Shrinking .us TLD is up for grabs
The .us ccTLD may change registry operators in the not too distant future, but the domain is currently on a fairly steep downward trajectory in terms of registrations.
There’s also no guarantee that a new operator, should one be selected, would necessarily lead to lower prices for registrants.
The US National Telecommunications and Information Administration yesterday put the .us registry contract out for bidding, with a May 18 due date for offers.
Only the bigger players need apply — NTIA said it will only entertain offers from companies currently managing over two million domains in a single TLD.
That narrows the field quite a lot — only 27 TLDs I have numbers for clock in over two million. Incumbent GoDaddy qualifies, as does Verisign, Identity Digital, and Public Interest Registry.
CentralNic, Tucows, and a handful of non-US ccTLD operators also would be technically eligible, but the NTIA has ruled out any provider that is majority foreign-owned. The successful RSP would have to be fully based on US turf.
But .us has seen its DUM decline in recent months. As of January, it stood at 2,175,340, according to NTIA documents. That’s down from a peak of 2,575,574 just six months earlier, a not-insignificant dip.
On the upside, this is a different type of ccTLD contract to the likes of .ai or .co — the US government doesn’t want a cut of registration fees. The registry gets to pocket the lot.
How much “the lot” is isn’t exactly clear. Prior to 2019, GoDaddy predecessor Neustar was charging $6.50 a year wholesale, but references to pricing are redacted from the current NTIA contract.
So there’s a different pricing dynamic here. Registries competing for the deal can’t rely on bribing the government with a bigger slice of the pie, and NTIA has let it be known that a lower fee is not necessarily a good thing.
The pricing model will have to be in the “public interest” according to the tender. The NTIA documentation states that it will have to balance “the accessibility of .us domains to qualified registrants” and “the safety and security of the usTLD”, adding:
Offerors are advised that the lowest registration fee for a .us domain may not necessarily be in the overall best interest of the administration of the usTLD. The Government may decide to award to a vendor with other than the lowest cost fee structure or other than the highest cost fee structure.
It’s quite possible that the US will choose to stick with GoDaddy, but it’s perhaps worth noting that the current contract still has one unexercised extension option that would let it run until 2029, rather than the current 2027 expiration date.
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