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Eleven TLDs get removed from the DNS

Kevin Murphy, October 3, 2013, Domain Registries

ICANN will soon remove 11 experimental internationalized domain name TLDs from the domain name system.

The TLDs, which represent “.test” in nine scripts and 10 languages, were added to the root almost exactly six years ago in preparation for ICANN’s IDN ccTLDs program.

Now that the program is quite mature, with a few dozen IDN ccTLDs live on the internet with no major reported problems, ICANN has decided that the test TLDs are no longer required.

They will be removed from the DNS root zone on October 31, ICANN said.

dotShabaka Diary — Day 15, Iran and Name Collisions

Kevin Murphy, October 3, 2013, Domain Registries

The fifteenth installment of dotShabaka Registry’s journal, charting its progress towards becoming one of the first new gTLDs to go live, written by general manager Yasmin Omer.

Thursday 3 October 2013

At a time when ICANN has hit the ‘pause’ button on the new gTLD program in order to assess the impact of “name collisions” on the security and stability of the DNS, we were surprised to see the ICANN Board approve the delegation of ایران., the IDN ccTLD for the Islamic Republic of Iran. While we understand the many distinctions between a ccTLD and a gTLD, the DNS does not make any such distinction.

As we’ve heard from Paul Mockapetris and John Crain recently in their interviews posted on the ICANN website, name collisions (or, more accurately, NX Domain responses) is not a new phenomenon; they have been evident with the introduction of any TLD and with existing TLDs in the root. Experience has shown that steps have been taken to successfully resolve the issues. We understand that ICANN is concerned that the use of NX Domain responses has the potential to create confusion with the introduction of new TLDs into the DNS.

As a contracted party with ICANN, شبكة. (an IDN gTLD) is unable to be delegated as we wait the outcomes of ICANN’s deliberations on name collisions. We have paid our $185,000 application fee, we have undertaken a very resource intensive exercise to ensure a compliant application, we have passed Initial Evaluation, we have signed a registry agreement with ICANN, we have passed pre-delegation testing and yet we sit and wait.

Our understanding of the IDN ccTLD fast track process is that it is much less rigorous, the application fee is voluntary, there is no requirement to enter into a contract with ICANN, the TLD can develop a launch strategy that is not restricted by ICANN mandated rights protection mechanisms, and any contribution to ICANN’s budget is voluntary. But because this is a ccTLD and not a new gTLD, the Board has seen fit to approve this delegation request at this time despite the serious conversation going on in the community about name collisions.

As we said previously, the DNS does not distinguish between a ccTLD or a gTLD, or for that matter an IDN ccTLD or an IDN gTLD. We would appreciate an explanation as to why we sit and wait for delegation while the IDN ccTLD is approved.

Read previous and future diary entries here.

Angry Birds backing two Chinese-language gTLDs

Kevin Murphy, September 9, 2013, Domain Registries

The Finnish/Irish new gTLD applicant TLD Registry Ltd has signed two ICANN Registry Agreements, covering the Chinese strings .在线 (.online) and .中文网 (a phrase meaning “Chinese language website”).

The deals were signed yesterday, but the news is set to be formally announced in Beijing on Tuesday by the Finnish prime minister, Jyrki Katainen, who’s on a state visit to the country.

He’ll be joined by Peter Vesterbacka, chief marketing officer of Angry Birds maker Rovio Entertainment, which is supporting TLD Registry as the first announced member of its “founders program”.

The two new agreements mean ICANN has now contractual powers over more new gTLDs (19) than legacy ones (18).

TLD Registry CEO Arto Isokoski told DI this morning that 在线 and 中文网 are already extremely well-known and widely-used phrases on the Chinese internet.

“在线” is the direct translation of “online” and “中文网” is what Chinese web users instinctively type when they’re searching for the Chinese-language version of a foreign brand’s web site, he said.

“It surprises me as well that these were not contested,” Isokoski said. “These are the strings that Chinese users type in when they’re looking for web sites online.”

Both TLDs will be open to registrants anywhere in the world, though .中文网 seems to be particularly suited for brands from the ASCII parts of the world, looking to improve SEO in the country.

