Sixteen more orgs vie for cheap gTLDs, but…

Africa and Latin America are still under-represented in applications for ICANN’s new gTLD Applicant Support Program, according to the latest stats.

The program now has a whopping 76 organizations at some stage of the application process, which is 31 more than ICANN originally budgeted for. That’s up from 60 a month ago.

The program offers successful applicants a discount of 75% to 85% off the expected $227,000 application fee, among other perks such as access to pro bono service providers.

But the geographic breakdown shows that, as of the August 19 compilation date, only one more applicant hails from Africa and there’s only one more from Latin America and the Caribbean, compared to a month earlier.

Two influential ICANN advisory committees, including the governments, told ICANN earlier this month that they are “deeply concerned” that the ASP doesn’t seem to be reaching potential applicants in these two regions.

Hardly any applications have actually been submitted to be formally evaluated yet. There are 37 open applications that have yet to even submit the names of their organizations. Another 36 have done so, but not yet completed the application form.

I wonder if the top-line count may include a certain number of tire-kickers. The barriers to starting an application are pretty low, requiring just an account on the ICANN web site and a one-time password app on your phone.

Only three applications so far have been conditionally approved — one from Europe and two from Asia-Pacific — and three others from Asia-Pac have submitted their applications for review.

Of the 37 that have opened an application, the geographic region of 19 is still not known, so it’s possible the regional mix could change a lot as applications are actually submitted.

The program is open to charities and other non-profits, with participation from commercial entities limited to small businesses based in poorer regions.

Governments say new gTLD program “credibility” at stake

ICANN’s Governmental Advisory Committee is “deeply concerned” about the credibility of the new gTLD program’s Next Round, after a scheme to broaden the geographic spread of applicants has started to look like a failure.

The GAC and ALAC are calling for ICANN to address urgently what is seen as flaws in its Applicant Support Program, which offers deep discounts on application fees to small businesses in non-developed countries and to non-profit applicants.

GAC chair Nicolas Caballero and ALAC chair Jonathan Zuck said governments are “deeply concerned about the program’s current trajectory, particularly given the limited time remaining in the application window and the disproportionately low representation from underserved regions”.

ICANN said last week that it has approved the first three ASP applicants. One applicant is from Europe and two are from the Asia-Pacific region.

The latest monthly stats, dated July 23, show that only five applications were classified as “Submitted & in Review”, while 25 were “Initiated” and 26 were “In Draft”. By geography, 10 potential applications come from Africa, 16 from Asia-Pacific, four from Europe, 19 from North America and just two from Latin America.

Caballero and Zuck wrote (pdf):

we also identified a geographic imbalance from ICANN’s data… despite seven months of outreach, potential applications from North America (33%) vastly outnumber those from the LAC region (3%), raising questions about the inclusivity of the program.

…

we really think that the ASP is not merely a procedural requirement but a cornerstone of the Next Round’s credibility. At minimum, failure to address its structural challenges risks perpetuating the dominance of well-resourced entities, undermining ICANN’s multistakeholder principles. We kindly request the Board to treat this matter with the urgency it demands

They want ICANN to conduct a fast review of why the geographic balance is tilted towards North America at the expense of Latin America, Asia and Africa.

As I’ve previously noted, the North America region by ICANN’s definition is small. It doesn’t even include Mexico. Small businesses from the USA and Canada don’t qualify for the ASP and the only other places in the region are US island territories such as Puerto Rico and Guam.

The GAC and ALAC want to know whether the low uptake elsewhere is due to ICANN’s lack of local outreach, complexities in the application process, or costs. Why are draft applications not being submitted?

With the clock ticking down to the November 19 closure of the application window, The August 15 letter calls for ICANN to figure out what’s going wrong and let it know by August 22 — this coming Friday.

Even if it wasn’t August, and we weren’t talking about ICANN, that’s a pretty tight deadline.

Three applicants qualify for cheapo gTLDs

Three organizations have been given ICANN’s approval to apply for new gTLDs next year at a deeply discounted rate.

All three are non-profit or nongovernmental organizations, ICANN said. Two come from the Asia-Pacific region and one comes from Europe.

The identities of the applicants have not and will not be disclosed — to publish their names would likely tip the applicants’ hands in terms of what strings they intend to apply for, inviting competition.

The Applicant Support Program offers non-profit entities worldwide or small businesses in non-developed nations a discount of 75% to 85% on the base $227,000 application fee, along with a selection of other benefits.

As of today, there are 45 active applications, ICANN said. Seven come from Africa, 14 from Asia-Pac, five from Europe, two from Latin America, and 12 from North America. Another five haven’t said where they’re based yet.

According to July 23 stats, only five applications — three of which presumably have now been approved — had been fully submitted and were in review.

In the 2012 round, there were only three ASP applications and only one, from the company that now runs .kids, was successful in obtaining the discount.

