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DNSO Input on Proposed
VeriSign Agreement Revisions
(28 March 2001)
Posted: 30 March 2001 |
At the ICANN meetings
on 9-13 March 2001 in Melbourne, there was extensive discussion
by attendees of proposed revisions to the ICANN-VeriSign agreements.
At its meeting held on 13 March (the last day of the meetings),
the ICANN Board discussed the topic and adopted
a resolution requesting "all members of the Internet
community, including the Names Council and any of the constituencies
and other participants in the Domain Name Supporting Organization,
to provide comments on the substantive merits of the proposal
no later than 31 March 2001."
The Board's
request was communicated to the Names Council, which called
for constituency comment and held a meeting
on 28 March 2001. At its meeting, the Names Council considered
a four part resolution, with separate votes (having different
results) taken on each of the four parts. (The resolution also
had a set of preliminary recitals, on which no formal vote was
taken.) The Names Council resolution
appears below, followed by statements of the
constituencies and participants
in the General Assembly.
Names
Council Resolution of 28 March 2001
[Recitals (no
formal Names Council vote taken)]
Whereas the Names Council stated at its
11 March 2001 meeting:
1."The new proposed Verisign-NSI/ICANN
Agreement published last week represents a substantive policy
change and involves a fundamental shift in the structure of competition.
The proposed change comes as a surprise and is a source of significant
concern to many stakeholders.
2. Such a change would require careful
consideration by the DNSO constituencies and the Internet community.
It cannot be considered except in accordance with due process
allowing a reasonable time for the constituencies to consider
and comment on the proposed changes.
3. The ICANN Board should not be precipitated
into any decision until full consideration has been given to
this issue in accordance with ICANN's procedures and DNSO consultation."
Whereas the ICANN Board has resolved:
[01.22] that the Board requests all members
of the Internet community, including the Names Council and any
of the constituencies and other participants in the Domain Name
Supporting Organization, to provide comments on the substantive
merits of the proposal no later than 31 March 2001;
Whereas the Names Council has requested
its constituencies and the DNSO general assembly to communicate
their positions on the proposed agreement,
[Resolution
Part A (vote: 15 in favor, 1 opposed, none abstaining)]
A. The Names Council resolves to communicate
to the ICANN Board the following statement.
1. That it remains concerned about the
lack of earlier consultation.
2. That the NC seeks clarifications on
the revised agreement.
3. That areas of concern (for the full
comments, see the attachments) are:
a) the lack of certainty in the stability
of the changed competitive climate which has been used to justify
a decision to no longer require registry or registrar divestment;
b) if the registrar is not divested, the
speed of the proposed divestment of dot org and dot net in the
revised agreement and the uncertainty reflecting divestment of
dot net;
c) the provision of WhoIs services;
d) structural safeguards to prevent potential
misuse of dominant market power.
[Resolution
Part B (vote: 9 in favor, 6 opposed, 1 abstaining)]
B: The NC resolves that if forced to choose
between the existing agreement or the revised agreement as written
the NC reluctantly chooses the existing agreement.
[Resolution
Part C (vote: 10 in favor, 1 opposed, 5 abstaining)]
C. The NC proposes that a win-win position
for ICANN and the internet community would be for the Board to
seek negotiation with Verisign on the following provisions and,
if necessary, to ask the US Department of Commerce and Verisign
to consider a delay while these changes to the revised agreement
are sought:
1) earmark a specified portion of Verisign's
promised $200 million R&D/investment fund to the development
and implementation, in an open and transparent process, of the
platform and search capabilities for a unified, publicly accessible
WhoIs service that spans .com, .net and .org, and is both available
and required for all ICANN accredited TLD registries;
2) earlier divestment of dot net;
3) enforceable safeguards, with an ultimate
sanction of divestment of the dot com registry and registrar,
regarding the potential for abuse of dominant position.
