Huge registrar shake-up coming to .biz and .info

Afilias and Neustar will be soon able to sell .biz and .info domains direct, and may have to shut down registrars that refuse to sign up to the new 2013 Registrar Accreditation Agreement.
Those are two of the biggest changes proposed to the companies’ ICANN contracts, drafts of which were published this morning six months after their last registry agreements expired.
The new .biz and .info deals would allow both companies to vertically integrate — that is, own a controlling position in a registrar that sells domains in their respective gTLDs.
This would remove unwanted friction from their sales and marketing efforts, but would mean both registries would start competing with their own registrar channel in the retail market.
That’s currently not allowed in almost all gTLD contracts, but is expected to become commonplace in the era of new gTLDs, which have no such ownership restrictions.
These new vertical integration clauses were not unexpected; it’s been envisaged for a couple of years that the restrictions would be dropped in legacy gTLDs.
What is surprising are newly proposed clauses that would oblige Neustar and Afilias to terminate accredited registrars’ access to their TLDs if they don’t sign up to the 2013 RAA.
Under the process set out in the contracts, when registrars representing 67% of the domains in each given TLD have signed up to the 2013 RAA, all the other registrars would have between 270 and 330 days to also sign up to it or lose their ability to access the .biz/.info registries.
That would mean no selling new names and no accepting inbound transfers — a growth death sentence in the affected TLDs.
In the case of .info, in which Go Daddy has a 45% market share, it would only take the top four registrars to sign up to the 2013 RAA before the clock started ticking for the others.
However, this 67% rule would only kick in for Afilias and Neustar if Public Interest Registry and Verisign also voluntarily agree to the same rules for their .org, .com and .net gTLDs.
It’s a pretty aggressive move by ICANN to push the 2013 RAA onto registrars via its contracts with registries, but not the first.
In the separately proposed base New gTLD Registry Agreement, expected to be finalized in the next few weeks, registrars can only sell new gTLD domains if they’re on the 2013 RAA.
Other changes to the .biz and .info contracts include giving the registries the ability to block certain domains from registration to deal with security threats. Registries have been doing this since Conficker, but now they’ll be explicitly allowed to under their contracts.
They’ll also now be subject to the same emergency back-end transition provisions as new gTLDs, in the event of a catastrophic failure.
Both companies will also get to keep their ability to raise registry fees by 10% a year.
Presumably, given that the US Department of Commerce is not party to the .biz and .info deals, neither registry will get the same nasty surprise that Verisign got last year when Commerce froze its prices.
Both proposed contracts are now open for public comment at ICANN, here and here.
The previous contracts actually expired last December but were extended for six months due to ICANN’s focus on new gTLDs and the fact that it wanted to bring both agreements closer to the new gTLD contract.

.info and .biz prices to go up

Afilias and Neustar have separately announced increased to the registry fees for .info and .biz domain names.
Afilias yesterday said the maximum wholesale price for a .info domain would increase to $8.16 effective September 1, a 10% increase on the current rate of $7.42 per year.
The last 10% hike, which the company is allowed to take under its ICANN registry agreement, came in July 2011.
Neustar last week also said it was taking its permitted 10% increase.
The maximum registry fee for .biz will go up to $8.63, also starting September 1. It last increased its prices in February 2012.

.info and .biz contracts extended after expiring

Afilias and Neustar have had their key gTLD registry contracts temporarily extended after they expired on New Year’s Eve.
The .info and .biz agreements, which were both signed with ICANN in 2006, both ended on December 31 2012.
Both deals, of course, have a presumption of renewal. They’ve been extended for six months while renewal terms are finalized.
I understand that the delay in getting new contracts negotiated and approved is due largely to all the other stuff going on at ICANN right now.
(New gTLD applicants planning to negotiate a non-standard contract with ICANN, take note.)
According to ICANN, drafts of the the next versions of the .info and .biz contracts will be posted for public comment this month.
I’d expect to see some of the same minor technical and legal changes made as those that were made to Verisign’s .net contract, which was renegotiated in 2011.
It’s going to be interesting to see whether .info and .biz will keep the same rights to increase registry fees, in light of the US Department of Commerce’s move to freeze .com prices.
However, .com is a special case and Commerce does not have a built-in right to examine .biz and .info contracts.

Happy 10th birthday new TLDs!

With all the excitement about ICANN’s weekend publication of the new top-level domain Applicant Guidebook, it’s easy to forget that “new” TLDs have been around for a decade.
Tomorrow, November 16, is the 10th anniversary of the ICANN meeting at which the first wave of new gTLDs, seven in total, were approved.
The recording of the 2000 Marina Del Rey meeting may look a little odd to any relative newcomers to ICANN.
The open board meeting at which the successful new registries were selected took well over six hours, with the directors essentially making up their selection policies on the spot, in the spotlight.
It was a far cry from the public rubber-stamping exercises you’re more likely to witness nowadays.
Take this exchange from the November 2000 meeting, which seems particularly relevant in light of last week’s news about registry/registrar vertical integration.
About an hour into the meeting, chairman Esther Dyson tackled the VI idea head on, embracing it:

the notion of a registry with a single registrar might be offensive on its own, but in a competitive world I don’t see any problem with it and I certainly wouldn’t dismiss it out of hand

To which director Vint Cerf, Dyson’s eventual successor, responded, “not wishing to be combative”:

The choices that we make do set some precedents. One of the things I’m concerned about is the protection of users who register in these various top-level domains… If you have exactly one registrar per registry, the failure of either the registrar or the registry is a serious matter those who people who registered there. Having the ability to support multiple registrars, the demonstrated ability to support multiple registrars, gives some protection for those who are registering in that domain.

