The first new gTLD to go live is seeing its first-year renewals at 55% one year after hitting general availability.
dotShabaka Registry’s شبكة. (or “.shabaka”, the Arabic for “.web”) has also seen its zone file shrink by about 27% over the last two weeks.
The zone peaked at 2,069 domains on February 1, 2015, but today stands at 1,521. Exactly one year ago, it was at 1,561 names.
The zone is smaller today than it was just two weeks after GA began, in other words.
“We can confirm we’re seeing renewal rates for names due in February at around 55%,” Adrian Kinderis, CEO of ARI Registry Services, which runs .shabaka’s back-end, told DI in a statement.
The registry added 1,608 domains in February 2014, 1,400 of those in the first half of the month.
The 55% is the number of domains that were renewed before their February expiry date. The full number for February will not be known until the grace period ends in mid-April.
“We have a handful of cancel renews and all other expired domains are in the auto-renew period,” he said. “It’s too early to examine the numbers for renews post-expiry date, but we expect this will increase the overall tally.”
“Given the market conditions we face in the region, the results align with our forecasts and we expect the numbers to improve for renewals due in the coming weeks and months,” he said.
In gTLDs, domains can enter a Auto Renew Grace Period for up to 45 days after expiration, during which they can still be renewed by their registrant and may or may not appear in the zone file.
It wouldn’t be fair on other new gTLD registries to read to much into these numbers, assuming they do not improve, as شبكة. is a bit of an unusual case.
It’s seen low registration volume, despite the apparently attractive string, largely because it’s restricted to Arabic script at the second level and the Arabic-speaking market is in its infancy.
When شبكة. launched there were no registrars offering an end-to-end Arabic shopping cart, Kinderis said. He added:
The most significant problem still remains demand and consumer awareness…
In regards to demand, the lack of awareness is a direct result of little to no marketing in the region. Apart from our own efforts, there has been little marketing or education programs deployed to increase awareness of new Top-Level Domains and Arabic script domain names.
We have even limited our marketing efforts because we identified early that market readiness is inadequate. Any large investment in marketing from dotShabaka Registry at the moment would be premature and wasteful until supply, demand and universal acceptance issues have been addressed.
He called on ICANN and its recently created Middle East Working Group to focus on ways to increase awareness and demand for domain names in the region. To date, it’s focused too much registrars and technical issues, he said.
شبكة. has its own set of issues and is probably not the best test case for new gTLDs in general.
That’s going to come soon. Donuts’ first batch of gTLDs — .guru, .bike, .holdings, .plumbing, .singles, .ventures and .clothing — had their base-price GA anniversary on February 4, and it appears that domains have already started to drop.
There’s little indication of anything amiss in the .guru zone file so far but the other six are down slightly — by maybe 100 or so names apiece, or less than 1% each — over the last two weeks.
Donuts executives have said they expect first-year renewals to be strong, but we’ve got a few weeks left before anyone will be in a position to know for sure.
A little over a year into the live phase of the new gTLD program, a group of domain industry companies are getting together to make sure the expansion is supported across the whole internet.
A new Universal Acceptance Steering Group has formed, with the support of ICANN and the Domain Name Association, to help fix many of the compatibility problems facing new gTLD registrants today.
“The basic problem is that these new types of domains and email addresses just break stuff,” Google’s Brent London said during a UASG meeting at the ICANN meeting in Singapore last week.
“You try to use an internationalized domain or a long new gTLD, or even a short new gTLD, or certainly an internationalized email address and you’re likely to run into problems,” he said. “What we’re doing is going around asking developers to make their products work.”
Universal acceptance is a long-understood problem. Even 15 years after the approval of .info there are still web sites that validate email addresses by ensuring the TLD is no longer than three characters in length.
But the 2012 new gTLD round has brought the issue into sharper focus, particularly given the introduction of internationalized domain names, IDNs, which use non-Latin scripts.
Over the last year we’ve seen scattered examples of popular software — including browsers, instant messaging and social media apps — not recognizing new gTLD domains as domains. The problems I’ve seen are usually fixed quite quickly.
While I’ve not seen any deal-breakers that would prevent me registering a new gTLD domain, I gather that IDN email addresses are often basically unusable, due to the chain of dependencies involved in sending an email.
In my experience as a programmer, supporting all TLDs is not a particularly challenging problem when you’re coding something afresh.
However, when bad practices have been coded in to large, sprawling, interdependent systems over decades, it could be likened to the Y2K problem — the so-called Millennium Bug that caused developer headaches worldwide at the end of the last century.
There’s also a tonne of bad advice on the web, with coders telling other coders to validate domains in ways that do not support an expanding root.
