Latest news of the domain name industry

Recent Posts

Does Chehade agree with Donuts on .doctor?

Kevin Murphy, March 24, 2015, Domain Policy

Should governments have the right to force business-limiting restrictions on new gTLD operators, even though they don’t have the same rules in their own ccTLDs?
ICANN CEO Fadi Chehade evidently believes the answer to that question is “No”, but it’s what ICANN is controversially imposing on Donuts and two other .doctor applicants anyway.
Donuts recently filed a Request for Reconsideration appeal with ICANN over its decision to make the .doctor gTLD restricted to medical professionals only.
It was an unprecedented “Public Interest Commitment” demanded by ICANN staff in order to keep the Governmental Advisory Committee happy.
The GAC has been asking for almost two years for so-called “Category 1” gTLD strings — which could be seen to represent highly regulated sectors such as law or medicine — to see a commensurate amount of regulation from ICANN.
Governments wanted, for example, registrants to show professional credentials before being able to register a name.
In the vast majority of instances, ICANN creatively reinterpreted this advice to require registrants to merely assert that they possess such credentials.
These rules were put in registries’ contracts via PICs.
But for some reason in February the organization told Donuts that .doctor domains must be “ascribed exclusively to legitimate medical practitioners.”
According to Donuts, this came out of the blue, is completely unnecessary, an example of ICANN staff making up policy on the spot.
Donuts wants to be able to to sell .doctor names to doctors of any discipline, not just medical doctors. It also wants people to be able to use the names creatively, such as “computer.doctor” or “skateboard.doctor”.
What makes ICANN’s decision especially confusing is that CEO Fadi Chehade had the previous day passionately leaped to the defense of new gTLD registries in their fight against unnecessary GAC-imposed red tape.
The following video, in which Chehade uses .dentist as an example of a string that should not be subject to even more oversight, was taken February 11 at a Q&A with the Domain Name Assocation.
The New gTLD Program Committee meeting that authorized ICANN staff to add the new PIC took place February 12, the very next day. Chehade did not attend.

It’s quite remarkable how in line with registries Chehade seems to be.
It cuts to the heart of what many believe is wrong with the GAC — that governments demand of ICANN policies that they haven’t even bothered to implement in their own countries, just because it’s much easier to lean on ICANN than to pass regulations at home.
Here’s the entire text of his answer. He’s describing conversations he’d had with GAC members earlier in the week.

They’re saying stop all the Category 1 TLDs. Stop them. Freeze them!
And we said: Why do we need to freeze them? What’s the issue?
They said: It’s going to harm consumers.
How will it harm consumers? We started having a debate.
It turns out that they’re worried that if somebody got fadi.casino or fadi.dentist, to pick one of Statton’s [Statton Hammock, VP at Rightside, who was present], that this person is not a dentist and will pluck your ear instead of your teeth. How do you make sure they’re a dentist?
So I asked the European Commission: How do you make sure dentist.eu is a dentist?
They said: We don’t. They just get it.
I said: Okay, so why do these guys [new gTLD registries] have to do anything different?
And they said: The new gTLD program should be better or a model…
I said: Come on guys, do not apply rules that you’re not using today to these new folks simply because it’s easy, because you can come and raise flags here at ICANN. Let’s be fair. How do you do it at EU?
“Well, if somebody reports that fadi.dentist.eu is not a dentist, we remove them.”
Statton said: We do the same thing. It’s in our PICs. If fadi.dentist is not, and somebody reports them…
They said: But we can’t call compliance.
You can call compliance. Anyone can call compliance. Call us and we’ll follow up. With Statton, with the registrar.

What we have here is Chehade making a passionate case for the domain name industry’s right to sell medical-themed domain names without undue regulation — using many of the same arguments that Donuts is using in its Reconsideration appeal — then failing to show up for a board meeting the next day when that specific issue was addressed.
It’s impossible to know whether the NGPC would have reached a different decision had Chehade been at the February 12 meeting, because no formal vote was taken.
Rather, the committee merely passed along its “sense” that ICANN staff should carrying on what it was doing with regards implementing GAC advice on Category 1 strings.
While Chehade is but one voice on the NGPC, as CEO he is in charge of the ICANN staff, so one would imagine the decision to add the unprecedented new PIC to the .doctor contract falls into his area of responsibility.
That makes it all the more baffling that Donuts, and the other .doctor new gTLD applicants, are faced with this unique demand to restrict their registrant base to one subset of potential customers.

