Public Interest Registry is sticking with Afilias to run the .org registry back-end.
The announcement came yesterday after a open procurement process that lasted for most of 2016.
Over 20 back-end providers from 15 nations — basically the entire industry — responded to PIR’s February request for proposals, we reported back in March.
Afilias retaining the contract is not a huge surprise. The bidding process was widely believed to be a way for non-profit PIR to reduce its costs, believed to be among the highest in the industry.
PIR said yesterday:
Afilias was selected as the best value solution based on the objective criteria and requirements set forth in Public Interest Registry’s procurement process. It is anticipated that Afilias will commence operations under the new contractual agreement on Jan. 1, 2018.
It’s very likely that the new deal will be worth a lot less to Afilias than the current arrangement, which costs PIR about $33 million per year.
In 2013, the last year for which we have Afilias’ financials, .org brought in $31 million of its $77 million revenue.
It’s believed that PIR is currently paying about $3 per domain per year, but Kieren McCarthy at The Register, citing unnamed industry sources, reckons that’s now been bumped down to $2, saving PIR about $10 million per year.
The .org gTLD has about 11.2 million domains under management, but its numbers have been slipping for several months, according to registry reports.
GMO Registry is to offer .shop domain registrants a free one-year SSL certificate with every purchase.
The company said yesterday that the deal, made via sister certificate company GMO GlobalSign, should be in place by the end of the month.
The certs on offer appear to be the of low-end “Domain Validation” variety.
Nevertheless, GlobalSign usually sells them for over $150 per year, many times more expensive than .shop domains themselves.
Popular registrars are currently selling .shop names from $10 to $25.
There are about 90,000 domains in .shop’s zone file today.
That’s a goodish volume by new gTLD standards, but probably not good enough to help GMO recoup the $41.5 million it paid for .shop at auction any time soon.
Upsell opportunities such as the SSL offer, assuming they get any uptake, may help accelerate its path to breakeven.
Two of the industry’s oldest and biggest gTLD registries escalated their fight over the .web gTLD auction this week, trading blows in print and in public.
Verisign, accused by Afilias of breaking the rules when it committed $130 million to secure .web for itself, has now turned the tables on its rival.
It accuses Afilias of itself breaking the auction rules and of trying to emotionally blackmail ICANN into reversing the auction on spurious political grounds.
The .web auction was won by obscure shell-company applicant Nu Dot Co with a record-setting $135 million bid back in July.
The plan is that NDC will transfer its .web ICANN contract to Verisign after it is awarded, assuming ICANN consents to the transfer.
Afilias has since revealed that it came second in the auction. It now wants ICANN to overturn the result of the auction, awarding .web to Afilias as runner-up instead.
The company argues that NDC broke the new gTLD Applicant Guidebook rules by refusing to disclose that it had become controlled by Verisign.
It’s now trying to frame the .web debate as ICANN’s “first test of accountability” under the new, independent, post-IANA transition regime.
Afilias director Jonathan Robinson posted on CircleID:
If ICANN permits the auction result to stand, it may not only invite further flouting of its rules, it will grant the new TLD with the highest potential to the only entity with a dominant market position. This would diminish competition and consumer choice and directly contradict ICANN’s values and Bylaws.
Given the controversy over ICANN’s independence, all eyes will be on the ICANN board to see if it is focused on doing the right thing. It’s time for the ICANN board to show resolve and to demonstrate that it is a strong, independent body acting according to the letter and spirit of its own AGB and bylaws and, perhaps most importantly of all, to actively demonstrate its commitment to act independently and in the global public interest.
Speaking at the first of ICANN’s two public forum sessions at ICANN 57 in Hyderabad, India this week, Robinson echoed that call, telling the ICANN board:
You are a credible, independent-minded, and respected board who recognized the enhanced scrutiny that goes with the post-transition environment. Indeed, this may well be the first test of your resolve in this new environment. You have the opportunity to deal with the situation by firmly applying your own rules and your own ICANN bylaw-enshrined core value to introduce and promote competition in domain names. We strongly urge you to do so.
Then, after a few months of relative quiet on the subject, Verisign and NDC this week came out swinging.
First, in a joint blog post, the companies rubbished Afilias’ attempt to bring the IANA transition into the debate. They wrote:
Afilias does a great disservice to ICANN and the entire Internet community by attempting to make this issue a referendum on ICANN by entitling its post “ICANN’s First Test of Accountability.” Afilias frames its test for ICANN’s new role as an “independent manager of the Internet’s addressing system,” by asserting that ICANN can only pass this test if it disqualifies NDC and bars Verisign from acquiring rights to the .web new gTLD. In this case, Afilias’ position is based on nothing more than deflection, smoke and cynical self-interest.
Speaking at the public forum in Hyderabad on Wednesday, Verisign senior VP Pat Kane said:
This is not a test for the board. This issue is not a test for the newly empowered community. It is a test of our ability to utilize the processes and the tools that we’ve developed over the past 20 years for dispute resolution.
Verisign instead claims that Afilias’ real motivation could be to force .web to a private auction, where it can be assured an eight-figure payday for losing.
