More sticker shock as new gTLD fees could top $300,000

The base new gTLD application fee could top $300,000, according to an analysis released by ICANN at its meeting in Kigali, Rwanda, this morning.

The per-gTLD fee will likely range between $208,000 and $293,000, according to the latest estimate, but this does not include mandatory fees that have yet to be figured out that as a whole could amount to “tens of millions”.

ICANN is blaming inflation for most of the increase from the 2012 round, where the fee was $185,000. Staff said that if you take into account a 44% rise due to 14 years of inflation, the 2026 application fee could actually be lower in real-money terms.

The reason for the broad range provided is that ICANN still doesn’t have a good guess as to how many applications it will receive. The program is being run on a cost-recovery basis and ICANN has already budgeted for a spend of $70 million before the application window even opens.

If it only receives 500 applications, it could lose tens of millions of dollars even with a high application fee. With a fee of $242,000, ICANN would need 1,000 applications to make its money back, staff said during an ICANN 80 session today.

There were 1,930 applications in 2012, but demand in 2026 will depend a lot on how many desirable strings remain undelegated, particularly in non-English languages and non-Latin scripts, and how enthusiastic brand owners are about the dot-brand concept (or defensively registering their dot-brands).

The main unknown not included in the latest estimate is the cost of implementing the recommendations of the second Name Collision Analysis Project, which in May called for all gTLDs to be tested live in the DNS before being awarded to the applying registry.

Each of the NCAP2 recommendations could cost between “thousands” and “tens of millions” in total, which would be divided between all the applicants, staffers said. Scrawling on the back of an envelope, it looks to me like this could easily push the top end of the range well over $300,000.

The good news is that if ICANN gets a lot of applications and recovers its costs, it already anticipates giving applicants some of their money back. As an example, it said that if the fee is $220,000 and there are 2,000 applications, applicants could each get $35,000 back.

But that ray of sunlight was not enough to temper the concerns of community members in the room in Kigali today, several of whom sparred with CFO Xavier Calvez and new gTLD program lead Marika Konings over their calculations.

Registry services providers are already angry about the large increase in evaluation fees for the RSP program announced last month.

One thing that doesn’t seem to be under any dispute is that high fees will scare off some applicants, meaning the cost burden will be borne by fewer shoulders, meaning the fees did in fact need to be high; a self-fulfilling prophecy.

4 Comments Tagged: fees, ICANN, icann 80, kigali, new gTLDs, next round

ICANN slashes staff and domain prices could rise

ICANN has laid off 33 people, about 7% of its 485 staff, and has raised the specter of increased domain name prices, as it struggles to balance its budget.

The job losses are effective today and come “across all functional areas and regions”, acting CEO Sally Costerton wrote.

The Org said this evening that it made the decision to lose the employees as part of a broader cost-cutting effort that it hopes will help close a $10 million hole in its budget. At the end of April, it had said it was looking for $8 million in savings.

Costerton said ICANN will also look at reducing travel expenses and doing more work from its cheaper regional offices, as well as finding other efficiencies.

But it is also “evaluating ICANN’s fee structure to ensure it scales realistically with inflation”, Costeron wrote.

This will be of great interest to domain registrants, particularly those on a tight budget or with large portfolios, as any increases in the transaction fees ICANN charges registries and registrars will inevitably be passed on to their customers.

Registrars currently add a $0.18 per-domain-per-year ICANN fee at their checkouts, and registries pay $0.25 for every add-year, renew-year and transfer. The fees have not changed in at least the 15 years I’ve been writing this blog.

For ICANN community members and the domain name industry, the cuts will selfishly beg the questions of which services ICANN provides could suffer as a result, and whether it means delays to already overdue projects such as the new gTLD program.

The budget shortfall has arisen due to inflation and sluggish domain sales from the likes of Verisign, ICANN’s biggest funding source. Verisign’s outlook for the year is pretty bearish, with a low estimate of a 1.75% decline in domains under management.

I believe it’s the first time ICANN has been forced into a mass layoff, having reliably swollen its ranks almost every year until quite recently.

1 Comment Tagged: budget, ICANN, layoffs, prices

Secret new gTLD application revealed

Unstoppable Domains has revealed the next partner with which it intends to apply to ICANN for a new gTLD two years from now.

It’s linked up with Secret Network Foundation to apply for .secret and in the meantime to flog .secret names that only work on its Polygon blockchain naming system.

