On Sun, 22 Feb 1998, Kent Crispin wrote:
> > Competition between TLDs is alive and very well. There is weak
> > competition between the nTLDs, and reasonably strong competition
> > between the individual nTLDs and .COM/NET/ORG. This competition is
> > good for all concerned.
>
> It appears to be the case, however, that registry prices in general,
> and on average, have been pegged near or above the $50/year that
> InterNIC sets for a relatively long time, despite the fact that their
> "production costs" are certainly far lower than $50, and they could
> easily set prices lower. So this "alive and well" competition is
> actually moving prices *up* from "production costs".
There is a very large world outside North America.
Inside North America * there is no competition *. Everything is
run by NSI.
Outside North America there IS competition.
So look for your data outside North America.
In the UK registry prices have fallen steadily since Nominet was
set up.
> In fact, I think an unbiased examination would reveal that the
> "registry industry" (to use Jim Flemings term) is so complexly
> regulated that to say that competition is "alive and well" is absurd.
Especially if you rely upon no evidence at all.
> Also, neither your example nor Javier's analysis go far enough:
>
> Registries actually compete on two fronts -- to gain new customers
> (market share), and to keep the customers they already have (revenue).
> We may see examples of competition in the former, but experience with
> the latter is limited. In fact, I am perfectly willing to concede that
> registries can compete in the search for new customers, and, in fact,
> I expect that new registries will compete briskly for market share.
>
> But all the non-competitive practices at issue concern
> re-registrations.
They don't. Out here where we have practical evidence, this is
not true.
Real world issues include price and policy. In my example, which
is NOT theoretical, people migrated to .UK despite higher prices
because of better policies.
> In a "competitive registry" environment the obvious
> evolution is to a pricing structure where the longer you have been a
> customer, the more you pay. Initial registrations will be nearly free
> -- we would be inundated with enticing "new domain owner specials!"
> while long term prices would steadily rise as registries take
> advantage of lock in effects. Of course, these changes will not be
> drastic -- they will be gradual, and spread as each registry sees what
> other registries can get away with.
>
> Note that Nominet's competition with .com is a fool's paradise right
> now. If NSI maintains it's monopoly, and is freed of regulation,
> .com registrations will mushroom in the UK.
On what vast experience of the UK market do you base this judgement?
I know I only have experience and know what I am talking about, but
our real world customers switched to .UK _despite_ the InterNIC and
.COM having a price advantage.
> NSI can certainly afford
> to undercut even Nominet's prices in that tiny restricted area, gain
> substantial market share, and relegate Nominet to an unimportant
> backwater of the domain name space.
Nominet can lower its fees to registrars to the sub-10 pound range
with no difficulty at all.
I know theorizing is lots of fun, but have some respect for the real
world, please. In the real world, the UK is 25% of the size of the
US - and Europe is bigger than the US. This market is scarcely
a "tiny restricted area".
-- Jim Dixon VBCnet GB Ltd http://www.vbc.net tel +44 117 929 1316 fax +44 117 927 2015
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