[ga] RE: GA/DNSO Funding Issues

["Gomes, Chuck" <cgomes@verisign.com>]

The registrars are billed a variable amount based on their proportionate
share of names in the database at the end of a quarter.

It is not my place to judge whether or not registrars are suffering any
undue cost burdens, but I would say that I have been amazed over the years
at how little the average person understands about operating a registrar.
For example, how much does it cost to offer telephone customer service.
Industry estimates suggest that one to three live calls could easily cost
$35.  And customer service is just one cost area.

Also, it seems to me that it is really easy to spend money that someone else
is paying.  That I think is a not so desirable trend.

Chuck

-----Original Message-----
From: DannyYounger@cs.com [mailto:DannyYounger@cs.com]
Sent: Monday, August 27, 2001 2:48 PM
To: cgomes@verisign.com
Cc: ga@dnso.org
Subject: RE: GA/DNSO Funding Issues


Dear Chuck,

I am doing my best to try to understand the finances involved.  Perhaps you 
can clear up some misconceptions that I might have.  

I am given to understand that ICANN has been invoicing the gTLD registrars
at 
a rate of $535,000 each quarter.  According to the first quarter "State of 
the Domain" report, there were 3,033,933 new registrations during the 
quarter.  This would amount to about 18 cents paid to ICANN for each such
new 
domain registration.  

Knowing that, at the moment, the two largest registrars represent 62% of 
total registrations, and that both charge $35 for domain name registration,
I 
would tend to conclude that these registrars are not suffering an undue 
financial burden as a result of ICANN's fee structure.  

I somehow doubt that registrants would object to a few more pennies being 
assessed if service could be improved, and I am sure that the registrars 
could probably afford it without the need to pass on additional charges to 
the registrants.

Our internal committees, the Supporting Organizations, need to be properly 
funded if they are to do an effective job for ICANN.  

If just one cent were added to the current fee structure, this would be 
sufficient to cover the DNSO's current operating budget.  Please let me know

if my assumptions are incorrect.



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