UASG members think the problem is large-scale and that it’s a long-term project — 10 years or more — to fix it satisfactorily.
Members include Donuts, Google, Microsoft, Go Daddy and Afilias.
The DNA has started creating a repository of information for developers, with the aim of describing the problem in plain English and providing code samples. Along with other UASG members, there’s a plan to conduct outreach to make more people aware of the acceptance issue.
You can check out the repository in its unfinished state here.
ICANN is getting involved in a coordination role. After the UASG’s inaugural meeting in Washington DC a few weeks ago, ICANN hosted a session during ICANN 52.
New gTLD registries will have to wait a bit longer before they’re allowed to start selling two-character domain names, after ICANN’s Governmental Advisory Committee controversially issued new guidelines on their release.
The registries for hundreds of gTLDs will be affected by the delays, which could last a few months and were put in place by the ICANN board of directors at the request of the GAC at the ICANN 52 meeting in Singapore last week.
The two-character domain issue was one of the most contentious topics discussed at ICANN 52.
Exasperated registries complained to ICANN’s board that their requests to release such domains had been placed on hold by ICANN staff, apparently based on a letter from GAC chair Thomas Schneider which highlighted concerns held by a small number of governments.
The requests were frozen without a formal resolution by the board, and despite the fact that the GAC had stated more than once that it did not have consensus advice to give.
Some governments don’t want any two-letter domains that match their own ccTLDs to be released.
Italy, for example, has made it clear that it wants it.example and 1t.example blocked from registration, to avoid confusion.
Others, such as the US, have stated publicly that they have no issue with any two-character names being sold.
The process for releasing the names went live in December, following an October board resolution. It calls for a 30-day comment period on each request, with official approval coming seven to 10 days later.
But despite hundreds of requests going through the pipe, ICANN has yet to approve any. That seems to be due to Schneider’s letter, which said some governments were worried the comment process was not transparent enough.
This looked like a case of ICANN staff putting an unreasonable delay on part of registries’ businesses, based on a non-consensus GAC position that was delivered months after everyone thought it was settled law.
Registries grilled the board and senior ICANN executives about this apparent breakdown in multi-stakeholder policy-making last Tuesday, but didn’t get much in the way of an explanation.
It seems the GAC chair made the request, and ICANN implemented a freeze on a live business process, without regard to the usual formal channels for GAC advice.
However, the GAC did issue formal advice on two-letter domains on Wednesday during the Singapore meeting. ICANN’s board adopted the advice wholesale the next day.
This means that the comment period on each request — even the ones that have already completed the 30-day period — will be extended to 60 days.
The delay will be longer than a month for those already in the pipe, however, as ICANN still has to implement the board-approved changes to the process.
One of those changes is to alert governments when a new registry request has been made, a potentially complex task given that not every government is a member of the GAC.
The board’s resolution says that all comments from governments “will be fully considered”, which probably means we won’t be seeing the string “it” released in any new gTLD.
The GAC has also said it will publish a list of governments that do not intend to object to any request, and a list of governments that intend to object to every request.
A Colombian registrar has become the unlikely owner of the coveted .blog new gTLD, beating eight other applicants to the string at auction.
Winning bidder Primer Nivel is a Panamanian company affiliated with Bogota-based CCI REG, which runs my.co.
The company was the first to reveal its plans to apply for .blog, telling DI back in April 2012 about its ambitions of the gTLD.
Rival bidders Radix, Minds + Machines, Donuts, Afilias, Merchant Law Group, BET, Google and Top Level Design all withdrew their applications over the weekend.
We’re certainly looking at an eight-figure sale here.
Kieren McCarthy, writing at The Register, reckons it went for $30 million or more, based on the fact that M+M got $3.4 million for withdrawing from .blog and .store auctions, but his back-of-the-envelope calculations are off-target for a few reasons.
Knowledgeable DI sources say the sale price was considerably lower than $30 million.
My envelope puts it at somewhere in the range of $15 million to $18 million.
I’ve always said .blog is among my favorite new gTLD strings. The market opportunity is potentially huge, with hundreds of millions of blogs live on the web today.
Primer Nivel, which to the best of my knowledge is not (unlike some other applicants) affiliated with a particular blogging platform, plans to operate .blog as an open gTLD.
The separate auction for .store, meanwhile, was won by Radix, after withdrawals from M+M, Donuts, Amazon, Google, Dot Store and Uniregistry this weekend.
ICANN CEO Fadi Chehade responded yesterday to anger from domain investors over recent comments in which he talked about “hogging” domain names and implied a link to cybersquatting.
But he did not, at least as far as I understood his explanation, backtrack on his original remarks.