Odd to think that this ad-hoc decision took ten years to reverse.
It was a rather tense event.
The audience, packed with TLD applicants, had already pitched their bids earlier in the week, but during the board meeting itself they were obliged to remain silent, unable to even correct or clarify the misapprehensions of the directors and staff.
As a rookie reporter in the audience, the big news for me that day was the competition between the three registries that had applied to run “.web” as a generic TLD.
Afilias and NeuStar both had bids in, but they were competing with Image Online Design, a company that had been running .web in an alternate root for a number of years.
Cerf looked like he was going to back the IOD bid for a while, due to his “sympathy for pioneers”, but other board members were not as enthusiastic.
I was sitting immediately behind company CEO Christopher Ambler at the time, and the tension was palpable. It got more tense when the discussion turned to whether to grant .web to Afilias instead.
Afilias was ultimately granted .info, largely due to IOD’s existing claim on .web. NeuStar’s application was not approved, but its joint-venture bid for .biz was of course successful.
This was the meat of the resolution:

RESOLVED [00.89], the Board selects the following proposals for negotiations toward appropriate agreements between ICANN and the registry operator or sponsoring organization, or both: JVTeam (.biz), Afilias (.info), Global Name Registry (.name), RegistryPro (.pro), Museum Domain Management Association (.museum), Société Internationale de Télécommunications Aéronautiques (.aero), Cooperative League of the USA dba National Cooperative Business Association (.coop);

If any of this nostalgia sounds interesting, and you want to watch seven hours of heavily pixelated wonks talking about “putting TLDs into nested baskets”, you can find the video (.rm format, that’s how old it is) of the MDR board meeting buried in an open directory here.

Price increase on the cards for .biz

NeuStar is to raise its registry fee on .biz domain names by $0.45, to $7.30 year, according to a letter sent to ICANN by the company’s vice president of registry services.
The changes will come into effect April 1, 2011, following the mandatory notice period registries have to give their registrar partners.
NeuStar has just seen a monthly decrease in total .biz registrations, from 2,070,343 to 2,065,389 at the start of the month, according to HosterStats.com.

Afilias adds DNSSEC to .info zone

The .info domain has become the latest gTLD to be signed with DNSSEC, the security standard for domain name lookups.
Afilias, which runs the .info registry, said today that it has signed its zone and added the necessary records to the DNS root.
DNSSEC is designed to prevent cache poisoning attacks, which can be used to hijack domain names and carry out phishing campaigns.
For registrants, DNSSEC in .info doesn’t mean much in practical terms yet. If you have a .info, you’ll have to wait for registrars to start to support the standard.
At the moment, only 19 second-level .info domains, including afilias.info and comcast.info, have been signed, as part of a “friends and family” testbed program.
The .org zone, which Afilias also provides the back-end for, was signed in June.
Neustar added full DNSSEC support for .biz in August, according to an announcement this week.
For .com and .net, VeriSign is currently planning to roll out the technology in the first quarter of 2011.

Second-tier TLDs gain aftermarket traction

The average aftermarket selling price of domain names in second-tier TLDs is creeping up, according to the latest numbers from Sedo.
Sedo’s latest quarterly sales review shows that namespaces such as .biz, .info and .org are selling for far better money than they were a year ago.
In fact, the median selling price of .biz, .org, and .net domains is now higher than that of .com.
The price of .biz names, which only accounted for 1% of overall sales, has almost doubled in the last four quarters, up 97% at $537.
The .info namespace fared almost as well, recording a median price of $418, up 91% on the $219 recorded in the second quarter of 2009.
The long-established .org has also appreciated over the last 12 months. Its median price rose 45% to $550.
While there’s no doubt that .com is still where the high-end money is, the median price for a .com was only $510, a 24% increase over the same period.
Sedo has started reporting median prices because big one-off sales can have an impact on the mean averages it also reports.
Its full Q1 Domain Market Study report can be downloaded here.

Two-letter .info auctions get go-ahead

ICANN has approved Afilias’ request to auction off its reserve of one and two-letter .info domain names.
The company seems to be planning to allocate the names both at auction and through a request-for-proposals process that would see registrants promise to develop and market their .info sites.
Any big partnerships could provide a welcome profile boost to .info, which has been around for a decade but still only grows about as much in a year as .com does in a month.
While auctions could also bring a nice windfall to the company, Afilias can expect to come under pressure from certain trademark holders to keep their brands off the market.
Volkswagen’s lawyers apparently “threatened every action in the book” to keep vw.biz out of Neustar’s allocation process for two-letter .biz names last year.