Worldwide domains up to 240 million

There are now more than 240 million registered domain names on the internet, according to Verisign.
Its latest Domain Name Industry Brief reports that a net of 7.3 million names were added across all TLDs in the second quarter, a 3.1% sequential increase, up 11.9% on Q2 2011.
Verisign’s own .com and .net hit 118.5 million domains by the end of June, up 1.6% sequentially and 7.8% year-over-year. Renewals were at 72.9%, down from 73.9% in Q1.
The company reported that new .com and .net registrations in the period totaled 8.4 million.

Why .com still doesn’t have a thick Whois

ICANN’s board of directors quizzed staff about the lack of a “thick” Whois obligation in Verisign’s .com contract, according to meeting minutes released last night.
The vote was 11-0 in favor, with four abstentions, when the board controversially approved the deal during the Prague meeting in June.
Director George Sadowsky raised the thick Whois issue, which has been a sharp wedge issue between non-commercial users and the intellectual property lobby, according to the minutes.
Senior vice president Kurt Pritz responded:

Kurt noted that while a requirement for a “thick” registry had been a topic of conversation among ICANN and Verisign, the ongoing GNSO Policy Development Process initiated on this same issue rendered this topic somewhat ill-suited for two-party negotiations. In addition, the current .COM registrants entered registration agreements with the understanding of .COM as thin registry, and the resultant change – along with the ongoing policy work – weighed in favor of leaving this issue to policy discussions.

In other words: thick Whois is best left to community policy-making.
Thick Whois is wanted by trademark holders because it will make it easier to enforce data accuracy rules down the road, while non-commercial stakeholders oppose it on privacy grounds.
Domainers, at least those represented by the Internet Commerce Association, have no objection to thick Whois in principle, but believe the policy should go through the GNSO process first.
Verisign is publicly neutral on the matter.
The ICANN board vote on .com was considered somewhat controversial in Prague because it took place before any substantial face-to-face community discussion on these issues.
Sadowsky abstained, stating: “I feel very uncomfortable going forward with provisions that will tie our hands, I think, in the long run without an attempt to reach an accommodation at this time.”
Three other directors (Tonkin, De La Chapelle and Vasquez) abstained from the vote due to actual or the potential for perceived conflicts of interest.
The .com agreement is currently in the hands of the US Department of Commerce which, uniquely for a gTLD, has approval rights over the contract. It’s expected to be renewed before the end of November.

Verisign demands 24/7 domain hijacking support

Verisign is causing a bit of a commotion among its registrar channel by demanding 24/7 support for customers whose .com domains have been hijacked.
The changes, we understand, are among a few being introduced into Verisign’s new registry-registrar agreement for .com, which coincides with the renewal of its registry agreement with ICANN.
New text in the RRA states that: “Registrar shall, consistent with ICANN policy, provide to Registered Name Holders emergency contact or 24/7 support information for critical situations such as domain name hijacking.”
From the perspective of registrants, this sounds like a pretty welcome move: who wouldn’t want 24/7 support?
While providing around the clock support might not be a problem for the Go Daddies of the world, some smaller registrars are annoyed.
For a registrar with a small headcount, perhaps servicing a single time zone, 24/7 support would probably mean needing to hire more staff.
Their annoyance has been magnified by the fact that Verisign seems to be asking for these new support commitments without a firm basis in ICANN policy, we hear.
The recently updated transfers policy calls for a 24/7 Transfer Emergency Action Contact — in many cases just a staff member who doesn’t mind being hassled about work at 2am — but that’s meant to be reserved for use by registrars, registries and ICANN.

Verisign reveals “dark” .com domains

Verisign has started publishing the daily count of .com and .net domain names that are registered but do not work.
On a new page on its site, the company is promising to break out how many domains are registered but do not currently show up in the zone files for its two main gTLDs.
These are sometimes referred to as “dark” domains.
As of yesterday, the number of registered and active .com domains stands at 103,960,994, and there are 145,980 more (about 0.14% of the total) that are registered but do not currently have DNS.
For .net, the numbers stand at 14,750,674 and 32,440 (0.22%).
Verisign CEO Jim Bidzos told analysts last night that the data is being released to “increase transparency” into the company’s performance.
Many tools available for tracking registration numbers in TLDs are skewed slightly by the fact that they rely on publicly available zone file data, which does not count dark domains.
Registry reports containing more accurate data are released monthly by ICANN, but they’re always three months old.

ICANN to get $8 million more from new .com deal

Verisign will pay ICANN roughly $8 million more per year in fees under its new .com registry agreement, CEO Jim Bidzos told financial analysts last night.
Under the new deal, approved by ICANN last month, the company pays ICANN a $0.25 fee for every .com registration-year, renewal or transfer, instead of the lump sums it paid previously.
That’s going to work out to about $25 million in 2013, Bidzos said on Verisign’s second-quarter earnings call last night, compared to about $17 million under the old arrangement.
The new agreement continues to give the company the right to increase its price by 7% a year in most years, of course, so it’s not all bad news for Verisign investors.
The deal is currently under review by the US Department of Commerce and Bidzos said he expects it to be approved before November 30, when the current contract expires.

