.com is shrinking but Verisign raises prices again anyway

Verisign has confirmed that it plans to exercise its fourth and final .com price-increasing power under its current registry contract, even as its domains under management continues to head south.

The company confirmed last night that it will increase the annual registration and renewal wholesale fee for a .com domain from $9.59 to $10.26 on September 1 this year. It’s the last of the four times it’s allowed to raise prices by up to 7% in its current contract with ICANN, which expires in November.

The news came as Verisign reported its fourth-quarter and full-year 2023 financial results, which were as profitable as we’ve come to expect.

But in terms of domains under management, .com and .net continued to decline, which CEO Jim Bidzos told analysts was all China’s fault. Domains managed by Chinese registrars shrank by 2.2 million in Q4, leading to an overall .com/.net shrinkage of 1.2 million names.

There were nine million new .com/.net registrations in Q4, down from 9.7 million in the same quarter in 2022.

Bidzos said the decline in China was due to factors such as stricter local regulations and a weaker economy, and said he expects those challenges to continue to hit Verisign’s numbers in 2024. He did not blamed higher prices for the drop.

Indeed, the .com zone file has been shrinking by about 1,500 domains per day on average since the start of the year. Zone numbers are usually a reliable predictor of DUM trends.

Revenue from China was down about $14.4 million, CFO George Kilguss said.

Bidzos said Verisign expects its DUM to be flat this year, with a possible 1% swing either way.

For Q4, the company reported revenue up 3% year over year at $380 million, with $265 million net income, up from $179 million a year earlier.

For the whole of 2023, revenue was up 4.8% at $1.49 billion and net income was $818 million, up from $674 million in 2022.

UK cybersquatting complaints hit record low

There were fewer cybersquatting complaints filed against .uk domain holders in 2023 than in any other year since Nominet started reporting its annual stats, according to the latest annual Nominet DRS report.

There were just 511 complaints filed last year, down from 568 in 2022, according to the latest report. That’s the lowest number for at least the last 14 years Nominet has been reporting its annual DRS stats. The highest number was 728, in 2015.

Just 48% of cases resulted in a domain being transferred to the complainant (compare to the 82% WIPO reported for its UDRP cases in 2023), up from 43% in 2022, Nominet said.

The number of disputed domains was 680, down from 745 in 2022, but the number of domains in .uk complained about rocketed from 26 to 122, the second-highest level since Nominet opened the second level for direct registrations a decade ago.

The number of disputed .co.uk domains was down from 686 in 2022 to 538 in 2023.

The decline in cybersquatting complaints come as .uk as a whole continues to shrink. The second and third levels combined lost a net 366,778 domains in 2023, ending December at 10,732,479 domains, according to Nominet stats.

No excuses! PIR to pay for ALL registries to tackle child abuse

Public Interest Registry has announced that it will pay for all domain registries to receive alerts when child sexual abuse material shows up in their TLDs.

The non-profit .org operator said today that it will sponsor any registry — gTLD or ccTLD — that wants to sign up to receive the Domain Alerts service from the Internet Watch Foundation, the UK-based charity that tracks CSAM on the internet.

According to the IWF, only a dozen registries currently receive the service, PIR said.

“Our sponsorship will extend access to Domain Alerts to over a thousand TLDs at no cost enabling any interested registry to help prevent the display of criminal, abusive content on their domains,” the company said.

PIR didn’t say how much this is likely to cost it. IWF doesn’t publish its prices, but it seems only paying members usually receive the service. Its membership fees range from £1,000 ($1,259) to £90,000 ($113,372) a year, based on company size.

The partnership also means all registries will have free access to the IWF TLD Hopping List, which tracks CSAM “brands” as they move between TLDs whenever they are taken down by registries in a given jurisdiction.

IWF says that in 2022 it found 255,000 web pages hosting CSAM, spread across 5,416 domains. PIR says it has removed 5,700 instances of CSAM across its portfolio of TLDs over the last five years.

Airline gTLD crashes and burns

Another would-be dot-brand has added itself to the list of “On second thoughts…” gTLD registries, asking ICANN to tear up its contract.

Century-old Avianca, Colombia’s largest airline, filed its termination papers with ICANN in December and ICANN published them for comment last week.

