As the incumbent, we expect VeriSign to focus on the stability of the Internet and its track record of operating both the dot-NET and larger dot-COM registries. While dot-NET currently represents just 4.9 million of the total 34 million dot-COM and dot-NET names, we came across some data from VeriSign that indicates that dot-NET is more important in terms of the functioning of the Internet than meets the eye. For example, 25% of all other registered domain names rely on dot-NET nameservers that are being pointed to from other domains, such as dot-COM. Dot-NET also drives 31% of all Web page views annually and 9% of U.S.-based Web e-mail accounts. In short, while dot-NET is small relative to dot-COM in terms of units, the functioning of dot-NET appears to be very important to the functioning of the larger Internet.

We expect competitors, such as Afilias and NeuLevel to primarily focus on the promotion of competition in the registry market while also looking to demonstrate that they can provide stable stewardship of the dot-NET registry. Afilias

Two main selection criteria likely to center on stability of Internet and promotion of competition. Expect VeriSign to rely on stability and others to rely on competition.

While dot-NET represents just 4.9 million of the 34 million dot-COM and dot-NET names, data indicates it is more critical to the operation of the Internet than meets the eye.

More competition at the registry level does not appear to benefit end users and may create more hassle for registrars. This could favor an existing registry operator.

For various reasons, we do not believe that price will be a key differentiator.

VeriSign's current lawsuit should not disadvantage them based on provisions in the original dot-NET agreement. VeriSign also has additional legal routes it can take if someone else is selected to operate dot-NET.

The process and ultimate outcome of dot-NET should have no bearing on dot-COM and it appears that VeriSign should be able to extend dot-COM for another four years unless ICANN can prove VeriSign has really not fulfilled its obligations in operating dot-COM."