With mystery auction winner, .sexy prices go from $25 to $2,500

UNR is increasing the annual price of a .sexy domain from $25 to over $2,000, according to registrars.

The price increase will hit from April 30, according to registrars, but will not affect renewals on domains registered before that date.

French registrar Gandi said its retail price for a .sexy name will increase from $40 to $2,750. That’s after its mark-up. Belgian registrar Bnamed said in January prices were about to get 100 times more expensive.

The current wholesale price for .sexy is believed to be $25 a year. I’m guessing it’s going up to about $2,500, which is a price tag UNR has previously experimented with for its car-related gTLDs.

UNR CEO Frank Schilling has previously defended steep price increases for TLDs that under-perform volume-wise.

.sexy had barely 6,000 names under management at the last count, having peaked at about 28,000 in 2017.

The question is: who’s decided to increase the prices? Did .sexy actually sell when UNR tried to offload its portfolio last year, or is UNR keeping hold of it?

.sexy was among the 23 gTLD contracts UNR said it sold, mostly at auction, about a year ago. But it’s not one of the ones where the buyer has been yet disclosed.

The gTLDs UNR said it sold were: .audio, .blackfriday, .christmas, .click, .country, .diet, .flowers, .game, ,guitars, .help, .hiphop, .hiv, .hosting, .juegos, .link, .llp, .lol, .mom, .photo, .pics, .property, .sexy and .tattoo.

Of those, a new company called Dot Hip Hop bought .hiphop and XYZ.com bought .audio, .christmas, .diet, .flowers, .game, .guitars, .hosting, .lol, .mom and .pics.

ICANN has approved those 11 contract reassignments — after some difficulty — and said that there are six remaining in the approval process.

That only adds up to 17, meaning there are six more that UNR said it sold but for which it had not, as of a week ago, requested a contract transfer.

But in May last year, UNR “announced gross receipts of more than $40 million USD for its 20+ TLDs”, said there had be 17 participating bidders, and that 10 to 20 had “came away as winners, including six who will be operating TLDs for the first time”.

That leaves with at least five as-yet undisclosed winners from outside the industry, six contract transfers outstanding, and six gTLDs with an unknown status.

Neither UNR nor ICANN have been commenting on the status of pending transfers.

1 Comment Tagged: .sexy, blockchain, bnamed, dot hip hop, ens, ethereum, gandi, ICANN, pricing, uniregistry, unr, xyz.com

Ukraine registry hit by 57 attacks in a week

Ukrainian ccTLD registry Hostmaster today said its infrastructure was hit by 57 distributed denial of service attacks last week.

On its web site, which has continued to function during the now month-long Russian invasion, the company said it recorded the attacks between March 14 and 20, which a top strength of 10Gbps.

“All attacks were extinguished. The infrastructure of the .UA domain worked normally,” the company, usually based in Kyiv, said.

Hostmaster took the initiative in the first days of the war to move much of its infrastructure out-of-country, to protect .ua from physical damage, and to sign up to DDoS protection services.

Comment Tagged: .ua, hostmaster, russia, ukraine, war

ICANN says higher domain prices may be in the public interest

ICANN is trying to get an arbitration case covering the removal of price caps in .org, .biz and .info thrown out because it is registrants, not registrars, that are left shouldering the burden of higher prices.

The argument came in January filings, published this week, in the two-year-old Independent Review Process case being pursued by Namecheap, which is trying to get price caps reinstated on the three gTLDs.

ICANN’s lawyers are saying that the case should be thrown out because Namecheap lacks standing — IRP claimants have to show they are being harmed or are likely to be harmed by ICANN’s actions.

According to ICANN, Namecheap is not being harmed by uncapped domain prices, only its customers are, so the case should be dismissed.

Drawing heavily on an analysis commissioned by ICANN from economist Dennis Carlton, ICANN’s latest IRP submission (pdf) reads:

rational economic theory predicts that if wholesale registry prices increased, Namecheap would pass on any price increases to its customers. Namecheap is one of nearly 2,500 ICANN-accredited registrars that offer domain names to registrants, and one of hundreds of ICANN-accredited registrars that offer domain names specifically in .BIZ, .INFO, and .ORG. Namecheap thus competes against many other registrars that have exactly the same access to same registries, such as .BIZ, .INFO, and .ORG,as does Namecheap, which all pay the same wholesale price for these registry input…

Given the hundreds of registrar competitors (each facing the same registry prices from the .BIZ, .INFO, and .ORG registry operators), economic theory predicts that Namecheap and other such registrars do not have significant market power. Without market power, registrars like Namecheap do not earn supra-competitive margins and cannot absorb higher input costs. As a result, economic theory, as well as common sense, predicts that Namecheap and other competing registrars must pass on higher registry wholesale prices by raising prices to registrants, with little or no resulting harm to Namecheap.

