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$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.