While the original 2012 application clearly stated that .avianca was intended as a single-registrant dot-brand, Avianca never actually got around to applying for its Spec 13 exemptions so I won’t be technically counting it as a dead dot-brand.

Despite being operational since early 2016, the TLD never had any registrations beyond the mandatory nic.avianca registry placeholder.

The back-end registry services provider and original application consultant was Identity Digital (née Afilias).

Nominet to overhaul .uk registry, turn off some services

Nominet has opened a public consultation on its plans to modernize the .uk domain registry, which will involve increased standardization around international norms and turning off some older services.

It’s an extensive consultation — 37 proposals and 92 questions spread over more than 50 pages — aimed mainly at the registrars that will have to update their systems to integrate with the new registry. But registrants will also be affected.

The plans would see changes to Nominet’s underlying registry platform that would alter how renewals, proxy registrations, grace periods and transfers between registrants and registrars are handled, and the retirement of the current Whois system, among many other items.

Nominet reckons its proposals will help it save money on ongoing maintenance and software licensing as well as eventually simplifying things for its member registrars.

The company currently runs two registry platforms in parallel: the old UK registry and the newer EPP registry, which is based on the latest technical standards and compliant with ICANN requirements.

It runs its gTLDs, such as .wales and .cymru, as well as its dozens of back-end clients, on the newer system. The plan is to shift .uk over to the newer RSP platform too.

The proposal also calls for Nominet to align with ICANN’s plans to stop requiring registrars to operate Whois services a year from now, replacing them with the newer RDAP standard, which provides the same functionality.

Other older, less-used services, such as the Domain Availability Checker, would either be retired or replaced with EPP-based equivalents.

There’s a lot to absorb in the consultation documents, but at first glance it strikes me that large international registrars that already integrate with dozens of registries probably don’t have much to worry about; smaller, .uk-focused registrars with fewer resources may show some resistance due to the amount of development work likely to be required.

But Nominet says that it is taking this into account with its timetable, saying: “If the changes go ahead, we will give considerable advance notice to Registrars to allow time for development activities”.

The consultation is open for the next three months, punctuated by five explanatory webinars.

Russia blames DNSSEC, not Ukraine, for internet downtime

Another ccTLD has blamed DNSSEC after seeing hours of downtime affecting its country’s biggest web services yesterday.

This time it’s Russia’s ccTLD.ru, which confirmed today that it was responsible for the widely reported outages on Tuesday, which had sparked speculation that a cyber-attack related to the war in Ukraine might be the culprit.

It was rather a DNSSEC failure that affected both .ru and the Cyrillic .рф domains, the registry said. It was related to a cryptograpghic key rollover, the registry indicated.

“After the failure was detected, the updated keys were revoked, and the functionality of the .RU zone was fully restored, which took about two hours, including the distribution of data through the DNS system,” the registry said on its web site.

“The investigation into the incident is currently ongoing, but it is already clear that the main cause of the failure was the imperfection of the software used to create the encryption keys,” it added.

The explanation was echoed by Russian government officials on social media, and it’s sadly rather plausible. DNSSEC failures at ccTLDs, and to a lesser extent gTLDs, usually related to fluffed key rollovers, are rather common.

There have been similar outages reported in the last few years in Australia (twice), Namibia, Fiji, and Sweden. And those are just the ones reported on this blog. People who track this kind of thing more closely have recorded hundreds of incidents.

Team Internet says revenue beat estimates

Team Internet gave a preview of its 2023 earnings report this morning, saying that revenue grew faster than its own targets and analysts’ estimates.

The company, formerly CentraNic, expects to post revenue around $835 million, up 15% on 2022, and profit up 12% at $96 million for the year.

The firm’s Online Presence segment, which includes the domains business, had revenue up 16% at $179 million, while the far larger Online Marketing segment saw revenue up 14% at $656 million.

Team Internet will report its full results on March 18.

.ru domains fly off the shelf as Western sanctions bite

Russia’s ccTLD has posted very impressive growth in registrations for 2023, attributable largely to sanctions related to the country’s invasion of Ukraine.

ccTLD.ru, the registry for .ru and .рф, reported that it ended 2023 with 5,439,137 .ru domains, an increase of 506,024 or 10.3% over the year. It said 85% of the names were registered by Russians.

