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CentralNic expects to blow past revenue estimates

Kevin Murphy, October 18, 2022, Domain Registries

CentralNic has updated its financial projections for the year, saying it expects to “materially exceed” the current analysts’ estimates.

The London-listed company expects to next month report revenue for the nine months to September 30 up 86% at $525 million and adjusted EBITDA of “at least” $61 million, up 89% compared to last year.

That’s just for three quarters. The latest analyst consensus estimate was for revenue of $626.6 million and EBITDA of $72.5 million for the entire year, the company said.

Twelve-month organic growth, excluding the effect of acquisitions, to September 30 is estimated at 66%.

CentralNic said growth is being “driven predominantly by the growth of the Online Marketing Segment, which continues to win market share as a result of the ever-increasing demand for online customer acquisition services that are privacy-safe.”

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[Guest Post] Hey ICANN: Reporters are not the enemy

Kevin Murphy, October 17, 2022, Uncategorized

This is a guest post by Emmy award-winning former reporter Brad White, who, from 2009 until 2021, was ICANN’s director of global media affairs and later director of communications for North America

It seems like ICANN utters the phrase “accountability and transparency” about every third sentence. And with good cause, since it is a vital foundation upon which the organization was built. But there are indications that foundation is severely cracked.

Unfortunately, ICANN’s leadership too often seems to adopt the position that its commitment to accountability and transparency only extends to its interaction with its community. The news media and by extension – the public – are generally not prioritized.

Journalists and bloggers (who also inform the public) who reach out to the org with questions or interview requests are too often viewed in hostile terms.

The default position of ICANN executives generally appears to be to not talk with journalists unless they must. My sense is that they should adopt the opposite attitude. Specifically, that ICANN leadership should almost always speak with journalists.

In my experience, at various points in the past, ICANN execs even forbade anyone on the communications team from talking to select journalists or bloggers. I was reminded of Richard Nixon’s famous “enemy’s list.”

The very first ICANN Board Chair, Esther Dyson had a good grasp on transparency with the news media when she said, “What I’m thinking about more and more these days is simply the importance of transparency, and Jefferson’s saying that he’d rather have a free press without a government than a government without a free press.”

I worked 12 years at ICANN, before leaving in January 2021 to work as an independent communications consultant. A large part of my job during my tenure was to interact with the news media. Having spent most of my career as a journalist, I enjoyed that aspect of my work, and felt it a vital component of the org’s oft-stated commitment to “accountability and transparency.” But over the years, I witnessed a shift in the way the organization wanted me to perform that function.

During my early days, when a news reporter would reach out with a question and/or seek an interview, I would research the issue the journalist was asking about and then after consulting the appropriate people, pass along the answers and perhaps set up an interview with the appropriate ICANN subject matter expert. And, that was the end of it.

By the time I left, with increasing frequency, when a reporter contacted ICANN, the request ended up going to at least two or three senior executives, the legal department and sometimes the CEO. Too often, the collective decision was to say nothing, if at all possible. When answers were afforded to the journalist, they were too often non-responsive or they merely “pointed” the reporter to a previously published blog or announcement. There were of course exceptions to this approach, but they were few.

What is perhaps most troubling, is that the organization doesn’t seem to feel an obligation to speak with journalists as part of its core value of transparency and accountability, instead the determining factor as to whether to grant an interview was too often — “are they going to screw us?” It was not “we have an obligation to be open to talk to all, including reporters and bloggers, because we believe in accountability and transparency.”

Some years ago, I was asked to conduct media training for ICANN’s top executives so they would better understand journalists and also learn how to better interact with them. But in the immediate years preceding my departure, the media training program appears to have been terminated. In fact, word often went out that “no one should talk to the media.”

Shortly before I left, I was asked to write a report on “ICANN’s Media Strategy.” After submitting an initial draft, it seemed to have gone into a black hole. I was never questioned about the report. I never received a red-lined draft, excluding or including elements, nor was I asked to write a subsequent draft.

Given the apparent efforts to curtail interactions with journalists and bloggers, it was difficult to not interpret the shelving of the media strategy paper because of one of its major points was — “Reporters are not the enemy.”

My sincere hope is that the new Board leadership and the community will re-commit the organization towards maximum accountability and transparency, and that includes talking to journalists, bloggers, and anyone else who can help in implementing the vital checks, balances and accountability that are the foundation of ICANN’s work. It is critical in helping the world understand ICANN and its mission.

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Is ICANN toothless in the face of DNS abuse?

Kevin Murphy, October 12, 2022, Domain Policy

Concerns have been raised that ICANN may lack the tools to tackle DNS abuse using its contracts with registries and registrars.

