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.gay prices and availability revealed as registry promises to give 20% of revenue to charity

Kevin Murphy, January 10, 2020, Domain Registries

The long-fought, once-controversial gTLD .gay is to launch a month from now.
Top Level Design, which won the string at auction against three other applicants last February, this week informed registrars that its sunrise period will begin February 10 this year. General availability will start May 20.
The registry, which beat a mission-focused, restricted “community” applicant for .gay, also said that it will give 20% of its top-line registration revenue to two LGBT charities — GLAAD and CenterLink.
With base registry fee of $25 per domain, that’s at least $5 going to gay charities for every domain sold. Registrars are being encouraged to match that donation at the retail level.
There will also be six tiers of “premium” domains — $100, $250, $650, $2,000, $5,000 and $12,500 — for which the 20% donation will also apply. Premium domains will renew at premium prices.
Top Level Design also says it is to enforce an anti-bullying policy. Any registrant using a .gay domain for “harassment, threats, and hate speech” will stand to lose their name. It’s a complaint-based enforcement policy; the registry will not actively monitor content.
Registrants who have forums on their .gay web sites will also have to police their user-generated content, to keep it in line with registry policy.
Its official policy even includes helpline numbers for bullied gay people who are feeling suicidal.
The registry appears to be making the right noises when it comes to calming concerns that an unrestricted, non-community .gay space could do more harm than good.
The key area where it diverges from the community application, which had been backed by dozens of gay-rights groups, is the lack of a ban on pornography. I’d hazard a guess that a good chunk of registration volume will come from that space.
The launch will comprise two sunrise periods and an early access period, before .gay goes to GA.
The first sunrise is the ICANN-mandated period, open only to those trademark owners with listings in the official Trademark Clearinghouse. That will run from February 10 to March 31. A second sunrise will be open to other trademarks, validated by back-end provider CentralNic. That runs from April 6 to May 6.
Both sunrise periods will include the automatic reservation of 10 potentially confusing Latin internationalized domain name variants, generated by CentralNic algorithm. This will include strings that transpose 0 and O or e and ë, for example.
EAP, the period in which early birds can grab the names they want for premium fees that decrease every day, runs from May 11 to May 17. Prices are not yet available.
GA is May 20.
Top Level Design originally planned to launch .gay last year, timed to coincide with National Coming Out Day in the US.
The new GA date appears to land on the anniversary of a landmark gay rights ruling in the US Supreme Court, Romer v Evans, but this may just be a coincidence.
.gay is launching about a month before the 50th anniversary of the Stonewall Riots, in June, so we might see some marketing around that event.
Registrars signing up to sell .gay domains are also being given some schooling, apparently courtesy of GLAAD, about what language is currently cool and uncool to use in marketing.
Apparently, the terms “homosexual”, “sexual preference” and “transvestite” are considered offensive nowadays and are therefore verboten in registrar marketing. “Queer”, as a partially reclaimed offensive term, should be used with caution.
I suppose Top Level Design had better hope the word “gay” is not added to this list any time soon, otherwise it has a serious problem on its hands.

AlpNames died months ago. Why is it still the “most-abused” registrar?

Kevin Murphy, December 6, 2019, Domain Registrars

Despite going out of business, being terminated by ICANN, and losing all its domains several months ago, defunct AlpNames is still being listed as the world’s most-abused registrar by a leading spam-fighting organization.
SpamHaus currently ranks the Gibraltar-based company as #1 on its list of the “The 10 Most Abused Domain Registrars”, saying 98.7% of its domains are being used to send spam.
But AlpNames customers and regular DI readers will recall that AlpNames mysteriously went titsup in March, then got terminated by ICANN, then had its entire customer base migrated over to CentralNic in April.
So what’s this about?
SpamHaus
I asked SpamHaus earlier this week, and it turns out that Whois query throttling is to blame.
It seems SpamHaus only pings Whois to update the registrar associated with a specific domain when the domain expires, or the name servers change, or where it’s a new registration with an unknown registrar.
I gather that when CentralNic took over AlpNames’ customer base, it did so with all the original name server information intact.
So, SpamHaus’ database still associates the domains with AlpNames even though it’s been out of business for the better part of a year.
A SpamHaus spokesperson said:

This is a very unusual situation, as a huge majority of the domains that contribute to the Top 10 list in question are created, abused, and burnt quickly; meaning a change of registrar is exceptionally rare. However, in the case of these particular domains registered with AlpNames we can only assume that the sheer volume of unused domains was too high for the owner to use in one single hit.

