Latest news of the domain name industry

Recent Posts

Is the .co rebid biased toward Afilias? Yeah, kinda

Kevin Murphy, January 17, 2020, Domain Registries

The Colombian government has come under fire for opening up the .co registry contract for rebid in a way that seems predetermined to pick Afilias as the winner, displacing its fierce rival Neustar.

As I blogged in November, Colombia thinks it might be able to secure a better registry deal, so it plans to shortly open .co up to competitive proposals.

A company called .CO Internet, acquired by Neustar for $109 million in 2014, has been running the ccTLD for the last decade. There are currently around 2.3 million .co domains under management, according to Colombia.

With the renewal deadline looming, the government’s technology ministry, MinTIC, published an eyebrow-raising request for proposals last month.

What’s surprising about the RFP is that some of the four main technical performance criteria listed are so stringent that probably only two companies in the industry qualify — Verisign and Afilias, and so far Verisign has not been involved in the RFP process.

The companies that have been engaging with the government to date are Afilias, Neustar/.CO, Nominet, CentralNic and Donuts.

First, MinTIC wants a registry that’s had at least two million domains under management across its portfolio continuously for two years. All five registries qualify there.

Second, it wants a registry that’s been involved in the migration of a TLD of at least one million names, either as the gaining or losing back-end.

That immediately narrows the pack to just two of the five aforementioned registries — Neustar and Afilias.

Verisign would also qualify, if it’s in the bidding, but I suspect it’s not. Taking over .co would look like a “buy it to kill it” strategy, which would be horrible optics for the Colombian government.

There have only ever been three migrations over one million names, to my knowledge: the Verisign->Afilias .org transition of 2003, the Neustar->Afilias .au move of 2018, and last year’s Afilias->Neustar .in handover.

CentralNic, Nominet and Donuts have all moved numerous TLDs between back-ends, but with much smaller per-TLD domain volumes.

Third — and here’s the kicker — the successful .co bidder will have to show that it processes on average 25 million registry transactions — defined as “billable EPP (write) transactions, as well as all EPP search (read) transactions” — per day. (All of the RFP quotes in this post have been machine-translated from Spanish by Google and run by a few generous Spanish speakers for verification.)

The RFP is not entirely clear on what exact data points it’s looking at here, but my take is that qualifying transactions include, at an absolute minimum, attempts to create a domain, renew a domain, transfer a domain and check whether a domain is registered.

The vast majority of such transactions are in the check and create functions, and I believe a great deal of that activity relates to drop-catching, where registries are flooded with add requests for just-deleted domains.

Whichever way you split it, 25 million a day is a ludicrously high number. Literally only .com, which sees 2.3 billion checks and 1.5 billion adds per month, sees that kind of action.

According to Neustar, which actually runs .co, it only sees 6.4 million transactions per day on average. The requirement to handle 25 million a day is “exaggerated, unjustified and discriminatory” against Neustar, Neustar told MinTIC.

But the RFP allows for the bidding registries to spread their 25-million-a-day quota across all of the TLDs they manage, and this MAY sneak Afilias over the line.

I say MAY in big letters because I don’t believe the numbers that Afilias (and probably other registries too) reports to ICANN every month are reliable.

If you add up the reported, qualifying EPP transactions for September in Afilias’ top four legacy gTLDs — .org, .info, .mobi and .pro — you get to over 25 million per day.

But those same records show that, for example, .mobi, .pro and .info had exactly the same number of EPP availability checks that month — 215,988,497 each.

This is clearly bad data.

I reported on this issue last May, when ICANN’s Security and Stability Advisory Committee informed ICANN that major registries were providing “not reliable” or possibly “fabricated” data about port 43 Whois queries.

Afilias, which was one of the apparent offenders, told me at the time that it was addressing the issue with ICANN, but it does not yet appear to have fully fixed its reporting to enable TLD-by-TLD breakdowns of its registry activity.

It is of course quite possible, even very likely, that Afilias has on average more than 25 million qualifying EPP transactions per day, but how’s it going to prove that to the Colombian government when the numbers it reports under contract to ICANN are clearly unreliable?

It’s a little harder to determine whether Neustar would qualify under the 25-million transaction rule, because some of its largest zones are ccTLDs — .co, .in and .us — that do not publicly report this kind of data. Its comments to the RFP suggest it would not.

