Renewals at 55% as first new gTLD junk drop begins

The first new gTLD to go live is seeing its first-year renewals at 55% one year after hitting general availability.
dotShabaka Registry’s شبكة. (or “.shabaka”, the Arabic for “.web”) has also seen its zone file shrink by about 27% over the last two weeks.
The zone peaked at 2,069 domains on February 1, 2015, but today stands at 1,521. Exactly one year ago, it was at 1,561 names.
The zone is smaller today than it was just two weeks after GA began, in other words.
“We can confirm we’re seeing renewal rates for names due in February at around 55%,” Adrian Kinderis, CEO of ARI Registry Services, which runs .shabaka’s back-end, told DI in a statement.
The registry added 1,608 domains in February 2014, 1,400 of those in the first half of the month.
The 55% is the number of domains that were renewed before their February expiry date. The full number for February will not be known until the grace period ends in mid-April.
“We have a handful of cancel renews and all other expired domains are in the auto-renew period,” he said. “It’s too early to examine the numbers for renews post-expiry date, but we expect this will increase the overall tally.”
“Given the market conditions we face in the region, the results align with our forecasts and we expect the numbers to improve for renewals due in the coming weeks and months,” he said.
In gTLDs, domains can enter a Auto Renew Grace Period for up to 45 days after expiration, during which they can still be renewed by their registrant and may or may not appear in the zone file.
It wouldn’t be fair on other new gTLD registries to read to much into these numbers, assuming they do not improve, as شبكة. is a bit of an unusual case.
It’s seen low registration volume, despite the apparently attractive string, largely because it’s restricted to Arabic script at the second level and the Arabic-speaking market is in its infancy.
When شبكة. launched there were no registrars offering an end-to-end Arabic shopping cart, Kinderis said. He added:

The most significant problem still remains demand and consumer awareness…
In regards to demand, the lack of awareness is a direct result of little to no marketing in the region. Apart from our own efforts, there has been little marketing or education programs deployed to increase awareness of new Top-Level Domains and Arabic script domain names.
We have even limited our marketing efforts because we identified early that market readiness is inadequate. Any large investment in marketing from dotShabaka Registry at the moment would be premature and wasteful until supply, demand and universal acceptance issues have been addressed.

He called on ICANN and its recently created Middle East Working Group to focus on ways to increase awareness and demand for domain names in the region. To date, it’s focused too much registrars and technical issues, he said.
شبكة. has its own set of issues and is probably not the best test case for new gTLDs in general.
That’s going to come soon. Donuts’ first batch of gTLDs — .guru, .bike, .holdings, .plumbing, .singles, .ventures and .clothing — had their base-price GA anniversary on February 4, and it appears that domains have already started to drop.
There’s little indication of anything amiss in the .guru zone file so far but the other six are down slightly — by maybe 100 or so names apiece, or less than 1% each — over the last two weeks.
Donuts executives have said they expect first-year renewals to be strong, but we’ve got a few weeks left before anyone will be in a position to know for sure.

Generics versus brands as two more gTLDs are sold

Two more new gTLD contention sets have been settled by auction, one a case of a portfolio applicant prevailing over a closed generic applicant, the other a case of a brand owner paying off a portfolio applicant.
Donuts has won the right to .jewelry over $10 billion-a-year jewelry firm Richemont, owner of brands including Cartier.
Richemont applied for several TLDs, some of which were generic terms. It was awarded .watches uncontested, but apparently didn’t want to fork out as much as Donuts for the matching .jewelry.
Google, meanwhile, won the two-horse race for .moto against Rightside. This one’s interesting because it’s basically a case of Rightside forcing Google to pay up to own one of its own brands.
Google owns a trademark on “Moto” due to its acquisition of Motorola Mobility a few years ago, but Rightside applied for it in its generic sense as an abbreviation of “motorcycle” or “motorbike”.
Google had filed a legal rights objection against its rival for .moto, but lost. Now it’s been forced to cough up at auction instead.
Prices, as usual, have not been disclosed.

