Millions of domains to be deleted as Freenom loses its first TLD

Controversial free-domains registry Freenom has lost its deal with the government of Gabon after years of abuse. The government has retaken its ccTLD and will delete as many as seven million .ga domains.

That’s according to the French ccTLD registry, AFNIC (pdf), which says it has been helping migrate the TLD from Freenom to Gabonese government entity ANINF for the last year.

The technical handover will begin today and run until June 7, this coming Wednesday, according to ANINF.

AFNIC said the migration is happening due to “the failure of the company Freenom, which has managed the .ga TLD up until now, to provide the Internet community with a satisfactory service.”

ANINF said it wants to: “Put an end to abusive practices, through the will and support of the Gabonese State, which have had a negative impact on the image of the country and its influence on the Internet.”

Freenom’s business model is to allow people to register domains for free, then bring them in-house and monetize them when they expire or are suspended for abuse such as spam and phishing — something that happens rather a lot.

Security blogger Brian Krebs reported last week that abuse levels originating from ccTLD domains have plummeted since Freenom’s troubles began earlier this year.

ANINF reckons there are currently over seven million domains in .ga, and says most of those will be deleted.

That would make .ga the seventh-largest TLD overall and fourth-largest ccTLD after China, Germany and the UK. But Gabon has a population of just 2.3 million with a relatively low internet penetration of 62%.

Could it be the beginning of the end for Freenom?

Presumably most of the domains Gabon will delete are owned and currently monetized by Freenom, so it will be losing a large parking network when ANINF swings the ban hammer.

There’s also reason to believe .ga will not be the last ccTLD it loses. The tech contact in the IANA record for Mali’s .ml switched from Freenom’s Netherlands-based subsidiary to a Mali government agency back in March, suggesting a takeover is also imminent there.

Then of course there’s the lawsuit by Facebook owner Meta, filed earlier this year, which accuses Freenom of cybersquatting and seeks a ruinous amount in damages.

Freenom has not allowed anyone to register domains in any of its managed TLDs — .ml, .ga, .cf, .gq and .tk — since at least January 1 this year.

I asked Freenom to explain this a few weeks ago and the company declined to comment.

ANINF says the migration this week will cause disruptions, but says it’s been reaching out to registrars with legit registrations to minimize the turbulence for their customers.

UAE boasts rapid domain growth in 2022

The United Arab Emirates reckons its ccTLD saw growth of 20% last year, crossing a landmark in the first quarter this year.

Local regulator Telecommunications and Digital Government Regulatory Authority (TDRA) said that .ae grew by 46,000 domains in 2022 and broke through the 300,000 mark in Q1 2023.

Not the largest TLD out there, but it compares well against some countries with similar-sized populations, especially taking into account that the large majority of the UAE’s 9.2 million residents are non-citizen immigrant workers.

In the nine-million-souls ballpark, Israel has around 284,000 .il domains, Belarus has about 160,000, but Hungary has about 860,000 and Austria has over 1.5 million.

.ae is an unrestricted ccTLD in a wealthy, business-friendly country, with no local presence requirements.

Three more straggler new gTLDs coming soon

Three more new gTLDs from three different registries are set to launch this (northern hemisphere) summer.

Identity Digital is gearing up to launch .watches in June, while newcomer Digity will launch .case in July and Intercap will launch .box in August, according to ICANN records.

.watches was bought from luxury goods maker Richemont, which hadn’t used it, in 2020. It’s currently in sunrise and will go to general availability June 7.

Digity, which is affiliated with the registrar Sav, bought .case from CentralNic, which in turn bought it from industrial machinery maker CNH Industrial. It was a dot-brand, but will be repurposed as an open generic targeting the legal field.

Intercap is planning to start .box’s sunrise August 9 and go to general availability the following month, September 13. The gTLD was originally bought for $3 million before Intercap acquired it in 2020.

Three more dot-brands realize the futility of existence

A big bank and a big retailer have ditched their dot-brand gTLDs.

Northwestern Mutual has told ICANN it no longer wishes to operate .mutual and .northwesternmutual, while iconic jewelry store operator Tiffany said it doesn’t want .tiffany any more.

Neither gTLD has been used. The Northwestern registry pages contain a notice, apparently from 2017, about how it expected to publish launch plans “over the coming months”.

Northwestern’s gTLDs are on GoDaddy’s back-end. Tiffany is on Verisign. All three were managed by Fairwinds Partners.

CentralNic starts returning cash to shareholders as revenue grows

CentralNic has started paying a dividend and has announced another share buyback as it focuses less on aggressive M&A and more on organic growth.

The company, which makes about a quarter of its revenue from domains, said it will spend £4 million of its cash reserves buying back shares between now and August and will pay a £0.01 dividend a month from now.

The news came as CentralNic confirmed its top line grew by 24% in the first quarter, to $194.9 million, driven largely by its traffic arbitrage business, which it calls Online Marketing.

Its revenue from Online Presence — domains and such — was up 14% at $45.2 million, and its number of domain-years processed was up 2% at 12.4 million. The company sells both as registry, registrar and back-end.

Overall, adjusted EBITDA was up 15% at $21.3 million.

Newly launched .zip already looks dodgy

A trawl through the latest zone file for Google’s newly launched .zip gTLD reveals that it is likely to be used in malware and phishing attacks.

.zip is of course also a filename extension used by the ZIP archive format, often used to compress and email multiple files at once, and many domains registered in the .zip gTLD in the last few days seem ready to capitalize on that potential for confusion.

I counted 3,286 domains in the May 14 zone file, and a great many of them appear to relate to email attachments, financial documents, software updates and employment information.