[Resolution
Part D (vote: 16 in favor, none opposed, none abstaining)]
D. The NC also resolves to communicate
to the ICANN Board the individual positions of its constituencies
and discussion in the General Assembly (see below). (Constituency
order follows the by-laws.)
Constituency
Comments.
The following constituency comments were
forwarded by the Names Council to the ICANN Board on 30 March
2001:
1. ccTLD registry
constituency
Introduction
The ccTLD group needs much more time that
other Constituencies to consider ICANN issues, for two main reasons:
first because a lot of people consider ICANN is not about ccTLD,
second because the group is international by nature, and communicating
very slowly. However taking into account an extremely short time,
the ccTLD Council representatives decided to convey individual
ccTLD members comments in absence of Constituency consensus.
The summary of ccTLD members input is provided below.
Assumptions on ICANN - VeriSign agreement:
The ccTLD Constituency members have been
taking into account the following "border conditions":
1. The current ICANN -VeriSign agreement
(option "A") originated between the US Department of
Commerce and Network Solutions Inc., and after several revisions
has been adopted by the ICANN Board on 4 November 1999. This
agreement follows a timeline, agreed upon by the DoC and the
NSI, with several actions concerning .com, .org and . net registry/registrar
activities. The next date is 10th May 2001 - under a 1999 agreement
the VeriSign is obliged to divest the assets and operations of
either the NSI Registrar or the Registry. VeriSign announced
its intention to divest itself of the assets and operations of
the NSI Registrar and to continue to operate the Registries for
.com, .net, and .org through at least 2007.
2. This ICANN - VeriSign agreement as such
is subject to the US law, and is between two private sector companies,
which committed to accept it. All re-negotiations are possible,
but subject to agreement of both parties. a. Since December 2000,
the ICANN staff have been approached by VeriSign to revisit the
current agreement. b. ICANN staff has been taking into account
the fact that agreements for new gTLD, following selection in
November 2000, differ from the one for . com, .org and .net.
c. A revised contract, option "B, has been drafted and reviewed
between ICANN staff and VeriSign, and published on 1st March
2001. d. ICANN staff presented a comparative study of advantages
and drawbacks of both options, "A" and "B",
in Melbourne, mid-March 2001. e. Both VeriSign and ICANN staff
have been publicly stating that the proposed option "B"
is not subject to negotiation prior to 10 May deadline.
3. Several international rules apply to
private sector agreements, such as open competition and deregulation
of monopolies. At this stage, various governmental agencies are
concerned (such as the US Department of Commerce or the Directorate
General 4 of European Commission).
Results of 5 days e-mail consultation
within ccTLD Constituency
The ccTLD Constituency has been provided
notes from its NC representatives and was requested to comment
and to choose between option "A" and option "B".
The outcome of five days formal e-mail consultation, over which
an additional group of 15 ccTLD (besides 3 NC reps) provided
input, is:
1. Four (4) members are in favour of "A",
one explicitly supports "A" to have "B" renegotiated.
2. Five (5) members are in favour of "B".
3. Six (6) members commented on ballot,
stating option "B" is less harmful than "A",
but both keep VeriSign in the same monopoly position as usual.
The ccTLD members request to warn ICANN Board that the community
do not have enough time to comment. The ccTLD members are concerned
by agreements signed between ICANN and VeriSign (or others),
because it might influence, directly or indirectly, on ccTLD
as well (for example ICANN budget impacts on ccTLDs).
4. Initially three (3) members stated they
do not care, afterwards two of them echoed the warning message
which ccTLD shall sent to the ICANN Board.
In addition the ccTLD reps to the NC have
posted personal comments to the NC. These can be found by following
this link and subsequent strings:
http://www.dnso.org/clubpublic/council/Arc05/msg00046.html
2. Commercial
and business constituency
The Business Constituency (BC) believes:
Firstly: it is not certain that the nature
of a stable competitive climate in the registrar business has
changed sufficiently to affect the dominant position of Verisign.
