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Domain universe grows almost 1% in 2017 despite new gTLD slump

Kevin Murphy, February 16, 2018, Domain Registries

The total number of registered domain names in all TLDs was up 0.9% in 2017, despite a third-quarter dip, according to the latest data compiled by Verisign.

The latest Domain Name Industry Brief, published yesterday, shows that there were 332.4 million domains registered at the end of the year.

That’s up by 1.7 million names (0.5%) on the third quarter and up 3.1 million names (0.9%) on 2016.

Growth is growth, but when you consider that 2015-2016 growth was 6.8%, under 1% appears feeble.

The drag factors in 2017 were of course the 2012-round new gTLDs and Verisign’s own .net, offset by increases in .com and ccTLDs.

New gTLD domains were 20.6 million at the end of the year, down by about 500,000 compared to the third quarter and five million names compared to 2016.

As a percentage of overall registrations, new gTLDs dropped from 7.8% at the end of 2016 to 6.2%.

The top 10 new gTLDs now account for under 50% of new gTLD regs for the first time.

The numbers were primarily affected by big declines in high-volume spaces such as .xyz, which caused the domain universe to actually shrink in Q3.

Verisign’s own .com fared better, as usual, with .net suffering a decline.

The year ended with 131.9 million .com names, up by five million names on the year, exactly offsetting the shrinkage in new gTLDs.

But .net ended up with 14.5 million names, a 800,000 drop on 2016.

In the ccTLD world, total regs were up 1.4 million (1%) quarterly and 3.4 million (2.4%) annually.

Excluding wild-card ccTLD .tk, which never deletes domains and for which data for 2017 was not available to Verisign, the growth was a more modest 0.7 million (0.5%) quarterly and 2.3 million (1.8%) annually.

The DNIB report for Q4 2017 can be downloaded here (pdf).

Namecheap to bring millions of domains in-house next week

Kevin Murphy, January 5, 2018, Domain Registrars

Namecheap is finally bringing its customer base over to its own ICANN accreditation.

The registrar will next week accept transfer of an estimated 3.2 million .com and .net domains from Enom, following a court ruling forcing Enom owner Tucows to let go of the names.

The migration will happen from January 8 to January 12, Namecheap said in a blog post today.

Namecheap is one of the largest registrars in the industry, but historically it mostly acted as an Enom reseller. Every domain it sold showed up in official reports as an Enom sale.

While it’s been using its own ICANN accreditation to sell gTLD names since around 2015 — and has around four million names on its own credentials — it still had a substantial portion of its customer base on the Enom ticker.

After the two companies’ arrangement came to an end, and Enom was acquired by Tucows, Namecheap decided to also consolidate its .com/.net names under its own accreditation.

After Tucows balked at a bulk transfer, Namecheap sued, and a court ruled in December that Tucows must consent to the transfer.

Now, Namecheap says all .com and .net names registered before January 2017 or transferred in before November 2017 will be migrated.

There may be some downtime as the transition goes through, the company warned.

Verisign and Afilias testing Whois killer

Kevin Murphy, October 25, 2017, Domain Tech

Verisign and Afilias have become the first two gTLD registries to start publicly testing a replacement for Whois.

Both companies have this week started piloting implementations of RDAP, the Registration Data Access Protocol, which is expected to usurp the decades-old Whois protocol before long.

Both pilots are in their very early stages and designed for a technical audience, so don’t expect your socks to be blown off.

The Verisign pilot offers a web-based, URL-based or command-line interface for querying registration records.

The output, by design, is in JSON format. This makes it easier for software to parse but it’s not currently very easy on the human eye.

To make it slightly more legible, you can install a JSON formatter browser extension, which are freely available for Chrome.

Afilias’ pilot is similar but does not currently have a friendly web interface.

Both pilots have rudimentary support for searching using wildcards, albeit with truncated result sets.

The two new pilots only currently cover Verisign’s .com and .net registries and Afilias’ .info.

While two other companies have notified ICANN that they intend to run RDAP pilots, these are the first two to go live.

It’s pretty much inevitable at this point that RDAP is going to replace Whois relatively soon.

Not only has ICANN has been practically champing at the bit to get RDAP compliance into its registry/registrar contracts, but it seems like the protocol could simplify the process of complying with incoming European Union privacy legislation.

RDAP helps standardize access control, meaning certain data fields might be restricted to certain classes of user. Cops and IP enforcers could get access to more Whois data than the average blogger or domainer, in other words.

As it happens, it’s highly possible that this kind of stratified Whois is something that will be legally mandated by the EU General Data Protection Regulation, which comes into effect next May.

Verisign confirms first price increase under new .net contract

Verisign is to increase the wholesale price of an annual .net domain registration by 10%, the company confirmed yesterday.

It’s the first in an expected series of six annual 10% price hikes permitted under its recently renewed registry agreement with ICANN.

The annual price of a .net registration, renewal, or transfer will go up from $8.20 to $9.02, effective February 1, 2018

If all six options are exercised, the price of a .net would be $15.27 by the time the current contract expires, including the $0.75 ICANN fee. It would be $14.52 without the ICANN fee.

The increase was confirmed by CEO Jim Bidzos as Verisign reported its second-quarter earnings yesterday.

For the quarter, Verisign saw net income go up to $123 million from $113 million a year ago, on revenue that was up 0.7% at $289 million.

It now has cash of $1.8 billion, up $11 million on a year ago.

It ended the quarter with 144.3 million .com and .net names in its registry, up 0.8% on last year and 0.68 million sequentially.

.net price increases approved

Verisign has been given the right to continue to raise the wholesale price of .net domains.

It now seems likely the price charged to registrars will top $15 by 2023.

ICANN’s board of directors at the weekend approved the renewal of the .net Registry Agreement, which gives Verisign the right increase its prices by 10% per year for the six years of the contract.

Assuming the company exercises all six options — and there’s no reason to assume it will not — the price of a .net would be $15.27 by the time the contract expires, $0.75 of which would be paid to ICANN in fees.

There was some negative public comment (pdf) about the increases, largely from domainers and those representing domainers, but the ICANN board saw nothing to persuade it to change the terms of the contract.

In notes appended to its resolution, the board stated:

the Board understands that the current price cap provisions in Verisign’s Registry Agreements, including in the .NET Registry Agreement, evolved historically to address various market factors in cooperation with constituencies beyond ICANN including the Department of Commerce. During the negotiations for the renewal, Verisign did not request to alter the pricing cap provisions, the parties did not negotiate these provisions and the provisions remain changed from the previous agreement. The historical 10% price cap was arguably included to allow the Registry Operator to increase prices to account for inflation and increased costs/investments and to take into account other market forces but were not dictated solely by ICANN.

(I assume the word “changed” in that quote should have read “unchanged”.)

Unlike contract renewals for other pre-2012 gTLDs, the .net contract does not include any of the new gTLD program’s rights protection mechanisms, such as the Uniform Rapid Suspension policy.

ICANN explained this disparity by saying these mechanisms are not consensus policies and that it has no right to impose them on legacy gTLD registry operators.