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New gTLDs continue growth trend, but can it last?

Kevin Murphy, December 10, 2018, Domain Registries

New gTLDs continued to bounce back following a year-long slump in registration volumes, according to Verisign data.

The company’s latest Domain Name Industry Brief, covering the third quarter, shows new gTLDs growing from 21.8 million names to 23.4 million names, a 1.6 million name increase.

New gTLDs also saw a 1.6 million-name sequential increase in the second quarter, which reversed five quarters of declines.

The sector has yet to surpass its peak of 25.6 million, which it reached in the fourth quarter of 2016.

It think it will take some time to get there, and that we’ll may well see a decline in next couple quarters.

The mid-point of the third quarter marked the end of deep discounting across the former Famous Four Media (now GRS Domains) portfolio (.men, .science, .loan, etc), but the expected downward pressure on volumes wasn’t greatly felt by the end of the period.

With GRS’s portfolio generally on the decline so far in Q4, we might expect it to have a tempering effect on gains elsewhere when the next DNIB is published.

Verisign’s data showed also that ccTLDs shrunk for the first time in a couple years, down by half a million names to 149.3 million. Both .uk and .de suffered six-figure losses.

Its own .net was flat at 14.1 million, showing no signs of recovery after several quarters of shrinkage, while .com increased by two million names to finish September with 137.6 under management.

Exclusive: Tiny island sues to take control of lucrative .nu

Kevin Murphy, November 28, 2018, Domain Registries

The tiny Pacific island of Niue has sued the Swedish ccTLD registry to gain control of its own ccTLD, .nu, DI has learned.

The lawsuit, filed this week in Stockholm, claims that the Internet Foundation In Sweden (IIS) acted illegally when it essentially took control of .nu in 2013, paying its American owner millions of dollars a year for the privilege.

Niue wants the whole ccTLD registry transferred to its control at IIS’s expense, along with all the profits IIS has made from .nu since 2013 — many millions of dollars.

It also plans to file a lawsuit in Niue, and to formally request a redelegation from IANA.

While .nu is the code assigned to Niue, it has always been marketed in northern Europe, particularly Sweden, in countries where the string means “now”.

It currently has just shy of 400,000 domains under management, according to IIS’s web site, having seen a 50,000-name slump just a couple weeks ago.

It was expected to be worth a additional roughly $5 million a year for the registry’s top line, according to IIS documents dated 2012, a time when it only had about 240,000 domains.

For comparison, Niue’s entire GDP has been estimated at a mere $10 million, according to the CIA World Factbook. The island has about 1,800 inhabitants and relies heavily on tourism and handouts from New Zealand.

According to documents detailing its 2013 takeover, IIS agreed to pay a minimum of $14.7 million over 15 years for the right to run the ccTLD, with a potential few million more in performance-related bonuses.

The Niue end of the lawsuit is being handled by Par Brumark, a Swedish national living in Denmark, who has been appointed by the Niuean government to act on its behalf on ICANN’s Governmental Advisory Committee, where he is currently a vice-chair.

Brumark told DI that IIS acted illegally when it took over .nu from previous registry, Massachusetts-based WorldNames, which had been running the ccTLD without the consent of Niue’s government since 1997.

The deal was characterized by WorldNames in 2013 as a back-end deal, with IIS taking over administrative and technical operations.

But IIS documents from 2012 reveal that it is actually more like a licensing deal, with IIS paying WorldNames the aforementioned minimum of $14.7 million over 15 years for the rights to manage, and profit from, the TLD.

The crux of the lawsuit appears to be the question of whether .nu can be considered a “Swedish national domain”.

IIS is a “foundation”, which under Swedish law has to stick to the purpose outlined in its founding charter.

That charter says, per IIS’s own translation, that the IIS “must particularly promote the development of the handling of domain names under the top-level domain .se and other national domains pertaining to Sweden.”

Brumark believes that .nu is not a national domain pertaining to Sweden, because it’s Niue’s national ccTLD.

One of his strongest pieces of evidence is that the Swedish telecoms regulator, PTS, refuses to regulate .nu because it’s not Swedish. PTS is expected to be called as a witness.

But documents show that the Stockholm County Administrative Board, which regulates Foundations, gave permission in 2012 for IIS to run “additional top-level domains”.