Secondly: that the question as to the relationship
of a monopoly supplier (a registry) and a co-owned retailer (a
registrar) has not been sufficiently explored for existing and
new TLDs. The possibility of problems in cross subsidies and
discrimination is of concern to the BC because we do not believe
that competition can develop and thrive if such conditions exist
( Note: the BC is not suggesting that that is the case at this
time).
Thirdly: it is unclear in the proposed
revised agreement what the $5m for dot org will provide and if
it is outright cash, or a combination of pre-determined products,
services, hardware and technical assistance. It is also not clear
what the proposed $200m of R&D will fund, and whether it
could result in an unintended dependency on VeriSign technology
or a vulnerability for entrants into registry and/or registration
services.
Fourthly: experience elsewhere suggests
that vertically integrated providers who control a monopoly service
may lead to a distortion of incentives regardless of the intent
with which the company entered into the situation.
Fifthly: the revised agreement seems less
specific on the provision of WhoIs services than the former agreement.
Sixthly: that a function of the competitive
climate is the risk to businesses from registrars insolvency
and the subsequent risk to registrants' names which represent
a key channel to market.
Therefore, the BC has potential competitive
concerns with the new agreement and are neutral as to the advantages
of the new agreement to business users.
On balance therefore if there is a bald
choice between the two agreements the BC favours the old agreement.
However, a more productive way forward
would be to ensure the WhoIs work effort is a baseline for any
change, and that the Board should give serious consideration
to the answers given to the issues noted above in their consideration
of either option.
3. gTLD registries
constituency
The gTLD Constituency is pleased to provide
its input to the Council on the proposed agreement between VeriSign
and ICANN.
We believe that the proposed agreement,
called Plan B, should be concluded and that it provides significantly
greater benefits to the Internet community when compared with
the status quo, or Plan A. Among these are:
- The normalization of VeriSign's relations
with ICANN. Under the 1999 agreements (Plan A), the relationship
between VeriSign and ICANN is contractually quite distinct from
the relationship between any other gTLD registry and ICANN. The
proposed agreement would, for the most part, establish the ICANN--VeriSign
relationship on the same footing as the ICANN relationship with
other gTLD registries.
- The elimination of the 1999 contractual
limitations on NSI's (now VeriSign's) financial contributions
to ICANN. These limitations could well impose a burden on all
other registries and on other members of the ICANN community
because under them, regardless of the circumstances, the VeriSign
registry is limited to annual contributions to ICANN of $250,000
and the NSI Registrar to annual contributions to ICANN of $2
million. The elimination of these limits would be an important
aspect of the normalization of relations between VeriSign and
ICANN under Plan B.
- The separation of the .com, .net, and
.org registry functions in a way that makes it likely that VeriSign
will continue to operate the registry for .com, but would end
VeriSign's operation of the .org registry, and would place the
operation of the .net registry in a competitive situation in
which VeriSign and others will be competing by 2005 for its future
operation.
- The enhancement of the stability of the
Internet in general and the .com environment in particular by
placing the ICANN-VeriSign relationship on a sound long-term
footing in which VeriSign can, and will, make long-term investments
that will ensure the continued efficient and smooth operation
of this critically-important element of the Internet.
In contrast with these benefits to the
Internet community, we have heard no persuasive reason to support
Plan A or not support Plan B. As regards VeriSign's continued
ownership of the NSI Registrar, ICANN management has disclosed
that the market share held by the NSI Registrar has dropped dramatically
since the 1999 agreements were executed; with the ongoing, very
rapid growth of ccTLD registrations and the advent of several
new gTLD's, there seems little reason to assume that this trend
will change. ICANN management also reports that VeriSign's implementation
of the Organizational Conflict of Interest (OCI) provisions of
the 1999 agreement --which would be continued under the proposed
agreement-- has been very successful and actually generated no
complaints (until the proposed agreement was announced); there
seems little reason to assume that this practice would change.
