CentralNic brings back old CFO

CentralNic has swapped its currently chief financial officer for his immediate predecessor.
Glenn Hayward has left the company after three and a half years “to pursue other opportunities”, the company said in a statement to the markets today.
He has been replaced by Don Baladasan, who was CFO of the company between 2010 and 2014.
During his previous stint in the role, he oversaw CentralNic’s flotation on London’s Alternative Investment Market.

Comment Tagged: centralnic

Short .vegas domains go on sale

Dot Vegas has made one and two-character .vegas domain names available to register on a first-come, first-served basis.
Single-character domains such as a.vegas and 7.vegas and two-character names such as 77.vegas and bj.vegas all appear to be available, including domains that match country-code TLDs.
Prices seem to be around the $2,750 to $3,299 mark for the one-character names at the three registrars Dot Vegas plugged in its announcement.
For the two-character names, you’re looking at $550 to $699, again depending on registrar.
Renewal fees for these short names seem to be about double what you’d expect to pay per year for a regular .vegas name, starting at over $100 per year.
Of the three promoted registrars — GoDaddy, Uniregistry and NameCheap — Uniregistry appears to be the cheapest and GoDaddy the most expensive.
The .vegas gTLD has been on the market for about three years and has about 16,000 domains in its zone file currently.

5 Comments Tagged: .vegas, dot vegas, premium, short

GoDaddy flips hosting business for $456 million

GoDaddy has sold off its recently acquired PlusServer business for €397 million ($456 million).
The buyer is a private equity firm, BC Partners.
The registrar had taken control of the business when it spent $1.79 billion on Host Europe Group earlier this year, but had said from the start that the asset was for sale.
PlusServer sells hosting to larger companies, which have more demanding support needs that small-business-focused GoDaddy is accustomed to dealing with.
The unit was bringing in annual revenue approaching $100 million per year.
GoDaddy said it planned to put the proceeds of the flip towards paying off some loans.

Comment Tagged: acquisition, bc partners, godaddy, heg, host europe group, plusserver

Domain growth slows a lot in Q1

The growth of the domain name industry slowed in the first quarter, numbers published today by Verisign reveal.
According to its latest Domain Name Industry Brief (pdf), the domain universe grew to 330.6 million in Q1.
That’s an increase of 1.3 million names on Q4 2016, a 0.4% sequential increase, and 11.8 million names, 3.7% growth, compared to Q1 2016.
In the Q4 DNIB, Verisign reported industry growth of 0.7% and 6.8% respectively.
The only change on the list of the top 10 TLDs was that .nl and .xyz switched places (.xyz is now in 10th place, with 5.6 million names, but this rank will not last long).
ccTLDs in general did not match the growth of the overall market. There were approximately 143.1 million ccTLD domains at the end of March, up 0.3% sequentially and 1.7% year over year, both substantially smaller numbers than reported in Q4.
The free ccTLD .tk, which has been responsible for huge swings in recent reports, is reported to have declined by about 100,000 names to 18.6 million.
Excluding .tk, the growth rate of ccTLDs was better — 0.5% sequentially and 3.9% compared to the year-ago quarter.
Verisign’s data is largely based on zone files for gTLDs and independent researcher ZookNic for ccTLDs.

Comment Tagged: dnib, domain name industry brief, versign

Governments slammed for overreach as Amazon wins gTLD appeal

Amazon has won its appeal against the rejection of its .amazon gTLD application, in a ruling that criticizes ICANN for giving too much deference to government advice.
The Independent Review Process panel’s 2-to-1 ruling, delivered July 11 and published this week, means that .amazon and its Chinese and Japanese translations has been un-rejected and ICANN will have to consider approving it again.
The ruling (pdf) turns on the idea that ICANN’s board of directors rejected the gTLD based on nothing more than the groundless objections of a few South American governments.
Amazon’s applications were rejected three years ago when ICANN accepted the consensus advice of its Governmental Advisory Committee.
That advice, which had no attached rationale, had come largely at the behest of Brazil and Peru, two countries through which the Amazon river flows.
At issue was the word “Amazon”, which the governments protested matched the name of an important geographic region extending into several countries.
But the string was not protected by ICANN’s new gTLD program rules because it does not match the name of an administrative region of any country.
Regardless, Brazil and Peru said that to give .amazon to Amazon would prevent it being used in future by citizens of the informal South American region.
GAC consensus was reached only after the US government, for political reasons connected to the then-recent announcement of the IANA transition, decided to withdraw its objection to the advice.
Consensus, under GAC rules means simply that no one government objects to the proposed advice. It does not indicate unanimity.
But at no point in the pubic record of discussions within the GAC or ICANN board did anyone give any substantial public policy reasons for the objection, the IRP panel has now found.
Global Domains Division chief Akram Atallah testified before the panel that consensus GAC advice sets “too high for the Board to say no.”
It seems ICANN sometimes just assumes that GAC advice by default is rooted in sound public policy, even when that is not the case.
Brazil and Peru’s objections “do not appear to be based on well-founded public policy concerns that justify the denial of the applications” the panelists wrote.
The panel wrote:

We conclude that GAC consensus advice, although no reasons or rationale need be given, nonetheless must be based on a well-founded public interest concern and this public interest basis must be ascertained or ascertainable from the entirety of the record…
the Board cannot simply accept GAC consensus advice as conclusive. The GAC has not been granted a veto under ICANN’s governance documents.

So, while the GAC was under no obligation to state its reasons for objecting to .amazon, the ICANN board was obliged to state its reasons for accepting this advice beyond just “the GAC made us do it”.
As somebody who spent much of 2011 arguing that the GAC new gTLD veto was a bad idea, it’s nice to see the panel agree with me.
The GAC itself also erred by refusing to consider Amazon’s arguments in favor of its application, the IRP panel’s majority found.
Peru had publicly claimed that the string “Amazon” was protected under ICANN rules, which was not true, and Amazon did not have the opportunity to correct the record.
Amazon had also pointed out that the Brazilian oil company Ipiranga was granted its application for .ipiranga, despite its name matching the name of a Brazilian river apparently so important that it is referred to in the Brazilian national anthem.
However, the IRP panel decided that because ICANN’s board had not taken any action on .ipiranga, there was no basis for it to consider whether Amazon had been unfairly subject to different treatment.
In conclusion, this is what the panel has sent to the board:

The Panel recommends that the Board of ICANN promptly re-evaluate Amazon’s applications in light of the Panel’s declarations above. In its re-evaluation of the applications, the Board should make an objective and independent judgment regarding whether there are, in fact, well-founded, merits-based public policy reasons for denying Amazon’s applications. Further, if the Board determines that the applications should not proceed, the Board should explain its reasons supporting that decision. The GAC consensus advice, standing alone, cannot supplant the Board’s independent and objective decision with a reasoned analysis.

It seems Amazon’s chances of having .amazon approved have improved. If ICANN wants to reject the applications again it is going to have to come up with some good reasons, some good reasons that possibly do not exist.
The panel also ordered ICANN to reimburse Amazon for the $163,045.51 it spent on the IRP.

2 Comments Tagged: amazon, gac, ICANN, irp

ICANN gives the nod to Donuts-Rightside merger

ICANN has given its consent to the acquisition of Rightside by rival new gTLD registry Donuts, according to the companies.
The nod means that one barrier to the $213 million deal has been lifted.
Rightside, which is listed on Nasdaq, still needs the majority of its shareholders to agree to the deal and to satisfy other customary closing conditions.
ICANN approval does not mean the organization has passed any judgment about whether the deal is pro-competition or anything like that, it just means it’s checked that the buyer has the funds and the nous to run the TLDs in question and is compliant with various policies.
All new gTLD Registry Agreements given ICANN the right to consent — or not — to the contract being assigned to a third party.
The acquisition was announced last month at the end of a turbulent year or so for Rightside.