Via Google Translate, the Board said: “The County Administrative Board finds that the Foundation’s proposed management measures to administer, managing and running additional top-level domains is acceptable.”

Brumark thinks this opinion was only supposed to apply to geographic gTLDs such as .stockholm, and not to ccTLD strings assigned by ISO to other nations.

The Stockholm Board did not mention .nu or make a distinction between ccTLD and gTLDs in its letter to IIS, but the letter was in response to a statement from an IIS lawyer that .nu, with 70% of its registrations in Sweden, could be considered a Swedish national domain under the IIS charter.

Brumark points to public statements made by IIS CEO Danny Aerts to the effect that IIS is limited to Swedish national domains. Here, for example, he says that IIS could not run .wales.

IIS did not respond to my requests for comment by close of business in Sweden today.

Niue claims that if .nu isn’t Swedish, IIS has no rights under its founding charter to run it, and that it should be transferred to a Niuean entity, the Niue Information Technology Committee.

That’s a governmental entity created by an act of the local parliament 18 years ago, when Niue first started its campaign to get control of .nu.

The history of .nu is a controversial one, previously characterized as “colonialism” by some.

The ccTLD was claimed by Boston-based WorldNames founder Bill Semich and an American resident of the island, in 1997. That’s pre-ICANN, when the IANA database was still being managed by Jon Postel.

At the time, governments had basically no say in how their ccTLDs were delegated. It’s not even clear if Niue was aware its TLD had gone live at the time.

The official sponsor of .nu, according to the IANA record, is the IUSN Foundation, which is controlled by WorldNames.

Under ICANN/IANA policy, the consent of the incumbent sponsor is required in order for a redelegation to occur, and WorldNames has been understandably reluctant to give up its cash cow, despite Niue trying to take control for the better part of two decades.

The 2000 act of parliament declared that NITC was the only true sponsor for .nu, but even Niuean law has so far not proved persuasive.

So the lawsuit against IIS is huge twist in the tale.

If Niue were to win, IIS would presumably be obliged to hand over all of its registry and customer data to Niue’s choice of back-end provider.

Both Afilias and Danish registrar One.com have previously expressed an interest in running .nu, providing a share of the revenue to Niue, according to court documents.

Brumark said that a settlement might also be possible, but that it would be very costly to IIS.

Readers might also be interested in my 2011 article about Niue, which was once widely referred to as the “WiFi Nation”.

Hebrew .com off to a slow start

Kevin Murphy, November 21, 2018, Domain Registries

The Hebrew transliteration of .com has only sold a couple hundred domains since it went into general availability.

Verisign took the new gTLD קום. (Hebrew is a right-to-left script, so the dot comes after the string) to market November 5, when it had about 3,200 domains in its zone file. It now stands around the 3,400 mark.

The pre-GA domains are a combination of a few hundred sunrise regs and a few thousand exact-match .coms that were grandfathered in during a special registration period.

It’s not a stellar performance out of the gates, but Hebrew is not a widely-spoken language and most of its speakers are also very familiar with the Latin script.

There are between seven and nine million Hebrew speakers in the world, according to Wikipedia. It doesn’t make the top 100 languages in the world.

The ccTLD for Israel, where most of these speakers live, reports that it currently has 246,795 .il domains under management. That’s a middling amount when compared to similarly sized countries such as Serbia (about 100,000 names) and Switzerland (over 2 million).

Verisign’s original application for this transliteration had to be corrected, from קום. to קוֹם. If you can tell the difference, you have better eyesight than me.

In the root, the gTLD is Punycoded as .xn--9dbq2a.

Incel hate site jumps to Iceland after doMEn suspends .me domain

Kevin Murphy, November 21, 2018, Domain Registries

Incels.me, a web forum that hosts misogynist rants by “involuntarily celibate” men, has found a new home after .me registry doMEn suspended its domain.

The web site has reappeared, apparently unscathed, under Iceland’s .is domain, at incels.is.

doMEn said in a blog post yesterday that it had suspended incels.me at the registry level due to the owner “allowing part of its members to continuously promote violence and hate speech”.

The suspension happened October 15, and the site reappeared in .is not long after. It’s not entirely clear why doMEn chose to explain its decision over a month later. It said:

The decision to suspend the domain was made after the .ME Registry exhausted all other possibilities that could assure us that the registrant of incels.me domain and the owner of i
incels.me forum was able to remove the subject content and prevent the same or similar content from appearing on the forum again.

