Re: [ga] ITU Resolution 102 -- four years later

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

Elisabeth Porteneuve wrote:

"Why ICANN maintain that enormous $6 cap fee per domain name
in extra-judiciary international space?"

the fact of the matter is, this "cap" seriously undervalues the .com
registry.  There is little doubt that the operators of this registry could
command from the market place a far higher amount of at least $10 (a 67%
increase) but likely even higher without suffering any major attrition in
today's landscape.  There is also the thought that the operators of this
registry would even trade a certain amount of volume for a higher per unit
price, but that's a different tangent.  Since the market has achieved
competition (as stated as accomplished in 2002) the question must be asked
as to why a price cap is necessary at the wholesale level?  Secondly, if it
is, what entity should have the authority to impose it (in a competitive
environment)?  Should this be ICANN? How long before shareholders of VRSN
figure out that their investment savings is being regulated by ICANN in a
competitive market place?  Is ICANN structured for this type of exposure?
Does anyone question that this type of pressure is being applied right now?

Of course, the larger issue here is why a free market would place a
materially greater value upon one particular extension when this market has
been concluded to be "competitive".  When the price cap gets removed - as
it should in a competitive environment - we shall see what happens.  There
is nothing stopping Verisign today from settng its wholesale price below $6
to encourage volume.  They are allowed to charge less.  It obviously does
not see this action as a need in the market place.  What is the need for a
wholesale price cap in a competitive arena?  Instead of advocating imposing
a lower cap, why would ccTLD's not just advocate complete removal of
wholesale price regulation of gTLD's - consistent with other regulatory
type arguments it has made regarding the ICANN entity?

Ray
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