1 Comment Tagged: acquisition, donuts, ICANN, rightside

Junk drop cuts .xyz in half, .top claims volume crown

The .xyz gTLD has seen its zone file halve in size, as millions of free and cheap domains were not renewed.
The former volume leader among new gTLDs started this month with a tad over 5.2 million domains in its zone.
But its July 17 zone contained 2.5 million, much less than half as many, DI analysis shows.
The precipitous decline means that Chinese-run gTLD .top, increasingly notorious as a go-to TLD for spammers, is now literally at the top of the league table, when you measure new gTLDs by zone file volume, with 2.6 million names.
The primary reason for .xyz losing so many names is of course the expiration of most of the domains that were sold for just $0.01 — or given away for free — in the first few days of June 2016, and the aggressive promotional pricing on offer for the remainder of that month.
On May 30, 2016, there were just under 2.8 million names in the .xyz zone. By July 1, 2016, that number had topped 6.2 million, an increase of 3.4 million over a single month.
That was .xyz’s peak. The zone has been in gradual decline ever since.
Domains generally take 45 days to drop, so it’s entirely possible XYZ.com will see further losses over the next month or so.
There’s nothing unusual about seeing a so-called “junk drop” a year after a TLD launches or runs a free-domains promotion. It’s been well-understood for over a decade and has been anticipated for .xyz for over a year.
But compounding its problems, the .xyz registry appears to still be banned in China, where a substantial portion of its former customer base is located.
The company disclosed over two months ago that it had a “temporary” problem that had seen its license to sell domains via Chinese registrars suspended.
The ban was related to XYZ falling out with its original “real name verification” provider, ZDNS, which was tasked with verifying the identities of Chinese registrants per local government regulations.
I’ve never been able to confirm with either party the cause of this split, but everyone else involved in the Chinese market I’ve asked has told me it related to a dispute over money.
Regardless, two months later the major Chinese registrars I checked today still appear to not be carrying .xyz names.
XYZ has meanwhile signed up with alternative Chinese RNV provider Tele-info, and just three days ago submitted the necessary paperwork (pdf) with ICANN to have the move approved as a registry service under its contract.
In that request, XYZ said the new RNV service “will allow XYZ to reenter certain domain name markets”, suggesting that it has not yet regained Chinese government approval to operate there.

3 Comments Tagged: .xyz, centralnic, china, ICANN, new gTLDs, rnv, rsep, tele-info, xyz.com, zdns

Over 750 domains hijacked in attack on Gandi

Gandi saw 751 domains belonging to its customers hijacked and redirected to malware delivery sites, the French registrar reported earlier this month.
The attack saw the perpetrators obtain Gandi’s password for a gateway provider, which it did not name, that acts as an intermediary to 34 ccTLD registries including .ch, .se and .es.
The registrar suspects that the password was obtained by the attacker exploiting the fact that the gateway provider does not enforce HTTPS on its login pages.
During the incident, the name servers for up up to 751 domains were altered such that they directed visitors to sites designed to compromise unpatched computers.
The redirects started at 0804 UTC July 7, and while Gandi’s geeks had reversed the changes by 1615 it was several more hours before the changes propagated throughout the DNS for all affected domains.
About the theft of its password, Gandi wrote:

These credentials were likewise not obtained by a breach of our systems and we strongly suspect they were obtained from an insecure connection to our technical partner’s web portal (the web platform in question allows access via http).

It’s not clear why a phishing attack, which would seem the more obvious way to obtain a password, was ruled out.
Gandi posted a detailed timeline here, while Swiss registry Switch also posted an incident report from its perspective here. An effected customer, which just happened to be a security researcher, posted his account here.
Gandi says it manages over 2.1 million domains across 730 TLDs.

Comment Tagged: gandi, gandi.net, malware, security

ICANN chair paid $114,000 last year

ICANN chair Steve Crocker was paid $114,203.24 in the organization’s last tax year.
The number was released today (pdf) in response to a request by domain blogger John Poole of DomainMondo.com.
Poole had requested the figures because Crocker is paid via his company, Shinkuro, rather than directly, so his compensation does not show up on ICANN’s published tax returns.
It was already known that ICANN’s chair is eligible for $75,000 a year in salary, but today’s letter, from CFO Xavier Calvez, states that he also received $39,203.24 for office rent (about $3,250 per month) in the year ended June 30 2016.
This does not include his travel reimbursements and such, which came to well over $100,000 in the same fiscal year according to ICANN disclosures.
If Crocker were on ICANN staff, he would be the 18th most costly employee, even if you do include the extra reimbursements.
Other ICANN directors receive $45,000 per year.
Calvez said ICANN will update its disclosure process to make it clearer how much Crocker is paid via Shinkuro.

2 Comments Tagged: ICANN

Could the next new gTLD round last 25 years? Or 70 years?