Isokoski said that the company hopes to take .在线 and .中文网 to market early next year. If the strings are delegated in early November, then general availability could start in mid-January, he said.

Depending on ICANN delays, the launch schedule may have to be moved back to February or March in order to avoid the “dead period” around Chinese New Year, which starts in late January, he said.

The most directly competitive gTLD would be .网址, an arguably superior string meaning roughly “website”, which is now out of contention and likely to sign its own contract soon.

Two other Chinese gTLDs, both owned by Donuts, have ICANN contracts already — .游戏 (games) and .企业 (business).

Isokoski said that TLD Registry hopes to have about 20 members of its founders program (included Rovio, which is Finnish but makes games wildly popular in China) and about 20 launch registrars.

Like other IDN gTLD registries, the company is hoping that its first-to-market advantage will give its marketing a lift due to the extra media interest.

TLD Registry is based in Ireland, near its back-end provider Afilias, but was founded by Finns. Afilias alum Pinky Brand is managing registrar relationships for the company.

Winners and losers in the new .com pricing regime

Kevin Murphy, November 30, 2012, Domain Registries

Today’s shock news that Verisign will be subject to a .com price freeze for the next six years will have broad implications.

The US Department of Commerce has told the company it will have to continue to sell .coms at $7.85 wholesale until 2018, barring exceptional circumstances.

Here’s my initial take on the winners and losers of this new arrangement.

Domain investors

Volume .com registrants are of course the big winners here. A couple of dollars a year for a single .com is pretty insignificant, but when you own tens or hundreds of thousands of names…

Mike Berkens of Most Wanted Domains calculated that he’s saved $170,000 $400,000 over the lifetime of the new .com deal, and he reckons fellow domainer Mike Mann will have saved closer to $800,000 $2 million.

Brand owners

The other big constituency of volume registrants are the brand owners who spend tens or hundreds of thousands of dollars a year maintaining defensive registrations — mostly in .com — that they don’t need.

Microsoft, for example, owns over 91,000 domain names, according to DomainTools. I’d hazard a guess that most of those are defensive and that most are in .com.

Registries

There’s potentially trouble on the horizon for new gTLD applicants and existing registry operators. Verisign is looking for new ways to grow, and it’s identified its patent portfolio as an under-exploited revenue stream.

The company says it has over 200 patents either granted or pending, so its pool of potential licensees could be quite large.

Its US portfolio includes patents such as 7,774,432, “Registering and using multilingual domain names”, which appear to be quite broad.

Verisign also owns a bunch of patents related to its security business, so companies in that field may also be targeted.

Registrars

Verisign’s registrars will no longer have to pass their cost increases on to consumers every year.

While this may help with renewal rates, it also means registrars won’t be able to sneak in their own margin increases whenever Verisign ups its annual fees.

IDN buyers

Another area Verisign plans to grow is in internationalized domain names, where it’s applied to ICANN for about a dozen non-Latin variants of .com and .net.

Those registry deals, assuming they’re approved by ICANN, will not be governed by the .com pricing restrictions. Now that Verisign’s growth is getting squeezed, we might expect higher prices for IDN .com variants.

ICANN

ICANN may have suffered a small reputational hit today, with Commerce demonstrating it has the balls to do what ICANN failed to do six years ago, but money-wise it’s doing okay.

The new .com contract changes the way Verisign pays ICANN fees, and Commerce does not appear to have made any changes to that structure. ICANN still stands to get about $8 million a year more from the deal.

The Department of Commerce

Unless you’re a Verisign shareholder, Commerce comes out of this deal looking pretty good. It played hard-ball and seems to have won a lot of credibility points as a result.

Who really uses IDNs? [Guest Post]

Stéphane Van Gelder, November 19, 2012, Domain Tech

Are Internationalised Domain Names really useful, or just a way for an ASCII-focused internet governance community to feel better about itself?

Beyond all the hoopla about ICANN’s 2009 program to enable countries to operate their own non-Latin script internet suffixes (aka the “IDN ccTLD Fast Track”), what should really matter is the Internet user.

