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Chinese registrars on the decline

Kevin Murphy, October 1, 2018, Domain Registrars

Having been on a growth trajectory for some years, the number of ICANN-accredited registrars based in China appears to be on the decline.

According to my records, so far this year 26 registrar contracts have been terminated, voluntarily or otherwise, 11 of which were Chinese. I’m excluding the mass drop of Pheenix accreditations from these numbers.

The country with the next-highest number of terminations was the USA, with three.

ICANN has terminated nine registrars for breaches of the RAA this year, six of which were Chinese.

All the Chinese notices included non-payment of ICANN fees as a reason for termination, though it appears that most of them had a negligible number of gTLD domains under management.

ICANN Compliance tells me there’s no particular focus of China at the moment, this is all a result of regular day-to-day enforcement.

ICANN has sent breach notices to 28 companies this year, seven of which were to Chinese registrars.

Meanwhile, 22.cn has moved 13 of its accredited shell registrars to Hong Kong. Another registrar moved its base from China to Australia.

Seven Chinese registrars have been newly accredited this year,

Net, this has all reduced the number of accredited registrars based in China to 91.

The country still has the second-most registrars ahead of the US, with its almost 2,000 registrars, and a clear 31 registrars ahead of third-place India.

It’s Drazek vs Dammak for GNSO Council chair

Kevin Murphy, September 28, 2018, Domain Policy

The chair of ICANN’s Generic Names Supporting Organization Council is contested this year, with a registry veep facing off against a software engineer.

The nomination from the contracted parties house is US-based Keith Drazek, Verisign’s VP of policy and government relations.

He’ll be opposed by non-contracted parties nominee and current vice-chair Rafik Dammak, a Tunisian working as a software engineer for NTT Communications (which is technically a contracted party due its dot-brand gTLD) in Japan.

Both men are long-time, active members of the ICANN community and GNSO.

The Council will pick its new chair about a month from now at the ICANN 63 meeting in Barcelona.

The winner will replace lawyer Heather Forrest, the non-contracted party who took the seat after an unopposed vote a year ago.

Cloudflare selling all domains at cost: “All we’re doing is pinging an API”

Kevin Murphy, September 28, 2018, Domain Registrars

Content delivery network provider Cloudflare has promised to sell domains in all TLDs at the wholesale cost, with no markup, forever.

The company made the commitment yesterday as it announced its intention to get into the registrar business.

Founder Matthew Price used the announcement to launch a blistering attack on the current registrar market, which he said is charging “crazy” prices and endlessly upselling their customers with unwanted, worthless products. He blogged:

why should registrars charge any markup over what the TLDs charge? That seemed as nutty to us as certificate authorities charging to run a bit of math. When we see a broken market on the Internet we like to do something about it.

we promise to never charge you anything more than the wholesale price each TLD charges. That’s true the first year and it’s true every subsequent year. If you register your domain with Cloudflare Registrar you’ll always pay the wholesale price with no markup.

For instance, Verisign, which administers the .com TLD, currently charges $7.85 per year to register a .com domain. ICANN imposes a $0.18 per year fee on top of that for every domain registered. Today, if you transfer your .com domain to Cloudflare, that’s what we’ll charge you per year: $8.03/year. No markup. All we’re doing is pinging an API, there’s no incremental cost to us, so why should you have to pay more than wholesale?

There are catches, of course.

For starters, the service is not available yet.

Price wrote that Cloudflare will roll it out gradually — for inbound transfers only — to its “most loyal” customers over an unspecified period. Even customers on its cheapest plans will get access to the queue, he wrote.

Eventually, he said, it will be available “more broadly”.

It will be interesting to see if the no-markup pricing could become available to non-customers too, and whether it sticks to its business model when its support lines start ringing and it becomes apparent the business is actually big ole cash vampire.

Cloudflare has been ICANN-accredited for several years, but it’s only been offering registrations to high-value enterprise customers so far.

My records show that it has not much more than 800 domains under management, all in .com, .net, .org and .info.

The announcement was made, perhaps not coincidentally, a couple days after CRM software provider Zoho made headlines when its 40 million customers were taken offline because its former registrar suspended zoho.com over a trivial level of abuse. In response to the screw-up, Zoho transferred the domain to Cloudflare.

Chutzpah alert! DotKids wants ICANN handout to fight gTLD auction

Kevin Murphy, September 24, 2018, Domain Policy

New gTLD applicant DotKids Foundation has asked ICANN for money to help it fight for .kids in an auction against Amazon and Google.

The not-for-profit was the only new gTLD applicant back in 2012 to meet the criteria for ICANN’s Applicant Support Program, meaning its application fee was reduced by $138,000 to just $47,000.

Now, DotKids reckons ICANN has a duty to carry on financially supporting it through the “later stages of the process” — namely, an auction with two of the world’s top three most-valuable companies.

The organization even suggests that ICANN dip into its original $2 million allocation to support the program to help fund its bids.

Because .kids is slated for a “last resort” auction, an ICANN-funded winning bid would be immediately returned to ICANN, minus auction provider fees.

It’s a ludicrously, hilariously ballsy move by the applicant, which is headed by DotAsia CEO Edmon Chung.

It’s difficult to see it as anything other than a delaying tactic.

DotKids is currently scheduled to go to auction against Google’s .kid and Amazon’s .kids application on October 10.

But after ICANN denied its request for funding last month, DotKids last week filed a Request for Reconsideration (pdf), which may wind up delaying the auction yet again.

According to DotKids, the original intent of the Applicant Support Program was to provide support for worthy applicants not just in terms of application fees, but throughout the application process.

It points to the recommendations of the Joint Applicant Support working group of the GNSO, which came up with the rules for the support program, as evidence of this intent.

It says ICANN needs to address the JAS recommendations it ignored in 2012 — something that could time quite some time — and put the .kids auction on hold until then.

KSK vote was NOT unanimous

Kevin Murphy, September 18, 2018, Domain Policy

ICANN’s board of directors on Sunday voted to approve the forthcoming security key change at the DNS root, but there was some dissent.

Director Avri Doria, a Nominating Committee appointee, said today that she provided the lone vote against the DNSSEC KSK rollover, which is expected to cause temporary internet access problems for potentially a couple million people next month.

I understand there was also a single abstention to Sunday’s vote.

Doria has released a dissenting statement, in which she said the absence of an external, peer-reviewed study of the risks could prove a problem.

The greatest risk is that out of the millions that will fail after the roll over, some that are serious and may even be critical, may occur; if this happens the lack of peer reviewed studies may be a liability for ICANN, perhaps not legal, but in terms of our reputation as protectors of the stability & security of internet system of names.

She added that she was concerned about the extent that the public has been notified of the rollover plan, and questioned whether the current risk mitigation plan is sufficient.

Doria said she found comments filed by Verisign (pdf) particularly informative to her eventual vote, as well as comments from the At-Large Advisory Committee (pdf), Business Constituency (pdf) and Registries Stakeholder Group (pdf).

These groups had called for more study and data, better outreach, more clearly defined success/failure benchmarks, and more delay.

Doria noted in her dissenting statement that the ICANN board did not have a chance to quiz any of the minority of the members of the Security and Stability Advisory Committee who had called for further delay.

The board’s resolution, apparently arrived at after two hours of formal in-person discussions in Brussels at the weekend, is expected to be published shortly.

The rollover, which has already been delayed a year, is now scheduled to go ahead October 11.

Any impact is expected to be felt within a couple of days, as the change ripples out across the DNS.

ICANN says that any network operator impacted by the change has a simple fix: turn off DNSSEC. Then, if they want, they can update their keys and turn it back on again.