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Neustar to keep .us for another decade

Neustar has secured a renewal of its contract to run the United States’ ccTLD until up to 2029.

The company and the National Telecommunications and Information Administration announced the new contract last week.

The initial term of the deal runs until August 2021, but there are four two-year renewal options after that.

Neustar has been running .us since 2001. It doesn’t pay NTIA for the privilege, nor does the NTIA pay Neustar.

There are currently around two million registered .us domain names. The TLD appears to be still growing, but not especially fast.

MMX to pay $5.1 million to get out of terrible .london deal

Minds + Machines will pay its partner on .london roughly $5.1 million in order to put the catastrophic deal to bed for good.

That’s a reduction from the $7.9 million liability it had previously estimated.

The company said last week that it will pay an unspecified partner the $5.1 million “as full and final settlement for any further liability or contractual spend” after renegotiating the contract.

In April, MMX said that the deal had cost it $13.7 million since the outset.

While MMX has never publicly fingered the contract in question, which has been a pair of concrete boots for years, its deal with .london’s London & Partners is the only one that fits the bill.

The registry secured L&P, the marketing arm of the London Mayor’s office, as a client during the mayoral reign of Boris Johnson, the man set to be anointed the UK’s next prime minister this week.

It agreed to make millions of dollars in guaranteed payments over the duration of the contract, because it expected to sell a shedload of .london domains.

That never happened. The gTLD peaked at 86,000 names in March 2018 and was down to 54,000 a year later, evidently a fraction of what MMX had planned for.

The renegotiated deal — I believe at least the second time the deal has been amended — is “in principle” for now, with formal approval expected soon.

In its trading statement last week, MMX also said that the first half of the year ended with a 19% increase in regs, ending June at about 1.82 million.

It said it has “stabilised” declining billings in its acquired ICM Registry portfolio of porn-themed TLDs at $2.8 million, and that it has a “clear pathway” to growth from the four zones.

It’s hoping “further new initiatives” — likely a reference to a new trademark-blocking service — will help out in the current half.

MMX also said that it’s spending $1 million of its cash reserves on a stock buyback.

ZADNA boss canned for “misconduct”

The CEO of South African ccTLD manager ZADNA has been fired after a “misconduct” investigation lasting over half a year.

Vika Mpisane had been suspended from the role since early December, according to local reports, with Peter Madavhu taking his place.

Madavhu will continue as acting CEO until further notice, ZADNA told its members last week. A July 17 letter from chair Motlatjo Ralefatane, seen by DI, said:

Members would recall that Mr Vika Mpisane was on suspension pending the disciplinary hearing, which has been concluded.

Stemming from those disciplinary actions, Mr Vika Mpisane’s employment as the Chief Executive Officer of ZADNA has been terminated with effect from 16 July 2019.

The specifics of Mpisane’s alleged wrongdoings are not known. The fact that he had been suspended was not even public knowledge until MyBroadband scooped the story in May.

It has previously been reported that he was suspended for “for serious hybrid acts of misconduct including mismanagement of ZADNA funds”.

A disciplinary process that kicked off in January has reportedly been delayed multiple times, during which time Mpisane continued to draw a salary.

ICANN explains how .org pricing decision was made

ICANN has responded to questions about how its decision to lift price caps on .org, along with .biz and .info, was made.

The buck stops with CEO Göran Marby, it seems, according to an ICANN statement, sent to DI last night.

ICANN confirmed that was no formal vote of the board of directors, though there were two “consultations” between staff and board and the board did not object to the staff’s plans.

The removal of price caps on .org — which had been limited to a 10% increase per year — proved controversial.

ICANN approved the changes to Public Interest Registry’s contract despite receiving over opposing messages from 3,200 people and organizations during its open public comment period.

Given that the board of directors had not voted, it was not at all clear how the decision to disregard these comments had been made and by whom.

The Internet Commerce Association, which coordinated much of the response to the comment period, has since written to ICANN to ask for clarity on this and other points.

ICANN’s response to DI may shed a little light.

ICANN staff first briefed the board about the RA changes at its retreat in Los Angeles from January 25 to 28 this year, according to the statement.

That briefing covered the reasons ICANN thinks it is desirable to migrate legacy gTLD Registry Agreements to the 2012-round’s base RA, which has no pricing controls.

The base RA “provides additional safeguards and security and stability requirements compared to legacy agreements” and “creates efficiencies for ICANN org in administration and compliance enforcement”, ICANN said.

Migrating old gTLDs to the standardized new contract complies with ICANN’s bylaws commitment “to introduce and promote competition in the registration of domain names and, where feasible and appropriate, depend upon market mechanisms to promote and sustain a competitive environment in the DNS market”, ICANN said.

They also contain provisions forcing the registry to give advance notice of price changes and to give registrants the chance to lock-in prices for 10 years by renewing during the notice period, the board was told.

After the January briefing, Marby made the call to continue negotiations. The statement says:

After consultation with the Board at the Los Angeles workshop, and with the Board’s support, the CEO decided to continue the plan to complete the renewal negotiations utilizing the Base RA. The Board has delegated the authority to sign contracts to the CEO or his designee.

A second board briefing took place after the public comment periods, at the board’s workshop in Marrakech last month.

The board was presented with ICANN’s staff summary of the public comments (pdf), along with other briefing documents, then Marby made the call to move forward with signing.

Following the discussion with the Board in Marrakech, and consistent with the Board’s support, the CEO made the decision for ICANN org to continue with renewal agreements as proposed, using the Base gTLD Registry Agreement.

Both LA and Marrakech briefings “were closed sessions and are not minuted”, ICANN said.

But it appears that the board of directors, while not voting, had at least two opportunities to object to the new contracts but chose not to stand in staff’s way.

At the root of the decision appears to be ICANN Org’s unswerving, doctrinal mission to make its life easier and stay out of price regulation to the greatest extent possible.

Reasonable people can disagree, I think, on whether this is a worthy goal. I’m on the fence.

But it does beg the question: what’s going to happen to .com?

Zimbabwe wants to rebuild its domain market from scratch

Zimbabwe has put out a call for feedback on plans to modernize its almost non-existent domain name industry.

The local ccTLD manager, Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), has issued a consultation document discussing plans to essentially architect the .zw market from scratch.

.zw currently has no automated registration process, no Whois, no formal registry-registrar framework, no DNSSEC, no IPv6, and no governing policies.

POTRAZ is proposing to adopt “best practices” from fellow ccTLDs in Africa and elsewhere, by appointing a new registry operator that will work with a registrar channel under policies created by POTRAZ, as sponsoring organization, itself.

It looks rather like the contract to run the ccTLD could soon be up for grabs.

But first, POTRAZ wants to know how much involvement the Zimbabwean government should have in the operations of the TLD, presenting four options ranging from full governmental control to industry self-regulation.

Currently, POTRAZ, a government regulator, has handed off registry operations for .zw to state-owned telecoms company TelOne.

It has a three-level structure, with TelOne looking after .org.zw, the Zimbabwe Internet Service Providers Association looking after .co.zw and the University of Harare managing .ac.zw.

Interestingly, POTRAZ has not yet decided whether .zw domains should be free or paid for, and whether annual renewals should be required.

The consultation is open until August 9.

Zimbabwe has a population of about 16 million and, according to Internet World Stats, 6.8 million internet users.