Numbers aside, I’ll note that there’s very probably an inherent bias towards legacy gTLD operators like Afilias and against relative newcomers such as CentralNic if you’re counting EPP transactions. As I noted above, a lot of these transactions are coming from drop-catch activity, which is more prevalent on larger, older TLDs where there are more dropping domains that are more likely to have existing backlinks and traffic.

The fourth technical requirement in the Colombian RFP that looks a bit fishy is the requirement that the new registry must have channel relationships with at least 10 of the largest 25 registrars, as listed by a web site called domainstate.com.

I can’t say I’ve looked at domainstate.com very often, if at all, but a quick look at its numbers for September strongly suggests to me that it does not count post-2012 new gTLD registrations in its registrar league table. One registrar with almost four million domains under management doesn’t even show up on the list. This arguably could give an advantage to a registry that plays strongly in legacy gTLDs.

That said, it’s probably an academic point — I don’t think any of the bidders for the .co contract would have difficulty showing that they have 10 of the top 25 registrars on board, whichever way you calculate that league table.

Cumulatively, these four technical hurdles have led some to suggest that Afilias has somehow steered MinTIC towards creating an RFP only it could win.

Apart from what I’ve discussed here, I’ve no evidence that is the case, and Afilias has not yet responded to my request for comment today.

Luckily for the bidding registries, the Columbian RFP has not yet been finalized. Comments submitted by the bidders and others are apparently going to be taken on board, so the barriers to entry for respondents could be lowered before bids are finally accepted.

MinTIC posted an update last night that extends the period that the RFP could run, and the transition period should Neustar lose the contract. A handover, should one happen at all, could now happen as late as February next year.

Neustar’s .co contract up for grabs

Kevin Murphy, November 6, 2019, Domain Registries

Colombia is looking for a registry operator for its .co ccTLD.

If you’re interested, and you’re reading this before noon on Wednesday November 6 and you’re at ICANN 66 in Montreal, hightail it to room 514A for a presentation from the Colombian government that will be more informative than this blog post.

Hurry! Come on! Move it!

The Ministry of Information Technology and Communications (MinTIC) has published a set of documents describing some of the plan to find a potentially new home for .co.

There doesn’t appear to be a formal RFP yet, but I gather one is imminent.

What the documents do tell us is that Neustar’s contract to run .co expires in February, and that MinTIC is looking into the possibility of a successor registry.

Currently, .co is delegated to .CO Internet, a Colombian entity that relaunched the TLD in 2010 and was acquired by Neustar for $109 million in 2014.

But under a law passed earlier this year, it appears as if MinTIC is taking over policy management for .co and may therefore seek IANA redelegation.

There’s no indication I could see that there’s a plan to reverse the policy of allowing anyone anywhere in the world to register a .co, indeed MinTIC seems quite proud of its international success.

The documents also give us the first glimpse for years into .co’s growth.

It had 2,374,430 names under management in September, after a couple of years of slowing growth. The documents state that .co had an average of 323,590 new regs per year for the first seven years, which has since declined to an average of 32,396.

.co is not the cheapest TLD out there, renewing at around $25 at the low end.

Form an orderly queue: New Zealand wants a new back-end

Kevin Murphy, October 23, 2019, Domain Registries

New Zealand is looking to possibly outsource its .nz ccTLD registry back-end for the first time, and has invited interested parties to get in touch.

Registry manager InternetNZ today published a request for expressions of interest in what it’s calling its “registry replacement project”.

It won’t be as straightforward as most registry migrations, as .nz is currently running essentially two different back-ends.

Today, about 65% of its registrations are based on an outdated custom Shared Registration System protocol, with the remainder on the industry standard Extensible Provisioning Protocol.

The proportion of registrars running SRS versus EPP is roughly the same, with about 65% on SRS, according to the REOI.

But the registry wants to get rid of SRS altogether, forcing all SRS-only registrars to adopt the EPP, and the new back-end provider will have to support this transition.

While registrars always have a bit of implementation work to do when a TLD changes back-ends, it’s not usually as complicated as adopting a completely different protocol with which they may not be unfamiliar.

So the risk of issues arising during the eventual handover — which will probably take a bit longer than usual — is probably a bit higher than usual.

