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Pay up or sell up, ICANN tells failing new gTLD

Kevin Murphy, January 25, 2019, Domain Registries

ICANN has responded to a request for it to reduce the $25,000 annual fee it charges gTLD registries.

The answer is no.

That wholly unsurprising reply came in a letter from registry services director Russ Weinstein to John McCabe, CEO of failing new gTLD operator Who’s Who Registry.

McCabe, in November, had asked ICANN to reduce its fees for TLDs, such as its own .whoswho, that have zero levels of abuse. ICANN fees are the “single biggest item” in the company’s budget, he said.

His request coincided with ICANN commencing compliance proceedings against the company for failure to pay these fees

Weinstein wrote, in a letter (pdf) published today:

We sympathize with the financial challenges that some new gTLD registry operators may be facing in the early periods of these new businesses. New gTLD operators face a challenging task of building consumer awareness and this can and may take significant time and effort.

But he goes on to point out that the $25,000-a-year fee was known to all applicants before they applied, and had been subject to numerous rounds of public comment before the Applicant Guidebook was finalized.

Weinstein writes:

The AGB made clear that evaluation phase was to determine whether an applicant had the requisite technical, operation and financial capabilities to operate a registry, and was not a assessment nor an endorsement of a particular business plan.

It’s pretty clear that the .whoswho business plan has failed. It’s sold no more than a handful of non-defensive domains over the four years it has been available.

Weinstein concludes his letter by pointing out that all new gTLD registries are free to terminate their contracts for any reason, and that it’s perfectly permissible under ICANN rules to sell your contract to another registry.

ICANN told Who’s Who earlier this month that it has until February 10 to pay its overdue fees or risk having its contract terminated.

First non-brand gTLD to go dark

Kevin Murphy, November 14, 2018, Domain Registries

The number of new gTLDs to voluntarily terminate their ICANN contracts has hit 45, with the first non-brand calling it quits.

It’s a geo-gTLD, .doha, which was meant to represent the Qatari capital of Doha.

There were no registered domains. Despite being delegated in March 2015, it never launched.

The registry was the country’s Communications Regulatory Authority, which also runs local ccTLD .qa.

No reason was given for the request — registries are allowed to terminate their contracts for any reason, with notice.

The registry’s web site hasn’t been updated in some time, so perhaps resources are an issue.

Given Doha is a protected geographic term, it’s unlikely to return in future unless the government changes its mind in future application rounds.

Dot-brand gTLDs to go the same way since I last reported the number include .blanco, .spiegel, .bond, .epost, .active and .zippo.

Chinese registrars on the decline

Kevin Murphy, October 1, 2018, Domain Registrars

Having been on a growth trajectory for some years, the number of ICANN-accredited registrars based in China appears to be on the decline.

According to my records, so far this year 26 registrar contracts have been terminated, voluntarily or otherwise, 11 of which were Chinese. I’m excluding the mass drop of Pheenix accreditations from these numbers.

The country with the next-highest number of terminations was the USA, with three.

ICANN has terminated nine registrars for breaches of the RAA this year, six of which were Chinese.

All the Chinese notices included non-payment of ICANN fees as a reason for termination, though it appears that most of them had a negligible number of gTLD domains under management.

ICANN Compliance tells me there’s no particular focus of China at the moment, this is all a result of regular day-to-day enforcement.

ICANN has sent breach notices to 28 companies this year, seven of which were to Chinese registrars.

Meanwhile, 22.cn has moved 13 of its accredited shell registrars to Hong Kong. Another registrar moved its base from China to Australia.

Seven Chinese registrars have been newly accredited this year,

Net, this has all reduced the number of accredited registrars based in China to 91.

The country still has the second-most registrars ahead of the US, with its almost 2,000 registrars, and a clear 31 registrars ahead of third-place India.

.tel’s second-biggest registrar gets canned

Kevin Murphy, August 31, 2018, Domain Registrars

A Chinese registrar that focused exclusively on selling .tel domain names has been shut down by ICANN.

Tong Ji Ming Lian (Beijing) Technology Corporation Ltd, which did business as Trename, had its registrar contract terminated last week.

ICANN claims the company had failed to pay its accreditation fees and failed to escrow its registration data.

The organization had been sending breach notices since June, but got no responses. Trename’s web site domain currently resolves to a web server error, for me at least.

Trename is a rare example of a single-TLD registrar, accredited only to sell .tel domains. It didn’t even sell .com.

It is Telnames’ second-largest registrar after Name.com, accounting for about 6,000 names at the last count. At its peak, it had about 55,000.

Its share seems to be primarily as a result of a deal the registry made with a Chinese e-commerce company way back in 2011.

I’m a bit fuzzy on the details of that deal, but it saw Trename add 50,000 .tel names pretty much all at once.

Back then, .tel still had its original business model of hosting all the domains it sold and publishing web sites containing the registrant’s contact information.

Since June 2017, .tel has been available as a general, anything-goes gTLD, after ICANN agreed to liberalize its contract.

That liberalization doesn’t seem to have done much to stave off .tel’s general decline in numbers, however. It currently stands at about 75,000 names, from an early 2011 peak of over 305,000.

ICANN told Trename that its contract will end September 19, and that it’s looking for another registrar to take over its domains.

With escrow apparently an issue, it may not be a smooth transition.

38th dot-brand bows out after acquisition

Kevin Murphy, August 15, 2018, Domain Registries

Telecity Group, which used to be a major London-based internet collocation facilities operator, has told ICANN it no longer wishes to run its dot-brand gTLD.

.telecity will become the 38th dot-brand gTLD to terminate its registry agreement.

The company, which had close to £350 million ($445 million) revenue in 2014, was acquired by US-based rival Equinix for £2.35 billion ($3 billion) in early 2016.

Equinix has since started to transition away from the Telecity brand. Its old .com home page now instructs visitors to visit the Equinix site instead.

Like most of the other dead dot-brands, .telecity was never used.