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OECD supports TLD auctions
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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?
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