.

The majority of countries in the world have yet to officially express a preference one way or the other.

Of the roughly 60 new gTLD registries to request country name releases over the last few years, the vast majority are dot-brands. The number of open gTLDs with such requests appears to be in the single figures, and the only ones with mass-market appeal appear to be .xyz and .global.

XYZ acquires .storage, its 10th gTLD

XYZ.com said today that it has acquired the half-launched new gTLD .storage from its original owner.

The terms of the deal were not disclosed, but CEO Daniel Negari said in a blog post that it has been funded using some of the “excess of cash flow” from sales of .xyz domains.

The original .storage registry was Extra Space Storage, which rents out physical storage units in the US.

It started its protracted launch period a little over a year ago but had not planned to go to general availability until July this year.

Having apparently passed through its sunrise period and a special landrush for the storage industry, which ended in January, it has fewer than 800 domains in its zone file.

It looks like XYZ will be essentially relaunching the gTLD from scratch, with a new sunrise period penciled in for November and an early access period and GA slated for December.

Pre-launch pricing is around the $80 mark at the few registrars I checked today, and it looks like that will remain under the new management.

That’s despite XYZ talking today about .storage as a “premium” vertically-focused TLD along the lines of its $3,000 .cars or $750 .theatre.

The company said that it will not hold back reserved names at higher, premium pricing. Even nice-looking domains such as cloud.storage will be available at the base fee, it said.

The new acquisition becomes the 10th that XYZ has a hand in running, if you count the three car-related gTLDs it manages in a joint venture with Uniregistry. The others are .security, .rent, .protection, .theatre, and .college.

China approves more Donuts, Afilias gTLDs

Donuts and Afilias have had two batches of new gTLDs approved for use in China.

The Ministry of Industry and Information Technology approved five Afilias TLDs and six Donuts TLDs last month. This means customers of Chinese registrars will now be able to legally use those names in China.

Afilias was approved for .info, .mobi and .pro, which were delegated following the 2000 and 2003 new gTLD application rounds and .kim and .red from the 2012 round.

Donuts simultaneously was cleared for .ltd, .group, .游戏 (“game”), .企业 (“business”), .娱乐 (“entertainment) and .商店 (“store”).

The approvals more than double the number of new gTLDs in Latin script to get the nod from MIIT, in what now appears to be a monthly occurrence.

In February, .ink and four Chinese-script TLDs passed the regulatory process, following .site and .shop in January and .vip, .club and .xyz in December.

MIIT approval means the chance of usage by Chinese registrants should go up, but it also ties these Western registries to relatively Draconian government policies when it comes to Chinese registrations.

CentralNic says revenue more than doubled in 2016

CentralNic’s revenue was up 110% in 2016, according to the company.

The registry today released its unaudited results for last year, showing EBITDA up 65% at £5.5 million ($6.7 million) on revenue of £22.1 million ($26.9 million)

The company, which has expanded into registrar services via acquisition in the last few years, said its recurring revenue — mainly domain registrations — now account for about 80% of revenue.

CentralNic has about a third of the new gTLD back-end market, primarily because it’s the provider for .xyz’s millions of cheapo registrations.

In its statement, it said it hopes to focus on growing more in China, where clients including .xyz were recently licensed.

It also intends to make more acquisitions, where the deals “meet clear strategic criteria including being earnings accretive in the short term with a strong recurring revenues base”.

How .com became a restricted TLD

Verisign has been given approval to start restricting who can and cannot register .com and .net domain names in various countries.

Customers of Chinese registrars are the first to be affected by the change to the registry’s back-end system, which was made last year.

ICANN last week gave Verisign a “free to deploy” notice for a new “Verification Code Extension” system that enables the company to stop domains registered via selected registrars from resolving unless the registrant’s identity has been verified and the name is not on China’s banned list.

It appears to be the system Verisign deployed in order to receive its Chinese government license to operate in China.

Under Verification Code Extension, Verisign uses ICANN records to identify which registrars are based in countries that have governmental restrictions. I believe China is currently the only affected country.

Those registrars are able to register domains normally, but Verisign will prevent the names from resolving (placing them in serverHold status and keeping them out of the zone file) unless the registration is accompanied by a verification code.

These codes are distributed to the affected registrars by at least two verification service providers. Verisign, in response to DI questions, declined to name them.

Under its “free to deploy” agreement with ICANN (pdf), Verisign is unable to offer verification services itself. It must use third parties.

The company added the functionality to its .com and .net registry as an option in February 2016, according to ICANN records. It seems to have been implemented last July.

A Verisign spokesperson said the company “has implemented” the system.

The Verification Code Extension — technically, it’s an extension to the EPP protocol pretty much all registries use — was outlined in a Registry Services Evaluation Process request (pdf) last May, and approved by ICANN not long after.

Verisign was approved to operate in China last August in the first wave of gTLD registries to obtain government licenses.

Under Chinese regulations, domain names registered in TLDs not approved by the government may not resolve. Registrars are obliged to verify the identities of their registrants and names containing certain sensitive terms are not permitted.

Other gTLDs, including .vip, .club, .xyz .site and .shop have been granted approval over the last few months.

Some have chosen to work with registration gateway providers in China to comply with the local rules.

Apart from XYZ.com and Verisign, no registry has sought ICANN approval for their particular implementation of Chinese law.

Because Chinese influence over ICANN is a politically sensitive issue right now, it should be pointed out that the Verification Code Extension is not something that ICANN came up with in response to Chinese demands.

Rather, it’s something Verisign came up with in response to Chinese market realities. ICANN has merely rubber-stamped a service requested by Verisign.

This, in other words, is a case of China flexing market muscle, not political muscle. Verisign, like many other gTLD registries, is over-exposed to the Chinese market.

It should also be pointed out for avoidance of doubt that the Chinese restrictions do not apply to customers of non-Chinese registrars.

However, it appears that Verisign now has a mechanism baked into its .com and .net registries that would make it much easier to implement .com restrictions that other governments might choose to put into their own legislation in future.