US could change .com pricing terms

The US government and Verisign are to enter talks about possible changes to .com pricing.

The National Telecommunications and Information Administration has told the company that it “intends to renew its Agreement with Verisign” but said it welcomed Verisign agreeing to talks that “may include an amendment to the pricing terms”.

The news came in an exchange of letters between NTIA assistant secretary Alan Davidson and Verisign chief Jim Bidzos over the weekend, published last night. Davidson wrote:

NTIA has questions related to pricing in the .com market. We are therefore pleased that Verisign has agreed to discussions regarding .com pricing and the health of the .com ecosystem, including retail and secondary markets. The parties will discuss possible solutions that benefit end-users, both businesses and consumers, and serve the public interest

The Cooperative Agreement between NTIA and Verisign gives the company the right to raise prices by 7% in four of the six years of its term, all of which Verisign exercised in the current run, which ends in a couple months.

The price-rising powers were frozen under Obama administration but reinstated under Trump, giving Verisign masses of extra revenue and huge profit margins, even as .com volume numbers took a prolonged dive.

NTIA’s intervention follows letters from three campaign groups calling .com a “cartel” and inquiries from three Congresspeople.

In response to NTIA’s letter, Bidzos wrote:

We have observed that our capped .com price increases have not always been passed through to benefit end-users and therefore we welcome an opportunity to have this important discussion. We are prepared to consider structures to address this and other issues, including ways to make .com pricing more predictable for the channel as part of it.

It’s clear from this rather tense exchange that the two parties might not exactly see eye-to-eye on their desired outcomes.

Verisign’s position recently has been that .com volumes have been falling in large part because of what Bidzos called the “unregulated retail channel” pumping up prices to increase profit-per-domain over domains under management.

He also pointed out in the company’s most-recent quarterly earnings call that the average price of .coms on the secondary market is $1,600, or 166x the wholesale price.

As some have pointed out, Verisign complaining about profiteering in the channel is the height of chutzpah, given its own mouth-watering margins, which appear to be what it seeks to protect more than anything else.

If Verisign reckons the registrar business is so great, why hasn’t it launched a registrar of its own yet? The company has been legally permitted by the Cooperative Agreement and its ICANN contract to do so for years.

.cv domains now on sale worldwide

Cabo Verde has become the latest nation to market its ccTLD globally based on its meaning in other languages.

The country’s .cv domain is now available via several registrars and recently formed registry entity OlaCV.

A CV is of course shorthand for “curriculum vitae”, what Americans call a résumé, in many countries. OlaCV reckons its addressable market is 3.5 billion people, according to its web site.

OlaCV appears to be a Delaware corporation formed in May last year, shortly before it was awarded the five-year registry contract by Cabo Verde regulator ARME.

You’d be hard-pressed to find any company information on its web site, but OlaCV appears to have its roots in Nigeria, with the ICANN-accredited registrar Go54 (formerly WhoGoHost).

WhoGoHost founder Ope Awoyemi, who has been doing domainer conferences recently, is named as president of the company in a press release today. IANA has the technical contact for .cv as Portuguese ccTLD operator DNS.pt.

Some of the international registrars named on the registry web site do not currently seem to support .cv on their storefronts, and prices vary substantially among those that do carry it.

While OlaCV say prices should be around $10 a year, the only registrar I could find selling in that range was NameSilo. Prices around $70 to $120 seem a lot more common right now.

The registry’s premium pricing strategy is a little different to the usual — domains of six characters and under have premium pricing, regardless of their semantic value.

Cabo Verde is an island nation in West Africa with a population of about half a million. A former colony of Portugal, Portuguese is the main official state language.

Amazon to launch two new gTLDs this month

Amazon Registry is to finally launch two of the gTLDs it has been sitting on for the best part of a decade.

The company expects to take .deal and .now to sunrise later this month, with general availability following in September.

According to information provided by ICANN, sunrise for both runs for a month from August 22, followed immediately by a week-long Early Access Period and general availability at standard pricing September 30.

Both extensions have been in the root since 2016, parts of Amazon’s portfolio of 54 mostly unused gTLDs.

They’re the first English-language strings the company has launched since .bot, which came out with a controlled release in 2018 before loosening its restrictions last year. It has about 14,000 domains.

Similar TLDs to .deal and .now are already available from other registries, which may give clues to their potential.

The plural .deals is part of Identity Digital’s massive portfolio, selling at a $25 wholesale price, but it currently has fewer than 10,000 registrations, having peaked at 11,388 in May 2022.

