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

    This discussion has been archived. No new comments can be posted.
    How are the new TLDs doing so far? | Log in/Create an Account | Top | 86 comments | Search Discussion
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    Re: I Don't Understand The Numbers
    by RFassett on Monday July 15 2002, @03:46AM (#7857)
    User #3226 Info | http://www.enum.info
    ICANN claims competition as an accomplishment. The result of the new TLD expansion is one where Verisign registRAR has accomplished a market share position where its gross margins equal or exceed the revenues of each the biz and info registries. The opportunity cost to each registry has been the loss of accelerated ROI for its registry infrastructure investment that would otherwise allow for greater assurance of address stability to the community (ICANN's # 1 concern). Instead these $ sit at the registrar level (due to the unbalanced wholesale-retail spread) of which the market share leader has clealry benefited as a result. ICANN decision-making has allowed this result for the community.

    Secondly, the wholesale price chosen by ICANN as submitted by both biz and info has not allowed for any type of material marketing budget to exist for either even though clearly a responsibility placed upon each new registry as part of the bid process. Actual registration volume is down vs. the submitted projections (not a surprise to many) causing the marketing budget(s) to be slashed as a result (also not surprising). ICANN decision-making has allowed this result for the community.

    Thirdly, retail pricing for both biz and info (based upon the wholesale pricing) combined with convoluted and detailed landrush procedures has influenced a very high percentage of registrants driven by motivations other than content development. The expansion process for the gTLD's could not have worked out better for the small percentage of the community that are attracted to purchasing domain names for the sole purposes of resale. The results show this to be true. ICANN decision-making has allowed this result for the community.

    It is clear that the wholesale pricing models chosen by ICANN to "compete" against the enormous market share headstart of a monopoly driven environment was flawed. The normal evolution of market place competition (where the majority of the community gain the opportunity to benefit) has, logically, been stunted as a result. ICANN continues to compound the situation (lack of market competition) by 1) claiming it as an accomplishment and 2) bringing to a complete halt for the foreseeable future any additional expansion opportunities at the top level.

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