The filing goes on the suggest that higher prices might actually be in the public interest, because ICANN lacks the expertise to set price caps at an appropriate level.

the likely harms of price regulation in these three gTLDs outweigh the likely benefits of price controls. ICANN lacks the expertise to set optimal prices. Without such expertise, the danger is that ICANN could set the wrong price — one that impairs efficient market outcomes — which would ultimately harm registrants rather than protect them…

In short, Namecheap cannot demonstrate that the public interest required ICANN to maintain price control provisions in the .BIZ, .INFO, and .ORG Registry Agreements, especially given that the majority of evidence they cite either pertains to a drastically different DNS or pertains to potential harm to registrants, not registrars.

Interestingly, in almost the same breath, the filing argues that the price of .com domains, which is capped per Verisign’s agreements with ICANN and the US government, acts as an effective deterrent to runaway price increases in other gTLDs.

With its popularity, and relatively-low, regulated price, .COM acts as a check on any registry, including .BIZ, .INFO, and .ORG, that seeks to increase prices above competitive levels.

So, regulating .com prices is good because it indirectly acts as a restraint on other registries’ prices, but regulating those other registries’ prices is bad because ICANN lacks the expertise to regulate prices.

And anyway, it’s only the registrants who get harmed if prices go up.

Got it?

4 Comments Tagged: .biz, .info, .org, ICANN, irp, namecheap

.org price caps: ICANN chair denies “secret” meetings

ICANN chair Maarten Botterman has denied that the board of directors approved the removal of price caps in .org, .biz and .info in “secret” meetings in 2019.

In written testimony (pdf) recently filed as part of Namecheap’s two-year-old Independent Review Process proceeding, Botterman scoffed at the idea that ICANN secretly gave the nod to the removal of price caps in 2019:

I understand that Namecheap is claiming that the Board acted in secret when deciding to go forward with the 2019 Registry Agreements. Nothing about the Board’s conduct occurred in secret. The Board did not convene a “secret” annual, regular, or special Board meeting and did not make any “secret” formal decisions or “secret” resolutions. Instead, the Board was briefed by ICANN staff regarding contract renewals that were well within their delegated authority to negotiate and execute.

Namecheap is claiming in its IRP that ICANN broke its bylaws when it renewed the .org, .info and .biz contracts without the historical price caps that all three had in place for the better part of 20 years.

It wants those decisions annulled, potentially enabling the reinstatement of the caps.

Part of its case is that ICANN failed in its transparency obligations, with Namecheap saying that the decision to remove caps was “entirely opaque” and made with “no analysis whatsoever”.

The .info, .org and .biz contracts were renewed without the ICANN board making a formal resolution or discussing them during a session that was being recorded and minuted.

Botterman, along with declarations from with fellow director Becky Burr and VP Russ Weinstein and outside lawyers’ filings, says that the extent of the board’s involvement was two briefings that occurred at workshops in January and June 2019.

ICANN staff explained to the board why it intended to go ahead with signing the cap-free contracts, and the board “saw no reason to intervene”, Botterman wrote. Staff have delegated authority to deal with contract stuff, he said.

Now, it could be argued that these meetings were not “secret” as such — ICANN board workshops are a standard event, happening in the few days leading up to each of ICANN’s thrice-yearly public meetings.

ICANN’s chair (then Cherine Chalaby) even blogs about them, posting a rough agenda beforehand and a summary of discussions a few weeks later.

In the case of the January 2019 pre-workshop post, there’s no mention whatsoever of any contract renewals. Nor is there in the post-workshop summary.

The June 2019 post-workshop post fails to mention the fact that the board had essentially given the nod to the lifting of caps at that meeting.

The pre-workshop post makes a passing, blink-and-you’ll-miss-it reference to “Göran will update the Board on the renewal of some registry agreements”, which substantially played down what was actually going on.

At that time, ICANN was well-aware that there was huge public interest in at least the .org renewal, where over 3,300 comments had been submitted, mostly objecting to the removal of price caps.

It’s possible that the first time ICANN disclosed that the discussions had even taken place was when a spokesperson told me how the .org decision was made, in July that year.

You don’t have to be a conspiracy theorist to wonder why ICANN pretty much skimmed over the whole issue in its public disclosures, even though it was the hottest topic in town at the time.

Even now, Botterman and Burr are both invoking attorney-client privilege to limit their testimony about what happened at these two workshops.

You don’t have to think anything untoward was going on to ask whether this is all paints a picture of ICANN acting “to the maximum extent feasible in an open and transparent manner”, as its bylaws requires.

