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Brand kills off gTLD that is actually being USED

Two more companies have told ICANN they’ve changed their minds about running a dot-brand gTLD, including the first example of a TLD that is actually in use.

Dun & Bradstreet has said it no longer wishes to launch .duns, and Australian insurance company iSelect has had enough of .iselect.

Both companies filed to voluntarily terminate their ICANN registry agreements in March, and ICANN published its preliminary decision to allow them to do so this week.

While business data provider D&B never got around to using .duns, .iselect has had dozens of active domains for years.

The company started putting domains in its zone file about three years ago and had over 90 registered names at the last count, with about a dozen indexed by Google. That’s a quite a lot for a dot-brand.

It is using domains such as home.iselect, news.iselect and careers.iselect as redirects to parts of its main corporate site, while domains such as gas.iselect, creditcards.iselect and health.iselect send customers to specific product pages.

They all redirect to its main iselect.com.au site. There are no web sites as far as I can tell that keep visitors in the .iselect realm.

I’m pretty certain this is the first example of a voluntary contract termination by a dot-brand that is actually in active use.

There have been 52 such terminations to date, including these two latest ones, almost all of which have been dot-brands that never got out of the barn door.

That’s over 10% of the dot-brands that were delegated from the 2012 gTLD application round.

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Time for some more ICANN salary porn

Kevin Murphy, June 3, 2019, Domain Policy

ICANN has filed its tax return for its fiscal 2018, so it’s once again that time of the year in which the community gets to salivate over how much its top staffers get paid.

The latest form 990, covering the 12 months to June 30, 2018, shows that the top 21 ICANN employees were compensated to the tune of $10.3 million, an average of $492,718 each.

That’s up about 4% from $9.9 million in the previous year, an average across the top 21 staffers of $474,396 apiece.

These numbers include base salary, bonuses, and benefits such as pension contributions.

Employee compensation overall increased from $60 million to $73.1 million.

The biggest earner was of course CEO Göran Marby, who is now earning more than his immediate predecessor Fadi Chehadé but a bit less than last-but-one boss Rod Beckstrom.

Marby’s total compensation was $936,585, having received a bonus of almost $200,000 during the year. His base salary was $673,133.

The number of staffers receiving six-figure salaries increased from 159 in fiscal 2017 to 183 — about 44% of its estimated end-of-year headcount.

Towards the end of the reported year, as ICANN faced a budget crunch, many members of the ICANN community had called on the organization to rein in its spending on staff.

ICANN says it targets compensation in the 50th to 75th percentile range for the relevant industry.

The top five outside contractors in the year were:

  • Jones Day, ICANN’s go-to law firm. It received $5.4 million, down from $8.7 million in 2017.
  • Zensar Technologies, the IT consultancy that develops and supports ICANN software. It received $3.7 million.
  • IIS, the Swedish ccTLD registry, which does pre-delegation testing for new gTLDs. It received $1.3 million.
  • Iron Mountain, the data escrow provider. It received $1.1 million.
  • Infovity, which provides Oracle software support. It received $1 million.

The return shows that ICANN made a loss of $23.9 million in the year, on revenue that was down from $302.6 million to $136.7 million.

The primary reason for this massive decrease in revenue was the $135 million Verisign paid for the rights to run .web, at an ICANN last-resort auction, in ICANN’s fiscal 2017.

The tax form for 2018 can be found here (pdf) and 2017’s can be found here (pdf).

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Smaller registrars say .uk release is biased towards the Big Boys

A group of small .uk registrars have complained to Nominet that the imminent release of three million second-level .uk domain names is biased towards their deep-pocketed rivals.

So far, 33 registrars have signed a petition, penned by Netistrar’s Andrew Bennett, against Nominet’s rules.

On July 1, the registry plans to start releasing .uk 2LDs that are currently reserved under its five-year-long grandfathering program.

These are domains that match existing third-level domains in .co.uk, .org.uk, etc.

The 3LD registrants have until 0500 UTC on June 25 to claim their 2LD matches. A week later, Nominet will start releasing them in alphabetical batches of 600,000 per day, over five days, to the available pool.

It’s going to be a little like “the drop” in gTLDs such as .com, with registrars all vying to pick up the most-valuable names as soon as they are released.