An “incel” is a man who has decided that he is too ugly, charmless, short, stupid or otherwise unattractive, and is therefore permanently unfuckable.

While that may provoke sympathetic thoughts, a great many of the incels frequenting sites like incels.me choose to channel their frustration into cartoonish misogyny ranging from the laughable to the extremely disturbing.

While the registry didn’t mention it, the site also has many threads that appear to encourage suicide.

doMEn seems to have turned off the domain because certain threads crossed the line from misogyny to incitement to violence against women.

The Montenegro-based company said it had been monitoring the site since May, after being told that “certain members” of the forum “might have been involved in or associated with” an attack in Toronto that killed 10 people in April, a charge the incels.is admin denies.

The second reason given — preventing content appearing in future — may be the crux here.

The site’s administrator said in a post on the new site that he had personally removed all of the threads highlighted by doMEN as being in violation of its registry policies.

He also posted a partial email thread between himself and his former registrar, China-based NiceNIC.net, in which he explains how difficult it is to monitor all the content posted by his users. He wrote on the forum:

They obviously weren’t going to give us a fair shake either way, and we’re not going to search through 1.6 MILLION posts nor do we have the technological capabilities to check to see if any of them are against their vague anti-abuse policy.

Domain registries have no place in enforcing arbitrary rules against domains that go against their ideology.

It seems from the thread that Afilias, 37%-owner of doMEn and .me back-end provider, had a hands-on role in the suspension.

Incels certainly isn’t the first controversial site to have to resort to TLD-hopping to stay alive.

The most notable example is piracy site KickAssTorrents, which bounced from ccTLD to ccTLD for years before finally being shut down by the US Feds.

The incels.is admin said he had confidence in Iceland’s registry due to “their stance as pro free-speech enforcers”.

But ISNIC is not above suspending domains when the associated sites break Icelandic law. Four years ago it took down some domains associated with ISIS.

The takedown comes not long after GoDaddy attracted attention for suspending the domain of far-right Twitter clone Gab.com, again due to claims of incitement to violence related to an act of domestic terrorism.

Afilias sues India to block $12 million Neustar back-end deal

Kevin Murphy, August 27, 2018, Domain Registries

Afilias has sued the Indian government to prevent it awarding the .in ccTLD back-end registry contract to fierce rival Neustar.

The news emerged in local reports over the weekend and appears to be corroborated by published court documents.

According to Moneycontrol, the National Internet Exchange of India plans to award the technical service provider contract to Neustar, after over a decade under Afilias, but Afilias wants the deal blocked.

The contract would also include some 15 current internationalized domain name ccTLDs, with another seven on the way, in addition to .in.

That’s something Afilias reckons Neustar is not technically capable of, according to reports.

Afilias’ lawsuit reportedly alleges that Neustar “has no experience or technical capability to manage and support IDNs in Indian languages and scripts and neither does it claim to have prior experience in Indian languages”.

Neustar runs plenty of IDN TLDs for its dot-brand customers, but none of them appear to be in Indian scripts.

NIXI’s February request for proposals (pdf) contains the requirement: “Support of IDN TLDs in all twenty two scheduled Indian languages and Indian scripts”.

I suppose it’s debatable what this means. Actual, hands-on, operational experience running Indian-script TLDs at scale would be a hell of a requirement to put in an RFP, essentially locking Afilias into the contract for years to come.

Only Verisign and Public Interest Registry currently run delegated gTLDs that use officially recognized Indian scripts, according to my database. And those TLDs — such as Verisign’s .कॉम (the Devanagari .com) — are basically unused.

Neither Neustar nor Afilias have responded to DI’s requests for comment today.

.in has over 2.2 million domains under management, according to NIXI.

Neustar’s Indian subsidiary undercut its rival with a $0.70 per-domain-year offer, $0.40 cheaper than Afilias’ $1.10, according to Moneycontrol.

That would make the deal worth north of $12 million over five years for Afilias and over $7.7 million for Neustar.

One can’t help but be reminded of the two companies’ battle over Australia’s .au, which Afilias sneaked out from under long-time incumbent Neustar late last year.

That handover, the largest in DNS history, was completed relatively smoothly a couple months ago.