Comment Tagged: , , , , , ,

Identify.com terminated

Kevin Murphy, March 24, 2015, Domain Registrars

ICANN has terminated the accreditation of defunct registrar Identify.com.
The company received its final compliance notice (pdf) last week and will lose its contractual ability to sell gTLD domains April 17.
Not that many will notice or care.
According to the notice, ICANN has been informed that the company is no longer in business.
Identify.com does not currently resolve to a web page, at least for me. According to registry reports, it had just six domain names under management in November.
Back in 2011, its DUM was measured in the low hundreds. Most transferred out or deleted in the meantime.
According to the notice, the registrar failed to provide information about its dealings with the owner of a specific domain name, patschool.com.
According to DomainTools, that domain has never been registered with Identify.com.
It’s ICANN’s third registrar termination in 2015.

3 Comments Tagged: , , ,

Why is .sucks based in Frank Schilling’s office?

Kevin Murphy, March 23, 2015, Domain Registries

The upcoming new gTLD .sucks is being run from the offices of Frank Schilling’s Uniregistry and it has a close business relationship with the registry, DI has discovered.
Vox Populi Registry, which runs .sucks and which I and many others have been assuming is completely controlled by Canadian registrar group Momentous, in fact seems to be tightly aligned with Uniregistry.
Schilling characterized it both as a “working relationship” and a “joint venture” today.
I heard through the rumor mill last year that Uniregistry may have a stake in Vox Pop.
But it wasn’t until I checked the IANA database record for .sucks today that the rumor seemed to be to an extent confirmed.
The address for Vox Populi, a Canadian company according to its ICANN contract, is listed as Uniregistry’s office in Grand Cayman in both Registry Sponsor and Administrative Contact records.
Momentous CEO Rob Hall is named as Technical Contact at a Barbados address.
“We have a joint venture agreement and are presently handling postage and handling for Vox Populi,” Schilling told DI today. “We are providing office space services to them as well.”
He characterized the deal as a “working relationship”.
I would not be at all surprised if it’s much closer than that.

Comment Tagged: , , ,

Verisign adds 750,000 .com names instantly with reporting change

Kevin Murphy, March 23, 2015, Domain Registries

Verisign has boosted its reportable .com domain count by almost 750,000 by starting to count expired and suspended names.
The change in methodology, which is a by-product of ICANN’s much more stringent Whois accuracy regime, happened on Friday afternoon.
Before the change, the company reported on its web site that there were 116,788,107 domains in the .com zone file, with another 167,788 names that were registered but not configured.
That’s a total of 116,955,895 domains.
But just a few hours later, the same web page said .com had a total of 117,704,800 names in its “Domain Name Base”.
That’s a leap of 748,905 pretty much instantly; the number of names in the zone file did not move.
.net jumped 111,110 names to 15,143,356.
The reason for the sudden spikes is that Verisign is now including two types of domain in its count that it did not previously. The web page states:

Beginning with the first quarter, 2015, the domain name base on this website and in subsequent filings found in the Investor Relations site includes domains that are in a client or server hold status.

I suspect that the bulk of the 750,000 newly reported names are on clientHold status, which I believe is used much more often than serverHold.
The clientHold EPP code is often applied by registrars to domains that have expired.
However, registrars signed up to the year-old 2013 Registrar Accreditation Agreement are obliged by ICANN to place domains on clientHold status if registrants fail to respond within 15 days to a Whois verification email.
The 2013 RAA reads (my emphasis):

Upon the occurrence of a Registered Name Holder’s willful provision of inaccurate or unreliable WHOIS information, its willful failure promptly to update information provided to Registrar, or its failure to respond for over fifteen (15) calendar days to inquiries by Registrar concerning the accuracy of contact details associated with the Registered Name Holder’s registration, Registrar shall either terminate or suspend the Registered Name Holder’s Registered Name or place such registration on clientHold and clientTransferProhibited, until such time as Registrar has validated the information provided by the Registered Name Holder.

Last June, registrars claimed that the new policy — which came after pressure from law enforcement — had resulted in over 800,000 domains being suspended.
It’s an ongoing point of contention between ICANN, its registrars, and cops.
Verisign changing its reporting methodology may well be a reaction to this increase in the number of clientHold domains.
While its top-line figure has taken a sharp one-off boost, it will still permit daily apples-to-apples comparisons on an ongoing basis.
UPDATE:
My assumption about the link to the 2013 RAA was correct.
Verisign CFO George Kilguss told analysts on February 5.

