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Fight breaks out as Afilias eats Neustar’s Aussie baby

The transition of .au to Afilias’ registry platform over the weekend seems to have gone quite smoothly, but that hasn’t stopped Neustar and a former key executive from lashing back at what it says are the gaining company’s “misinformed” statements.

The war of words, which has got quite nasty, came as Afilias transferred all 3.1 million .au domains to its control, after 16 years with the former incumbent.

Neustar, which hadn’t said much about losing one of its most-lucrative TLD contracts, on Friday published a lengthy blog post in which it said it wanted to “set the record straight” about Afilias’ statements leading up to the switch.

Afilias, in a series of blog posts and press releases since it won the .au contract, has been bigging up its technical capabilities.

While it’s not directly criticized Neustar and predecessor AusRegistry (which Neustar acquired for $87 million), the implication of many of these statements is that Neustar was, by comparison, a bit shit.

In Neustar’s latest post, Aussie VP George Pongas takes issue with several of these claims.

Any implications that the company did not offer 24/7 registrar support were incorrect, he wrote. Likewise, the idea that it did not have a DNS node in Western Australia was not true, he wrote.

He also took issue with claims that Afilias would offer improved security and a broader feature set for registrars, writing:

We’ve raised a number of concerns directly with auDA about what we considered to be inaccurate remarks comparing Neustar’s systems with the new Registry and implying that the new Registry will include “all previous functionality plus enhanced security and authentication measures”, as stated in recent auDA Member communications. We questioned auDA about this and were informed that the statement is comparing the various testing phases of Afilias’ Registry – so the latest version has “all previous functionality” of the earlier versions. It doesn’t mean the Registry will have “all previous functionality” of Neustar’s platform – which we believe the statement implies. It is a fact that a number of the proprietary features and services that Neustar currently provides to Registrars will no longer be available under the new Registry system, and thus Registrars will likely notice a difference.

“We stand by our statements,” an Afilias spokesperson told DI today.

While Neustar’s corporate stance was fairly reserved, former AusRegistry boss Adrian Kinderis, never a shrinking violet, has been reacting in an almost presidential fashion, using Twitter to describe auDA CEO Cameron Boardman as “incompetent”, criticizing a reporter, and using the hashtag #crookedcameron.

Kinderis, who headed up AusRegistry for the whole of its 16-year run with .au, left Neustar in April, three years after the acquisition. He’s now running something called MadBarry Enterprises and is still associated with the new gTLD .film.

He reckons Neustar lost the .au contract purely for financial reasons.

While Neustar is believed to have lowered its registry fee expectations when pitching to continue as the back end, auDA will save itself about AUD 9 million a year ($7 million) under Afilias, compared to the old regime.

auDA is not expected to hand this saving on to registrars and registrants, though I hear registrars have been offered marketing rebates recently.

auDA has previously told us that Afilias scored highest on the technical evaluation of the nine bidders, and that it was not the bidder with the lowest fee.

Kinderis is also of the opinion that Afilias is among those helping auDA stack its membership with compliant stooges.

Last month, auDA announced a dramatic four-fold increase in its membership — getting 955 new membership applications in just a month.

auDA thanked Afilias for this growth in membership, alongside three of the largest .au registrars: Ventra IP, Arq Group (formerly Melbourne IT), and CrazyDomains owner Dreamscape Networks.

An Afilias spokesperson said that the company had offered its staff the option to become auDA members and about half — I estimate at roughly 150 people based on Afilias’ previously published headcounts — had taken it up on the offer.

It sounds rather like Afilias footed the AUD 22 per-person “Demand-class” membership application fees.

The rapid increase in membership at auDA has raised eyebrows in the .au community, with some accusing the registry of “branch stacking”.

That’s an Australian term used to describe the practice of signing up large numbers of members of a local branch of a political party in order to swing important votes.

The 955-plus new members will not be approved in time to influence the outcome of the vote to oust the auDA chair and others later this month.

But they will have voting rights by the time auDA’s annual general meeting comes around later this year. The AGM is when auDA will attempt to reform itself in light of a harsh government review of its practices.

As for the migration to Afilias itself, it seems to have gone relatively smoothly. I’m not aware of any reports of any serious technical issues, despite the fact that it was the largest TLD migration ever.

Some members have pointed out that most of .au’s ops are now off-shore, and old auDA Whois service is now hosted on a .ltd domain (hey, somebody’s got to use it) which is itself protected by Whois privacy.

I also noticed that the auDA web site, which used to have a hook into the registry that published an updated domain count every day, is no longer working.

.co first ccTLD to get China approval

Repurposed Colombian ccTLD .co has obtained official government approval to operate in China, according to a consultant whose client worked on the project.

Pinky Brand blogged this week that .co is the “first” foreign ccTLD to get the nod, among the raft of gTLDs that have gone down the same route over the last couple of years.

China’s own .cn and Chinese-script equivalents are of course already approved.

Under China’s policy regime, administered by the Ministry of Industry and Information Technology, TLD registries have to set up a local presence and agree to Draconian takedown policies.

Non-approved TLDs are not permitted to have resolving domains, under the rules.

Most companies seeking Chinese approval tend to use a local proxy provider such as ZDNS, which seems to be the route taken by .co here.

.co is managed by Neustar via its Colombian subsidiary .CO Internet.

Biggest TLD handover in history happens this weekend

Australia’s ccTLD registry will be down for 36 hours this weekend as it executes the biggest back-end transition in the history of the DNS.

Starting 0800 AEST on Saturday (2200 UTC on Friday), Afilias will take over the running of .au from Neustar-owned AusRegistry, after about 16 years in the saddle.