But .nz is an attractive TLD. At the start of the month, it had 711,945 domains under management, a pretty good penetration on a per-capita basis when compared to the biggest ccTLDs.

It’s in the top 50 of the 1,338 TLDs for which I have data.

The deadline for responses to the REOI is November 29, a little over a month from now, InternetNZ said.

The registry is taking briefings at ICANN 66 in Montreal from November 2, and the following week in New Zealand.

UPDATE: This article originally stated that InternetNZ has decided to outsource its back end. In fact, outsourcing is just one of a number of options.

$3.2 million-a-year registrar up for grabs

Kevin Murphy, October 1, 2018, Domain Registrars

Swedish ccTLD registry IIS is to sell off its registrar business, .SE Direkt, which is expected to bring in some $3.2 million in revenue this year.

The foundation said today that .SE Direkt has 121,836 .se domains under management and 87,852 customers, 66,819 of which are corporate.

That represents about 7% of the total .se market by domains.

IIS created the registrar in 2009 as part of its transition to a competitive two-tier sales model.

The registry explained in a note to press:

The idea was that it would work as a transition solution and that domain name holders would gradually transfer to other registrars. The number of customers has not fallen at the expected rate, but after 10 years it is on a level where IIS believes that the time is right to no longer continue with the registrar operations.

The buyer, which will have to be or become an IIS-accredited .se registrar, will get the customer base, domain database and two-year brand license, but none of the staff or other assets of the unit.

.SE Direkt sells .se names for 270 SEK ($30.27) per year.

Its revenue for 2017 was SEK 29.8 million ($3.3 million) and is expected to decline to SEK 28.3 million ($3.2 million) in 2018. The buyer would take over from the start of 2019.

There’s obviously a risk here that revenue is on a downward trajectory due to IIS’s aforementioned strategy of deliberately shedding customers.

Some effort to reverse this trend may be required by whoever takes over.

Stats on churn, usage, transfers and so on can be found in this IIS RFP (pdf).

IIS said that bids from interested parties must be submitted by October 17 and the foundation expects to select the winner by November 1.

Afilias sues India to block $12 million Neustar back-end deal

Kevin Murphy, August 27, 2018, Domain Registries

Afilias has sued the Indian government to prevent it awarding the .in ccTLD back-end registry contract to fierce rival Neustar.

The news emerged in local reports over the weekend and appears to be corroborated by published court documents.

According to Moneycontrol, the National Internet Exchange of India plans to award the technical service provider contract to Neustar, after over a decade under Afilias, but Afilias wants the deal blocked.

The contract would also include some 15 current internationalized domain name ccTLDs, with another seven on the way, in addition to .in.

That’s something Afilias reckons Neustar is not technically capable of, according to reports.

Afilias’ lawsuit reportedly alleges that Neustar “has no experience or technical capability to manage and support IDNs in Indian languages and scripts and neither does it claim to have prior experience in Indian languages”.

Neustar runs plenty of IDN TLDs for its dot-brand customers, but none of them appear to be in Indian scripts.

NIXI’s February request for proposals (pdf) contains the requirement: “Support of IDN TLDs in all twenty two scheduled Indian languages and Indian scripts”.

I suppose it’s debatable what this means. Actual, hands-on, operational experience running Indian-script TLDs at scale would be a hell of a requirement to put in an RFP, essentially locking Afilias into the contract for years to come.

Only Verisign and Public Interest Registry currently run delegated gTLDs that use officially recognized Indian scripts, according to my database. And those TLDs — such as Verisign’s .कॉम (the Devanagari .com) — are basically unused.

Neither Neustar nor Afilias have responded to DI’s requests for comment today.

.in has over 2.2 million domains under management, according to NIXI.

Neustar’s Indian subsidiary undercut its rival with a $0.70 per-domain-year offer, $0.40 cheaper than Afilias’ $1.10, according to Moneycontrol.

That would make the deal worth north of $12 million over five years for Afilias and over $7.7 million for Neustar.

One can’t help but be reminded of the two companies’ battle over Australia’s .au, which Afilias sneaked out from under long-time incumbent Neustar late last year.

That handover, the largest in DNS history, was completed relatively smoothly a couple months ago.

