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.sx switches from KSRegistry to CIRA’s Fury

Kevin Murphy, December 13, 2017, Domain Registries

Sint Maarten ccTLD .sx has changed registry back-end providers.

SX Registry has switched from Germany’s KSRegistry to Canada’s CIRA, according to a CIRA press release and IANA records.

SX is now using CIRA’s relatively new Fury back-end platform, which launched a bit over a year ago with the new gTLD .kiwi as its inaugural customer.

The transition took under 30 days, according to CIRA, which built Fury using its experience managing Canadian ccTLD .ca.

Sint Maarten is a relatively new country, formed when the Netherlands Antilles’ .an split into three new ccTLDs in 2010.

.an has since been retired.

SX Registry won the deal to operate the TLD and launched it in 2012. The company, while technically based on the island, is run by a Canadian.

Radix says it’s profitable after making $12 million this year

Kevin Murphy, December 13, 2017, Domain Registries

New gTLD stable Radix said today that it expects to top $12 million in revenue this year.

The company also told DI that it is currently profitable.

Radix, which counts the likes of .site and .store among its portfolio of nine active gTLDs, said revenue so far for the calendar year has been tallied at $11.7 million.

The company said that more than half of revenue came from “non-premium domain renewals”, an important metric when considering the long-term health of a domain business.

Recurring revenue of non-premiums was almost twice as much as new registrations, Radix said. Only $1.76 million of revenue came from premium sales (14%) and renewals (86%).

The US accounted for just under half of revenue, with Germany at 14.4% and China, where .site was fully active for the whole year and four other TLDs were approved in October, coming in at 7.7%.

Radix is a private company, part of the Directi Group, and has not previously disclosed its financials.

Assuming apples-to-apples comparisons are valid (which may not be the case), its figures compare favorably to public competitors such as MMX, which expects to report 2017 in the same ball-park despite having more than twice as many gTLDs under management.

.kids auction is off

Kevin Murphy, December 12, 2017, Domain Registries

ICANN has postponed the planned auction of the .kid(s) gTLDs after an appeal from one of the applicants.

The last-resort auction had been penciled in for January 25, and there was a December 8 deadline for the three participants to submit their info to the auctioneer.

But DotKids Foundation, the shallowest-pocketed of the three, filed a Request for Reconsideration last Wednesday, asking ICANN to put the contention set back on hold.

The cancellation of the January auction appears to be to give ICANN’s board of directors time to consider the RfR under its usual process — it has not yet ruled on it.

DotKids and Amazon have applied for .kids and Google has applied for .kid. A String Confusion Objection won by Google put the two strings in the same contention set, meaning only one will eventually go live.

DotKids comprehensively lost a Community Priority Evaluation, which would negate an auction altogether, but it thinks the CPE got it wrong and wants to be treated the same way as other gTLD applicants whose CPE results are currently under review.

Reconsideration requests take between 30 and 90 days to process, and they rarely go the way of the requester, so the delay to the auction will likely not be too long.

CentralNic now owns .sk after $30m deal closes

Kevin Murphy, December 12, 2017, Domain Registries

CentralNic has just closed its acquisition of SK-NIC, the ccTLD operator for Slovakia, the company announced today.

The London-based firm announced the deal back in August, when it was to be worth €21.27 million up front, with a deferred performance-related cash payout of €4.85 million cash over three years.

But the deal, originally intended to close in September, was delayed by legal “complexities” and restructured from an asset purchase to a purchase of SK-NIC, including its liabilities, in its entirety.

The purchase price is now €20.27 million in advance, with €5.85 million deferred. That’s still a total of €26.12 million ($30.67 million).

The acquisition is unusual in that it sees a ccTLD transferring to control of a foreign entity, and was opposed by many in the Slovakian internet community.

A petition was organized calling for the transfer of .sk to a new independent body with more community and government oversight.

There had been fears that CentralNic would do to .sk what it has to Laos’ .la — repurpose it to mean something other than “Slovakia” — but CentralNic told DI that it will no do so.

The deal means .sk will move from its outdated old registry infrastructure to CentralNic’s standards-based EPP platform, which should make it easier for registrars to integrate.