The window for ASP applications closes in November.

Russia calls for ICANN to split from US

The Russian government has called on ICANN to further distance itself from US legal jurisdiction, complaining that the current war-related sanctions could prevent its companies from applying for new gTLDs.

In recent comments, Russia said that “no single state or group of states should have the right to interfere in the operation of critical Internet infrastructure and/or the activities of ICANN, including the mechanisms for legal regulation of ICANN’s operations”.

It added that it is “necessary… to prepare by the ICANN community and stakeholders proposals for measures or mechanisms that can make ICANN less dependent on one state”.

The call came in comments filed in ICANN’s public comment period on the terms and conditions of the new gTLD program’s Applicant Support Program and Registry Service Provider Evaluation Program.

The Ts&Cs contain a clause requiring applicants to abide by all US economic sanctions, such as those overseen by the Office of Foreign Assets Control, which has sanctioned Russian entities since the 2022 invasion of Ukraine.

Russia’s comment was filed late and has not been published or analysed by ICANN in the usual way. Instead, it was appended to the summary report (pdf) prepared by ICANN staff.

It’s not the only war-related beef Russia has with ICANN right now. The government has also complained (pdf) that about 400 domains registered by Russian entities, including airports and airlines, in the .aero gTLD have been suspended.

The .aero registry, aerospace industry IT service provider SITA, is headquartered in Switzerland but the contracting entity is a US-based subsidiary.

According to OFAC, domain registration services are exempt from the US sanctions. That has not stopped several domain registries and registrars ceasing business with Russians on moral grounds.

ICANN told Russia to file a complaint about SITA with its Compliance department. SITA has not yet responded to a request for comment.

Calls for ICANN to distance itself from the US have been coming for over two decades, usually from America’s opponents, and did not stop when the Org severed its formal ties with the 2016 IANA transition.

How to qualify for a $40,000 gTLD

Organizations from most of the countries of the world, including some very wealthy economies, could find themselves eligible for a discount of up to 85% on ICANN new gTLD application fees, according to draft rules published for public comment today.

By my count, small businesses from 177 of the world’s countries and territories could qualify for cheap applications in the next round, expected in 2026, assuming they meet the new Applicant Support Program’s other criteria.

The list of qualifying nations includes the BRIC countries (Brazil, Russia, India, China), oil-rich nations such as Saudi Arabia and the UAE, wealthy Asian territories such as Hong Kong and South Korea, and some European nations, such as Serbia and Montenegro.

The draft ASP rules propose to subsidize applications from non-profits, intergovernmental organizations, indigenous/tribal groups, and small businesses that provide a “social impact or public benefit” from anywhere in the world.

It also promises subsidies to small businesses located in and owned by people based in several UN-designated economic regions: Small Island Developing States, Least Developed Countries, Economies in Transition, and Developing Economies.

Lists of these countries can be found in this UN document. China, Singapore, South Korea and Hong Kong are among dozens on the “developing economies” list. Russia counts as an “economy in transition” along with a handful of other east European and west Asian nations.

There’s no requirement to have a public benefit or charitable mission to qualify as a “Micro or small sized business from a less-developed economy”, you just need to have fewer than 50 employees, less than $5 million in the bank, and less than $5 million of annual sales (or meet two of those three criteria).

According to my tally, there are 177 distinct territories on the applicable UN lists. The same UN document lists just 36 nations that qualify as “developed” economies.

Because the application fees for the next round are not yet fixed, the discount eligible applicants can get isn’t either. The placeholder text in the current draft says the discount will be in the range of 50% to 85%.

ICANN has previously said that the base fee could be as much as $270,000, so an 85% discount would be worth almost $230,000, reducing the fee to about $40,000. Each applicant would be limited to one gTLD.

Support applicants under any category also have to pass various background screening checks — they can’t be affiliated with another registry, for example — and have to show that paying the full base gTLD application fee would be a “financial hardship”.

This is defined as: “Cost of the subsidized base gTLD application fee ([X%] of the [$X] USD fee) is greater than 20 percent of the organization’s annual revenue”. So, if we assume a discounted fee of $40,000, only companies with revenue under $200,000 would qualify.

The 2012 round’s Applicant Support Program worked a little differently. Applicants could be from anywhere in the world, but they could earn points under the score-based rules by being from a developing nation.

There were only three applicants using the ASP in 2012, and only one — DotKids Foundation, based in Hong Kong and founded by the same businessman who founded DotAsia and currently sits on the ICANN board of directors — ended up qualifying for the cheaper application fee.

For the next round, ICANN has penciled in a Q4 2024 date to start accepting applications for the discount. The application window is expected to close a year later, at least six months before the new gTLD application window opens.

Anyone thinking about trying to game the system should note that ICANN promises that anyone “found to have abused the intent of the program” will be banned from the new gTLD program forever.

The proposed ASP rules are open for comment for 50 days here.