The new report from the GNSO’s “small team” on abuse has highlighted two “gaps” in the current Compliance regime that may be allowing registrars to get away with turning a blind eye to abusive customers.

The current version of the standard Registrar Accreditation Agreement calls for registrars to maintain an abuse contact email and to “take reasonable and prompt steps to investigate and respond appropriately to any reports of abuse.”

The problem, the small team report finds, is that ICANN Compliance doesn’t seem to have a standard definition of “reasonable”, “prompt”, and “appropriately”. The contract doesn’t require any specific remediations from the registrar.

“Members of the small team are concerned that this interpretation may allow DNS abuse to remain unmitigated, depending upon the registrar’s specific domain name use and abuse policies,” the report states.

Judging by conversations at ICANN 75 last month, it’s apparently the first time Compliance has gone on the record about how it enforces this part of the contract.

It’s quite rare for ICANN to issue a public breach notice to a registrar over its failure to respond to abuse reports and when it does, it tends to relate to the registrar’s failure to keep records showing how it responded.

I can’t find any instances where Compliance has canned a registrar for allowing abusive domains — typically defined as those hosting malware, phishing, botnets, pharming and some spam — to remain active after an abuse report.

The small team’s report also thinks there’s a blind spot in ICANN’s standard Registry Agreement, which in turn requires registries to include, in their Registry-Registrar Agreements, provisions requiring anti-abuse terms in the registrars’ Registration Agreements.

This complex chain of contractual provisions doesn’t seem to be enforced, the small team notes, saying “further consideration may need to be given to what Registries are doing to ensure the text is indeed included in the Registration Agreement (ie Registries enforcing their own Registry-Registrar Agreements”.

The small team recommends that contracted parties talk further with ICANN about possible contract changes or best practices documents before going ahead with policy-making. The GNSO Council will address the recommendations later this month.

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ICANN to mull bulk registration ban

Kevin Murphy, October 12, 2022, Domain Policy

ICANN policymakers are to take a look at banning bulk domain registrations in ongoing efforts to combat DNS abuse.

While in the very early stages of discussion, the GNSO Council is being urged to start gathering data “to further explore the role that bulk registrations play in DNS Abuse” and “to consider whether further action on bulk registrations is deemed necessary”

The recommendation is among several in a newly published report of a cross-constituency GNSO “small team”, which may lead to “tightly focused and scoped policy development”.

While acknowledging “there are also examples in which bulk registrations are used for legitimate purposes”, the report states:

The small team recommends that the GNSO Council requests the Registrar Stakeholder Group and others (for example, ICANN org, the RySG and the DNSAI) to further explore the role that bulk registrations play in DNS Abuse as well as measures that Registrars may have already put in place to address this vector. Based on the feedback received, the GNSO Council will consider whether further action on bulk registrations is deemed necessary.

The report is to be considered later this month at the GNSO Council’s monthly meeting. Any actual policy outcome, if any, will be years away.

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.au adds 100,000 names in days after 2LD floodgates open

Kevin Murphy, October 10, 2022, Domain Registries

The Australian ccTLD, .au, added over 100,000 domain registrations in just a couple of days after restrictions were lifted on second-level names last week.

Local registry auDA is currently reporting 4,109,218 registered names (second and third-level combined), compared to 4,003,804 at the start of the month.

My records show that about 90,000 names were added in the day after unclaimed 2LDs were released back into the available pool after a six-month grandfathering period in which only matching 3LD owners could register.

.au had 3.4 million domains under management in late March, when auDA first started selling 2LDs.

At AUD 7.83 ($5) a year wholesale, the expansion seems to have netted auDA an extra recurring $3 million at least, of which back-end operator Identity Digital will also claim a slice.

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Registry launches Ukrainian domains for Russian-occupied region

Kevin Murphy, October 10, 2022, Domain Registries

A Ukrainian registry has started offering domains in a second-level Ukrainian transliteration of a Russia-occupied region.

Southern Ukrainian Network Information Center started offering residents of the Mykolaiv oblast domains at the third-level under mykolaiv.ua at the start of October, according to the registry’s web site.

Mykolaiv is the Ukrainian version of the original Cyrillic name. Previously, domains were only available under the Russian transliteration, .nikolaev.ua. SUNIC also offers the shorter .mk.ua domain.

Mykolaiv, in the battle-scarred south of the country, is also the name of the region’s capital city. While the city has resisted Russian capture, much of the region has been under the invading force’s control since early in the war.

SUNIC, which also offers odessa.ua (Russian) and odesa.ua (Ukrainian) names for the Odesa region and city, is encouraging .nikolaev.ua registrants to acquire their matching mykolaiv.ua names.

Adopting Ukrainian transliterations of Cyrillic place names has been seen as a symbolic act of defiance against Russian ambitions.