ICANN gives Verisign’s .com contract the nod

ICANN’s board of directors has approved Verisign’s .com registry agreement for another six years.
In a closed meeting on Saturday, the results of which have just been published, the board decided against making any of the changes that had been suggested by the community.
There had been a small uproar over the fact that Verisign will retain the right to increase its .com registry fee by 7% in four out of the next seven years.
The new contract also rejiggers the fees Verisign pays ICANN to bring them more into line with other registry agreements. As a result, ICANN will net millions more in revenue.
Other parties had also asked for improved rights protection, such as a mandatory Uniform Rapid Suspension system, and for the current restrictions on single-character domain names to be lifted.
But the board decided that “no revisions to the proposed .COM renewal Registry Agreement are necessitated after taking into account the thoughtful and carefully considered comments received.”
The agreement will now be forward to the US government for approval. Unlike most registry contracts, the Department of Commerce has the right to review the .com deal.
The current contract expires November 30.

ICANN may renew Verisign’s .com deal this weekend

ICANN’s board of directors is set to vote on Verisign’s .com registry agreement at a meeting in Prague this Saturday.
The meeting is scheduled for June 23, the day before ICANN 44 officially kicks off. Read the agenda here.
The contract has been controversial because it will continue to allow Verisign to raise prices by 7% in four out of the six years of its duration.
Opportunistic intellectual property interests have also called for Verisign to be obliged to follow new rights protection mechanisms such as the Uniform Rapid Suspension policy.
But I’m not predicting any big changes from the draft version of the agreement that was published in March.
If and when the ICANN board approves the contract, it will be sent off to the US Department of Commerce for, I believe, another round of public comment and eventual ratification.
If Verisign is to run into any problems with renewal, it’s in Washington DC where it’s most likely to happen.

Verisign selected for 220 new gTLDs

Verisign is the appointed back-end registry operator for 220 new generic top-level domain applications, according to the company.
Verisign itself has applied to ICANN for 14 new gTLDs, 12 of which are transliterations — ie, internationalized domain names — of .com and .net.
During its first-quarter 2012 earnings conference call, ongoing right now, CEO Jim Bidzos disclosed the numbers, saying:

VeriSign applied directly for 14 new gTLDs. Twelve of these 14 are transliterations of .com and .net. Also, applicants for approximately 220 new gTLDs selected Verisign to provide back-end registry services.

Many of these are dot-brands, Bidzos said.
Neustar, which also reported earnings yesterday, did not disclose how many applications it is involved in, other than to say that it has not applied for any as a front-end operator.

Timing of .com contract renewal is telling

The timing of the publication of the renegotiated .com registry contract may give Verisign and ICANN the chance to duck some criticism about its price-raising powers.
According to ICANN’s announcement last night, the draft contract is up for public comment until April 26, a week before we find out how much new gTLD business Verisign has won.
Verisign is expected to have secured a large share of the burgeoning market for new gTLD back-end registry services.
It is whispered that a great many North American brands planning to apply for their own dot-brand gTLDs prefer Verisign as their registry provider, due to its reputation for stability.
That up-time is of course provided by a robust, distributed infrastructure paid for over the years by the same .com registrants now facing four more years of price increases.
It’s debatable whether Verisign can continue to make a convincing public interest case for .com price hikes if it’s also profiting by hosting dot-brands on the same boxes and pipes.
But because the public comment period closes April 26 and ICANN does not plan to publish the new gTLD applications until May 2, the argument that Verisign is using .com buyers to subsidize its dot-brand business will have to be made without hard data to back it up.
I doubt such arguments would be heard anyway, frankly. ICANN pretty much has its hands bound by the 2006 contract when it comes to messing around with pricing controls.
For those opposed to price increases, a more effective lobbying strategy might head straight to Washington DC, where the Departments of Commerce and Justice will both study the deal from September.

New .com contract revealed: Verisign gets to raise prices, ICANN makes millions more

ICANN and Verisign both stand to make oodles of cash from their renewed .com registry contract.
A proposed draft of the next .com Registry Agreement was published by ICANN late this evening.
It would enable Verisign to carry on raising its .com registry fee by 7%, in four of the next six years. This provision, which was in the 2006 agreement also, was not unexpected.
But the deal will also see Verisign pay ICANN millions of dollars more in transaction fees.
Instead of a quarterly lump sum, which is capped at $4.5 million in the current contract, ICANN will instead get a $0.25 fee for every year of a .com registered, renewed or transferred.
According to my quick-and-dirty calculations, that would have brought ICANN approximately $6 million in extra revenue — roughly $24 million in total — from .com domains last year.
(The most recent .com registry reports show billable transactions per month worth about $2 million to ICANN, using the new agreement’s calculation. However, under the current agreement ICANN can only collect $18 million per year, according to its last approved budget.)
The revised contract contains several other changes also. I’ll have more coverage of those tomorrow.
The deal, which is not expected to come into effect until the end of November, is now open for public comment until April 26.
It needs to be approved by the ICANN board of directors, the Verisign board and the US Department of Commerce before it is finally signed.