NDC/Verisign won .web at a so-called “last resort” auction, overseen by ICANN, in which the funds raised go into a pool to be used for some yet-to-be-determined public benefit cause.
That robbed rival applicants, including Afilias, of the equal share of the proceeds they would have received had the contention set been settled via the usual private auction process.
But Verisign/NDC, in their post, claim Afilias wants to force .web back to private auction.
Afilias’ allegations of Applicant Guidebook violations by NDC are nothing more than a pretext to conduct a “private” instead of a “public” auction, or to eliminate a competitor for the .web new gTLD and capture it for less than the market price.
Verisign says that NDC was under no obligation to notify ICANN of a change of ownership or control because no change of ownership or control has occurred.
It says the two companies have an “arms-length contract” which saw Verisign pay for the auction and NDC commit to ask ICANN to transfer its .web Registry Agreement to Verisign.
It’s not unlike the deal Donuts had with Rightside, covering over a hundred gTLD applications, Verisign says.
The contract between NDC and Verisign did not assign to Verisign any rights in NDC’s application, nor did Verisign take any ownership or management interest in NDC (let alone control of it). NDC has always been and always will be the owner of its application
Not content with defending itself from allegations of wrongdoing, Verisign/NDC goes on to claim that it is instead Afilias that broke ICANN rules and therefore should have disqualified from the auction.
They allege that Afilias offered NDC a guarantee of a cash payout if it chose to go to private auction instead, and that it attempted to coerce NDC to go to private auction on July 22, which was during a “blackout period” during which bidders were forbidden from discussing bidding strategies.
During the public forum sessions at ICANN 57, ICANN directors refused to comment on statements from either side of the debate.
That’s likely because it’s a matter currently before the courts.
Fellow .web loser Donuts has already sued ICANN in California, claiming the organization failed to adequately investigate rumors that Verisign had taken over NDC.
Donuts failed to secure a restraining order preventing the .web auction from happening, but the lawsuit continues. Most recently, ICANN filed a motion attempting to have the case thrown out.
In my opinion, arguments being spouted by Verisign and Afilias both stretch credulity.
Afilias has yet to present any smoking gun showing Verisign or NDC broke the rules. Likewise, Verisign’s claim that Afilias wants to enrich itself by losing a private auction appear to be unsupported by any evidence.
Newspaper publisher Guardian News & Media is out of the gTLD game for good now, with ICANN saying this week that it will terminate its contract for the dot-brand, .theguardian.
It’s the 14th new gTLD registry agreement to be terminated by ICANN. All were dot-brands.
The organization has told Guardian that it started termination proceedings October 21, after the company failed to complete its required pre-delegation testing before already-extended deadlines.
.theguardian was the only possible gTLD remaining of the five that Guardian originally applied for.
It signed its registry agreement with ICANN in April 2015, but failed to go live within a year.
Guardian also applied for .guardian, which it decided not to pursue after facing competition from the insurance company of the same name.
The .observer gTLD, a dot-brand for its Sunday sister paper, was sold off to Top Level Spectrum last month and has since been delegated as a non-brand generic.
Applications for .gdn and .guardianmedia were withdrawn before Initial Evaluation had even finished.
Verisign could be running a “thick” Whois database for .com, .net and .jobs by mid-2017, under a new ICANN proposal.
A timetable published this week would see the final three hold-out gTLDs fully move over to the standard thick Whois model by February 2019, with the system live by next August.
Some people believe that Verisign might use the move as an excuse to increase .com prices.
Thick Whois is where the registry stores the full Whois record, containing all registrant contact data, for every domain in their TLD.
The three Verisign TLDs currently have “thin” Whois databases, which only store information about domain creation dates, the sponsoring registrar and name servers.
The model dates back to when the registry and registrar businesses of Verisign’s predecessor, Network Solutions, were broken up at the end of the last century.
But it’s been ICANN consensus policy for about three years for Verisign to eventually switch to a thick model.
Finally, ICANN has published for public comment its anticipated schedule (pdf) for this to happen.
Under the proposal, Verisign would have to start offering registrars the ability to put domains in its thick Whois by August 1 2017, both live via EPP and in bulk.
It would not become obligatory for registrars to submit thick Whois for all newly registered domains until May 1, 2018.
They’d have until February 1, 2019 to bulk-migrate all existing Whois records over to the new system.
Thick Whois in .com has been controversial for a number of reasons.
Some registrars have expressed dissatisfaction with the idea of migrating part of their customer relationship to Verisign. Others have had concerns that local data protection laws may prevent them moving data in bulk overseas.
The new proposal includes a carve-out that would let registrars request an exemption from the requirements if they can show it would conflict with local laws, which holds the potential to make a mockery out of the entire endeavor.
Some observers also believe that Verisign may use the expense of building and operating the new Whois system as an excuse to trigger talks with ICANN about increasing the price of .com from its current, frozen level.
Under its .com contract, Verisign can ICANN ask for a fee increase “due to the imposition of any new Consensus Policy”, which is exactly what the move to thick Whois is.
Whether it would choose to exercise this right is another question — .com is a staggeringly profitable cash-printing machine and this Whois is not likely to be that expensive, relatively speaking.
The proposed implementation timetable is open for public comment until December 15.