Botterman says in his declaration:

The Bylaws are clear that ICANN must “operate to the maximum extent feasible in an open and transparent manner.” But I have never understood this Bylaws provision to require that every time the Board needs to get work done, or every time the Board receives a briefing from ICANN staff on a specific topic, it must do so in public or at a annual, regular or special Board meeting. Nor would such a requirement be feasible.

Comment Tagged: .biz, .info, .org, ICANN, irp, namecheap, pir

Nigeria slashes prices to compete with .com

Nigerian ccTLD registry NiRA has lopped about 40% off the price of .ng domain names, bringing them down to a level where they are .com-competitive.

The price for a second-level name has come down to a reported NGN 5,500, which works out to about $13 a year.

.ng currently has about 178,000 domains under management, which is pretty low for a nation of some 206 million people.

The move is in line with the Nigerian government’s digital economy policy, according to NiRA.

Comment Tagged: .ng, nira

.au names available today

Australians are able to register domain names directly under .au for the first time today, after ccTLD registry auDA liberalized its hierarchy.

Second-level names under .au will at first only be available to existing registrants of matching third-level names in zones such as .com.au and .net.au, under a priority allocation process.

This process lasts for six months and allows domain owners to claim their matching 2LD more or less immediately, assuming there are no other registrants with matching rights.

In cases where more than one registrant applies for the name domain — such as when example.com.au and example.net.au are owned by different people — a contention process kicks in.

Registrants with reg dates before the cut-off of February 4, 2018 get priority over those with later dates.

If there are only registrants with names newer than the cut-off date, the oldest one gets priority.

If there are only registrants with names older than the cut-off date, they’ll have to come to a bilateral agreement about who gets the name. If they can’t come to a deal, the name stays reserved, and the applicants will have to renew their applications annually, until only one applicant remains.

There are no auDA-backed auctions envisaged by the process.

Any domains that are unclaimed at the end of the priority process will be released into the available pool on September 20.

It’s a much shorter grandfathering period than other liberalized ccTLDs, such as Nominet, which gave .co.uk registrants five years to claim their matching 2LD, and it will be interesting to see what impact this has on uptake.

Direct .uk domains became available in June 2014, and six months later barely a quarter million had been registered, against over 10 million third-level names.

As the five-year priority window drew to a close in 2019, there were about 2.5 million .uk 2LDs, but this spiked to 3.6 million in the final month, as registrants waited until the last minute to claim their names.

That turned out to be the peak — .uk 2LDs stand at fewer than 1.4 million today, compared to the 9.7 million third-level names. It’s still quite rare to spot a direct .uk name in the wild here.

One interesting kink in the priority process is that auDA, which has stricter rules than many other ccTLDs, will check that anyone who applies for a 2LD is in fact eligible for the 3LD they currently hold, which could dissuade applications.

.au currently has 3.4 million third-level domains under management.

Comment Tagged: .au, .uk, 2lds, auda, nominet, second-level

GoDaddy acquires DNAcademy

GoDaddy has acquired DNAcademy, which provides online domain-investing learning services, for an undisclosed sum.

The two companies announced yesterday that GoDaddy has not only bought the content of the DNAcadamy web site, but also the services of founder Michael Cyger, who will become GoDaddy’s first director of education.

While the deal brings DNAcademy’s content to a potentially vastly larger audience, it’s not clear that all existing customers will benefit.

Cyger posted that people currently on a $499 annual membership will have their contracts honored, but it’s still not clear what will happen to those who handed over $949 for a “lifetime” membership.

“Lifetime members: Although the DNAcademy customer base was not acquired, GoDaddy values the relationships DNAcademy cultivated with domain name investors and will make best efforts to provide access to the new offering,” he wrote.

DNAcademy is not accepting new memberships while its services are being integrated with GoDaddy Domains, which is expected to take several months.

For GoDaddy, the secondary market is now the big driver of domains revenue, contributing about two thirds of its growth last year.

The company already makes it fairly easy for its customers to list their domains for resale, and presumably it expects DNAcademy to help turn more of its millions of registrants into domainers.

1 Comment Tagged: dnacademy, godaddy

Google to launch a shopping-themed gTLD next week

Google is dipping into its bag of dormant gTLDs again, planning to start selling a shopping-themed string next week, apparently having abandoned plans to use it as an exclusively YouTube-related space.

The gTLD is .channel, which it applied for 10 years ago as a closed, Google-only gTLD, with this mission statement:

The sole purpose of the proposed gTLD, .channel, is to host select YouTube channels’ digital content. The proposed gTLD will introduce a dedicated Internet space in which select YouTube channel providers can link to the content hosted on their respective YouTube page.

But the company has changed its mind in the intervening decade and the new plan bears little resemblance to the application.

Now, we’re looking at something commerce-themed that at least at first will be sold via hand-picked channel partners. There’s no mention of YouTube in the registry’s new policies, which state:

.channel domain names are intended solely for use by creators and publishers to host or redirect to storefronts featuring digital and physical products, and audience-building mechanisms for the purpose of monetization.