Delays to two-letter domains after governments take a second bite at the apple

New gTLD registries will have to wait a bit longer before they’re allowed to start selling two-character domain names, after ICANN’s Governmental Advisory Committee controversially issued new guidelines on their release.
The registries for hundreds of gTLDs will be affected by the delays, which could last a few months and were put in place by the ICANN board of directors at the request of the GAC at the ICANN 52 meeting in Singapore last week.
The two-character domain issue was one of the most contentious topics discussed at ICANN 52.
Exasperated registries complained to ICANN’s board that their requests to release such domains had been placed on hold by ICANN staff, apparently based on a letter from GAC chair Thomas Schneider which highlighted concerns held by a small number of governments.
The requests were frozen without a formal resolution by the board, and despite the fact that the GAC had stated more than once that it did not have consensus advice to give.
Some governments don’t want any two-letter domains that match their own ccTLDs to be released.
Italy, for example, has made it clear that it wants it.example and 1t.example blocked from registration, to avoid confusion.
Others, such as the US, have stated publicly that they have no issue with any two-character names being sold.
The process for releasing the names went live in December, following an October board resolution. It calls for a 30-day comment period on each request, with official approval coming seven to 10 days later.
But despite hundreds of requests going through the pipe, ICANN has yet to approve any. That seems to be due to Schneider’s letter, which said some governments were worried the comment process was not transparent enough.
This looked like a case of ICANN staff putting an unreasonable delay on part of registries’ businesses, based on a non-consensus GAC position that was delivered months after everyone thought it was settled law.
Registries grilled the board and senior ICANN executives about this apparent breakdown in multi-stakeholder policy-making last Tuesday, but didn’t get much in the way of an explanation.
It seems the GAC chair made the request, and ICANN implemented a freeze on a live business process, without regard to the usual formal channels for GAC advice.
However, the GAC did issue formal advice on two-letter domains on Wednesday during the Singapore meeting. ICANN’s board adopted the advice wholesale the next day.
This means that the comment period on each request — even the ones that have already completed the 30-day period — will be extended to 60 days.
The delay will be longer than a month for those already in the pipe, however, as ICANN still has to implement the board-approved changes to the process.
One of those changes is to alert governments when a new registry request has been made, a potentially complex task given that not every government is a member of the GAC.
The board’s resolution says that all comments from governments “will be fully considered”, which probably means we won’t be seeing the string “it” released in any new gTLD.
The GAC has also said it will publish a list of governments that do not intend to object to any request, and a list of governments that intend to object to every request.

.blog won in eight-figure auction by Primer Nivel

A Colombian registrar has become the unlikely owner of the coveted .blog new gTLD, beating eight other applicants to the string at auction.
Winning bidder Primer Nivel is a Panamanian company affiliated with Bogota-based CCI REG, which runs my.co.
The company was the first to reveal its plans to apply for .blog, telling DI back in April 2012 about its ambitions of the gTLD.
Rival bidders Radix, Minds + Machines, Donuts, Afilias, Merchant Law Group, BET, Google and Top Level Design all withdrew their applications over the weekend.
We’re certainly looking at an eight-figure sale here.
Kieren McCarthy, writing at The Register, reckons it went for $30 million or more, based on the fact that M+M got $3.4 million for withdrawing from .blog and .store auctions, but his back-of-the-envelope calculations are off-target for a few reasons.
Knowledgeable DI sources say the sale price was considerably lower than $30 million.
My envelope puts it at somewhere in the range of $15 million to $18 million.
I’ve always said .blog is among my favorite new gTLD strings. The market opportunity is potentially huge, with hundreds of millions of blogs live on the web today.
Primer Nivel, which to the best of my knowledge is not (unlike some other applicants) affiliated with a particular blogging platform, plans to operate .blog as an open gTLD.
The separate auction for .store, meanwhile, was won by Radix, after withdrawals from M+M, Donuts, Amazon, Google, Dot Store and Uniregistry this weekend.

