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ICANN expects to lose 750 registrars in the next year

ICANN is predicting that about 750 accredited registrars will close over the next 12 months due to the over-saturation of the drop-catching market.

ICANN VP Cyrus Namazi made the estimate while explaining ICANN’s fiscal 2018 budget, which is where the projection originated, at the organization’s public meeting in South Africa last week.

He said that ICANN ended its fiscal 2017 last week with 2,989 accredited registrars, but that ICANN expects to lose about 250 per quarter starting from October until this time next year.

These almost 3,000 registrars belong to about 400 registrar families, he said.

By my estimate, roughly two thirds of the registrars are shell accreditations under the ownership of just three companies — Web.com (Namejet and SnapNames), Pheenix, and TurnCommerce (DropCatch.com).

These companies lay out millions of dollars on accreditation fees in order to game ICANN rules and get more connections to registries — mainly Verisign’s .com.

More connections gives them a greater chance of quickly registering potentially valuable domains milliseconds after they are deleted. Drop-catching, in other words.

But Namazi indicated that ICANN’s cautious “best estimate” is that there’s not enough good stuff dropping to justify the number of accreditations these three companies own.

“With the model we have, I believe at the moment the total available market for these sought-after domains that these multifamily registrars are after is not able to withstand the thousands of accreditations that are there,” he said. “Each accreditation costs quite a bit of money.”

Having a registrar accreditation costs $4,000 a year, not including ICANN’s variable and transaction fees.

“We think the market has probably gone beyond what the available market is,” he said.

He cautioned that the situation was “fluid” and that ICANN was keeping an eye on it because these accreditations fees have become material to its budget in the last few years.

If the three drop-catchers do start dumping registrars, it would reveal an extremely short shelf life for their accreditations.

Pheenix upped its registrar count by 300 and DropCatch added 500 to its already huge stable as recently as December 2016.

GoDaddy launches security service after Sucuri acquisition

GoDaddy has revealed the first fruits of its March acquisition of web security service provider Sucuri.

It’s GoDaddy Website Security, what appears to be a budget version of the services Sucuri already offers on a standalone basis.

For $6.99 per month ($83.88/year), the service monitors your web site for malware and removes it upon request. It also keeps tabs on major blacklists to make sure you’re not being blocked by Google, Norton or McAfee.

This low-end offering gets you a 12-hour response time for the cleanup component. You can up that to 30 minutes by taking out the $299.99 per year plan.

The more expensive plan also includes DDoS protection, a malware firewall and integration with a content delivery network for performance.

There’s also an intermediate, $19.99-per-month ($239.88/year) plan that includes the extra features but keeps the response time at 12 hours.

An SSL certificate is included in the two more-expensive packages.

The pricing and feature set looks to compare reasonably well with Sucuri’s standalone products, which start at $16.66 a month and offer response times as fast as four hours.

As somebody who has suffered from three major security problems on GoDaddy over the last decade or so, and found GoDaddy’s response abysmal on all three occasions (despite my generally positive views of its customer service), the new service is a somewhat tempting proposition.

Zero registrars pass ICANN audit

Some of the biggest names in the registrar game were among a bewildering 100% that failed an ICANN first-pass audit in the latest round of random compliance checks.

Of the 55 registrars picked to participate in the audit, a resounding 0 passed the initial audit, according to data released today.

Among them were recognizable names including Tucows, Register.com, 1&1, Google and Xin Net.

ICANN found 86% of the registrars had three or more “deficiencies” in their compliance with the 2013 Registrar Accreditation Agreement.

By far the most problematic area was compliance with sections 3.7.7.1 to 3.7.7.12 of the RAA, which specifies what terms registrars must put in their registration agreements and how they verify the contact details of their customers.

A full three quarters of audited registrars failed on that count, according to ICANN’s report (pdf).

More than half of tested registrars failed to live up to their commitments to respond to reports of abuse, where they’re obliged among other things to have a 24/7 contact number available.

There was one breach notice to a registrar as a result of the audit, but none of the failures were serious enough for ICANN to terminate the deficient registrar’s contract. Two registrars self-terminated during the process.

ICANN’s audit program is ongoing and operates in rounds.

In the current round, registrars were selected from those which either hadn’t had an audit in a couple of years, were found lacking in previous rounds, or had veered dangerously close to formal breach notices.

The round kicked off last September with requests for documents. The initial audit, which all registrars failed, was followed by a remediation phase from January to May.

Over the remediation phase, only one third of the registrars successfully resolved all the issues highlight by the audit. The remainder issued remediation plans and will be followed up on in future rounds.

The 0% pass rate is not unprecedented. It’s the same as the immediately prior audit (pdf), which ran from May to October 2016.

Web.com in takeover talks – report

Web.com is in talks to be acquired by private equity firms, according to a report.

Reuters reported last night that the registrar said the talks were “early stage” and that there was no guarantee of a deal.

Web.com is of course home to Network Solutions, Register.com and is involved in secondary market plays SnapNames and NameJet.

The company had 2016 revenue of $710 million and a market capitalization prior to the report of $1.1 billion. Its shares surged on the news.

After price hike, now Tucows drops support for Uniregistry TLDs

Tucows is to drop OpenSRS support for nine Uniregistry gTLDs after the registry announced severe price increases.

The registrar told OpenSRS resellers that it will no longer support .audio, .juegos, .diet, .hiphop, .flowers, .guitars, .hosting, .property and .blackfriday from September 8, the date the increases kick in.

It’s the second major registrar, after GoDaddy, to drop support for Uniregistry TLDs in the wake of the pricing news.

“The decision to discontinue support for these select TLDs was made to protect you and your customers from unknowingly overpaying in a price range well beyond $100 per year,” OpenSRS told its resellers.

It will continue to support seven other Uniregistry gTLDs, including .click and .link, which are seeing more modest price increases and will remain at $50 and under.

While Tucows is a top 10 registrar in most affected TLDs, its domains under management across the nine appears to be under 3,000.

These domains will expire at their scheduled expiry date and OpenSRS will not allow their renewal after the September 8 cut-off. Customers will be able to renew at current prices for one to 10 years, however.

Tucows encouraged its roughly 40,000 resellers to offer to migrate their customers to other TLDs.

Uniregistry revealed its price increases in March, saying moving to a premium-pricing model was necessary to make the gTLDs profitable given the lack of volume.

Pricing for .juegos and .hosting is to go up from under $20 retail to $300. The other seven affected gTLDs will increase from the $10 to $25 range to $100 per year.

After GoDaddy pulled support for Uniregistry TLDs, the registry modified its plan to enable all existing registrations to renew at current prices.

That clearly was not enough for Tucows, which has sent a pretty clear message that it’s not prepared to be the public face of such significant price hikes.