That sounds rather like it’s going up against the likes of .shop, .store and .shopping.

While a weaker string, Google’s brand carries a lot of weight when it comes to new gTLD sales, and it sounds like the company is going to lean into partners for its initial wave of registrants a little like Amazon did with .bot.

The current launch plan submitted to ICANN calls for a year-long Limited Registration Period starting May 2, saying:

prospective registrants may submit an application to register a .channel domain name through an onboarded content creation platform (each, a “Platform”) on which the prospective registrant has an account.

Platforms will review applications and work with Registry Operator to have domains registered to prospective registrants

I’m speculating a bit here, but I’m guessing we’re talking about e-commerce and storefront-creation services, which could include both registrars and non-registrars.

Before the LRP, the company has told ICANN (pdf) that the invitation-only Qualified Launch Period for .channel will begin on March 29 and run to May 2.

This period, where domains may carry a premium fee, gives the registry a chance to build up its base of anchor tenants who can be leveraged to market .channel to a broader customer base.

Trademark owners will want to note that the sunrise period runs from April 5 to May 9. They’ll have to launch a rules-compatible storefront or keep their domains defensively dark.

There’s no word on general availability yet.

Comment Tagged: .amazon, .bot, channel, google, google registry, youtube

Another DNSSEC screw-up takes down thousands of .au domains

Australia’s ccTLD has become the latest to see a widespread outage that appears to be the result of a DNSSEC misconfiguration.

A reported 15,000 .au domains were affected, though some suspect it could have been more.

Registry overseer auDA said on Twitter that .au “experienced an error” that affected a “small number of domains” and that an investigation was underway.

Earlier today the .au domain experienced an error. We regret that a small number of domains were affected but are pleased to report the .au is back up and operating. An investigation as to the cause of this issue is underway.

— auDA (@auda) March 22, 2022

Donuts subsidiary Afilias, which runs the back-end for .au’s more that 3.4 million domains, has yet to publicly comment.

Network operators and DNS experts took to social media and mailing lists to observe that .au’s DNSSEC was broken, though it appears the problem was fixed rather quickly.

(For those following along from home, .AU DNSSEC key management was broken from 05:48 – 06:18 UTC. Quick repair by AuDA.)https://t.co/jmHAbZdWKo https://t.co/SzOi9U7Kwi

— Bill Woodcock (@woodyatpch) March 22, 2022

DNSSEC creates a chain of cryptographic keys all the way to the DNS root, and when that chain is broken by a misconfiguration such as a missing key, most DNSSEC-enabled resolvers treat the affected domains as if they simply don’t exist.

That means services such as web sites and email addresses stop working until the chain is reestablished. People not using DNSSEC resolvers wouldn’t have seen a problem.

It’s the third TLD to experience a significant outage due to DNSSEC in the last six weeks.

In February, thousands of domains in Sweden’s .se went dark for hours, and Fiji’s entire .fj zone disappeared for DNSSEC users less than two weeks ago.

The outage comes at a particularly unfortunate time in terms of public relations for auDA, which on Thursday will start making direct second-level .au registrations available for the first time.

It’s not immediately clear whether the DNSSEC fluff is related to the SLD launch.

Comment Tagged: .au, auda, DNSSEC, outages

XYZ bought most of Uniregistry’s TLDs

XYZ.com has emerged as the winning bidder for 10 of the 17 new gTLDs that UNR, formerly Uniregistry, auctioned off last year.

The company bought .audio, .christmas, .diet, .flowers, .game, .guitars, .hosting, .lol, .mom and .pics, according to ICANN, which approved the transfer of each registry agreement today.

As previously reported, a new company called Dot Hip Hop bought .hiphop, albeit not at auction.

The contract reassignments come almost a year after the auction took place, and were delayed after ICANN got nervous about the fact that UNR had apparently sold matching Ethereum Name Service blockchain domains at the same time.

“This raised concerns because ICANN org was being asked to approve transactions that included not only the transfer of gTLD operations set out in the relevant registry agreements, but also included references and/or implications of the transfer of ownership rights in the gTLDs,” ICANN veep Russ Weinstein wrote today.

“To be clear, the registry agreements do not grant any property ownership rights in the gTLD or the letters, words, symbols, or other characters making up the gTLD string,” he added.

Six more UNR gTLD contracts remain in the approval process, but ICANN blamed this on the timing of when the assignment requests were submitted.

The UNR auction last April raised over $40 million, according to UNR.

1 Comment Tagged: .audio, .christmas, .diet, .flowers, .game, .guitars, .hiphop, .lol, .mom, dhh, hosting, ICANN, pics, uniregistry, unr, xyz.com