The actual number of “AlpNames” domains rated as spammy by SpamHaus is pretty low — 1,976 of the 2,002 domains it saw were rated as “bad”.
GMO, at #4 on the list, had over 40,000 “bad” domains, but a lower percentage given the larger number of total domains seen.

Radix acquires another gTLD

Kevin Murphy, October 7, 2019, Domain Registries

Radix has added the 10th new gTLD to its portfolio with an acquisition last month, bringing its total TLD stable to 11.
The company has acquired .uno from Missouri-based Dot Latin LLC for an undisclosed amount.
.uno, which of course means “one” in Spanish, has been around for over five years but has struggled to grow.
It’s current ranked as the 131st largest new gTLD, with 16,271 domains in its zone file. It peaked at about 22,000 about three years ago.
That said, it appears to have rather strong renewals, at least by Radix standards, with no evidence of relying on discounts or throwaway one-year registrations for growth.
.uno names can currently be obtained for roughly $12 to $20 per year.
Radix said its expects to migrate the TLD off its current Neustar back-end onto long-time registry partner CentralNic by “early 2020”.
The company appears to be excited that its only the second three-letter TLD in its portfolio.
It already runs .fun, along with the likes of .website, .tech and .online. It also runs .pw, the repurposed ccTLD for Palau.
.uno was Dot Latin’s only gTLD, though affiliated entity Dot Registry LLC signed its ICANN registry agreement for .llp (for “Limited Liability Partnership”) in August. That TLD has yet to launch.

.blog registry handover did NOT go smoothly

Kevin Murphy, August 29, 2019, Domain Registries

The transition of .blog between registry back-end providers ended up taking six times longer than originally planned, due to “a series of unforeseen issues”.
Registry Knock Knock Whois There today told registrars that the move from Nominet to CentralNic took 18 hours to complete, far longer than the two to three hours anticipated.
An “unexpected database error” was blamed at one point for the delay, but KKWT said it is still conducting a post-mortem to figure out exactly what went wrong.
During the downtime, .blog registrations, renewals, transfers and general domain management at the registry level would not have been possible.
DNS resolution was not affected, so registrants of .blog domains would have been able to use their web sites and email as usual.
The migration, which covered roughly 200,000 domains, wrapped up at around 0800 UTC this morning. It seems engineers at the two back-end providers, both based in the UK, will have been working throughout the night to fix the issues.
KKWT reported the new CentralNIC EPP back-end functioning as expected but that several days of “post-migration clean-up” are to be expected.
Eighteen hours is more than the acceptable 14 hours of monthly downtime for EPP services under ICANN’s standard Registry Agreement, but below the 24 hours of weekly downtime at which emergency measures kick in.
CentralNic already handles very large TLDs, including .xyz, but I believe this is the largest incoming migration it’s handled to date.
KKWT is owned by Automattic, the same company as WordPress.com.