Yes, those sitting in ICANN meeting rooms at the time, listening to the hyperbole about how the internet was now going truly global probably felt like they were feeding the hungry and bringing peace to the world. But do people actually use IDNs?

I will admit that at the time, I was dubious. Of course, saying so in ICANN circles would have been akin to wearing a “Camembert is bad” t-shirt in the streets of Paris: poor form! But still, I couldn’t help ask myself if having a single one-language system unite the world was actually such a bad thing?

“How would you like it if the Internet had been invented in China and you had to use their alphabet,” was the usual rebuke I got if I ever dared to doubt out loud. And there really is no arguing with that. If the internet was Chinese, I’d want the Mandarin version of ICANN to roll out IDNs pretty sharpish.

Nonetheless, can the usefulness of IDNs still be questioned?

Facebook in Latin

Talking to a local internet expert whilst attending last week’s excellent Domain Forum in Sofia, Bulgaria, the answer would seem to be a surprising yes.

“Why would kids in this country use IDNs,” I was told when I suggested that, surely, Bulgaria must be excited about the prospect of natural language web addresses. “What worries the authorities here is the fact that kids are using Latin scripts so much on social media sites that they don’t even know how to write in Cyrillic anymore! So even if they could use IDN web and email addresses, why would they? They want to communicate like everyone else does on Facebook.”

In truth, Bulgaria’s view may be skewed by the horrible experience it’s had with ICANN’s IDN Fast Track. The country was refused its own IDN country code due to a perceived similarity with another TLD that no-one in Bulgaria really feels is warranted. But not all potential IDN users feel they are useless. Neighbors in Russia tell of a different IDN experience.

The Russian registry saw stunning initial take-up when it opened the IDN .РФ (.RF for Russian Federation) to general consumption on November 11, 2010. Registration volumes were explosive, with almost 600,000 names registered in the first month. Strong growth continued for a year, hitting a peak of 937,913 registered names in December 2011.

No profit

But the following month, that number fell off a cliff. Total registrations dropped to 844,153 in January 2012. “Initial registrations were driven in part by speculators,” explains ccTLD .RU’s Leonid Todorov. “But when people saw they couldn’t make huge profits on the domains, they started letting them go.”

Even so, .РФ remains a real success. Although November 2012 figures show a year on year decline of 8.63%, the TLD still sports a whopping 845,037 names.

At 66%, .РФ has a slightly lower renewal rate than ASCII Russian equivalent .ru (73%), probably because of those day-one speculators, but it remains widely used. Current delegation figures (i.e. the number of domain names that are actually used for email or websites) stand at a commendable 70% and have not stopped rising since .РФ opened in 2010 with a 45% delegation rate.

The Cyrillic Russian domain sees a vast predominance of personal use, with 77% percent of domains being registered by individuals. “Russians care deeply about their national identity,” says my Bulgarian friend when I suggest that IDNs do seem to matter in some Cyrillic-using countries. “To them, Dot RF is a matter of national pride.”

National pride

So IDNs may not really be all that different from ASCII domain names, with take-up depending on perceived use or value. Europe’s IDN experience seems to confirm this, as European registry EURid’s Giovanni Seppia explained in Sofia.

He revealed that since EURid introduced IDNs on December 11, 2009, registrations reached a peak of around 70,000 (a mere fraction of the 3.7 million names currently registered in the .eu space) before dropping off quite sharply.

Why? Well .eu IDNs may not hold much potential for real use or investment value for Europeans. Although web use is possible with IDNs, software primarily designed for an ASCII-only world does not always make it easy.

Email capability would be a real boost, but so far only the Chinese seem to have enabled it for their local script domains. The Chinese registry recently announced this, without giving details on how the use of all-Chinese character email addresses has been implemented or which email clients support IDNs.

Whatever the technology, countries which combine national pride and a character set far removed from our own probably see more desire for IDNs. With two years of hindsight, Russia obviously loves its IDN. And as other countries like China bring more elaborate IDN capabilities online, demand should grow and force even this IDN skeptic to recognize the new character(s) of the internet.

This is a guest post written by Stéphane Van Gelder, strategy director for NetNames. He has served as chair of the GNSO Council and is currently a member of ICANN’s Nominating Committee.