Nine registries fighting for .au contract

Kevin Murphy, October 4, 2017, Domain Registries

Nine domain name companies are battling it out for the right to run Australia’s .au ccTLD.

That’s according to auDA, the .au registry, providing an update on the latest stage of its “registry transformation” project today.

A decision on which company to select could be made as soon as a month from now, though the process does seem to be running a week behind schedule due to contenders asking for more time to write their tenders.

One company that will certainly have applied for the job is incumbent Neustar, which has been running .au for the last 15 years (through its relatively AusRegistry acquisition).

Having earlier indicated that it was looking for somebody to build an in-house registry, auDA later clarified (or U-turned) that it wanted to stick with an outsourced back-end provider.

The apparent decision to bring the service in-house came in for some criticism from some auDA members, which waned when it emerged outsourcing was the only solution on the table.

There are about 3.1 million .au domains today, and the back-end gets roughly $5 a year (USD) per name.

Three-million-domain .au deal up for grabs

auDA has formally launched the process that will could see it replace .au back-end provider Neustar with an in-house registry by the end of June 2018.

The Australian ccTLD operator has opened a “Request for Expressions of Interest” as the first stage of a procurement process for software and/or services to support its recently announced Registry Transformation Project.

It’s looking for companies that can provide all the major pieces of a domain name registry — EPP registry, Whois, DNS, etc — and my reading of the REOI reveals a preference towards a system owned and operated by auDA.

Respondents can respond with products, technology and / or services for all or part of the elements of the Registry Transformation Project, and are free to partner with other respondents to put together combined proposals.

auDA intends to establish a dedicated .au registry, and have all arrangements in place to support this, by 30 June 2018.

The organization even talks about eventually becoming one of ICANN’s approved Emergency Back-End Registry Operators.

.au has grown to over 3 million domains over the 15 years it was being managed by AusRegistry, which was acquired by US-based Neustar in 2015. This deal is due to expire next year.

So it’s a big contract, and one that is likely to attract a lot of interest from players big and small.

That said, registry solutions are typically offered very much on a service basis. The market for licensed registry software is not exactly bustling, and auDA also requires source code access as a condition of any deal.

auDA said the deadline for responses to the REOI is June 26. It will decide upon its next steps, which could be a formal request for proposals, in the last week of July.

Further details can be found here.

.CO Internet looking for more registrars

.CO Internet is expanding its registrar channel with a new Request For Proposals.

The company wants would-be registrars to respond with the commitments they’re willing to make to market and promote .co domains, particularly in markets where .co is not currently popular.

Only ICANN-accredited registrars need apply.

Amusingly, registrars also need to be specifically accredited to sell .biz domains. Presumably this is due to .CO’s relationship with back-end provider Neustar, which also runs .biz.

The company has about 30 registrars right now, but many of those operate very large reseller networks, so there’s no shortage of places to buy a .co if you want one.

.CO deliberately kept its registrar numbers low — only 10 at launch — in order to cut down on abuse and to keep a tighter leash on gaming during the 2010 landrush process.

The RFP can be found here.

.eu registry contract up for grabs

The European Commission has opened up the .eu registry contract to competitive bidding.

The sort-of ccTLD has been managed by EurID since it launched 2004 but its contract, which has already been extended to its maximum term, is due to expire in October next year.

Would-be usurpers must be not-for-profit organizations based in the European Union, according to a Commission RFP, which should narrow the field quite a lot.

The .eu space has 3.7 million registered domain names, growing at 5.4% a year. Considering that the TLD is open to all in the EU, the numbers fare poorly compared to many European ccTLDs.

The deadline for submissions is June 20.

ICANN issues new gTLD dispute RFPs

ICANN has issued two requests for proposals for providers to administer dispute resolution services for the new gTLD program.

It’s looking for outfits to manage the Registry Restrictions Dispute Resolution Procedure (RRDRP) and Trademark Post-Delegation Dispute Resolution Procedure (Trademark PDDRP).

The former is for people who think a Community gTLD registry is mishandling its registration restrictions, the latter for trademark owners who believe a registry is turning a blind eye to cybersquatting.

ICANN has a requirement that the respondents to the RFPs must have experience with dispute resolution, so expect the usual suspects (ie UDRP providers) to wind up on the shortlist.

  • Page 1 of 2
  • 1
  • 2
  • >