Who really uses IDNs? [Guest Post]

Are Internationalised Domain Names really useful, or just a way for an ASCII-focused internet governance community to feel better about itself?
Beyond all the hoopla about ICANN’s 2009 program to enable countries to operate their own non-Latin script internet suffixes (aka the “IDN ccTLD Fast Track”), what should really matter is the Internet user.
Yes, those sitting in ICANN meeting rooms at the time, listening to the hyperbole about how the internet was now going truly global probably felt like they were feeding the hungry and bringing peace to the world. But do people actually use IDNs?
I will admit that at the time, I was dubious. Of course, saying so in ICANN circles would have been akin to wearing a “Camembert is bad” t-shirt in the streets of Paris: poor form! But still, I couldn’t help ask myself if having a single one-language system unite the world was actually such a bad thing?
“How would you like it if the Internet had been invented in China and you had to use their alphabet,” was the usual rebuke I got if I ever dared to doubt out loud. And there really is no arguing with that. If the internet was Chinese, I’d want the Mandarin version of ICANN to roll out IDNs pretty sharpish.
Nonetheless, can the usefulness of IDNs still be questioned?
Facebook in Latin
Talking to a local internet expert whilst attending last week’s excellent Domain Forum in Sofia, Bulgaria, the answer would seem to be a surprising yes.
“Why would kids in this country use IDNs,” I was told when I suggested that, surely, Bulgaria must be excited about the prospect of natural language web addresses. “What worries the authorities here is the fact that kids are using Latin scripts so much on social media sites that they don’t even know how to write in Cyrillic anymore! So even if they could use IDN web and email addresses, why would they? They want to communicate like everyone else does on Facebook.”
In truth, Bulgaria’s view may be skewed by the horrible experience it’s had with ICANN’s IDN Fast Track. The country was refused its own IDN country code due to a perceived similarity with another TLD that no-one in Bulgaria really feels is warranted. But not all potential IDN users feel they are useless. Neighbors in Russia tell of a different IDN experience.
The Russian registry saw stunning initial take-up when it opened the IDN .РФ (.RF for Russian Federation) to general consumption on November 11, 2010. Registration volumes were explosive, with almost 600,000 names registered in the first month. Strong growth continued for a year, hitting a peak of 937,913 registered names in December 2011.
No profit
But the following month, that number fell off a cliff. Total registrations dropped to 844,153 in January 2012. “Initial registrations were driven in part by speculators,” explains ccTLD .RU’s Leonid Todorov. “But when people saw they couldn’t make huge profits on the domains, they started letting them go.”
Even so, .РФ remains a real success. Although November 2012 figures show a year on year decline of 8.63%, the TLD still sports a whopping 845,037 names.
At 66%, .РФ has a slightly lower renewal rate than ASCII Russian equivalent .ru (73%), probably because of those day-one speculators, but it remains widely used. Current delegation figures (i.e. the number of domain names that are actually used for email or websites) stand at a commendable 70% and have not stopped rising since .РФ opened in 2010 with a 45% delegation rate.
The Cyrillic Russian domain sees a vast predominance of personal use, with 77% percent of domains being registered by individuals. “Russians care deeply about their national identity,” says my Bulgarian friend when I suggest that IDNs do seem to matter in some Cyrillic-using countries. “To them, Dot RF is a matter of national pride.”
National pride
So IDNs may not really be all that different from ASCII domain names, with take-up depending on perceived use or value. Europe’s IDN experience seems to confirm this, as European registry EURid’s Giovanni Seppia explained in Sofia.
He revealed that since EURid introduced IDNs on December 11, 2009, registrations reached a peak of around 70,000 (a mere fraction of the 3.7 million names currently registered in the .eu space) before dropping off quite sharply.
Why? Well .eu IDNs may not hold much potential for real use or investment value for Europeans. Although web use is possible with IDNs, software primarily designed for an ASCII-only world does not always make it easy.
Email capability would be a real boost, but so far only the Chinese seem to have enabled it for their local script domains. The Chinese registry recently announced this, without giving details on how the use of all-Chinese character email addresses has been implemented or which email clients support IDNs.
Whatever the technology, countries which combine national pride and a character set far removed from our own probably see more desire for IDNs. With two years of hindsight, Russia obviously loves its IDN. And as other countries like China bring more elaborate IDN capabilities online, demand should grow and force even this IDN skeptic to recognize the new character(s) of the internet.
This is a guest post written by Stéphane Van Gelder, strategy director for NetNames. He has served as chair of the GNSO Council and is currently a member of ICANN’s Nominating Committee.

Almost five million Russian domains registered

Coordination Center for TLD RU broke through the four-million-domain milestone for the Russian ccTLD .ru on Monday, according to a press release.
Including internationalized domain names under .РФ, of which there are 800,000, ccTLD.ru is managing closer to five million domains.
It took 11 months to grow from 3.5 million domains, according to the registry.
The .ru zone is the fifth-largest ccTLD, after .de, .tk, .uk, and .nl, according to Verisign’s last Domain Name Industry Brief.

Russians flee from IDN during first junk drop

Russia’s internationalized ccTLD, .РФ, lost 18% of its registered domains under management after its first launch anniversary, according to the registry.
Coordination Center for ccTLD said that the registry peaked at 954,012 names on December 28, but DUM had dropped to 779,264 by February 15, a 174,748 domain decline.
While the Center spun this as lower than expected – some experts had apparently predicted 25% to 30% of the early-adopter names would expire – it’s still relatively high.
Telnic deleted about 15% of its names during .tel’s first junk drop, the most recent in the gTLD space, for example.
The Russian registry has also made an eye-opening set of stats related to .РФ available on a new web site.
It reveals that just 33% of .РФ domains resolve to a web site (any web site, presumably including parking) while 29% do not even have name servers.