In the gTLD space, each registrar is given an equal number of connections, which is why drop-catch specialists such as SnapNames own hundreds of registrar accreditations.

Nominet’s doing it a little different, instead throttling connections based on how much credit registrars have with the registry, which the petitioners believe rigs the system towards the registrars with the most money.

According to the Nominet, registrars with £450 of credit get six connections per minute, rising to nine per minute for those with £4,500, 60 per minute for £45,000 and, at the top end, 150 per minute for registrars with £90,000 stashed in the Bank of Nominet.

Larger registrars with multiple Nominet accreditations, known as “tags” in the .uk space, will be able to stack their connections for an even greater chance at grabbing the best names.

Registrars such as GoDaddy are already taking pre-orders and will auction off the domains they catch to the highest bidder, if there are multiple pre-orders for the same names, so there’s potentially a fair bit of money to be made.

The small registrars say these credit-based rules are “disproportionately unfair” to their business models.

They point out that it doesn’t make much sense to rate-limit connections based on their proven ability to pay, given that there’s no link between how many they plan to register in the crucial first minute after the drop and how many they intend to register overall.

Nominet says on its web site that the tiers as described are provisional and will be firmed up the week of June 24.

The petitioners are also bothered that Nominet has not made any EPP code available to help the smaller guys, which have fewer engineering resources, to adjust to this temporary, time-sensitive registration system, and that the release plan was not communicated well to registrars.

They further claim that Nominet has not conducted enough outreach to .uk registrants to let them know their grandfathered rights will soon expire.

Many well-known brands have yet to claim their trademark.uk names, they claim.

Nominet has previously told DI that it planned to advertise the end of grandfathering in the press and on radio in the run-up to the release.

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New gTLDs slip again in Q1

The number of domains registered in new gTLDs slipped again in the first quarter, but it was not as bad as it could have been.

Verisign’s latest Domain Name Industry Brief, out today, reports that new gTLD domains dropped by 800,000 sequentially to end March at a round 23.0 million.

It could have been worse.

New gTLD regs in Q1 were actually up compared to the same period last year, by 2.8 million.

That’s despite the fact that GRS Domains, the old Famous Four portfolio, has lost about three million domains since last August.

Verisign’s own .com was up sequentially by two million domains and at 141 million, up by 7.1 million compared to Q1 2018. But .net’s decline continued. It was down from 14 million in December to 13.8 million in March.

Here’s a chart (click to enlarge) that may help visualize the respective growth of new gTLDs and .com over the last three years. The Y axes are in the millions of domains.

.com v new gs

New gTLDs have shrunk sequentially in six of the last 12 quarters, while .com has grown in all but two.

The ccTLD world, despite the woes reported by many European registries, was the strongest growth segment. It was up by 2.5 million sequentially and 10 million compared to a year ago to finish the period with 156.8 million.

But once you factor out .tk, the free TLD that does not delete expired or abusive names, ccTLDs were up by 1.4 million sequentially and 7.8 million on last year.

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Second-level .au domains ARE coming soon

Australian ccTLD manager auDA has given itself approval to start selling .au domains at the second level for the first time.

auDA said today that it plans to lift its third-level-only rule in the fourth quarter this year.

The date of October 1 has been penciled in, but auDA said it will release more details as the time approaches.

There will be a grandfathering policy in place for existing registrants of 3LDs under the likes of .com.au and .org.au, but its deadlines are much tighter than the policies in, for example, .uk.

Under the published rules (pdf), registrants who owned 3LDs in .au before a cut-off date will get first dibs on the matching 2LD.

That priority period will end April 1, 2020.

After that, registrants who bought their .au names between the cut-off date and now will get also get priority, until August 1, 2020.

The cut-off date has yet to be determined by the auDA board of directors.

After the priority period is over, all unclaimed domains will be available to register by anyone.

You’re basically looking at six to 10 months of grandfathering rights, compared to the five years Nominet offered in when it made direct 2LD registration possible in .uk.

The 2LD policy has been four years in the making, and has courted controversy along the way.

Domain investors in particular have complained, worried that 2LDs will cause confusion and dilute the value of their 3LD investments.

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