It’s also likely to mean it’s going to be much easier for non-Slovaks to be able to register .sk domains.

SK-NIC currently has about 360,000 domains under management.

As .wed goes EBERO, did the first new gTLD just fail?

Kevin Murphy, December 11, 2017, Domain Registries

A wedding-themed gTLD with a Bizarro World business model may become the first commercial gTLD to outright fail.

.wed, run by a small US outfit named Atgron, has become the first non-brand gTLD to be placed under ICANN’s emergency control, after it lost its back-end provider.

DI understands that Atgron’s arrangement with its small New Zealand back-end registry services provider CoCCA expired at the end of November and that there was a “controlled” transition to ICANN’s Emergency Back-End Registry Operator program.

The TLD is now being managed by Nominet, one of ICANN’s approved EBERO providers.

It’s the first commercial gTLD to go to EBERO, which is considered a platform of last resort for failing gTLDs.

A couple of unused dot-brands have previously switched to EBERO, but they were single-registrant spaces with no active domains.

.wed, by contrast, had about 40 domains under management at the last count, some apparently belonging to actual third-party registrants.

Under the standard new gTLD Registry Agreement, ICANN can put a TLD in the emergency program if they fail to meet up-time targets in any of five critical registry functions.

In this case, ICANN said that Atgron had failed to provide Whois services as required by contract. The threshold for Whois triggering EBERO is 24 hours downtime over a week.

ICANN said:

Registry operator, Atgron, Inc., which operates gTLD .WED, experienced a Registration Data Directory Services failure, and ICANN designated EBERO provider Nominet as emergency interim registry operator. Nominet has now stepped in and is restoring service for the TLD.

The EBERO program is designed to be activated should a registry operator require assistance to sustain critical registry functions for a period of time. The primary concern of the EBERO program is to protect registrants by ensuring that the five critical registry functions are available. ICANN’s goal is to have the emergency event resolved as soon as possible.

However, the situation looks to me a lot more like a business failure than a technical failure.

Multiple sources with knowledge of the transition tell me that the Whois was turned off deliberately, purely to provide a triggering event for the EBERO failover system, after Atgron’s back-end contract with CoCCA expired.

The logic was that turning off Whois would be far less disruptive for registrants and internet users than losing DNS resolution, DNSSEC, data escrow or EPP.

ICANN was aware of the situation and it all happened in a coordinated fashion. ICANN told DI:

WED’s backend registry operator recently notified ICANN that they would likely cease to provide backend registry services for .WED and provided us with the time and date that this would occur. As such, we were aware of the pending failure worked to minimize impact to registrants and end users during the transition to the Emergency Back-end Registry Operator (EBERO) service provider.

In its first statement, ICANN said that Nominet has only been appointed as the “interim” registry, while Atgron works on its issues.

It’s quite possible that the registry will bounce back and sign a deal with a new back-end provider, or build its own infrastructure.

KSregistry, part of the KeyDrive group, briefly provided services to .wed last week before the EBERO took over, but I gather that no permanent deal has been signed.

One wonders whether it’s worth Atgron’s effort to carry on with the .wed project, which clearly isn’t working out.

The company was founded by an American defense contractor with no previous experience of the domain name industry after she read a newspaper article about the new gTLD program, and has a business model that has so far failed to attract customers.

The key thing keeping registrars and registrants away in droves has been its policy that domains could be registered (for about $50 a year) for a maximum period of two years before a $30,000 renewal fee kicked in.

That wasn’t an attempt to rip anybody off, however, it was an attempt to incentivize registrants to allow their domains to expire and be used by other people, pretty much the antithesis of standard industry practice (and arguably long-term business success).

That’s one among many contractual reasons that only one registrar ever signed up to sell .wed domains.

Atgron’s domains under management peaked at a bit over 300 in March 2016 and were down to 42 in August this year, making it probably the failiest commercial new gTLD from the 2012 round.

In short, .wed isn’t dead, but it certainly appears extremely unwell.

UPDATE: This post was updated December 12 with a statement from ICANN.