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    Highlights of the ICANNWatch Archive
    (June 1999 - March 2001)


     
    This discussion has been archived. No new comments can be posted.
    'Let Competition, Not ICANN, Rule' | Log in/Create an Account | Top | 46 comments | Search Discussion
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    Re: 'Let Competition, Not ICANN, Rule'
    by RFassett on Thursday September 12 2002, @04:01AM (#9191)
    User #3226 Info | http://www.enum.info
    If it can be assumed that there are 10M comnet units today with a creation date of 1999 and prior, then it is also reasonable to conclude with a high degree of confidence level that these registrants find value at $35 per year. If the average price of a domain today is $15 (some say $10) then registrars are working off of a $9 per unit profit margin. For the $10M units noted above, this would allow Verisign to increase its wholesale price to $26 with a reasonable degree of confidence it will not suffer much further attrition and the registrars still get their average $9 per unit profit margin. Under this scenario, even with 50% additional shrinkage in comnet, Verisign would more than double its registry revenues of today by way of wholesale price deregulation. WLS does not offer this type of revenue potential.

    Verisign registry is arguing that it has been unable to adjust to a change in its environment via the fact it is being regulated for reasons 1) that no longer exist and 2) by an entity that itself claims not to have regulatory ambitions as part of its mission.

    In effect, Verisign wants to recapture revenues it literally handed to its supply channel that this channel then chose not to take but instead opt for unit volume (i.e. cheap domains) that are now largely not being renewed and carry little value in the delete game. This is the competitive market place ICANN has created that also fueled the speculative market place the IP community has such disdain for. Meanwhile, Verisign registry hands remained tied while its revenues shrink because of a regulatory price cap. It is unable to adjust and what affect does this have upon "stability"?

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