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DNSSEC claims another ccTLD victim

Kevin Murphy, October 10, 2022, Domain Registries

A botched DNSSEC upgrade has been fingered as the source of an outage that made .na domain names inaccessible last Tuesday.

Reports and archived DNS records show that names in the Namibian ccTLD suffered as many as 12 hours of downtime following the glitch, which has been blamed on human error.

When DNSSEC-signed domains, including TLDs, are unable to establish a cryptographic chain of trust, anyone using a DNSSEC-compatible resolver will be unable to access web sites or emails of affected domains.

Namibian Network Information Center boss Eberhard Lisse, talking to The Namibian newspaper, blamed the downtime on an unspecified upstream provider pushing an algorithm upgrade “without all prerequisite steps having been completed”.

It’s the second DNSSEC incident to hit .na following a July 2019 glitch, and one of dozens to affect TLDs since the technology started to become more broadly adopted.

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Taliban seizing domains to silence journalists

Kevin Murphy, October 5, 2022, Domain Registries

The Taliban is attempting to close down independent media outlets in Afghanistan by deleting their .af domain names.

The Ministry of Communications and Information Technology tweeted that the sites of Hasht-e Subh Daily and Zawia News were “taken down” for publishing “unbalanced reports and fake news”.

.af’s registry is government-run.

According to the Committee to Protect Journalists, the two sites have been reporting by Afghans in exile since the Taliban retook the country over a year ago.

Both outlets have now switched domains to TLDs based in the US — Verisign and Identity Digital, where presumably they’re pretty safe from the Taliban’s reach. They’re now using zawiamedia.com and 8am.media instead of the original .af names.

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McCarthy wins Nominet director election

Kevin Murphy, October 5, 2022, Domain Registries

Kieren McCarthy, the former reporter who has spent much of his career bashing .uk registry Nominet in the pages of The Register, has been elected to its board of directors following a sometimes fractious campaign.

He won despite placing second to lawyer Jim Davies in the first round of voting, which saw CentralNic lawyer Volker Greimann eliminated. The vast majority of Greimann’s votes transferred to McCarthy in the second round. The results can be found here (pdf).

Turnout was a miserable 15.1%, almost 10 percentage points lower than it was in last year’s non-executive director election.

McCarthy is executive director of the International Foundation For Online Responsibility, the non-profit set up by .xxx registry ICM to hack around ICANN’s rules and give the illusion of legitimacy in the 2003 “sponsored” gTLD application round.

As such, he’s paid indirectly by GoDaddy, ICM’s current owner, which can’t have hurt his prospects in the election but GoDaddy says it did not vote in the election. Under Nominet’s controversial voting system, larger registrars get more votes, capped at 3% of the total.

With McCarthy standing on a platform of increased transparency, some Nominet members had pointed out the irony that IFFOR hadn’t published any board minutes in several years. He also faced criticism for using Nominet’s logo, apparently without permission, in his election mailshots.

McCarthy replaces Anne Taylor, whose three-year term is up.

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Nominet “gaslighting” members over fees, candidate claims

Kevin Murphy, October 4, 2022, Domain Registries

Nominet has been accused of “gaslighting” its members over the issue of whether its membership fees are lawful by one of its non-executive director candidates.

Jim Davies is one of four signatories of the latest missive from the WeightedVoting.uk campaign, which is trying to get Nominet to address both its voting system and the fees it charges members.

Following the news last week that lawyer Ian Mitchell KC, hired by the campaign, had concluded that Nominet’s Articles haven’t technically allowed it to charge membership fees for the last 25 years, the registry issued a statement saying its own legal advice disagreed.

“That advice identifies significant flaws in the [Mitchell] advice that has been published. We remain confident in the legality of Nominet’s long-standing voting and membership arrangements,” Nominet told us last week, while declining to provide that advice.

It seems the same statement was provided to Nominet members, though only WeightedVoting was provided the new opinion.

Now WeightedVoting has published Nominet’s opinion, written by Andrew Thornton KC, which concludes that the weighted voting system Nominet uses — in which bigger registrars get more votes — is “entirely lawful and enforceable”.

What Thornton’s opinion does not address is the membership fees problem, despite Nominet’s suggestion that it covers both issues.

Now Davies and his supporters have written to Nominet’s current non-executive directors, asking again for the company’s annual general meeting, still apparently due to go ahead on Thursday, to be delayed.

They call Nominet’s statement “manifestly false” and call for the NEDs to exercise their legal duties or face “personal liability”.

Davies is one of three candidates to fill a vacating NED seat at the AGM this week when the results of a recently concluded election are announced.

His rivals are former reporter Kieren McCarthy and CentralNic lawyer Volker Greimann.

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