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ICANN to terminate Guardian’s last gTLD

Kevin Murphy, October 27, 2016, Domain Registries

Newspaper publisher Guardian News & Media is out of the gTLD game for good now, with ICANN saying this week that it will terminate its contract for the dot-brand, .theguardian.

It’s the 14th new gTLD registry agreement to be terminated by ICANN. All were dot-brands.

The organization has told Guardian that it started termination proceedings October 21, after the company failed to complete its required pre-delegation testing before already-extended deadlines.

.theguardian was the only possible gTLD remaining of the five that Guardian originally applied for.

It signed its registry agreement with ICANN in April 2015, but failed to go live within a year.

Guardian also applied for .guardian, which it decided not to pursue after facing competition from the insurance company of the same name.

The .observer gTLD, a dot-brand for its Sunday sister paper, was sold off to Top Level Spectrum last month and has since been delegated as a non-brand generic.

Applications for .gdn and .guardianmedia were withdrawn before Initial Evaluation had even finished.

Ship explosion cost ICANN $700k

Kevin Murphy, October 27, 2016, Domain Policy

An explosion on board a cargo ship set ICANN back $700,000, the organization has revealed.

The September 1 blast and subsequent fire, which we blogged about two weeks ago, cause equipment heading to ICANN 57 in Hyderabad to be detained by authorities.

The explosion, at the port in Hamburg, was reportedly caused by a welding accident and nobody was seriously hurt.

Now, in a blog post, ICANN said the cost of replacing the detained gear and shipping it to India was $700,000.

Hyderabad is due to kick off next week.

The ICANN blog post, from CIO Ashwin Rangan, reports that all the equipment required to run the meeting has already arrived safely.

The meeting has also been plagued by widespread reports of difficulties obtaining visas. Many have complained on social media that the process is unnecessarily unpredictable and complicated.

Many of these complaints have come from regular ICANN attendees from North America and Europe, unaccustomed to having to secure visas for international travel.

But the level of complaints has been sufficiently high that ICANN has been talking to Indian government officials about ensuring everyone who wants to attend, can.

ICANN has $400m in the bank

Kevin Murphy, October 27, 2016, Domain Policy

ICANN ended its fiscal 2016 with just shy of $400 million on its balance sheet, according to its just-released financial report.

As of June 30, the organization had assets of $399.6 million, up from $376.5 million a year earlier, the statement (pdf) says.

Its revenue for the year was actually down, at $194.6 million in 2016 compared to $216.8 million in 2015.

That dip was almost entirely due to less money coming in via “last-resort” new gTLD auctions.

The growth of the gTLD business led to $74.5 million coming from registries, up from $59 million in 2015.

Registrar revenue grew from $39.3 million to $48.3 million.

Money from ccTLD registries, whose contributions are entirely voluntary, was down to $1.1 million from $2.1 million.

Expenses were up across the board, from $143 million to $131 million, largely due to $5 million increases in personnel and professional services costs.

The results do not take into account the $135 million Verisign paid for .web, which happened after the end of the fiscal year.

Auction proceeds are earmarked for some yet-unspecified community purpose and sit outside its general working capital pool. Regardless, they’re factored into these audited financial reports.

ICANN has to date taken in almost a quarter of a billion dollars from auctions. Its board recently decided to diversify how the money is invested, so the pot could well grow.

Thick Whois coming to .com next year, price rise to follow?

Kevin Murphy, October 27, 2016, Domain Registries

Verisign could be running a “thick” Whois database for .com, .net and .jobs by mid-2017, under a new ICANN proposal.

A timetable published this week would see the final three hold-out gTLDs fully move over to the standard thick Whois model by February 2019, with the system live by next August.

Some people believe that Verisign might use the move as an excuse to increase .com prices.

Thick Whois is where the registry stores the full Whois record, containing all registrant contact data, for every domain in their TLD.

The three Verisign TLDs currently have “thin” Whois databases, which only store information about domain creation dates, the sponsoring registrar and name servers.

The model dates back to when the registry and registrar businesses of Verisign’s predecessor, Network Solutions, were broken up at the end of the last century.

But it’s been ICANN consensus policy for about three years for Verisign to eventually switch to a thick model.

Finally, ICANN has published for public comment its anticipated schedule (pdf) for this to happen.

Under the proposal, Verisign would have to start offering registrars the ability to put domains in its thick Whois by August 1 2017, both live via EPP and in bulk.

It would not become obligatory for registrars to submit thick Whois for all newly registered domains until May 1, 2018.

They’d have until February 1, 2019 to bulk-migrate all existing Whois records over to the new system.

Thick Whois in .com has been controversial for a number of reasons.

Some registrars have expressed dissatisfaction with the idea of migrating part of their customer relationship to Verisign. Others have had concerns that local data protection laws may prevent them moving data in bulk overseas.

The new proposal includes a carve-out that would let registrars request an exemption from the requirements if they can show it would conflict with local laws, which holds the potential to make a mockery out of the entire endeavor.

Some observers also believe that Verisign may use the expense of building and operating the new Whois system as an excuse to trigger talks with ICANN about increasing the price of .com from its current, frozen level.

Under its .com contract, Verisign can ICANN ask for a fee increase “due to the imposition of any new Consensus Policy”, which is exactly what the move to thick Whois is.

Whether it would choose to exercise this right is another question — .com is a staggeringly profitable cash-printing machine and this Whois is not likely to be that expensive, relatively speaking.

The proposed implementation timetable is open for public comment until December 15.

Radix acquires .fun gTLD from Warren Buffett

Kevin Murphy, October 25, 2016, Domain Registries

New gTLD portfolio player Radix has acquired the pre-launch TLD .fun from its original owner.

The company took over the .fun Registry Agreement from Oriental Trading Company on October 4, according to ICANN records.

Oriental is a party supplies company owned by Warren Buffett’s Berkshire Hathaway.

It won .fun in a private auction in April last year, beating off Google and .buzz operator DotStrategy.

It had planned to run it as a “closed generic” — keeping all the domains in .fun for itself — but those plans appeared to have been shelved by the time it signed its RA in January this year.

Evidently Oriental’s heart was not in it, and Radix made an offer for the string it found more attractive.

Radix business head Sandeep Ramchandani confirmed to DI today that .fun will be operated in a completely unrestricted manner, the same as its other gTLDs.

It will be Radix’s first three-letter gTLD, Ramchandani said. It already runs zones such as .online, .site and .space.

.fun is not yet delegated, but Radix is hoping for a December sunrise period, he said.