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Direct marketers join anti-gTLD bandwagon

Kevin Murphy, August 26, 2011, Domain Policy

The UK Direct Marketing Association has added its voice to the collection of advertising trade groups that oppose ICANN’s new generic top-level domains program.

DMA executive director Chris Combemale said in a statement:

Creating a tranche of new internet domain names will be extremely costly to businesses. As well as the associated costs of registering new domain names and spending money to attract customers to multiple domains, businesses face the legal and financial headache of having to contend with cybersquatters grabbing specific domains.

Customised domain names won’t offer brands any enhanced marketing possibilities because consumers can easily search for specific information with the current domain name system.

Companies are already hard pressed to find cost savings in these tough trading times; adding a further financial burden that won’t reap any commercial benefits cannot be justified.

The organization said it plans to formally ask ICANN to withdraw or revise the program.

The Association of National Advertisers, the Interactive Advertising Bureau and the American Association of Advertising Agencies have already made similar calls.

The DMA UK has over 800 members, according to its web site.

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Most new gTLDs will fail

Kevin Murphy, August 26, 2011, Domain Registries

We’re going to see hundreds of new gTLDs over the coming years, but we’re also going to see potentially hundreds of failures.

That’s the view being espoused by some of the biggest cheerleaders of ICANN’s new generic top-level domains program, including its former chairman, at the .nxt conference this week.

During the opening session on Wednesday, a panel of experts was asked to imagine what the domain name industry might look like in 2017, five years after the first new gTLDs go live.

“My assumption is that many TLDs will have completely failed to live up to their promoters’ hype,” said Minds + Machines executive chairman Peter Dengate Thrush, whose last action as ICANN chair was pushing through approval of the program. “But on the other hand many of them, and I hope a majority of them, will be thriving.”

Anyone expecting to build a business on defensive registrations better think again, panelists said.

“Many ill-conceived generic-term TLDs will have failed by that point, especially those generic term TLDs that are taking comfort in the .xxx Sunrise Part B revenue model,” said Paul McGrady of the law firm Greenberg Traurig.

“There’s definitely going to be burnout in the brand-owner community, so don’t expect the brand owners to show up to to fuel that,” he said.

Others, such as Tucows CEO Elliot Noss, went further.

“I think there’ll be more failures than successes and I’m not fussed by that,” said Noss. “For the users in the namespace, it’s not like they’re left high and dry.”

He compared failing gTLDs to the old Angelfire and Geocities homepage services that were quite popular in the late 1990s, but which fizzled when the cost of domains and hosting came down.

But while the disappearance of an entire gTLD would take all of its customers with it, a la Geocities, that’s unlikely to happen, panelists acknowledged.

ICANN’s program requires applicants to post a bond covering three years of operations, and it will also select a registry provider to act as an emergency manager if a gTLD manager fails.

When gTLD businesses fail, and they will, they’re designed to fail gracefully.

In addition, taking on an extra gTLD after its previous owner goes out of business would be little burden to an established registry provider — once the transition work was done, a new string would be a extra renewal revenue stream with possibly little additional overhead.

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M+M surprised by .mumbai snub

Kevin Murphy, August 25, 2011, Domain Registries

One of Minds + Machines’ key top-level domain applications has been thrown into confusion after government support for its .mumbai bid was apparently revoked.

In a letter that surfaced on the ICANN web site this week, Y.S. Mahangade, deputy director of IT at the Municipal Corporation of Greater Mumbai, wrote (pdf):

Honorable Deputy Mayor of MCGM inadvertently issued a letter to one organization which has been revoked later by Honorable Deputy Major of MCGM. It may please be noted that the official position of the City of Mumbai is communicated by Municipal Commissioner.

Under ICANN’s rules, all applications for geographical gTLDs must be backed officially by the local government, otherwise they get rejected.

According to Wikipedia, the Mayor of Mumbai (and presumably the deputy) has a “largely ceremonial” function, “as the real powers are vested in the Municipal Commissioner”.

Wikipedia does not say what kind of power the deputy director of IT wields. I’m guessing it’s not much.

M+M CEO Antony Van Couvering said in a statement:

This is the first we have heard about this and we are looking into the matter with our client, India TL Domain Pvt Ltd, to whom the original letter of appointment was issued by the Deputy Mayor of Mumbai. Once we understand what the situation is viz-a-viz India TL Domain Pvt Ltd and the City of Mumbai, we will provide an update.

You can view the letter of support from the deputy mayor here.

M+M announced its deal with the .mumbai applicant, India TL Domain, in June. As I noted at the time, not much is known about the company.

But according to official records, the company’s managing director is Ashok Hiremath, who’s also chairman of Mumbai-based fungicide manufacturer Astec Lifesciences.

His brother Suresh, now apparently a British citizen living in London, appears to be the only one of the company’s three directors to have engaged, albeit lightly, in ICANN policy development.

The third director is also Astec’s corporate secretary. The company shares its address with Astec.

In June, M+M’s parent company, Top Level Domain Holdings, issued two million new shares to an unnamed consultant as a result of the .mumbai deal, raising £160,000 ($260,000).

This is not the first time a geographic gTLD applicant that apparently raised support from the necessary governmental entity has had its plans thrown into doubt.

The same happened to DotConnectAfrica, a potential .africa bidder, in May, after the African Union apparently did an about-face.

Mumbai is India’s largest city, with over 20 million citizens. It’s also the richest (although the poverty there is enough to make you weep) making .mumbai a potentially lucrative gTLD.

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MelbourneIT talks to 270 .brand applicants

Kevin Murphy, August 24, 2011, Domain Registrars

The Australian domain registrar MelbourneIT said it has talked to 270 companies and signed contracts with 17 that want to apply for “.brand” top-level domains.

The news came in the company’s “disappointing” first-half financial results announcement yesterday.

According to its official report (pdf), MelbourneIT has received 230 expressions of interest and has inked deals with 14, but managing director Theo Hnarkis reportedly told analysts the higher numbers.

The company is charging clients between AUD 45,000 ($47,000) and AUD 75,000 ($79,000) to handle the ICANN application process.

MelbourneIT’s preferred partner for back-end registry services is VeriSign, so the clients it signs are likely to become recurring revenue streams for VeriSign if their applications are successful.

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Watch the .nxt conference live online

Kevin Murphy, August 24, 2011, Domain Policy

The .nxt conference on new top-level domains kicks off in San Francisco later today, but fear not if you were unable to make it in person – much of the content will be streamed live online.

Roughly half of the three-day meeting’s sessions will be made available live, and it appears that the whole lot will be available on demand for the next three months.

If the conference is as informative as the first one, which took place in February, the $95 fee .nxt is charging to access the streams seems like a pretty good deal.

It’s no substitute for being there in person – much of the value in these things lies in the networking opportunities – but if new gTLDs are likely to effect your business you’d be crazy not to check it out.

More details here.

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