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    OECD supports TLD auctions | Log in/Create an Account | Top | 22 comments | Search Discussion
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    Re:Tender, not auction
    by GeorgeK on Tuesday July 13 2004, @11:31AM (#13943)
    User #3191 Info | http://www.kirikos.com/
    I'm willing to bet ZERO new non-sponsored TLDs are added in the next 5 years. .biz and .info have been failures, even Paul Twomey acknowledged this [news.com.au] saying (in the final line) "I doubt that the operators of .biz and .info would consider them very successful" .

    If you're all for auctions, are you willing to go to an auction for "cavebear.com" every year? Why not auction off your telephone number, every year, too? Discriminatory pricing (see the example of games.tv for $100,000 per year) does NOT have the support of most consumers. Most consumers want a set level of service from the monopoly provider, at the LOWEST price. I bet the cost of .net would be $2/yr at the registry level, if there was an open tender, instead of the $6/yr today under VeriSign. That's a significant benefit that belongs to consumers. (a savings of $4/yr for 5 million .net domains is a $20 MILLION per YEAR benefit for CONSUMERS)

    An auction system is really a test of which registry operator is prepared to ABUSE consumers the most. The "winner" would not be the one who is most EFFICIENT (i.e. running the registry at lowest cost), but the one who is willing to do all that it takes to PRICE GOUGE consumers.

    To give a further example of gouging capabilities, besides price discrimination and wildcarding, look at UltraDNS pricing [ultradns.com] --- they charge based on how often a domain name is queried! Imagine, paying 50 cents per thousand queries to your domain, in addition to an annual fee (based on price discrimination), and the registry monetizing all typos to your domain, to boot?
    [ Reply to This | Parent ]
    Re:Tender, not auction by GeorgeK
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    Re:Tender, not auction
    by KarlAuerbach on Tuesday July 13 2004, @08:28PM (#13948)
    User #3243 Info | http://www.cavebear.com/
    I said that I prefer an lottery associated with an auction; I didn't say that I prefer an auction alone.

    I agree with you that there are problems with naked auctions (er, when the auction is naked not the participants) especially since there are still a lot of folks who want TLDs of their own (many of the Fortune 1000 would, for example, want to elevate their names, like "ibm.com" out of .com and right up to the top.)

    I outlined many of the reasons why I want a lottery for a good chunk of TLD slots - see my blog entry
    Why Lotteries Are Better Than Auctions When Distributing New TLD Slots
    [cavebear.com] Since that time I have realized that lotteries alone or any other form of socially engineered method is probably going to have to be only a partial answer, hence my feeling now that we need to open some TLD slots via lotter and some by auction.
    [ Reply to This | Parent ]


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