Will the next new gTLD round see 25,000 applications? If so, how long will it take for them all to go live?
The 25,000 figure is one that I’ve heard touted a few times, most recently during public sessions at ICANN’s meeting in Johannesburg last month.
The problem is that, judging by ICANN’s previous performance, such a huge number of applications would take anywhere from 25 to 70 years to process.
It’s unclear to me where the 25,000 application estimate comes from originally, but it does not strike me as laughably implausible.
There were just shy of 1,930 applications for 1,408 unique strings in the most recent round.
There could have been so many more.
ICANN’s outreach campaign is generally considered to have been a bit lackluster, particularly in developing markets, so many potential applicants were not aware of the opportunity.
In addition, some major portfolio applicants chose to rein in their ambitions.
Larry Page, then-CEO of Google, is known to have wanted to apply for many, many more than the 101 Google wound up applying for, but was talked down by staff.
There’s talk of pent-up demand for dot-brands among those companies that missed the 2012 window, but it’s impossible to know the scale of that demand with any precision.
Despite the fact that a handful of dot-brands with ICANN registry agreements and delegations have since cancelled their contracts, there’s no reason they could not reapply for defensive purposes again in subsequent rounds.
There are also thousands of towns and cities with populations comparable to cities that applied in 2012 that could apply next time around.
And there’s a possibility that the cost of applying — set at $185,000 on a highly redundant “cost recovery” basis — may come down in the next round.
Lots of other factors will play a role in how many applications we see, but in general it doesn’t seem impossible that there could be as many as 25,000.
Assuming for a moment that there are 25,000, how long will that take to process?
In the 2012 round, ICANN said it would delegate TLDs at a rate of no more than 1,000 per year. So that’s at least 25 years for a 25,000-app round.
That rate was set somewhat arbitrarily during discussions about root zone scaling before anyone knew how many gTLDs would be applied for and estimates were around the 500 mark.
Essentially, the 1,000-per-year number was floated as a sort of straw man (or “straw person” as some ICANNers have it nowadays) so the technical folk had a basis to figure out whether the root system could withstand such an influx.
Of course, this limit will have to be revised significantly if ICANN has any hope of processing 25,000 applications in under a generation.
Discussions at the time indicated that the rate of change, not the size of the root zone, was what represented the stability threat.
In reality, the rate of delegation has been significantly slower than 1,000 per year.
It took until May 2016 for the 1,000th new gTLD to go live, 945 days after the first batch were delegated in late October 2013.
That means that during the relative “rush-hour” of new gTLD delegations, there was still only a little over one per day on average.
And that’s counting from the date of the first delegation, which was actually 18 months after the application window was closed.
If that pattern held in subsequent rounds, we would be looking at about 70 years for a batch of 25,000 to make their way through the system.
You could apply for a vanity gTLD matching your family name and leave the delegation as a gift to your great-grandchildren, long after your death.
Clearly, with 25,000 applications some significant process efficiencies — including, I fancy, much more automation — would be in order.
Currently, IANA’s process for making changes to root zone records (including delegations) is somewhat complex and has multiple manual steps. And that’s before Verisign makes the actual change to the master root zone file.
But the act of delegation is only the final stage of processing a gTLD application.
First, applications that typically run into tens of thousands of words have to undergo Initial Evaluation by several teams of knowledgeable consultants.
From Reveal Day in 2012 to the final IE being published in 2014 took a little over two years, or an average of 2.5 applications per day.
Again, we’re looking at over a quarter of a century just to conduct IE on 25,000 applications.
Then there’s contracting — ICANN’s lawyers would have to sign off on about a dozen Registry Agreements per day if it wanted to process 25,000 delegations in just five years.
Not to mention there’s also pre-delegation testing, contention resolution, auctions, change requests, objections…
There’s a limited window to file objections and there were many complaints, largely from governments, that this period was far too short to read through just 1,930 applications.
A 25,000-string round could take forever, and ICANN’s policies and processes would have to be significantly revised to handle them in a reasonable timeframe.
Then again, potential applicants might view the 2012 round as a bust and the next round could be hugely under-subscribed.
There’s no way of knowing for sure, unfortunately.

6 Comments Tagged: ICANN, new gTLDs