Latest news of the domain name industry

Recent Posts

Non-coms say .org price cap should be RAISED

Kevin Murphy, April 30, 2019, Domain Registries

With the entire domain name community apparently split along binary lines on the issue of price caps in .org, a third option has emerged from a surprising source.

ICANN’s Non-Commercial Stakeholders Group has suggested that price caps should remain, but that they should be raised from their current level of 10% per year.

In its comments to ICANN (pdf), NCSG wrote that it would “not object to the price cap being raised by a reasonable level”, adding:

Rather than removing price caps from the agreement entirely, these should be retained but raised by an appropriate amount. In addition, this aspect of the contract should be subject to a review midway through the contract, based on the impact of the price changes on non-profit registrants.

The NCSG does not quote a percentage or dollar value that it would consider “reasonable” or “appropriate”.

The letter notes that Public Interest Registry, which runs .org, uses some of its registration money to fund NCSG’s activities.

The NCSG disagrees with the decision to remove price cap provisions in the current .org agreement. On the one hand, we recognize the maturation of the domain name market, and the need for Public Interest Registry to capitalize on the commercial opportunities available to it. Public Interest Registry, as a non-profit entity, supports many excellent causes (including, it is worth noting, the NCSG). On the other hand, as the home for schools, community organizations, open-source projects, and other non-profit entities that are run on shoestring budgets, this registry should not necessarily operate under the same commercial realities that guide other domains. Fees should remain affordable, with domains which are priced within reach of everyone, no matter how few resources they have. Consequently, we support leaving the price cap provisions in place. We would not object to the price cap being raised by a reasonable level.

Basically, the ICANN community group nominally representing precisely .org’s target market doesn’t mind prices going up, just as long as PIR doesn’t get greedy.

It’s slightly surprising, to me, to find NCSG on the middle ground here.

There are currently over 3,250 comments on the renewal of PIR’s registry contract with ICANN — coming from domainers, individual registrants, and large and small non-profit organizations — almost all of which are firmly against the removal of price caps.

The only comments I’ve been able to find in favor of the scrapping of caps came from the Business Constituency. Intellectual property interests had no opinion.

I don’t believe the registries and registrars stakeholder groups filed consensus comments, but Tucows did file an individual comment (pdf) objecting to the removal of caps.

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.