VeriSign’s upcoming battle for the Chinese .com

Could VeriSign be about to face off against China for control of the Chinese version of .com? That’s an intriguing possibility that was raised during the .nxt conference last week.
Almost as an aside, auDA chief Chris Disspain mentioned during a session that he believes there are moves afoot in China to apply to ICANN for “company”, “network” and “organization” in Chinese characters. In other words, .com, .net and .org.
I’ve been unable to find an official announcement of any such Chinese application, but I’m reliably informed that Noises Have Been Made.
VeriSign has for several quarters been open about its plans to apply for IDN equivalents of its two flagship TLDs, and PIR’s new CEO Brian Cute recently told me he wants to do the same for .org.
While neither company has specified which scripts they’re looking at, Chinese is a no-brainer. As of this week, the nation is the world’s second-largest economy, and easily its most populous.
Since we’re already speculating, let’s speculate some more: who would win the Chinese .com under ICANN’s application rules, VeriSign or China?
If the two strings were close enough to wind up in a contention set, could VeriSign claim intellectual property rights, on the basis of its .com business? It seems like a stretch.
Could China leapfrog to the end of the process with a community application and a demand for a Community Priority Evaluation?
That also seems like a stretch. It’s not impossible – there’s arguably a “community” of companies registered with the Chinese government – but such a move would likely stink of gaming.
Is there a technical stability argument to be made? Is 公司. (which Google tells me means “company” in Chinese) confusingly similar to .com?
If these TLDs went to auction, one thing is certain: there are few potential applicants with deeper pockets than VeriSign, but China is one of them.
UPDATE: VeriSign’s Pat Kane was good enough to post a lengthy explanation of the company’s IDN strategy in the comments.

VeriSign launches free cloud domain security service

VeriSign is to offer registrars a hosted DNSSEC signing service that will be free for names in .com and the company’s other top-level domains.
The inventively named VeriSign DNSSEC Signing Service offloads the tasks associated with managing signed domains and is being offered for an “evaluation period” that runs until the end of 2011.
DNSSEC is an extension to DNS that allows domains to be cryptographically signed and validated. It was designed to prevent cache poisoning attacks such as the Kaminsky Bug.
It’s also quite complex, requiring ongoing secure key management and rollover, so I expect the VeriSign service, and competing services, will be quite popular among registrars reluctant to plough money into the technology.
While some gTLDs, including .org, and dozens of ccTLDs, are already DNSSEC-enabled, VeriSign doesn’t plan on bringing the technology online in .com and .net until early next year.
The ultimate industry plan is for all domain names to use DNSSEC before too many years.
One question I’ve never been entirely clear on was whether the added costs of implementing DNSSEC would translate into premium-priced services or price increases at the registrar checkout.
A VeriSign spokesperson told me:

The evaluation period is free for VeriSign-managed TLDs and other TLDs. After that period, the VeriSign-managed TLDs will remain free, but other TLDs will have $2 per zone annual fee.

In other words, registrars will not have to pay to sign their customers’ .com, .net, .tv etc domains, but they will have to pay if they choose to use the VeriSign service to sign domains in .biz, .info or any other TLD.

VeriSign to deploy DNSSEC in .com next March

VeriSign is to start rolling out the DNSSEC security protocol in .net today, and will sign .com next March, the company said today.
In an email to the dns-ops mailing list, VeriSign vice president Matt Larson said that .net will get a “deliberately unvalidatable zone”, which uses unusable dummy keys for testing purposes, today.
That test is set to end on December 9, when .net will become fully DNSSEC-compatible.
The .com TLD will get its own unvalidatable zone in March, but registrars will be able to start submitting cryptographic keys for the domains they manage from February.
The .com zone will be validatable later in March.
The DNSSEC standard allows resolvers to confirm that DNS traffic has not been tampered with, reducing the risk of attacks such as cache poisoning.
Signing .com is viewed as the last major registry-level hurdle to jump before adoption kicks off more widely. The root zone was signed in July and a few dozen other TLDs, such as .org, are already signed.

VeriSign plans single-letter .com auctions

VeriSign has confirmed that it wants to auction off single-character .com domain names, following a test with the equivalent .net domains.
The company recently asked ICANN for permission to sell one and two-letter .net domains. As Andrew Allemann noted at the time, that was a pretty strong indicator it would want to do the same with .com.
Now the company has admitted as much, and is looking for an online auction provider to handle the sales. It published a Request For Proposals today. The RFP says:

VeriSign intends to submit a proposal to ICANN through the RSEP [Registry Services Evaluation Process] and anticipates allocating .com single and two character domain name registrations through an auction as well

One and two-letter domains are currently restricted, due to the potential confusion with country-code TLDs. ICANN has been gradually lifting that restriction in some of the less-popular TLDs.
If VeriSign is also given permission, which seems likely, the auctions would certainly be lucrative.
If o.co can fetch $350,000, how much would Overstock, which has been screaming out for o.com for years, stump up for the .com equivalent? I also recall, years ago, Yahoo saying it wanted y.com.
But VeriSign might not be the main beneficiary of the proceeds. In its .net application, it says that it would use any money raised with the .com auctions for the common good.

VeriSign is not hereby proposing a release of .com single and/or two character domain names. VeriSign anticipates that any such proposal will be structured differently than the proposal for .net and will include use of proceeds from any auction for the benefit of the general Internet community.

That’s open to interpretation, of course. Investing a few million dollars in upgrading its infrastructure could be said to benefit the general internet community.

Domain name industry growth slowed by China crackdown

The massive slump in Chinese domain name registrations appears to have hit the overall domain name market significantly in the first quarter 2010, slowing its growth.
According to the latest VeriSign Domain Name Industry Brief, only one million net new domains were registered across all TLDs in the period, a paltry 0.6% increase.
There were about 193 million domains active at the end of March, up from 192 million at the start of the year.
A million might seem like a lot, until you consider that the market grew by 11 million domains in the fourth quarter and by three million in the first quarter of 2009.
The slump is certainly due to the rapid decline in .cn domains.
China’s ccTLD had about 13.4 million names at the end of last year, and only 8.8 million at the end of March. April’s numbers show the decline continued, with 8.5 million names registered.
The China drag has been caused by a combination of pricing and the Draconian new identification requirements the communist government placed on the registry, CNNIC.
Chinese registrants now have to present photo ID before they can register a domain.
VeriSign’s own .com/.net business did a decent trade in the quarter, up 7% compared to the same quarter last and 2.7% on December to 99.3 million names in total.
With registrations growing by 2.7 million per month, this means VeriSign already has more than 100 million names in its com/net database.

Second-tier TLDs gain aftermarket traction

The average aftermarket selling price of domain names in second-tier TLDs is creeping up, according to the latest numbers from Sedo.
Sedo’s latest quarterly sales review shows that namespaces such as .biz, .info and .org are selling for far better money than they were a year ago.
In fact, the median selling price of .biz, .org, and .net domains is now higher than that of .com.
The price of .biz names, which only accounted for 1% of overall sales, has almost doubled in the last four quarters, up 97% at $537.
The .info namespace fared almost as well, recording a median price of $418, up 91% on the $219 recorded in the second quarter of 2009.
The long-established .org has also appreciated over the last 12 months. Its median price rose 45% to $550.
While there’s no doubt that .com is still where the high-end money is, the median price for a .com was only $510, a 24% increase over the same period.
Sedo has started reporting median prices because big one-off sales can have an impact on the mean averages it also reports.
Its full Q1 Domain Market Study report can be downloaded here.