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    Highlights of the ICANNWatch Archive
    (June 1999 - March 2001)

    Budget and Expenditures ICANNBudget.ORG's Alternative Budget proposal
    posted by jon on Wednesday June 30 2004, @11:49AM

    Bhavin Turakhia writes "
    Paul Twomey
    cc: Vint Cerf, ICANN Budget Committee, Registrar Budget Advisory Group, Registrars Constituency, Alliance Registrars
    Subject: ICANN Budget 2004-2005
    Hyperlink: A Copy of this letter is available at http://www.icannbudget.org

    We represent an alliance of 75 Registrars (and growing, please refer to - http://www.icannbudget.org ) who have common concerns about the proposed new budget and believe that certain fundamental modifications are required to the budget in order to make the budget a win-win situation and a feasible proposition for the Registrar community. The current budget in its proposed form has significant ambiguities for both ICANN and the Registrars, and we therefore have detailed out an alternative budget proposal which we believe achieves mutual objectives. All of us 75 Registrars believe the current proposed budget is harmful to our business, and harmful to ICANN too. We therefore DO NOT support the current budget. "

    We recognize and respect the need for a strong ICANN and a well financed ICANN, however the growth of the budget in terms of the amount, as well as its controversial structure comes somewhat as a shock to the entire Registrar community. We realise that this budget document has been a result of significant debate and discussion within ICANN and we appreciate the efforts taken by ICANN in the last few weeks to actively discuss and work around the issues in cooperation with the Registrar community. Instead of spending time on random conversations, we have within our group discussed multiple strategies and in the end formulated a budget strategy that we believe is fair and represents a win-win situation for everyone.

    Please note, as you will see in the budget proposal document below that we have not in our efforts attempted to at all thwart the existing budget, nor attempted to unreasonably and irrationally cut it down. Infact quite the contrary what we have proposed are extremely fair and reasonable points and structure/amount changes which are well within the current scope of the budget, and which provide a long term feasible budget for all the parties involved.

    All of the 54 Registrars listed below stand by this alternative proposal as detailed out below and WILL SUPPORT the budget as is exactly laid out below

    Thanking you
    Yours sincerely
    Representing the Registrar Community listed below
    Bhavin Turakhia
    Chairman & CEO

    Our Proposed Budget items and points (assumption 250 Registrars - which figure should be reached in the next quarter and should increase beyond that too)

    * ICANN's total budget figure should reduce in whatever cost-cutting manner that is possible

    * ICANN should also give an idea of its approximate projected budget for the next 3 years, especially considering that this years budget is twice that of last years

    * Registrars contribution of the budget will be $11 million per annum totally including fixed and variable fees. This amount will be  capped for the next 3 years, after which it may increase at 10% per year

    * ICANN will charge $4000 per Registrar per year as annual accreditation fees for all TLDs

    * This fee is charged once a year at the beginning of the year for each Registrar. With 250 Registrars this would come to $1 million

    * Next ICANN charges a variable fee of 25 cents per transaction on a quarterly basis for every domain year added through an Add, Renew or Transfer for each Registrar. Based on calculations and data this should come to around $2.7 million per quarter

    * The total of the above therefore comes to $11.8 million

    * If ICANN has already collected $11 million then ICANN must in the last quarter adjust its per transaction fees (reduce it) such that it does not cross the $11 million mark. The $11 million serves as a cap of what ICANN can make from the Registrars totally in a year. So if ICANN finds in the last quarter that the per transaction fee is yielding it greater than $11 million it must reduce the per transaction fee.

    * If ICANN finds that it has not managed to collect $11 million by the end of the year then in the last quarter ICANN has the right to charge upto $6000 per Registrar uniformly. So for instance if ICANN falls short by $500,000, it can charge $2000 per Registrar. If ICANN falls short by $750,000 it can charge $3000 per Registrar and so on. The maximum however it can charge a Registrar is $6000

    * In 1999 the ICANN budget task force had divided the ICANN budget and put a burden of 50% of the budget onto gTLD Registrars. In this budget $11 million of $15.8 million is funded by Registrars - which accounts for 70% of ICANN's budget. ICANN must take proactive steps to ensure that this contribution percentage to ICANN's budget must reduce to reasonable levels in the next budget round and thereafter.

