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    VeriSign, Euro Registires Want ICANN Scaled Back | Log in/Create an Account | Top | 42 comments | Search Discussion
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    Re: VeriSign, Euro Registires Want ICANN Scaled Ba
    by RFassett on Friday August 02 2002, @04:17AM (#8304)
    User #3226 Info | http://www.enum.info
    the thought of removing the wholesale price cap was unthinkable when Verisign/NSI was in a pure registry monopoly position. As additional registries launch, the "need" to artificially regulate price at the wholesale level diminishes.

    So, to argue for the removal of the the "price cap" is parallel to favoring additional expansion. My guess is that Neulevel and Afilias would rather keep the status quo giving them more (artificial) time to seed the market place without additional upstarts coming on to the scene...even if this means living with their ill advised wholesale price cap - where the spread sits at the registrar level or worse, at the aftermarket level, instead of being captured for objectives such as the ROI of its infrastructure build-out needs.

    I am sure the Verisign crackerjack's have done the analysis of where regardless of the number of new TLD's that it will retain x number of .com units in the market place with the other variable then being price....and it is reasonable to assume they have got this part of the analysis down too.

    It only makes sense to argue for this unless you are Afilias or Neulevel that are likely motivated right now to keep the number of competitors artificially limited. If you asked each: would trade removal of the price cap but then be pro-expansion? I think, Afilias and Neulevel would not make this trade today. But, I think Verisign would now. It is their optimal approach towards maximizing the value of the .com registry in a competitive environment with the cross check being other consumer options that, functionally, accomplish the exact same thing. Certain separation indeed rests with the "string". For better or worse, it is up to the registry to create this separation in the market place. For this reason alone, price caps should be eliminated. There is nothing wrong with wanting to maximize the value of the string as long as there are plentiful consumer choices. Verisign with .com has indeed had an unparalled headstart - there is no going back and changing this part now. But the favoring of competition where artificial mechanisms are removed vs. a pure monopoly environment has its side effects upon the end user. DNS portability, however, has always existed for a reason.
    [ Reply to This | Parent ]
    Re: VeriSign, Euro Registires Want ICANN Scaled Ba by RFassett


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