It said 1,709,718 new domains were registered in .ru, with over 200,000 being registered per month by December.

For comparison with fellow top-10 ccTLDs, Germany’s .de grew by 201,000 names last year, and Brazil’s .br grew by 220,000. The UK’s .uk shrank and the Netherlands’ .nl was basically flat.

In the smaller Cyrllic .рф, the growth rate was even greater — 13.7%, with 768,883 domains in total at the end of the year, up 92,769 names, the registry said.

Despite the rapid growth, .ru is still a bit off its 2017 peak of around 5.53 million domains, according to my database.

In a press release, ccTLD.ru director Andrey Vorobyev admitted that one of the “main drivers” of the growth were Russians transferring their sites to Russia “under the pressure of sanctions”.

After Russia launched its full-scale invasion of Ukraine in 2022, many domain registries and registrars in the West unilaterally decided to stop doing business with Russian citizens and organizations, despite US government sanctions specifically not applying to domains.

GoDaddy cut off Russians and .ru while Namecheap, which has many support staff in Ukraine, cut off Russian customers and continues to prominently fund-raise for Ukraine on its storefront. Other companies announcing boycotts included 101domain, IONOS and Nominet.

Ukraine’s ccTLD, .ua, has fared less well during the crisis. Its total domain count shrank by about 77,000 to 514,000 in 2023, according to my database. The local registry, Hostmaster, had frozen deletions for a period to give people who had been displaced or mobilized more time to renew, but started releasing those domains last year.

Hostmaster has reported adoption of certain third-level geographic .ua domains that use Latin transliterations of Ukrainian place names, rather than Russian — .kyiv.ua versus .kiev.ua for example — as citizens seek to “de-Russify” their holdings.

Lebanon’s ccTLD going back to Lebanon after ICANN takeover

ICANN’s board of directors has voted to redelegate Lebanon’s ccTLD to the country’s local Internet Society chapter, six months after the Org took it over as an emergency caretaker.

The resolution, passed at the weekend, as usual with ccTLD redelegations does not get into any depth about the switch, other than to note IANA has ticked all the requisition procedural boxes. IANA will publish a report at a later date.

ICANN took over the ccTLD, .lb, last July after the former registry was left in limbo following the sudden death of its founder and manager. It was only the second time ICANN had made itself a ccTLD’s “caretaker”.

The board also voted at the weekend to redelegate Cameroon’s .cm, best-known in the Anglophone world for enabling .com typos purely by existing, to Agence Nationale des Technologies de l’Information et de la Communication, the local technology ministry.

You can’t use money to buy .box domains

In what is probably the strangest domain launch to date, the crypto-focused new gTLD .box has gone on sale, but you can’t use actual money to buy domains there.

The unique selling point of .box domains is that they work on both the regular consensus DNS — .box is an ICANN-approved and contracted gTLD — and the Ethereum Name Service blockchain alt-root, so registrants can use their domains to address their crypto wallets.

From a business model perspective, registry Intercap is doing a lot of things differently.

For starters, it’s not accepting hard currency. The regular general availability price at My.Box, which appears to be the only registrar, is $120 a year, but you can only pay in crypto coins — either Ethereum or USD Coin, a crypto coin that has its value linked 1:1 to the US dollar.

My.Box is using ICANN-accredited top-10 registrar NameSilo to register names, but NameSilo’s own web store does not appear to support them.

The current Early Access Period is also different to the norm. Instead of the price reducing by a certain amount every day at midnight, it’s constantly ticking down, minute by minute, at a rate of 50% a day, so you can get a name for less if you just hang on a few hours (or minutes, or seconds).

EAP pricing started at $7,680 last Thursday and at time of publication is around $470. Judging by zone files, about 30 domains have been sold during EAP so far.

Dropping domains pricing is also handled in what I believe is a unique way. Instead of dropped domains entering the available pool at regular GA pricing, they instead are returned to EAP pricing — so they’ll cost $7,680 to re-register the moment after they drop and you’ll have to wait a full seven days to get them at the regular base price..

I can see the potential for controversy here, but it doesn’t seem much different to registrars auctioning off their customers’ domains after they expire.

My.Box also asks its customers to manage their domain via its app, and it does not allow them to assign their own nameservers — they have to use the nameservers assigned by the registry.