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ROTD conducts first new gTLD auction as One.com wins .one

Kevin Murphy, February 25, 2014, Domain Sales

Danish registrar One.com has won the .one contention set in the first private auction carried out by new gTLD consultancy Right Of The Dot.

One.com beat Radix, the United Arab Emirates-based portfolio applicant, to the string. Radix withdrew its application last week. The price has not been disclosed.

ROTD, Mike Berkens and Monte Cahn-managed company, has been competing with Applicant Auction for contention set resolution services and this is its first win.

The .one auction was carried out using a “single sealed bid second price” methodology, in which all participants privately submit a single bid and the winner pays the second-highest losing bid.

In this case, One.com will have paid Radix whatever bid Radix had put forward, with ROTD and escrow partner Escrow.com taking their fees from the winning bid.

Applicant Auction uses an “ascending clock” method, where bids are set in increments by the auctioneer over the space of several rounds, with bidders choosing to stay in or drop out in each round.

Cahn said in a press release: “Our Single Sealed Bid Second Price auction method protects the participants from ‘auction fever,’ which often causes over-bidding as people get emotionally tied to the process of winning at any cost due to time committed and sometimes throw their budgets out the window.”

Directi expects all 31 of its gTLDs to be contested

Directi has applied for 31 new top-level domains and expects all 31 of them to be contested, according to CEO Bhavin Turakhia.

The company has budgeted $30 million for its unashamedly mainstream portfolio of applications – which includes the likes of .web – but that’s not including what it expects to spend at auction.

“I expect there to be contention in all of them,” he said. “Whether they will end up going to auction… we’re completely open to strategic partnerships with other industry players who we believe can add value and join hands with us, based on merit. We’ll be evaluating this on a case by case basis.”

“Something like a .web, there’ll be enough competitors out there that it will certainly go to auction, no matter what,” he said, adding that he expects at least 10 rivals for .web.

Directi has applied for: .web, .shop, .bank, .law, .music, .news, .blog, .movie, .baby, .store, .doctor, .hotel, .play, .home .site, .website, .click, .online, .one, .ping, .space, .world, .press, .chat, .city, .deals, .insurance .loans, .app, .host, and .hosting.

The company is applying via its new business unit, Radix, using ARI Registry Services as its back-end registry provider.

Turakhia said he expects to use a traditional registry-registrar model for most of the domains, assuming Directi wins its contention sets.

“The strings that we have gone for are strings that are relevant to all registrars so we expect there to be significant adoption,” he said.

“If eNom were to apply for .web and .shop – and they probably will – and if they were to win those TLDs, then our registrar businesses would definitely carry them irrespective of the fact that we have our own TLDs,” he said. “There are only so many good viable strings out there.”

Most of Directi’s gTLDs, if approved, will be completely unrestricted.

For .movie, .law, .doctor and .bank there will be some tight restrictions, Turakhia said. (UPDATE: he later added that .insurance and .loans will also be restricted).

Some will also have additional rights protection mechanisms that go above and beyond what ICANN mandates in its standard registry contracts.

But none of its applications are “community” applications, the special category of application defined by ICANN.

Turakhia said he doesn’t think some of the applicants trying to “sneak through” as community applications will be successful.

“We’re treating these as all generic strings for anyone to register domains in,” he said. “.music for me does not represent a community. I could be a bathroom singer and want a .music domain name.”

“If you treat music lovers as a community then 100% of the world is part of that community.”