Chehade was cheekily asked his current thoughts on domain “hoggers” by blogger David Goldstein during a press conference at the ICANN 52 meeting in Singapore yesterday.
This is the entirety of his reply:
I think the statement I made to a different media outlet about that was conflated to signify I was including in this all those who are in the domain name business. And that’s not true. There are those that do this as a business and do it very well and actually enhance the market and there are those that do it and make the business and the market less attractive and less desirable. So I think any insinuation that that statement engulfs everyone that is in this business is not true. As you know very well I’ve a very big supporter of the industry groups and was one of the people who was frankly very happy when the Domain Name Association was created and I attended their first formation meeting. This is where we stand and we continue to feel good about how this market is evolving and how these players are making this a good market that serves the public interest.
Having listened to it a few times, I wonder whether Chehade deliberately didn’t backtrack on his original remarks, or whether he doesn’t quite understand why they caused offense in the first place.
A couple of weeks back, Chehade was talking to the Huffington Post about new gTLDs during an interview at the World Economic Forum in Davos.
The interviewer asked about “concerns about a land-grab going on” among domain speculators.
It was a bit of a silly question, if you ask me. A speculative land-grab is pretty low down the list of concerns held by critics of the new gTLD program. Regardless, Chehade replied:
The reality is, the more there are names, the less people will actually be hogging names in order to charge a lot for them. Because if somebody took your name on dot X, you can go get another name on dot Y now.
I’d personally agree with that characterization of the program. It’s meant to make finding a good name at a cheap price easier. “Hogging” was probably a poor choice of words, but Chehade was talking off the cuff so I could give him a pass.
But later in the same reply, he used the term “cybersquatting” in such a way as to make it easy to infer he was conflating domain investing with cybersquatting. That’s a loaded term that is usually reserved for trademark infringement, at least when used inside the industry.
Obviously this was guaranteed to get investors’ hackles up.
First up with the hackles was Mike Berkens, who called Chehade out on The Domains, saying he “throws large domain investors under the bus and then backs up the bus and rolls over them again”.
Berkens pointed out, quite reasonably I thought, that ICANN is funded to a great extent by domain investors. He estimates that he alone pays ICANN about $15,000 a year in the fees that are collected at the point of registration and renewal.
By some estimates, which may even be conservative, about a third of new gTLD registrations to date have been made to speculators.
Berkens made the even better point that many of the people who have pumped hundreds of millions of dollars into the new gTLD program — Uniregistry’s Frank Schilling, XYZ.com’s Daniel Negari and multiple Donuts executives, for example — made their fortunes investing in second-level domains.
All and all some pretty ignorant statements in our opinion made by the CEO of ICANN and an insult to those domain investors that are some of the biggest buyer’s of new gTLD’s domain names who have paid ICANN a small fortune over the years allowing them to travel the world, pay millions a year in salary and other benefits.
Phil Corwin Jeremiah Johnston of the Internet Commerce Association followed up a few days ago with an open letter to Chehade which explained the outrage in slightly more formal and lawyerly way, with all the apostrophes in the right places. He wrote:
The ICA objects to your statement as it expresses a disdainful view towards the legitimate activity of domain investing, a hostile view of domain investors who are significant ICANN stakeholders who are deeply affected by its policies, a lack of awareness of the market realities of domains as an asset class, and an unwarranted promotion of new gTLD domains over those at legacy gTLDs.
Domain investors are not “hogs” and they most certainly are not deliberate trademark infringers, or “cybersquatters”. It is not clear what you intended by your reference to “cybersquatting”, though it is concerning that you used this pejorative term just after making disparaging remarks about domain investors.
With all these criticisms in mind, let’s go back and parse what Chehade said in Singapore yesterday.
First, he said his remarks had been wrongly “conflated to signify I was including in this all those who are in the domain name business”.
I’m not sure that’s what happened. I’m pretty certain Berkens and his commenters, and then
Corwin Johnston, got the hump purely because Chehade dismissed domain investing as “hogging” and then implied a link between investing and trademark infringement.
Who is Chehade talking about when he draws a distinction between those who “enhance the market” and those who “make the business and the market less attractive”?
Is the line drawn between the trademark infringers and the legitimate investors, or its it drawn somewhere else?
Why did Chehade go on to express his support for the DNA, a sell-side trade group funded largely by registries and registrars? Was he drawing the line between regular second-level domainers (hogging) and those that in many cases are essentially just top-level domainers (enhancing)?
Chehade was given the opportunity to backtrack and he didn’t take it.
I’m not a domainer, but if I were I don’t think I’d be particularly satisfied about that.