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    Mueller speaks out on WLS (Warning: here be heresy) | Log in/Create an Account | Top | 21 comments | Search Discussion
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    Re: Mueller speaks out on WLS (Warning: here be he
    by Mueller ({mueller} {at} {syr.edu}) on Wednesday August 28 2002, @07:59AM (#8751)
    User #2901 Info | http://istweb.syr.edu/~mueller/
    I don't agree with the premise that new TLDs are "floundering." They are now growing at a pace of about 3% a month, and grew even while .com declined. After a little over one year, .info and .biz both have more registrations than .com had after three years following commercialization of DNS.

    It's true that results have not lived up to expectations, but the expectations were inflated and the applicants overextended themselves as a result. There are lots of small businesses that would love to have a million customers, each generating revenue of $5-6 per year, and the customer base growing at 30-35% annually, in a service that does not require heavy capital investment and has huge economies of scale. If you can't make a profit at that, there's something wrong with the way your business is managed.

    I agree that we need new TLDs that have the visibility and competitiveness of .com. I don't think we get there by limiting entry. In various markets (telecom is the one I am most familiar with) businesses and regulators often make the mistake of assuming that they can prop up the strength of existing competitors by limiting entry to a few, thereby assuring that the small numers will have major market shares and be "stronger" competitors. That doesn't work. The protected competitors tend to be weak and inefficient as a result. Neustar thought it was going to be the new NSI and spent far too much money on what should have been scaled as a small business.

    What actually happens is that you open entry, and many new competitors enter and try various strategies. Of course only a few survive, or grow to a major scale. But you never know who those few will be unless you open the gates completely.
    [ Reply to This | Parent ]
    Re: Mueller speaks out on WLS (Warning: here be he by Mueller


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