Over the last several years, the average amount of names in the on-hold status category has been approximately 400,000 names and the net change year-over-year has been very small.
While still immaterial, during 2014, we saw an increase in the amount of names registrars have placed on hold status, which appears to be a result of these registrars complying with the new mandated compliance mechanisms in ICANN’s 2013 Registrar Accreditation Agreement or RAA.
In 2014, we saw an increase in domain names placed on hold status from roughly 394,000 names at the end of 2013 to about 870,000 at the end of 2014.

4 Comments Tagged: , , , , , , ,

All eyes on Donuts as first new gTLD renewal figures roll in

Kevin Murphy, March 23, 2015, Domain Registries

Donuts is about to give the world the clearest picture yet of the ongoing demand for new gTLD domain names.
The company has taken the unprecedented decision to disclose its renewal figures on a pretty much live basis.
COO Richard Tindal has been blogging renewal stats for .bike, .clothing, .guru, .ventures, .holdings, .plumbing and .singles for the last few days.
Those were the first seven of its gTLDs to hit general availability.
To Saturday, the renewal status of 6,352 names in these gTLDs was known and the renewal rate was 85.3%.
However, that rate is boosted by the relatively high proportion of the names that were registered during sunrise periods.
Donuts said that “two thirds” of the 6,352 reported domains were registered after sunrise.
That doesn’t make a whole lot of sense to me, given that Donuts has previously put the total number of sunrise regs across the seven TLDs at just 1,404, which would work out at about 22%, not 33%.
On Friday, the company had said that the status of 4,534 names was known and the renewal rate was 91.6%.
If you deduct the Friday numbers from the Saturday numbers, you get to 1,265 renewals and 553 drops, a renewal rate of almost 69.6% for that particular day.
That number, which is a few percentage points off what a gTLD such as .com regularly reports, could of course fluctuate.
The full-year renewal rate, which would factor out much of the domainer activity, of course won’t be known for another year.
Donuts said it expects its renewal rate to drop to the mid-70s in its next daily report, expected today, which will cover an additional 22,910 domains.
The company’s decision to blog its numbers comes a day or two after we reported that ICANN is only budgeting for renewals of 50%.
The 14.6% of names not renewed works out to about 933 domains.
“We believe most of those names will be re-registered by another party within the next 35 days,” Tindal wrote.
As they were all registered in the early days of GA, one might expect them to be of a reasonably high quality.
While GA began at the end of January 2014, renewal rates are not known until the Auto-Renew Grace Period, which can be as long as 45 days, has expired.

1 Comment Tagged: , , , , , , , , , ,

.tk registrar gets ICANN breach notice

Kevin Murphy, March 19, 2015, Domain Registrars

OpenTLD, the registrar owned by .tk registry Freenon, has received an odd contract-breach notice from ICANN.
The company apparently forgot to send ICANN a Compliance Certificate for 2014, despite repeated pestering by ICANN staff.
It’s the first time I’ve seen ICANN issue a breach notice (pdf) for this reason.
A Compliance Certificate, judging by the 2013 Registrar Accreditation Agreement, seems to be a simple form letter that the CEO must fill in, sign and submit once a year.
Coming back into compliance would be, one imagines, five minutes’ work.
As well as being an ICANN-accredited registrar, OpenTLD is part of Freenom. That’s the registry that repurposes under-used ccTLDs with a “freemium” model that allows free registrations.
Its flagship, .tk, is the biggest ccTLD in world, with over 30 million active names.