Secret is a startup that develops privacy-oriented, blockchain based applications.

It’s the sixth likely new gTLD application Unstoppable has announced this year.

Comment Tagged: .secret, blockchain, ICANN, new gTLDs, secret network foundation, unstoppable

WhatsApp now linkifying new gTLDs, but…

All URLs using new gTLD domains are now being automatically linkified by WhatsApp, according to the registry manager who’s been pushing for greater support from the major social networks.

Rami Schwartz of Latin American Telecom, the .tube registry, says that WhatsApp on Android devices is now making all new gTLD domains clickable even without the http:// prefix, but that the app on Apple devices has not yet caught up.

Schwartz discovered last year that WhatsApp did not support any gTLD delegated after November 2015, apparently due to the app relying an outdated hard-coded list of gTLDs in Android.

While the list was quickly updated, it’s taken a while for support to trickle down to devices.

Schwartz credited the WhatsApp team at Meta in the UK and ICANN technology specialist Arnt Gulbrandsen with getting the linkification support accomplished. He said he hopes iOS support will come soon.

4 Comments Tagged: .tube, ICANN, latin american telecom, linkification, meta, new gTLDs, universal acceptance, whatsapp

Outrage over ICANN’s new gTLD fees

Is ICANN stifling competition and pricing out the Global South by setting its new gTLD evaluation fees too high? A great many community volunteers seem to think so, judging by recent conversations.

The Org last week revealed that it plans to charge registry service providers that want to participate in the next application round $92,000 for their technical evaluation, on top of the estimated $250,000 fee that it will charge for each applied-for string.

Critics have pointed out that a roughly equivalent evaluation, used when a 2012-round gTLD switches to an unknown back-end, currently costs about $14,300, and they’re baffled as to why ICANN plans to up its fees so much.

The Registry Service Provider Evaluation Program was intended to cut a lot of waste and duplication from the new gTLD program. Instead of doing a technical evaluation on an RSP for each gTLD application, the RSP is evaluated once and each applicant simply selects an RSP from a list of approved companies.

ICANN says the program will cost $4.1 million overall, with $2 million of that already mostly spent on the design and implementation phase. It’s expecting all of the existing 40-ish back-end providers to submit to evaluation, along with an unknown number of newcomers.

Assuming fewer than 50 participating RSPs, ICANN will charge $92,000 per RSP. The program is designed to be run on a cost-recovery basis. ICANN says it will lower the price and issue refunds if there are significantly more participants.

Despite that caveat, ICANN staffers running the new gTLD program have faced a barrage of criticism over the last week from members of the SubPro Implementation Review Team, the community volunteers tasked with making sure staff implementation sticks to community policy.

The high-end of the fee scale is high enough that it will essentially “kill off” the RSP market in the Global South, according to Rubens Kuhl of Brazilian ccTLD registry Nic.br, which currently runs the back-end for a handful of 2012-round strings.

The term “Global South” refers to less-wealthy countries largely in the southern hemisphere, mainly in Africa, Asia and Latin America, where $92,000 goes a lot further than it does in North America or Europe.

“What ICANN is suggesting right now simply kills off all Global South RSPs,” Kuhl said during a call yesterday. “Those RSPs could have the technical capability to run gTLDs, and they run very large ccTLDs… It simply seems like a system designed to keep the Global South out.”

Gustavo Lozano Ibarra, director of technical services projects at ICANN and former NIC Mexico employee, responded first by saying that gTLD applicants in the next round from the Global South do necessarily have to chose an RSP from their own region.

“I completely understand that there could be some RSPs in the Global South with capabilities for which the fee could be an issue,” he said. “I think that we get that, and I think that maybe the lack of an Applicant Support Program for the RSPs is something that we need to take into consideration for the next round.”

“So, this round, no Global South. Okay, thank you,” said Kuhl.

“I don’t think this proposed US$92,000 RSP pre-evaluation fee is going to encourage diverse participation in the next nTLD round, especially from developing regions,” Neil Dundas of South African RSP DNS Africa said on the IRT’s mailing list.

“It’s a new financial barrier to entry that previously was not there and it will almost certainly hamper participation from developing regions,” he said.

Mailing list chatter suggests that this potential barrier to entry is something that ICANN’s Governmental Advisory Committee may take a dim view of when the community convenes in Rwanda for ICANN 80 next month.

