Neustar, Nominet and CNNIC have been picked to provide backup registry services for new gTLDs that fail.
ICANN has named the three companies as Emergency Back-End Registry Operators for the new gTLD program.
They’ll be responsible for taking over the management of any new gTLD that goes out of business, putting registrants at risk of losing DNS resolution and registry functions.
The idea is that the EBERO(s) would be paid out of funds placed in escrow by gTLD applicants, in order to gracefully wind down any failed TLD over the space of a few years.
In reality, I doubt there’s going to be much call for their services; M&A activity is a more likely outcome for gTLDs that fail to meet their sales expectations.
ICANN highlighted the geographic diversity of the three companies (Nominet is British, Neustar American and CNNIC Chinese) as a stability benefit of its selections.
The three were chosen from 14 respondents to an RFI published last year.
The absence of an EBERO was one of the shortfalls of the new gTLD program highlighted by Verisign in its recent letter warning ICANN about perceived security and stability risks.
While ICANN has acknowledged that the EBEROs are unlikely to be ready to roll before the first new gTLDs start to launch, it has noted that they don’t need to be.
If any new gTLD catastrophically fails during the first few months of launch, it will reflect extremely poorly on the financial and technical evaluations applicants have been undergoing for the last nine months.
Afilias and Neustar have separately announced increased to the registry fees for .info and .biz domain names.
Afilias yesterday said the maximum wholesale price for a .info domain would increase to $8.16 effective September 1, a 10% increase on the current rate of $7.42 per year.
The last 10% hike, which the company is allowed to take under its ICANN registry agreement, came in July 2011.
Neustar last week also said it was taking its permitted 10% increase.
The maximum registry fee for .biz will go up to $8.63, also starting September 1. It last increased its prices in February 2012.
Afilias and Neustar have had their key gTLD registry contracts temporarily extended after they expired on New Year’s Eve.
The .info and .biz agreements, which were both signed with ICANN in 2006, both ended on December 31 2012.
Both deals, of course, have a presumption of renewal. They’ve been extended for six months while renewal terms are finalized.
I understand that the delay in getting new contracts negotiated and approved is due largely to all the other stuff going on at ICANN right now.
(New gTLD applicants planning to negotiate a non-standard contract with ICANN, take note.)
According to ICANN, drafts of the the next versions of the .info and .biz contracts will be posted for public comment this month.
I’d expect to see some of the same minor technical and legal changes made as those that were made to Verisign’s .net contract, which was renegotiated in 2011.
It’s going to be interesting to see whether .info and .biz will keep the same rights to increase registry fees, in light of the US Department of Commerce’s move to freeze .com prices.
However, .com is a special case and Commerce does not have a built-in right to examine .biz and .info contracts.
ARI Registry Services officially announced its aggressive targeting of the DNS services market at an event in Toronto last week.
The company says it is the named DNS provider in over 450 new gTLD applications, giving it a substantial foot in the door should they be approved by ICANN.
That’s almost three times as many applications as ARI is involved with as registry provider.
“To our competitors, we are coming for you,” a tired and emotional ARI CEO Adrian Kinderis said during the launch event at a club in Toronto last Tuesday, which DI attended.
“Bring it on,” equally tired and emotional executives from larger competitors were heard to mutter in the audience.
ARI seems to be targeting just TLD operators to begin with, while competitors such as Verisign, Neustar and Afilias also offer managed DNS to enterprises.
ARI already runs the DNS for Australia’s .au.
With little fanfare, ICANN last week formally approved new rules that could allow incumbent registry operators to own registrars that sell domains in their own gTLDs.
The policy would give the likes of Verisign, Neustar and Afilias the right to become affiliated with registrars that sell .com, .biz and .info names respectively.
These registries would have to sign up to the standard new gTLD registry agreement first, or submit to contract renegotiation in order to drop their current cross-ownership bans.
In either case, they would become bound by the new registry Code of Conduct, preventing them from offering preferential terms to their affiliated registrars.
The new rule came into effect following the ICANN board meeting on Thursday, at which this resolution was passed.
ICANN had already dropped cross-ownership restrictions for new gTLD registry operators, but held back from bringing in the same rules for incumbents due to concerns from competition authorities.
After exchanges of letters with the European Commission and US Department of Commerce, these concerns appear to have dried up, however. ICANN said in its resolution:
it appears that there is no longer any reason against extending the approved process to existing registry operators for their own TLDs.
This action will be an advantage for the ICANN community, as it will provide the opportunity for treating all registry operators equally with respect to cross-ownership restrictions.
Registries would have their requests for contract changes referred to competition authorities for comment before ICANN would approve them.
Based on previous comments, Verisign might have a struggle with respect to .com but the other incumbents might have an easier time renegotiating their deals.
Neustar has been particularly outspoken in its desire to get rid of the contractual language preventing it owning a .biz registrar, so we might see that company first to get into talks.
Both .biz and .info contracts are up for renewal before the end of the year.