1 Comment Tagged: , , , ,

ICANN slashes new gTLD revenues by 57%, forecasts renewals at 25% to 50%

Kevin Murphy, March 19, 2015, Domain Registries

ICANN has dramatically reduced the amount of revenue it expects to see from new gTLDs in its fiscal 2015.
According to a draft 2016 budget published this morning, the organization now reckons it will get just $300,000 from new gTLD registry transaction fees in the year ending June 30, 2015.
That’s down 75% from the $1.2 million predicted by its FY 2015 budget, which was approved in December.
Transaction fees are paid on new registrations, transfers and renewals, but only by gTLDs with over 50,000 billable transactions per year.
Today, only 14 of the 522 delegated new gTLDs have added more than 50,000 names. ICANN says that only 17 registries are currently paying transaction fees.
It’s not only the transaction fees where ICANN has scaled back its expectations, however.
The organization also expects its fixed new gTLD registry fees — the $6,250 each registry must pay per quarter regardless of volume — to come in way below targets.
The new budget anticipates $12.7 million from fixed registry fees in FY15, down 24% from the $16.7 million in its adopted FY15 budget.
This is presumably due to larger than expected numbers of would-be registries either withdrawing or dragging their feet in the path to delegation.
Registrar transaction fees are now anticipated at $1.1 million, compared to $2 million and $3.2 million predicted by the adopted and draft FY15 budgets respectively.
Taking all three revenue sources together, ICANN now expects new gTLDs to contribute just $14.1 million to its fiscal 2015 revenue, down 29% from the $19.8 million forecast in its adopted FY15 budget.
That’s down 57% from the $32.7 million in the original draft budget for the period.
The current budget assumes 15 million new gTLD registrations in the 12-month period, revised down from the 33 million domains predicted in its draft FY15 budget a year ago.
With just a few months left until the end of the fiscal year, there are currently fewer than 4.5 million domains in published new gTLD zone files.
ICANN plainly no longer expects new gTLDs to get anywhere close to 15 million domains.
Renewals expected to be weak, weak, weak
The organization is taking a conservative view about renewals for 2016.
The 2016 budget expects renewals at just 50% for regular gTLDs and 25% for registries — presumably ICANN has .xyz in mind — that gave away domains for free at launch.
That 50% is both ICANN’s “best” and “high” estimate. Its “low” estimate is 35% for non-free domains.
Obviously, 50% is a very low renewal number for any registry (70%+ is the norm). Even شبكة. (.shabaka) told us recently that 55% of its registrants are renewing before their domains expire.
Conversely, 25% may be a very optimistic number for free domains (when Afilias gave away free .info names a decade ago, almost all of them dropped rather than being renewed).
For fiscal 2016, which begins July 1, 2015, ICANN expects new gTLD revenue to be $24.1 million — about a quarter off its original plan for 2015.
That breaks down as $19.9 million from registry fixed fees, $2 million from registry transaction fees, and $2.3 million from registrar transaction fees.
ICANN said it is is assuming that it will start the year with 602 registries and end it with 945.
The proposed FY16 budget, now open for comment, can be found here.
For comparison purposes, the adopted FY15 budget is here (pdf) and the draft FY15 budget is here (pdf).

6 Comments Tagged: , ,

Could Verisign lose $3.3m .gov deal?

Kevin Murphy, March 17, 2015, Domain Registries

The US government has put its feelers out for information about a possible successor to Verisign as manager of the .gov TLD.
A formal Request For Information — potentially a precursor to a Request For Proposals — was was issued by the General Services Administration on March 9.
The GSA, which is the sponsor of the .gov gTLD, seems to be looking for information about all aspects of running a registry back-end and the secure dotgov.gov registrar front-end.
Those functions have been carried out by Verisign since it took them over from the GSA itself in December 2010.
Its five-year contract expires in September this year.
Because it’s restricted to US government entities, .gov is not a large gTLD — the RFI says it has about 5,000 domains and grows at about 5% a year — but it does carry a certain prestige.
It also carries a not inconsiderable fee. According to the September 2010 award page, the deal is worth $3,325,000 to Verisign.
It’s quite possible that the RFI is just a case of the US government going through the necessary motions prescribed by its procurement policies; Verisign may well be a shoo-in.
But the company’s record with .gov isn’t as great as its record with .com and .net.
In August 2013, Verisign screwed up a DNSSEC key rollover in the .gov zone, causing resolution failures on the small number of networks that rigorously enforce DNSSEC.
The deadline for RFI responses is March 23.

3 Comments Tagged: , ,

Start-ups protest “the dark side of .io”