ICANN is also taking flak for how it is calculating the total cost of the RSP program. Consultant and registry operator Jeff Neuman accused the Org of “double-dipping” by charging for staffers’ work on the program, which he said should already be covered by the fees registries, registrars and ultimately registrants pay into ICANN’s budget.

Responding to criticism that ICANN has over-spent, Ibarra pointed out on yesterday’s call that $4.1 million is a fraction of the $22 million he said ICANN spent on technical evaluations in the 2012 application round.

In addition, RSPs that are attached to potentially dozens of gTLD applications will save a lot of money by only paying to be evaluated once, he said.

Comment Tagged: ICANN, new gTLDs, next round, rsp evaluation program

Barrett gets second term on ICANN board

ICANN’s Address Supporting Organization has elected Alan Barrett to fill one of its two seats on the ICANN board of directors for the second time.

Barrett, an ISP pioneer from South Africa, was first elected in 2021 and will re-take his seat at ICANN’s AGM this November, assuming the Empowered Community gives him the nod.

He fought off four other candidates from Africa, Asia-Pacific and North America for the job. Europeans were barred from standing because the ASO’s other sitting director is from that region.

Comment Tagged: aso, ICANN

DotMusic delays gTLD launch again

DotMusic has pushed it general availability launch date out by more than three months, as it tries to recruit anchor tenants from the music industry.

The registry says GA is now planned for October 8, versus a previous date of June 25.

The gTLD is currently in its “community organization phase”, during which musicians and industry entities can claim their matching .music domains after completing a rigorous identity verification process.

DotMusic has offered up to a million domains for free via participating partner organizations.

The registry announced this week that it has partnered with a company called Shufti Pro on registrant ID verification.

Comment Tagged: .music, dotmusic

.tm prices to skyrocket next week

Already-expensive ccTLD .tm is set to see its prices rocket by hundreds of dollars next week, with an annual registration set to cost $1,000 or more.

.TM Domain Registry says a one-year registration or renewal will cost registrars $400, which can be reduced as far as $200 if they register more than 100 domains. Currently, the price is $80, according to tldpricechanges.com.

The recommended retail price will be $1,000, the registry says. The increases come into effect June 1.

The registry is also scrapping its practice of requiring all registrations to be for 10 years, adopting the industry standard of one to 10 years instead.

Today, the cheapest retail price I was able to find was $1,200 for a 10-year reg. After the increase, we could be looking at closer to $12,000 for the same service.

.tm is the ccTLD for Turkmenistan, but the registry has been run from the UK and owned by Paul Kane, the same person who ran .io before selling it to Identity Digital a few years back, since the 1990s.

1 Comment Tagged: .tm, .tm domain registry

Bitcoin gTLD gets launch dates

Orange Domains has announced the launch schedule for .locker, a real gTLD that nevertheless has support for the Bitcoin protocol built in.

Sunrise is set to kick off next month, running from June 19 to August 20, shortly followed by a “Pioneer Program” in which the registry will seek out anchor tenants for marketing purposes.

General availability is set for September 26, following a week-long Early Access Period. Prices have not yet been published.

.locker is a proper DNS gTLD, but Orange Domains intends it to be compatible with apps, such as cryptocurrency wallets, that run on the Bitcoin Name System protocol.

The registry is a joint venture of Trust Machines, Tucows, and Hiro Systems.

.locker was originally owned by the satellite TV company Dish DBS, which it had intended to use as a dot-brand, but it was never used and sold off to Orange last year.

Comment Tagged: .locker, bitcoin, bns, new gTLDs, orange domains, sunrise

First metaverse gTLD is announced

Unstoppable Domains has announced plans to apply for the first gTLD devoted to a metaverse.

The company has partnered with Metropolis, a “a 360° curated universe that blends commerce, gaming, and experiences that span both digital & physical worlds” to launch .metropolis names on Unstoppable’s blockchain.

“Metropolis plans to explore future ICANN gTLD applications in order for .Metropolis to become even more integrated in the digital landscape,” Unstoppable said.

In the meantime, Metropolis expects its users to use the blockchain version of the names to address “virtual real estate within the metaverse”.

I checked out the Metropolis web site, clicked on everything, and have to confess I don’t understand any of it. I feel about a thousand years old.

1 Comment Tagged: .metropolis, ICANN, new gTLDs, unstoppable