RE: PAB [Fwd: DNSO Important update: The "Merged" Draft]

From: Shaw, Robert (Robert.Shaw@itu.int)
Date: Mon Jan 25 1999 - 06:29:50 PST


> -----Original Message-----
> From: John C Klensin [mailto:klensin@mci.net]
>
> Bill,
>
> (i) Under the IAHC/POC/CORE model, the registry(ies) were simply
> contractors, doing works for hire for the registrars. Under that
> model, there is no excuse at all for a registry to be on the NC
> or board except, possibly, as a non-voting technical consultant.
>

This is correct - much like the Nominet model in the UK. In this model,
the customer makes economic pressure on registrars who collectively
make it on the registry for price/service.

> (ii) Under the model that seems to be evolving, the registry is
> either a contractor of ICANN or a completely independent entity
> and it, and not ICANN or the DNSO, charters and authorizes
> registrars. In that model, the registry probably needs voting
> representation, and so do the registrars. In spite of the
> contractual representation, their interests are quite different.
>

This is a severely broke competition model for gTLDs in a system
where there is no regulatory enforcement capabilities (i.e., there
is no FCC here nor sovereign body to watchdog you (e.g., as Department
of Trade and Industry (DTI) does for Nominet in the UK)). It
means:

1. A registry can set any kind of registrar market entrance
requirements; if the registry is also a registrar (as is the case
with NSI), why make it easy for any registrar to compete with you?

2. In this model, there are no economic forces to keep a registry
from abusing its 'preferred' position as it has monopoly provision
power for a TLD.

3. A byproduct of this model is that it requires some fair market
mechanism for creation/allocation of registries/gTLDs. That is an
algorithm that I'd love to see. The algorithm must essentially address
the question of "show me a fair way to allocate to somebody the
possibility of printing several million dollars a month".

Auction the rights? .tv has taught us a lesson with single registrations
in the US$ 1,000.-- range and people would scream that it's unfair to
developing countries. Competitive bid the rights? - I imagine there are
lots of companies who would do it for free for leveraging an extremely
lucrative customer database to which they can cross-sell other services
(e.g., digital certs). Do you really want this? Lottery? - don't believe
it would be politically acceptable.

Bob

--
Robert Shaw <robert.shaw@itu.int>
Head a.i., IED/Advisor, Global Information Infrastructure
International Telecommunication Union <http://www.itu.int>
Place des Nations, 1211 Geneva, Switzerland



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