    * There must be a provision in the budget to allow for an audit process. This audit maybe carried out by a task force or an audit committee with representatives from various constituencies in the proportion of contribution from those constituencies. The audit committee would NOT engage in micro management of the budget. However the audit committee would be able to ascertain that the fund allocation required for each specific macro objective was appropriately allocated and well-spent. It would also give intelligent inputs on the amount of funds that would be required to be allocated to such objectives in future years. This audit committee should have appropriate representation from the cross section of the community

    * In this model the Registrar fixed fee will typically be $4000 and can maximum reach $10000. It is most likely that ICANN will be able to recover $11 million without charging an extra $6000, since transactions are on a rise each year

    * In this model there is NO forgiveness factor and therefore no ambiguous forgiveness criterias

    * All Registrars are charged equally. There is no contention of a batch pool fee and ICANN's budget is not based upon selective business models of Registrars

    * This model does NOT break apart if WLS comes in

    Registrars out of the alliance who have already signed this Budget Document

    1. ! $ ! Bid It Win It, Inc.
    2. !!! BB Bulk, Inc.
    3. !$6.25 DOMAINS! Network, Inc.
    4. 007Names, Inc.
    5. 123 Registration, Inc.
    6. 1stDomain.Net
    7. A Mountain Domains, Inc.
    8. A. W. B. Trading, Inc.
    9. Alice's Registry
    10. All West Communications,Inc.
    11. BB Online UK Limited
    12. BestRegistrar.com
    13. CADiware AG
    14. Colorado Names Domains, Inc.
    15. Directi
    16. DNS:NET Internet Service GmbH
    17. Domain Name
    18. Domain The Net Technologies Ltd
    19. DomainRegistry.com Inc.
    20. Dynadot
    21. easyDNS Technologies Inc.
    22. Emily Names Domains, Inc.
    23. Encirca
    24. Esoftwiz Inc.
    25. French-Connexion, SARL.
    26. Future Media Network K.K.
    27. Get SLD, Inc.
    28. GKG.NET, INC.
    29. Globedom Datenkommunikations GmbH,
    30. HJ Linnen
    31. I.D.R Internet Domain Registry LTD
    32. Initials Online Limited
    33. JJH Investments, L.L.C.
    34. Korea Information Certificate Authority, Inc.
    35. Le Grand Nom, Inc.
    36. Lead Networks Domains Pvt. Ltd.
    37. Moniker Online Services LLC
    38. Name Share, Inc.
    39. Netpia
    40. Online Orders Network
    41. Parava Networks, Inc.
    42. RegisterSite
    43. Registry Info Avenue
    44. RJG Ventures, L. L. C.
    45. Secura GmbH
    46. Server-Service GmbH
    47. Signature Domains
    48. Total Calories, Inc.
    49. Transecute (I) Pvt Ltd
    50. Transecute Inc.
    51. Vivid Domains, Inc.
    52. Walela Brook, Inc.
    53. Webagentur.at Internet Services GmbH
    54. Webmasters.com

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      Related Links  
    · Dr. Paul Twomey
    · Vinton G. Cerf
    · ICANN
    · Bhavin Turakhia
    · http://www.icannbudget.org
    · http://www.icannbudget.org
    · More Budget and Expenditures stories
    · Also by jon
    This discussion has been archived. No new comments can be posted.
    ICANNBudget.ORG's Alternative Budget proposal | Log in/Create an Account | Top | 13 comments | Search Discussion
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    Re:What Other U.S. Non-Profits *Charge* Such Fees
    by KarlAuerbach on Wednesday June 30 2004, @11:25PM (#13838)
    User #3243 Info | http://www.cavebear.com/
    I have always felt that ICANN's tax except status (both as a California public-benefit corporation and a Federa 501(c)(3)) are based on inadequate foundations. (See, for example Should California continue to grant tax exemptions to purported public-benefit corporations that do not really benefit the public? [cavebear.com])

    ICANN has clearly become little more than an industry trade association, a guild, that controls who may enter, and under what terms, into the business of dealing with domain names. There is no benefit to the public in this. Quite the contrary, I estimate that the ICANN price support system pulls more than $200,000,000 per year out of the pockets of internet users in the form of excessive domain name registration fees that arise as a direct result of ICANN's prevention of real competition in the domain name marketplace.

    To add insult to injury, there is no component of ICANN that deals with what the community of internet users actually needs ICANN to do - ensure the actual 24x7x365 stability of the internet. Let us not forget that ICANN has done precisely zero with regard to reliability, security, and predictability of the technical operation of the DNS root servers, the prepration of the root zone file, and the allocation of IP addresses. ICANN's security committee has been a dud - ICANN mainly uses it for decorative purposes.

    ICANN has since its inception engaged in other activities that put its tax-exempt status at risk. I have described these elsewhere.

    However, when one tries to inform ICANN of these issues the response seems much like the scene described in the first paragraph of Gulliver's record of his visit to Laputa. [jaffebros.com]
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