Re: [ga] Verisign (VRSN) hits new 52-week low

["Ray Fassett" <ray@fassett.org>]

This logic, to me, is a bit misguided.  First, it works off of the premise
that the registrar channel is actually needed as part of competitive DNS
enviornment (where customer service is one of the intended by-products).
There are many in the community, such as myself, that do not agree.  If
Verisign shareholders are to be angry, this anger will be directed at the
body that is regulating its wholesale price where such action is a) outside
its scope and b) outside its qualifications.

To this day, ICANN's definition of "accomplishing competition" is one
where .com domains remain artificially in demand.  The average retail price
of $10 (for new .com domains not in demand) is based purely upon the fact
the wholesale price is regulated at $6.  Should price deregulation at the
wholesale level occur, this price is sure to increase due to the
artificially inflated "value" of .com as a result of the ongoing lack of
consumer choice.  Verisign knows this.  It's shareholders know this. ICANN
is regulating Verisign.

When the registrar channel is forced to pay for the "value" of .com domains
at the wholesale level that the market place says exists is when this
market place will demand for options and choice or, put another way, a
system for new entry from the entity that was allowed to be created to do
so.  In the meantime, Verisign's valuation gets punished.  It's
shareholders are rightfully angry and this anger is being pointed at "the
regulator" as it should be especially since this same regulator claims to
1) not be a regulator and 2) states "competition" as one of its main
accomplishments.

Verisign's stock has been punished on Wall Street.  We shall see if this
act in a free market place has any effect upon the one ICANN has invented
and continues to regulate by contract.

Ray


Joop Tenstra writes:

"To look at this as an opportunity: This is the time that an organization
of Domain Name registrants can become a VRSN shareholders' pressure group
on the cheap at $4.55 a share. If they manage to turn VRSN 's image around
by forcing its Board to implement more "trust"worthy business tactics  they
will get their financial reward as well.

As the avenues into ICANN are being closed off, angry shareholder input at
the annual meetings of the 'dot com people" may actually have more chance
to influence Domain Policy towards a more customer/nameholder-friendly way."
-- 



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