Kevin Murphy, March 17, 2015, Domain Registries

Two technology start-up companies that use .io domain name are to campaign on behalf of the exiled natives of the islands represented by the ccTLD.
As you’re no doubt aware, in recent years .io became a popular TLD among young tech firms squeezed out of .com by the lack of decent available names.
It could be understood to mean “input/output”, but the ccTLD actually represents the British Indian Ocean Territory, an archipelago in the Indian Ocean with a storied past.
It’s managed by UK-based Internet Computer Bureau, which runs several obscure overseas ccTLDs.
Over the last year or so, there’s been increasing awareness among .io registrants of BIOT’s recent history, which isn’t great.
The biggest island in the territory is Diego Garcia. In the 1960s, about 1,800 people — known as Chagossians — lived there.
But they were all forced to leave by the UK government in the early 1970s as part of a move to lease essentially the entire island to the US military.
This was at the height of the Cold War, when the US believed the islands were strategically important.
According to the UK Chagos Support Association, the exile was carried out covertly and many of those kicked off the islands were forced to live in “utmost poverty” in nearby Mauritius.
Now, Diego Garcia is populated by about 3,000 military personnel, mostly Americans, who staff the air and naval bases that were established following the Chagossians’ exile.
But the US lease is due to expire next year, so those backing the Chagossian cause reckon they’ve got an unprecedented opportunity to get the UK government to let them return.
You can read about the campaign here.
How does this all relate to domain names?
Two .io-using start-ups — Seats.io and BigBoards.io — said late last week that they have pledged their support to the cause.
In a press release, Seats.io’s “Chief Everything Officer” Ben Verbeken said the company will soon launch a web site at thedarksideof.io, “where companies can pledge to match the cost of registering their .io domain name with a donation to a Chagossian group or charity.”
.io names currently cost about $100 for the first year and about $50 a year thereafter.
Verbeken said: “When we learned about the Chagossian people’s story, we had two choices. We could give up our domain name and change the name of our business. But we would just be running away from the problem. So we decided to accept our social responsibility and actually help the Chagossian people a bit.”
The domain thedarksideof.io currently leads to a placeholder.
You can read more of the political back-story at The Guardian

13 Comments Tagged: , , ,

Donuts launches first “not com” ad campaign

Kevin Murphy, March 17, 2015, Domain Registries

Donuts has launched its first ad campaign, part of its plan to raise awareness about new gTLDs as a category.
It’s a digital-only video campaign, expected to run on sites including YouTube, the New York Times, Forbes, Mashable and Fast Company.

The theme is “freedom of choice”, using the slogan “Welcome to the not com revolution”.
“It’s going to be a lot of digital, a lot of online marketing, and it’s going to be about choice and the fact that this new product category represents an opportunity to grab an identity on the internet, that really reflects what it is you are and what you do,” COO Richard Tindal told DI in a recent interview.
The ad campaign going to be US-only, which chimes with what Tindal said as he laid out some of Donuts’ vision and marketing plans for 2015.
“I think that level of awareness is very low at sort of five to ten percent,” he said in the January interview. “It varies from country to country. Probably in the US it is even a little lower than other places.”
Tindal told us that Donuts is primarily concerned with marketing the “category” of new gTLDs, rather than any specific TLD.
“Our mission in 2015 is to have those people be aware of the category before they turn up at the registrar,” he said. “They are still going to get the story from the registrar, but we want them to know all about this new thing before they turn up.”
Donuts says that the new ad campaign will drive traffic to Your.domains.
That domain actually redirects to Domainr — a sparse, but quite smart, name-spinner app developed by the little-known nb.io.

That site, which appears to be monetized with affiliate links, quickly presents relevant domains based on user keywords and sends leads to a selection of registrars.
Such “smart search” is an important part of Donuts’ strategy, but one where the new gTLD industry as a whole is failing to make much of an impact at the moment.
Here in the UK, it’s pretty obvious from Go Daddy’s advertising that the market-leading registrar would sooner take the Verisign shilling and plug .com rather than risk promoting the largest expansion of inventory in its history.
Tindal said in our interview that Donuts’ aim in 2015 is to promote smart search over paid placement.
Asked whether registrars’ economic interests are aligned with new gTLD registries’, he said he’s convinced that for all the domains sold in 2014, new gTLDs have better metrics for registrars than .com. The only problem is volume.

If you look at the metrics of those .com names, under every criteria the registrar is better off selling one of ours.
The customer finds a name more quickly. It’s got more margin for the registrar, because they’re better quality names. They’re going to buy more. The problem, as you’ve just noted is of course just the volume. At the moment, there’s so much volume for them in .com that they tend to stick to that, and so we’re seeing the sort of behaviors, if you like, that are sort of clouding what we would like to see.

Awareness-raising is important, therefore, to get customers actively looking for more relevant domains, rather than being served up .com by default at registrars unwilling to take a risk on new TLDs.
Donuts’ announcement can be found here.
The full interview with Tindal, which also covers topics such as SEO and dot-brands, can be read by DI PRO subscribers here.

2 Comments Tagged: , , ,