.reise to start at $400k in no-reserve auction

Applicant Auction has revealed the starting price of the first live new gTLD to be auctioned off.
Dotreise’s .reise will have a minimum starting bid of $400,000 when it hits the block on February 27, the company revealed.
There will be no reserve.
It seems quite possible that the registry is barely covering its costs, assuming the TLD sells. The application fee was $185,000, and no doubt the company has racked up many more expenses over the last three or four years.
The TLD, which is German for “.travel” has been in general availability since August but has fewer than 1,300 registrations, selling at up to $180 a year.
It competes with Donuts’ $25-a-year .reisen, which pretty much means the same thing.

Anger as governments delay two-letter domains

ICANN has heard an angry response from gTLD registries after delaying the release of two-character domains in new gTLDs, apparently at the whim of a small number of governments.
ICANN has yet to approve any of the over 350 requests for the release of two-letter domains filed by registries under a process approved by its board last October and launched in December.
The reason, according to registries, is that members of ICANN’s Governmental Advisory Committee — probably a minority — have objected and ICANN staff has “unilaterally” put a halt to the process.
Some governments — Spain, Italy and Cote d’Ivoire among them — are concerned that two-letter domains, such as es.example or it.example, may cause confusion with existing ccTLDs.
But the GAC itself was unable to find a consensus against the release of two-letter domains when it discussed the issue back in October. It merely asked for comment periods to allow individual governments to object to specific domains.
So ICANN’s board asked staff to create an “efficient procedure” to have requests swiftly approved, taking some of the stress off of the regular Registry Services Evaluation Process.
Two-letter domains have a premium dollar value for open registries, while multinational dot-brands expect to find them useful to market to the territories in which they operate.
Under the streamlined approval process, each request is subject to a 30-day comment period, and would be approved or not within seven to 10 days.
Right now, the oldest requests, which were filed in early December, are almost a month overdue for a response. The Registries Stakeholder Group told ICANN, in a letter (pdf):

We write to raise serious concern about what appears to be a recent closed-door, unilateral decision by ICANN staff, which took place over a period of weeks, to defer action on pending requests for two-character labels. This action was apparently initiated as a result of recent correspondence you received from the Chair of the Governmental Advisory Committee — but which critically does not represent formal consensus advice or even purport to represent the opinion of the GAC as a whole

It’s a case of governments strong-arming ICANN staff into changing policy, the registries claim.
GAC chair Thomas Schneider’s letter (pdf) says that an unspecified number of governments have “concerns” that the approval process was launched quite quickly and without any formal consultation with the GAC.
He goes on to make a laundry list of recommendations for making the process more amenable to governments, before requesting a “stay” on approvals until the GAC has further discussed the issue.
To date, registries representing a little over 300 strings have completed their 30-day comment periods, yet there have been only four comments from governments.
Italy and Cote d’Ivoire want ICANN to deny all requests for it.example and ci.example, because they may be confused with ccTLDs.
Spain, meanwhile, filed specific objections against the release of es.bingo, es.casino and es.abogado (lawyer), saying that these are regulated industries in Spain and should only be given to registrants who “have the required credentials”.
The RySG wants ICANN staff to immediately start approving requests that have passed through the comment process. The GAC says it will discuss the matter further at the ICANN 52 meeting currently going on in Singapore.
When RySG members raised the topic at a meeting the with ICANN board yesterday, directors avoided directly addressing the specific concerns.

In a first for new gTLDs, Aquitaine dumps geo bid

The authority for the French region of Aquitaine has become the first applicant for a geographic new gTLD to pull its application apparently of its own accord.
Région d’Aquitaine’s bid for .aquitaine was withdrawn today, despite the fact that the applicant was already in the contracting stage with ICANN.
A handful of other geographic gTLD applications have been withdrawn previously, but only due to disputes between the applicant and the governments of the regions they wanted to represent.
.aquitaine is the first would-be geographic gTLD to be pulled after passing through the evaluation stage of the program.
Aquitaine is one of France’s 27 formal regions, with a population of over three million.