Russian registry to apply for “.children”

The Russian .ru domain name registry has announced plans to apply for .ДЕТИ, the Russian word for “.children”, under ICANN’s new generic top-level domains program.
It’s the first public announcement of a top-level internationalized domain name that is not geographic nor a transliteration of an existing TLD.
Coordination Center for TLD RU, the registry, said that the initiative was inspired by the success of .РФ (.rf), which is on track to register its millionth domain before the end of the year.
Registry CEO Andrey Kolesnikov said in a statement: “We kicked off preparations for the applying for another top-level domain – .ДЕТИ, which should for an Internet space reserved exclusively for the youngest users.”
IDN gTLDs are one of the benefits of the new gTLD program that nobody — not even trademark interests — disputes, but until now there were no “proper” examples to cite.
VeriSign and Afilias have already announced plans for IDN versions of their existing gTLDs – .com, .net and .info – and ICANN has approved IDN ccTLDs for a couple dozen nations.

One in five .рф domains have web sites

The .рф registry celebrated its first launch anniversary last week, with almost one million .рф names registered and apparently almost one in five domains with an active web site.
According to RU-Center, which says it is the registrar of record for 40% of .рф (.rf) names, about 18% of the Cyrillic domains registered in the last year resolve to full web sites.
The registrar said in a press release:

18% of names have website, 16% do redirect, 4% are on parking, 15% are just delegated but not available, and 15% have a plug webpage. 29% of .RF names are unused.

That compares to the 18.7% use penetration of .info, which has been around for over a decade, assuming RU-Center and Afilias compiled their numbers using a similar methodology.
RU-Center also said that 94% of .рф sunrise registrations have been renewed. The rate of landrush registration renewals, which give an indication of what speculators think of the space, will not be clear until December, it said.
It is apparently now also possible for non-Russians to obtain .рф domains.

Court throws out Russian gaming scandal claims

Russian registrar RU-Center has won its appeal against a $7.5 million government fine, following claims that it gamed the launch of .РФ, registering tens of thousands of names to itself.
The Moscow Arbitration Court yesterday reversed the decision of the Federal Antimonoply Service, according to a statement from RU-Center, the .РФ registry and local media reports.
The dispute centers on the launch of the Cyrillic-script ccTLD last November, which saw over 200,000 registrations in the first six hours and half a million domains registered in the first few weeks.
RU-Center was quickly hit by claims that it had used its access to the registry, ccTLD Coordination Center, to register over 65,000 premium names to itself in order to auction them to users.
It later emerged that some of the Coordination Center’s launch policy-setters had ownership interests in RU-Center either directly or through family members.
In challenging the FAS ruling, RU-Center said that it only registered domains in its own name, via other registrars, because it had taken over 120,000 pre-orders from customers but was limited to filing 4,800 registrations per hour by the registry.
It also said that the domains remained in its own name because registry rules prohibited transfers during the first year of registration. The transfers will be effective November 11, it said.

Some IDNs fly, while some fail

Russia may have witnessed a domain name boom this year with the launch of .РФ last November, but other internationalized domain names are proving far from popular.
Jordan’s الاردن. country-code top-level domain has taken only about 150 registrations since its launch last October, according to a report in the Jordan Times.
The poor showing has been attributed to both a lack of awareness and a lack of demand. The article quotes Mahmoud Al Kurdi, sales and marketing manager at regional presence provider Virtuport:

If a person does not even know how to type the address of a certain website in English letters, he or she can type in Arabic letters on Google and search for the website. I see no point in typing address in Arabic letters. It is not convenient.

The sentiments are echoed in the article by other local experts, while the registry, the National Information Technology Centre, said it is planning a marketing campaign to drum up interest.
There could be other reasons for slack adoption – Jordan’s IDNs costs $140 for the first two years and $35 per year thereafter. There are also strict rules governing who can register.
Meanwhile in Russia, .РФ had taken 855,751 registrations by June 30, according to the registry’s first-half 2011 report, following its scandal-tinged launch eight months earlier.
Russia is of course substantially larger than Jordan – which has a population smaller than that of London – with ten times as many internet users as Jordan has citizens.

Will a Russian domain sell for more than Sex.com?

The scandal-hit Russian domain name market may yet produce some of the most expensive domain name sales of all time. Premium .рф generics are already attracting eight-figure bids.
Bids of $10 million have apparently been placed on at least two domains, квартиры.рф and бетон.рф (apartments.rf and concrete.rf), in the controversial quasi-landrush auction managed by RU-Center, the largest Russian registrar.
IDNblog.com is reporting the apartments.rf asking price, and a reader was kind enough to send me a screenshot of the concrete.rf auction.
If these bids are for real, and these auctions were to close, they would immediately occupy the number two and three slots on the league table of all-time biggest-ticket domain sales
Before sex.com sold for $13 million, DNJournal’s top twenty list had fund.com in the top spot, at $9,999,950, followed by porn.com at $9,500,000 and diamond.com at $7,500,000.
The RU-Center auctions may not close, however.
As I reported yesterday, the registrar and five others are being investigated on antitrust grounds by Russian competition authorities, after allegedly registering tens of thousands of domains to themselves.
The auctions are currently frozen and the .рф registry, Coordination Center for ccTLD, has made noises about applying “sanctions” to the registrars that could include de-accreditation.
RU-Center, which confusingly does business at nic.ru, has defended its position in at least two articles here and here (in Russian, naturally).
As far as I can tell, none of these auctions will close until the registrar and the registry resolve their differences and/or the Russian government probe concludes.
However, it’s pretty obvious that the demand for Cyrillic generic IDNs is enormous in Russia, and could easily challenge .com on the big-sale league tables.