DNS will not be affected — meaning all .au domains should continue to resolve — but there won’t be any new creates, renews, transfers or changes during the downtime.

There are over 3.1 million domains in .au, more than the 2.7 million names in the .org registry when Afilias took over that contract from Verisign in 2003.

Afilias was picked from a pool of nine candidate back-end operators last December.

auDA, the registry, will save itself AUD 9 million ($7 million) per year at least, due to the lower per-domain fee Afilias is charging.

But hardly any of that saving is going to be passed on to registrars and ultimately registrants.

Bruce Tonkin, who chaired the selection committee for auDA, told us a few months back that much of the cash will be invested in marketing.

Get drunk on Neustar’s tab and it will donate money to hurricane relief

Kevin Murphy, March 5, 2018, Gossip

Neustar has promised to donate thousands of dollars to a Puerto Rican hurricane relief charity, providng enough people show up to its open bar event in San Juan next week.

It’s fairly standard for domain companies of Neustar’s size to host free after-hours social events during ICANN meetings, but this time the company said it will donate $25 for each attendee to charity.

The beneficiary is the Puerto Rico Resistance Fund, operated by Americas for Conservation and the Arts, which is helping rebuild the island after Hurricane Maria hit it for six last September.

“We want to bring together the community, help spread awareness of the hardship and devastation in Puerto Rico, and make our community proud they are contributing in a small way financially,” Neustar VP Lori Anne Wardi told DI.

With the company telling me it expects 500 guests or more to the invitation-only event, expect a total donation topping $12,500.

The venue is the Antiguo Casino, which appears to be about a 10-minute taxi ride from the Puerto Rico Convention Center, at which the ICANN 61 public meeting is being held.

The event runs from 1900 to 2330 local time.

The official death toll in Puerto Rico from Maria was 64, but a New York Times analysis puts the number at closer to 1,000. Parts of the island, a US territory, are still suffering from infrastructure problems such as power outages.

auDA probably won’t pass on full Afilias savings to registrants

Kevin Murphy, February 22, 2018, Domain Registries

Switching .au’s back-end to Afilias will cut auDA’s per-domain costs by more than half, but registrants are not likely to benefit from the full impact of the savings.

auDA’s Bruce Tonkin, who led the committee that selected Afilias to replace incumbent Neustar, told DI this week that the organization is likely to take a bigger cut of .au registration fees in future, in order to invest in marketing.

That would include marketing the ability of Aussies to register .au domains at the second level for the first time — a controversial, yet-to-roll-out proposal.

Tonkin confirmed that the back-end fee auDA will be paying Afilias is less than half of what it is currently paying Neustar — the unconfirmed rumor is that it’s 40% of the current rate — but said that Afilias was not the cheapest of the nine bidders.

While .au names are sold for a minimum of two years, the current wholesale price charged to registrars works out to AUD 8.75 ($6.85) per year, of which Neustar gets AUD 6.33; auDA receives the other AUD 2.42.

A back-end fee of roughly $5 (US) per domain per year is well above market rates, so it’s pretty clear why auDA chose to open the contract to competition.

Tonkin explained the process by which Afilias was selected:

We first considered scoring without price, and Afilias received the highest score for non-financial criteria.

We then considered pricing information to form an assessment of value for money. The average pricing across the 9 [Request For Tender] responses was less than half of the present registry back-end fee ($6.33). Afilias was close to the average pricing, and while it was not the cheapest price — it was considered best value for money when taking into account the highest score in non-financial criteria.

I asked Afilias for comment on rumors that its price was 60% down on the current rate and received this statement:

Afilias believes auDA chose us based on the best overall value for the Australian internet community. The evaluation heavily weighted expertise, quality and breadth of service over price. While we don’t know what others bid, Afilias works to be competitive in today’s market. Attempts to price significantly higher than market without a value proposition are unrealistic and could even be considered price gouging.

It’s not known what price Neustar bid for the continuation of the contract, but I expect it will have also offered a deep discount to its current rate.

By switching, auDA is basically going to be saving itself over AUD 3 per domain per year, which works out to a total of AUD 9 million ($7 million) per year at least.

But the organization has yet to decide how much of that money, if any, to pass on to its registrars and ultimately registrants.

The auDA board of directors will meet in March to discuss this, Tonkin (who is in charge of the registry transition project but not on the board) said.

“We don’t want to set expectations that the wholesale price is going to change massively,” he said.

“I don’t expect it’s going to be any higher than the current wholesale price,” he said.

But he said he expects auDA to increase its slice of the pie in order to raise more money for marketing. The organization does “basically no marketing” now, he said.

“There’s certainly strong interest in doing more to market and grow the namespace,” he said. “One option is that more money is put into marketing the namespace and growing awareness of .au… That AUD 2.42, I expect that to change.”

This would include marketing direct second-level registrations, an incoming change to how .au names are sold that has domain investors worried about confusion and market dilution.

Outrage over the 2LD proposal — it appears to be a done deal, even if the details and timeline have yet to be finalized — has started attracting the attention of business media in Australia recently.

But auDA’s own research shows that opposition is not that substantial outside of these “special interests”.

A survey last year showed that 40% of .com.au registrants “support” or “strongly support” the direct registration proposal, with 18% “opposed” or “strongly opposed” Another 42% were completely unaware of the changes.

Support among .org.au registrants was lower, and it was higher among .net.au registrants.

But 36% of “special interests” — which appears to mean people who discovered the survey due to their close involvement in the domain industry — were opposed to the plan.

There’s no current timeline for the introduction of direct registrations, but the back-end handover from Neustar to Afilias is set to happen July 1 this year.

Neustar acquired AusRegistry, which has been running .au since 2002, for $87 million a couple of years ago.