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
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
Representing the Registrar Community listed below
Chairman & CEO
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
* 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
* 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
* 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
* 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
Registrars out of the alliance who have
already signed this Budget Document
- ! $ ! Bid It Win It, Inc.
- !!! BB Bulk, Inc.
- !$6.25 DOMAINS! Network, Inc.
- 007Names, Inc.
- 123 Registration, Inc.
- A Mountain Domains, Inc.
- A. W. B. Trading, Inc.
- Alice's Registry
- All West Communications,Inc.
- BB Online UK Limited
- CADiware AG
- Colorado Names Domains, Inc.
- DNS:NET Internet Service GmbH
- Domain Name
- Domain The Net Technologies Ltd
- DomainRegistry.com Inc.
- easyDNS Technologies Inc.
- Emily Names Domains, Inc.
- Esoftwiz Inc.
- French-Connexion, SARL.
- Future Media Network K.K.
- Get SLD, Inc.
- GKG.NET, INC.
- Globedom Datenkommunikations GmbH,
- HJ Linnen
- I.D.R Internet Domain Registry LTD
- Initials Online Limited
- JJH Investments, L.L.C.
- Korea Information Certificate Authority, Inc.
- Le Grand Nom, Inc.
- Lead Networks Domains Pvt. Ltd.
- Moniker Online Services LLC
- Name Share, Inc.
- Online Orders Network
- Parava Networks, Inc.
- Registry Info Avenue
- RJG Ventures, L. L. C.
- Secura GmbH
- Server-Service GmbH
- Signature Domains
- Total Calories, Inc.
- Transecute (I) Pvt Ltd
- Transecute Inc.
- Vivid Domains, Inc.
- Walela Brook, Inc.
- Webagentur.at Internet Services GmbH