.now might be the more attractive of the two. The disputed ccTLD for Niue, .nu, means “now” in Swedish and has about 220,000 domains under management.

No .uk price hikes despite tumbling sales

Nominet said today that it has no plans to raise the price of .uk domains, even as registration volumes continue to sink and profits tumbled.

The registry said in its annual report that its net loss for the year ended March 31 was £6 million ($7.7 million), compared to £3.9 million ($5 million) in fiscal 2023, on revenue up £2.3 million ($3 million) to £56.4 million ($72.4 million).

The increase in revenue was due to its non-domains Cyber business, which was up by £2.7 million, offsetting a £400,000 decrease in domains revenue that was due to a 300,000 decline in domains under management.

Domains brought in £41.1 million at the top line during the period, but profit dropped from £14.8 million in 2023 to £9.8 million.

Nominet also lost a Protective DNS contract with the UK government during the year, which led to 40 layoffs and 19 employees being reassigned, but said the setbacks will not lead to price hikes.

“Even with the loss of the UK PDNS contract, and lower domain name renewals indicative of a maturing market, we see no immediate need to increase pricing, but we will continue to regularly review,” chair Andy Green and CEO Paul Fletcher said in the report.

.uk names currently cost £3.90 per year, with the last price increase happening in 2020.

Fletcher and CFO Carolyn Bedford both received hefty bonuses during the year, amounting to an extra £180,000 for Fletcher on top of his £304,500 base salary and an extra £94,557 for Bedford to add to her £190,000 base.

The company confirmed in its report that it plans to participate in the next new gTLD application round in 2026 as a back-end registry services provider, saying it expects the market to be very competitive.

Domain world growth despite .com slide

In the fastest-published quarterly Domain Name Industry Brief in many years, Verisign last night reported that the world’s extant domain name registrations increased by 5.8 million in the second quarter.

The report was published to coincide with Verisign’s Q2 earnings report, and came just two weeks after the publication of the Q1 brief.

The trend of the domain universe, hampered by the ongoing decline of Verisign’s own .com and .net, which lost 1.8 million names compared to Q1, being buttressed by ccTLDs and new gTLDs, continued.

New gTLDs were up 1.3 million names sequentially and 6.5 million annually — 4.0% and 23.2% respectively — to 34.6 million, but we sadly have to assume that a great many of these new names are speculative or abusive.

Verisign estimates the “combined renewal percentage estimate” for new gTLDs was 38.0%, about half of where .com’s somewhat depressed number lies.

ccTLD domains were at 140 million at the end of June, up 400,000 (0.3%) sequentially and three million (2.2%) annually, the DNIB states.

Pre-2012 gTLD names were up 122,100 sequentially and 154,200 annually, ending the quarter at 17.2 million.

Verisign predicts more gloom as registrars shun .com growth

Verisign has yet again massively downgraded its expectations for .com growth, after it lost almost two million domains in the second quarter.

The company said it had 170.6 million .com and .net domains at the end of June, down 1.8 million compared to Q1 and a 2.2% decrease compared to a year earlier.

CEO Jim Bidzos said Verisign now expects the domain name base for the full year to be between -2% and -3%. That compares to a range of between +0.25% and -1.75% predicted in April and +1% to -1% predicted in February.

The Q2 renewal rate is expected to be 72.6% compared to 73.4% a year ago and 74.1% in Q1.

Bidzos said he does not expect the base to return to positive growth until the second half of 2025.

Bidzos, talking to analysts, acknowledged that Verisign’s wholesale .com price increases “may have had an impact” but put the blame for the growth shortfall squarely on what he called the “unregulated retail channel” in the US.

American registrars have been cranking up their prices in order to prioritize average revenue per user over volume, he said, meaning retail prices for .com have gone up “more than twice” Verisign’s own price hikes, leading to fewer sales as a result.

“Our research shows that the benefit from our capped wholesale prices is not always passed on to consumers,” he said.

He faced a barrage of questions from analysts about recent calls for the US government to sever its ties with Verisign over .com and put the TLD out for competitive rebidding, but reiterated the company’s position that if the government cuts it off, it still gets to run .com under its contract with ICANN.

Despite the volume woes, Verisign continues to be a high-margin cash-generating machine.

The company reported Q2 net income of $199 million, up from $186 million a year ago, on revenue up 4.1% at $387 million. Operating income was up to $266 million from $249 million and operating cash flow up to $160 million from $145 million.