CentralNic to pay $3.4 million for iwantmyname

Kevin Murphy, August 7, 2019, Domain Registrars

CentralNic has made yet another registrar acquisition, picking up New Zealand-based Ideegeo Group for the equivalent of $3.4 million.
The company said it will pay NZD 5.2 million, of which 10% is being deferred until May 2021.
Ideegeo runs the registrar iwantmyname.com. It’s not ICANN-accredited in its own right, rather it’s a reseller of Hexonet, which CentralNic has also acquired.
With 180,000 names under management, Ideegeo accounted for a little under 5% of Hexonet’s business in terms of domain names.
Ideegeo had revenue last year of NZD 6.2 million ($4.2 million) and EBITDA of NZD 0.9 million ($600,000), CentralNic said.
CentralNic indicated that the acquisition has enabled it to lock in that revenue, preventing iwantmyname switching to a different reseller network.
But it’s not just the DUM CentralNic is interested in. It also said it wants its user-friendly interface, which it intends to roll out across its other retail registrar web sites.
There are also up-sell opportunities, as iwantmyname currently sells only domain names and none of the usually associated accoutrements.
It’s CentralNic’s fifth acquisition in the last 12 months.
It still has plenty of money left over from a recent €50 million ($56 million) bond issue, so don’t expect it to be the last.

CentralNic boosts reseller biz with $11.3 million Hexonet buy

CentralNic is to acquire rival reseller-based registrar Hexonet for up to €10 million ($11.3 million), its fourth acquisition in the last 12 months.
Hexonet has over 3.8 million domains under management, according to CentralNic, sold either directly or via one of its over 1,000 resellers.
Hexonet’s primary ICANN accreditation, 1API.net, was responsible for roughly 760,000 gTLD domains at the last count, but appeared to be on the decline.
CentralNic said its reseller business will grow by about 28% in terms of domains due to the deal.
Hexonet had revenue last year of about €16.5 million ($19.4 million) and EBIDTDA of about €0.8 million ($0.9 million), and will immediately contribute to the bottom line, CentralNic said.
But it’s probably not great news for everyone — in order to receive the full €10 million Hexonet had to slash €300,000 from its budget.
CentralNic is paying €7 million in cash now, covered by the €50 million bond it recently issued, and will pay another €3 million in either cash or shares (its choice) on the one-year anniversary of the deal closing, expected this month.
Hexonet has offices in Canada and close to CentralNic’s recently acquired Germany operations.
Hexonet also acts as the de facto exclusive registrar for a handful of dot-brands, including .audi, .volskwagen and .bugatti, relationships that one imagines CentralNic’s registry back-end business could try to leverage.
In the last year, CentralNic has acquired KeyDrive, TPP Wholesale and GlobeHosting.

CentralNic grabs more of the reseller market with $16.5 million acquisition

CentralNic is living up to its self-described role as an industry “consolidator” with the acquisition of Australian domain wholesaler TPP Wholesale.
The company, assuming it manages to find the financial backing, will pay AUD 24 million ($16.5 million) for the business, currently a unit of ARQ Group (formerly known as Melbourne IT).
TPP has 14,000 resellers and 840,000 domains under management, including 19% of all .com.au registrations, according to CentralNic.
The company reckons the unit had revenue of AUD 17 million ($11.7 million) and EBITDA of AUD 3.9 million ($2.7 million) in 2018, which makes the purchase look like a bit of a bargain when compared to its acquisition of Instra a few years ago.

CentralNic gets 680,000 AlpNames domains for free, kinda

CentralNic has emerged as the gaining registrar for AlpNames’ entire portfolio of gTLD domains.
The company announced late last week that three registrars in its stable — Moniker, Key-Systems LLC and Key-Systems GmbH — will take over roughly 680,000 domains that were left stranded when AlpNames management went AWOL.
US-based Key-Systems LLC appears to be the biggest gainer. It will be taking over domains in every gTLD except .biz, .com, .info, .net, .org, which are going to Moniker, and .pro, which are going to the German Key-Systems division.
While most registrars see their domains under management concentrated in these legacy gTLDs, by volume AlpNames had far more registrations in new 2012-round gTLDs.
It had just 19,000 .com DUM at the last count, compared to hundreds of thousands in new gTLDs such as .top and .gdn.
CentralNic said in a press release that ICANN selected its registrars after a competitive bidding process, which I’ve previously outlined here, but that it did not pay for the names. So AlpNames, presumably, won’t be getting the payday it could have received under the rules.
The transfer won’t be entirely cost-free, of course. CentralNic is going to have to provide support to its incoming customers — who will all be emailed with the details of their new Moniker accounts — for starters.
There’s also the issue of abuse. AlpNames was notorious as a haven for spammers and the like, due to its cheap prices and bulk-registration tools, so CentralNic may find itself having to deal with this legacy.
But CentralNic said it expects these incidental costs to be “minimal”.
The transfers are a big boost for CentralNic’s registrar volume, at least in the short term. The three selected registrars had a combined total of roughly two million gTLD domains at the last count. CentralNic says it acts as registrar for over seven million domains across its 13 accreditations.
For every AlpNames domain that gets renewed, CentralNic gets paid. But if AlpNames’ own track record is any guide, I suspect there’s going to be a lot of drops over the coming year.
UPDATE August 12 2020: AlpNames former CEO Iain Roache recently wrote to DI and stated the following:

Alpnames itself worked closely with ICANN for months to arrange for its exit from the Registrar business and with a number of Registrars to arrange for the transfer of the customers. Your article does not reflect the detail of what transpired and is inaccurate.

Ironic eight-figure deal marks more Euro-registrar consolidation

Kevin Murphy, February 11, 2019, Domain Registrars

Slovakian registrar WebSupport, which is run by a local politician, has been acquired in a reported eight-figure deal.
The acquirer is Loopia, a Swedish registrar backed by Danish private equity firm Axcel.
The deal seems to have closed around the same time as Loopia’s acquisition of .SE Direkt from Swedish registry IIS, though news only broke today.
WebSupport reportedly hosts around 173,000 domains, though it’s not clear whether it acts as registrar for all. It’s not ICANN-accredited, but it does resell domains in a wide range of gTLDs.
It reportedly has annual revenue approaching €4 million and sold for “a two-digit figure in millions of euros”.
According to Vladimir Vano, Slovakian comms chief at CentralNic, which acquired .sk registry SK-NIC last year, WebSupport is the largest .sk registrar.
There’s a certain irony with WebSupport being sold into foreign hands.
The co-founder and majority owner of the company is Michel Truban, an entrepreneur-turned-politician who was closely associated with a campaign to have UK-based CentralNic’s acquisition of .sk blocked.
It was alleged (and denied) at the time that the campaign was party-political, though its main concern appeared to be that CentralNic would bastardize .sk into some kind of horrible domain hack.
Today, Truban wrote on his blog “I’m selling WebSupport and I’m going into politics”. In 2017, he co-founded the liberal Progressive Slovakia party.
He said the money from the deal would free him from inappropriate influence by “oligarchs and patrons”.
Google Translate says Truban wrote: “I had an offer that was about a million euros higher, but I declined it. Because it was from people with bad history and at the same time I wanted WS to get an international story.”

CentralNic expects flat profit as revenue almost doubles

Kevin Murphy, February 4, 2019, Domain Registries

London-listed domain firm CentralNic today gave investors a sneak preview of its 2018 financial performance.
The company expects its profits at the adjusted EBITDA level to be up only slightly — from £6.6 million ($8.62 million) to £6.7 million ($8.75) — compared to 2017.
But revenue is expected to soar from £24.3 million ($31.7 million) to £42.5 million ($55.5 million), largely due to the impact of its merger with KeyDrive, which completed in August.
KeyDrive was the holding company for brands including the registrars Key-Systems, Moniker and BrandShelter, and the registry providers OpenRegistry and KSRegistry.
The Luxembourgish firm reversed into AIM-listed CentralNic in a deal, described as “transformative” for CentralNic, valued at up to $55 million.
Most of the company’s revenue now comes from the registrar part of the business, though the registry division is the more profitable.
CentralNic said today that “subscription products” are now roughly 90% of total revenue.
The company expects to save £1 million ($1.3 million) this year by migrating its old registrars over to the KeyDrive platform and migrating its new registries onto the CentralNic platform.
It has also appointed KeyDrive’s former CFO as CentralNic CFO, replacing Don Baladasan. Michael Riedl has also joined the board of directors, while Baladasan remains on the board as group managing director.
Full, audited financial results will be announced in May.