With Cayman deal, Uniregistry now runs ccTLDs too

Uniregistry has got into the ccTLD business, taking over management of the Cayman Islands’ .ky domain this week and planning a relaunch for later this month.
Uniregistry, which is based in Cayman, has replaced a US company called SilverSky, now part of BAE Systems, as the official registry for .ky.
CEO Frank Schilling told DI that the previous custodian was running a manual registration process but that the ccTLD will now run on the same platform Uniregistry uses for its new gTLDs.
The company will act as both registry and registrar for the names, though the space will be opened up to third-party registrars.
The wholesale fee will be $29, with Uniregistry’s registrar business retailing names for $39 a year, Schilling said.
The ccTLD will be relaunched later this month with a six-month period where only people with a self-professed (check-box) “nexus” to the Cayman Islands will be able to register names, Schilling said.
There won’t be a sunrise period in the classical sense, but UDRP will apply, he said.
An official announcement about dates and eligibility rules is due some time this month, about a week before the relaunch.
Currently, .ky has about 11,000 registrations, Schilling said. That may be considered surprisingly high, given Cayman’s small population (under 60,000) and the apparent lack of automation in place previously.
But Cayman is a tax haven, and overseas companies often choose to register .ky names to help convince the tax man where they really are based that they have a true connection to the territory.
Schilling said that the Cayman government’s registrar of companies will promote .ky domains to businesses that set up a presence there.
He added that its shipping register will plug the names to those who moor their “super yachts” in Cayman.
The deal with the Cayman government, which remains the “owner” of .ky as far as IANA is concerned, is the first of what Schilling said he hopes will be many ccTLD relationships.
Uniregistry has also bid to run Bermuda’s .bm, which is currently managed in-house by the country’s government, and is talking to other ccTLDs as well, Schilling said.

500 new gTLDs now live, a new one added every day

ICANN delegated its 500th new gTLD from the 2012 application round this week.
The honor of the landmark delegation went to .ntt, the dot-brand applied for by Japanese telco NTT, which hit the root two days ago.
Since then, a further six new gTLDs — including .canon, the first announced dot-brand — have been delegated under the program.
In the past 12 months, 374 new gTLDs have been added to the DNS root. That’s obviously more than one a day on average.
Yet ICANN is probably still not even half-way through the program — the maximum number of delegated strings that could be produced is still a little over 1,300.
A large majority of the remaining undelegated strings are dot-brands or otherwise single-registrant spaces. Currently, just 18 brands (under a strict Spec 13 definition) have gone live.

Back in evaluation! Tata dot-brand bid falls foul of Morocco

Tata Group, the Indian conglomerate, is to see its application for .tata head back into evaluation, after the Moroccan government denied it had given its approval for the bid.
ICANN told the company this week that .tata will have to be reviewed by the Geographic Names Panel for a third time.
Tata, as well as the name of the 150-year-old, $100 billion-a-year company, is also the name of a tiny Moroccan province (pop. 121,618) that is a protected geographic term under the new gTLD program’s rules.
Tata needed to get a letter of endorsement or non-objection from the relevant Moroccan authorities in order to pass the Geographic Names Panel review.
The company apparently had secured such a letter, when last July .tata became the final new gTLD application to pass through evaluation.
However, senior officials at Morocco’s industry of trade started kicking up a fuss last September, denying any such non-objection had been given.
In exchanges of letters with ICANN over the last few weeks, Morocco has elaborated. It now claims the letter provided by Tata to the panel referred to trademark protection of the Tata brand under Moroccan law and did not specifically not object to .tata.
The original letter (pdf) was sent by the Moroccan Office for Industry and Intellectual Property (OMPIC). It’s in French, so it’s hard for me to comment with much confidence either way even with a translation, but it seems to say that no Moroccan law would forbid the .tata application.
Now, OMPIC director Adil El Maliki has told ICANN (pdf) that there was no intention to confer non-objection. Another letter from the ministry of trade says the same.
ICANN has accepted the government’s explanation and has thrown .tata back at the evaluation process, where it is basically now at the mercy of the Moroccan government.
It’s not the first time there’s been some (charitably) confusion in government agencies about endorsements for new gTLD applications. DotConnectAfrica’s bid for .africa had backing from an African Union representative at first, which was subsequently withdrawn.
Other “geographic” gTLDs have found it’s easiest to throw money at the problem. Tata Group’s best hope for .tata now might be to build Tata province a new school.