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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.

auDA now looking to outsource .au registry

Australian ccTLD overseer auDA appears to have softened its approach to overhauling the management of .au.

The organization said today that it’s now planning to look for an “outsourced registry operation” that will come online in July 2018.

In recent months, the company had been looking for suppliers to help it build a dedicated, in-house, .au infrastructure, in addition to keeping its outsourcing options open.

Today, auDA said that its recent request for expressions of interest had concluded. It said:

The [Registry Transformation Project] team have been very pleased with the strength of responses received and recommended to the auDA Board that auDA should proceed to the next stage of the project. The auDA Board subsequently resolved to undertake a formal Request for Tender (RFT) process. The RFT will be restricted to the respondents of the REOI with a scope to deliver an outsourced registry operation, based on auDA’s updated specifications, by July 2018.

It looks like any registry providers that did not get their foot in the door with the REOI are now permanently shut out of the process.

Additionally, it appears as though auDA has settled on an outsourced, rather than in-house, solution. Given the fact that the majority of the industry is based on service-based registry solutions, that had always seemed like a strong possibility.

auDA now plans to post a draft technical spec for comment August 14 and a formal request for tenders August 28, with a view to picking a winner in October/November for a July 2018 launch.

The company currently uses Neustar as its back-end due to Neustar’s 2015 acquisition of 15-year incumbent AusRegistry.

The names of the companies responding to the REOI, and their number, have not been disclosed.

auDA is currently facing a member revolt, partly but by no means exclusively over its decision to build an in-house registry. The company’s chair finds out whether members want him fired or not on Monday.

Three-million-domain .au deal up for grabs

auDA has formally launched the process that will could see it replace .au back-end provider Neustar with an in-house registry by the end of June 2018.

The Australian ccTLD operator has opened a “Request for Expressions of Interest” as the first stage of a procurement process for software and/or services to support its recently announced Registry Transformation Project.

It’s looking for companies that can provide all the major pieces of a domain name registry — EPP registry, Whois, DNS, etc — and my reading of the REOI reveals a preference towards a system owned and operated by auDA.

Respondents can respond with products, technology and / or services for all or part of the elements of the Registry Transformation Project, and are free to partner with other respondents to put together combined proposals.

auDA intends to establish a dedicated .au registry, and have all arrangements in place to support this, by 30 June 2018.

The organization even talks about eventually becoming one of ICANN’s approved Emergency Back-End Registry Operators.

.au has grown to over 3 million domains over the 15 years it was being managed by AusRegistry, which was acquired by US-based Neustar in 2015. This deal is due to expire next year.

So it’s a big contract, and one that is likely to attract a lot of interest from players big and small.

That said, registry solutions are typically offered very much on a service basis. The market for licensed registry software is not exactly bustling, and auDA also requires source code access as a condition of any deal.

auDA said the deadline for responses to the REOI is June 26. It will decide upon its next steps, which could be a formal request for proposals, in the last week of July.

Further details can be found here.

Neustar’s .au deal in peril as Aussies look in-house

Australian ccTLD registry auDA is looking at bringing its back-end infrastructure in house, to the possible detriment of Neustar.

In a surprise move, auDA said late last month that several months of talks with AusRegistry, aimed at possibly extending its current back-end contract beyond 2018, had failed.

AusRegistry has operated .au for auDA since 2002, during which time the ccTLD has grown to 3.1 million domains.

The company was acquired by Neustar in 2015 as part of its $87 million acquisition of Bombora Technologies, parent to AusRegistry and ARI.

auDA said it has now launched an invitation-only “restricted tender exercise” to find advisers to help it build its own registry back-end.

AusRegistry will be among those invited to participate, auDA confirmed.

This week, the registry also announced that it has hired Bruce Tonkin, formerly of Melbourne IT and the ICANN board of directors, to be its “Registry Transformation Project Lead”.

It will also form an “Industry-led Advisory Panel” to give .au registrars a say in how the new registry is designed and built.

Direct .au regs closer to reality

Kevin Murphy, August 20, 2015, Domain Registries

Australians could soon get the ability to register domain names directly under .au for the first time.

Following in the footsteps of the UK and New Zealand, a panel of .au policy body auDA has recommended that the second level should be opened up for registrations, pending further consultation.

In a consultation paper (pdf), the panel wrote:

direct registrations would create names which are shorter, more appealing and more memorable. They would make the domain name system simpler and easier to use. Moreover, the proposed change would open a wide range of new choices for registrants, and would provide a better option, especially for some groups; in particular, the Panel thinks that the biggest benefit will be for individuals, who would be able to obtain an Australian domain name in a simple and straightforward way.

Trademark owners need to pay attention, because the panel has recommended that the release does not include a sunrise period, due to .au’s “no hierarchy of rights” principle.

But the panel is recommending that existing .au registrants should get first dibs on matching second-level names.

Unlike the UK, where .co.uk registrants had preference over registrants in other SLDs, the auDA panel says .com.au owners would not be treated any differently to, for example, .org.au owners.

The panel has also raised the idea of implementing ICANN’s Uniform Rapid Suspension policy.

Registry providers might want to take note that the panel says that .au back-end AusRegistry, now part of Neustar, will not automatically get the contract to run the direct .au registry; an RFP may be in auDA’s future.

The recommendations are now open for comment until September 30.