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Shocker! After 15 years, Afilias kicks Neustar out of Australia

Kevin Murphy, December 18, 2017, Domain Registries

Afilias has been awarded the contract to run .au, Australia’s ccTLD, kicking out incumbent Neustar after 15 years.

It’s currently a 3.1 million-domain contract, meaning it’s going to be the largest back-end transition in the history of the DNS.

It’s also very likely going to see the price of a .au domain come down.

Neustar, via its 2015 acquisition of AusRegistry, has been the back-end provider for .au since 2002. That deal is now set to end July 1, 2018.

auDA, the ccTLD manager, said today that Afilias was selected from a shortlist of three bidders, themselves whittled down from the initial pool of nine.

It’s not been disclosed by auDA who the other shortlisted bidders were, and Afilias execs said they do not know either. I suspect Neustar would have been one of them.

The contract was put up for bidding in May, after auDA and Neustar failed to come to terms on a renewal.

At 3.1 million domains under management, .au is currently bigger than .org was when Afilias took over the back-end from Verisign in 2003.

Back then, .org was at 2.7 million names. It’s now at over 10 million.

“It’s the biggest transition ever, but not by much,” Afilias chief marketing officer Roland LaPlante said.

CTO Ram Mohan said that it should actually be easily than the .org transition, which had the added wrinkle of switching registrars from Verisign’s legacy RPP protocol to the now-standard EPP.

auDA said that Afilias will start reaching out to the 40-odd current .au registrars about the transition “as early as this week”.

About half of registrars are already on Afilias’ back-end and about half are ICANN-accredited, LaPlante said.

“We don’t expect to have many changes for registrars, but we have plenty of time to prepare them for what is needed,” Mohan said. “It ought to be a fairly easy glide path.”

There will be a live test environment for registrars to integrate with prior to the formal handover, he said.

There are several local presence requirements to the contract, so Afilias will open up a 20-person office in Melbourne headed by current VP of corporate services John Kane, who will shortly move there.

The company will also have to open a data center there, as the contract requires all data to be stored in-country.

Mohan, LaPlante and Kane said they’re all jumping on planes to Melbourne tonight to begin transition talks with local interested parties.

Financial terms of the deal are not being disclosed right now, but LaPlante said that .au registrars should see prices come down. This could lead to lower prices for registrants.

They currently pay AUD 17.50 ($13.44) per domain for a two-year registration, and I believe Neustar’s cut is currently around the $5 (USD) per year mark.

Afilias is not known for being a budget-end back-end provider, but it seems its slice of the pie will be smaller than Neustar’s.

LaPlante said that fees charged to registrars will be set by auDA, but that it now has flexibility to reduce prices that it did not have under the incumbent.

“Some savings should flow down to registrars as part of this,” he said.

The term of the contract is “four or five years” with options to renew for additional years, he said.

The loss of .au has no doubt come as a blow to Neustar, which paid $87 million for AusRegistry parent Bombrra just two years ago.

While Bombora also had dozens of new gTLD clients, many dot-brands, .au was undoubtedly its key customer.

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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.

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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.

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Expect “minor inconveniences” in post-hurricane Puerto Rico

Kevin Murphy, December 12, 2017, Domain Policy

ICANN 61 is going ahead in Puerto Rico despite the continuing fallout of a devastating hurricane season, the organization has confirmed.

The March 10-15 meeting will take place at the convention center in San Juan, and participants can only expect “minor inconveniences”

ICANN said in a statement:

We recognize that Puerto Rico is still in the recovery phase, and while we can expect some minor inconveniences, the convention center and supporting hotels are fully operational and eager to host our event in March.

ICANN has not yet listed its official supporting hotels, where it usually negotiates bulk discounts, on the official ICANN 61 page.

In the event you, like me, always find ICANN’s approved hotels a tad on the pricey side, you’ll probably need to do your own research.

ICANN added that it has been working with the island’s governor and that: “We have been assured that our presence in San Juan will support economic recovery on the island.”

Hurricane Maria made landfall in Puerto Rico on September 20, killing at least 48 people and causing billions of dollars in property damage.

The convention center venue for ICANN 61 escaped relatively unscathed and was actually used as a command and control center during the immediate aftermath of the disaster.

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.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.

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