I found 133 instances of the word “update”, with sub-strings such as “attach”, “statement”, “download” and “install” also quite common.

Some domains are named after US tax and SEC forms, and some appear to be targeting employees at their first day of work.

I don’t know the intent of any of these registrants, of course. It’s perfectly possible some of their domains could be put to benign use or have been registered defensively by those with security concerns. But my gut says at least some of these names are dodgy.

Google went into general availability with eight new TLDs last Wednesday, and as of yesterday .zip was the only one to rack up more than a thousand names in its zone file.

The others were .dad (913 domains), .prof (264), .phd (605), .mov (463), .esq (979), .foo (665) and .nexus (330).

Brands ask for cheaper ICANN fees

The group representing dot-brand gTLD registries has asked ICANN to relieve its members of millions of dollars of annual fees.

The Brand Registry Group has written to ICANN to complain that the current $25,000 a year fixed registry fee is too high, given that most dot-brands have next to no domains in their zones and pretty much no abuse.

A dot-brand is a gTLD matching a trademark in which only the brand holder may register domains. Most are unused, and those that are used don’t face many of the contractual compliance-related issues as regular gTLDs.

The BRG wants its members’ fees reduced to $5,000 a year, when the registry has fewer than 5,000 names and basically no abuse.
The group notes that 20-year-old gTLDs such as .museum, .coop, and .aero have a base fixed fee of just $500.

Given that there are about 400 contracted dot-brands, it’s basically asking ICANN to throw away about $8 million of annual revenue, paid for by some of the largest and wealthiest multinationals out there.

Verisign “pleased” at ICANN’s .web call

Verisign said it is “pleased” that ICANN has decided it should be awarded the .web gTLD, but hinted that it might not launch this year.

“We now look forward to NDC’s execution of the .web Registry Agreement and submission to ICANN of the request for assignment of the .web Registry Agreement to Verisign,” the company said in a statement this afternoon.

It follows the news this morning that ICANN’s board of directors decided that the company did not break any rules when it won the auction for .web via a secret intermediary company, Nu Dot Co.

Verisign reiterated that its current financial guidance for the year does not include any impact from .web.

Danish national registry changes its name. Don’t laugh.

DK Hostmaster, the ccTLD registry for Denmark, is changing its name to Punktum dk.

The company, which has been running .dk since 1999, said that it’s a move to modernize the brand away from the old days where it only had one narrowly technical task.

Google Translate tells me “punktum” is the Danish word for “period” and I’m absolutely not suppressing an adolescent giggle right now.

The registry’s new domain is punktum.dk.

Verisign WILL get .web, ICANN rules

Verisign did nothing wrong when it won the $135 million .web gTLD auction via a secret intermediary, ICANN’s board of directors has decided.

The board voted at the weekend to declare that Nu Dot Co, the shell company that applied for .web “did not violate the Guidebook or the Auction Rules” when it signed a secret side-deal that would see Verisign fund its bid in exchange for handing over the registry contract after it is signed.

The board has told ICANN management to continue to process NDC’s application, which has been tied up in legal red tape since the auction in 2016.

ICANN did not rule on Verisign’s claims that second-place bidder Afilias broke the rules when executives sent text messages trying to resolve the contention set during a “black out” period immediately prior to the auction.

The ruling means that, absent any further legal action, NDC can soon sign its Registry Agreement and attempt to transfer it to Verisign, a procedure that is not often controversial when M&A takes place.

It could mean .web, which has been fiercely contested for over 20 years, launches this year.

.web gTLD was first applied for in 2000. Afilias, Neustar (then Neulevel) and others viewed it as the best probable competitor for .com and wanted that sweet, sweet action.

But ICANN instead awarded them .info and .biz respectively, in part because another applicant, Image Online Design, was already running .web in an alternate root.

There were seven applicants in the 2012 round, but attempts at privately resolving the contention set were resisted by NDC, leading to suspicions that it was being secretly bankrolled by a much larger non-applicant company.

That turned out to be true when Verisign fessed up after the auction that it was funding NDC’s $135 million winning bid.

Because Verisign has market power, ICANN referred the deal to US competition regulators, the Department of Justice, which gave the all-clear in 2018.

Runner-up Afilias immediately set the ball rolling to file an Independent Review Process complaint with ICANN, which it did in 2018, claiming ICANN broke its bylaws by failing to establish that Verisign was NDC’s sugar daddy before the auction.

The Afilias .web application is currently owned by Altanovo, the company formed of all the bits of Afilias that Identity Digital (then Donuts) didn’t want when it acquired Afilias.

The IRP panel ruled for Afilias, saying ICANN should have at the very least made a decision on whether the deal was kosher before starting to contract with NDC. That ruling became final at the end of 2021.

It’s taken ICANN 16 months to actually make its decision.

And its rationale? Hard to say with any degree of certainty.

Both sides’ arguments rely heavily on the text of the Domain Acquisition Agreement between Verisign and NDC, and ICANN has redacted all references to that document’s contents (presumably at Verisign’s demand) in its resolution and accompanying rationale.

The board said:

NDC remains the applicant and, if NDC enters into a Registry Agreement with ICANN, NDC will become the Registry Operator for .WEB. Whether or not NDC then attempts to assign the Registry Agreement to Verisign is, at this point, an event that has not occurred and conceivably may not occur depending on the circumstances at the time. And if NDC subsequently decides to request such an assignment, there are processes in place to review such a request, including the need for ICANN’s approval of that request. Such an assignment does not equate to a “circumvention” of the application process but, rather, is a necessary component for servicing Registry Operators and allowing the continued operation of gTLDs.

The board additionally notes that the process of sorting all this out took years and millions of dollars of legal fees.