Re: [wg-c] Re: nine principles for domain names

["Philip Sheppard" <philip.sheppard@aim.be>]

Eric,
you ask me to expand on the competition issue with .com

First, a continued expansion of gTLDs in the way we propose (registries
proposal tested against the principles) WILL provide effective competition
against .com.

Second, INEFFECTIVE competition is a gTLD of the nature .com2 or .biz which
will be second-class .com's . Dot com has first mover advantage - it has
prestige. A company with its (companyname.com) that it makes known and uses
in its communications builds consumer knowledge in the name and over time
develops "brand" or "domain name" "equity". The name becomes a valued asset
in its own right - every bit as desirable as a trade mark (and increasingly
more desirable).

A competitor offering a me-too in .com2 is a follower, not a leader.
Effective competition is achieved in any marketplace when the new entrant
offers "value added" (i.e. something different and more) over the existing
players. "Value added" is not achieved by duplication. A successful
competitor must offer an incentive to leave or avoid .com for something
better not something worse.

Differentiation is what .com lacks and differentiation will be the source of
effective competition in the DNS.

Differentiation does NOT immediately mean narrow charters. The source of
differentiation may be found within a domain name that has broad capture.
Under our model, the intent for that broad capture and the differentiation
will be explained by the putative registry in terms of the principles.

Philip