Republicans quiz NTIA on Verisign .com renewal

Three Republican members of the US House of Representatives have raised the specter of Verisign having to compete to renew its .com deal with the US government.

In a letter to the National Telecommunications and Information Administration, the Congresspeople ask whether NTIA has made any efforts to renegotiate or obtain public feedback on its contract with Verisign.

They also ask whether NTIA has looked at the “effect of the recent price increases implemented by Verisign on the .com domain name marketplace” and “the impact of potential registration price increases on the .com domain name market”.

The Cooperative Agreement between NTIA and Verisign is what allows the company to raise .com wholesale fees. That power was frozen for years under the Obama administration but returned under Trump.

The letter follows missives from three campaign groups a month ago, which called Verisign, NTIA and ICANN a “cartel” that enables Verisign’s monopoly and called for the .com contract to be put out to bid.

The Congresspeople’s letter doesn’t come anywhere close to asking for the same, but it does cite previous instances where legislators and the Department of Justice have called for a competitive bidding process.

Verisign has responded to earlier letters by pointing out that even if NTIA were to cancel the agreement, the .com Registry Agreement with ICANN would still stand.

The letter (pdf) is signed by House Energy and Commerce Committee chair Cathy McMorris Rodgers, Subcommittee on Communications and Technology chair Bob Latta, and Subcommittee on Oversight and Investigations chair Morgan Griffith.

The Cooperative Agreement is set to auto-renew in November. The Congresspeople want answers from NTIA before August 8.

.au prices going up

auDA is to raise the wholesale price of .au domains later this year in response to inflation.

The registry said that the price will go up from AUD 7.78 to AUD 8.45 ($5.60 USD), not including sales tax, on October 1 due to “inflation-based cost pressures”.

auDA said the prices mean .au domains will continue “to cost significantly less than the wholesale price of other comparable Top Level Domain options.”

Even after the price increase, .au will be closer to a .uk ($5) than a .com ($10.26).

First registry gets breach notice over new abuse rules

.TOP Registry allegedly ignored reports about phishing attacks and has become the first ICANN contracted party to get put on the naughty step over DNS abuse rules that came into effect a few months ago.

ICANN has issued a public breach notice claiming that the registry, which runs .top, has also been ignoring the results of Uniform Rapid Suspension cases, enabling cybersquatting to take place.

The notice says that .TOP breached new rules, which came into effect April 5, that require it to act on reports of DNS abuse (such as malware or phishing attacks) by suspending the domains or referring them to the responsible registrar.

The registry didn’t do this with respect to a report of April 18, concerning “multiple .top domain names allegedly used to conduct phishing attacks”. It didn’t even read the report until contacted by ICANN, according to the notice.

As of yesterday, only 33% of the phishing domains have been suspended by their registrars, some three months after the attacks were reported, ICANN says.

Compliance is also concerned that .TOP seems to be ignoring notices from Forum, the company that processes URS cases, requiring domains to be locked within 24 hours when they’ve been hit with a charge of cybersquatting.

The registry “blatantly and repeatedly violated” these rules, according to ICANN.

.TOP has been given until August 15 to get its act together or risk having its Registry Agreement suspended or terminated.

The registry has about three million .top domains under management, having long been one of the most successful new gTLDs of the 2012 round in volume terms. It typically sells domains very cheaply, which of course attracts bad actors.

Four more gTLDs in emergency measures

ICANN has thrown four more gTLDs into the Emergency Back-End Registry Operator program, presumably as a prelude to terminating their registry’s contracts in a few weeks.

Asia Green IT System’s .pars, .shia, .tci and .همراه (.xn--mgbt3dhd) are all going EBERO, meaning Nominet will take over their operation on ICANN’s behalf.

Not that they need much operation, given that all four, which all connect in some way to Iran and Iranian culture, were unlaunched and dormant, with no third-party registrations.

The four TLDs, along with AGIT’s .nowruz, which went into EBERO last week, had been running on CoCCA’s back-end, but it sounds rather like the registry forgot to pay its bills, causing CoCCA to disable its services.

That led to functions such as Whois going offline, triggering a breach of the ICANN Registry Agreement. A day of Whois downtime in one week gives ICANN grounds to get Nominet involved and move towards termination.

A breach notice issued a couple weeks ago gave AGIT until the end of the month to come back into compliance or risk termination. That escalation now appears inevitable.

AGIT almost got to run .islam and .halal, but had its applications rejected after protests from governments of Muslim-majority country. Somehow, .shia did not receive the same outcry.