In fact, under the Plan B, VeriSign would for the first time
locate the NSI Registrar in a separate subsidiary. And finally,
ICANN management has disclosed that under Plan A, VeriSign would
likely be both a major "re-seller" of registrations
and re-enter the market as an ICANN-accredited registrar anyway.
In conclusion, we believe that Plan B would
serve the interests of the Internet community and the ICANN community
far better than would Plan A and we have found no persuasive
reasons to oppose Plan B.
4. ISPs and connectivity
providers constituency
Introduction
The basis for our recommendations to the
Names Council is that there are no other alternatives than agreeing
without modification to either the proposed agreements (occasionally
referred to as "Plan B") or the agreements between
ICANN, Network Solutions, Inc., and the United States Department
of Commerce that were approved on 4 November 1999 and were signed
on 10 November 1999 (also referred to as "Plan A").
We explicitly acknowledge the extraordinary
efforts by the negotiators of ICANN and Verisign required to
formulate the new proposal. We further welcome the fact that
ICANN staff and Verisign representatives have done everything
possible to explain the Agreements and fill in the information
gap which the DNSO alludes to in the Names Council resolution
cited above. We are particularly grateful for the way that Louis
Touton and Roger Cochetti made themselves available at short
notice on 19 March for a conference call with the constituency.
Constituency Discussions
In our discussions as a constituency we
have concluded that the advantages that "Plan B" has
over "Plan A" are not great enough to justify a recommendation
that ICANN adopt the new, proposed agreements. Our reasoning
is reflected in these key points:
1. The new agreements appear to over emphasize
the importance of splitting off the .org registry. The .org domain
is a low-revenue and problematic registry to operate. There is
no obvious advantage to having .org managed by an independent
and less experienced registry. It is in the interests of the
ISPCP that .org remain stable - a new, less experienced registry
may imperil this goal.
2. The proposed agreements offer USD 200m
over 10 years to support R&D and infrastructure development.
However, there is no explanation of how this money is to be spent
and it is likely simply the minimum amount that VeriSign would
spend anyway to run the registry over that period.
3. "Plan B" appears to support
better coordination of whois databases by requiring VeriSign
to make its database available to a centralized database. However,
ICANN has not even decided on a centralized scheme yet, nor is
it clear who the administrator of a centralized database would
be. Furthermore, if such a scheme is instituted, VeriSign can
hardly refuse to support it. Conclusion We find no compelling
reason to abandon the existing Agreements between ICANN and VeriSign
and adopt the new proposal.
5. Non-commercial
domain name holders constituency
1. The Noncommercial Domain Name Holders
Constituency (NCDNHC) has numerous concerns about the revised
ICANN - Verisign registry contract posted 1 March 2001. The NCDNHC
concerns arise for both substantive and procedural reasons. However,
we note that the proposed contract has some merit, and we propose
changes that would allow the NCDNHC to support the contract.
Procedure
2. Even though the contract contains significant
new policies in registrar competition and .org registration,
the DNSO was not consulted. To approve an agreement arrived at
in this manner would undermine if not destroy the DNSO's policy
authority, which is based on bottom-up consultation.
Substantive Issues
3. The integration of registry and registrar
functions in the dominant COM domain may be anti-competitive
without other changes (see #4 and #6 below).
4. The pace of divestiture is too slow.
The divestiture of registry operations of ORG (31 December 2002)
and NET (1 January 2006) should occur more quickly
5. The possibility of restricting ORG to
only non-profit registrants is inconsistent with long-standing
policies and practices.
6. Some of the presumed benefits of the
revised agreement could be achieved by rapid authorization of
new top-level domains and new registries.
Positive Aspects
7. The separation of the .com, .net, and
.org registries is a positive development. The NCDNHC supports
divestiture of NET and ORG from the COM registry to promote registry
competition.
PROPOSED CHANGES
8. Accelerate the divestiture of ORG and
NET to 1 November 2002.
9. As a supplement to the contract revisions,
we support the creation of new gTLDs devoted to unrestricted
use and non-profit organizations by June 2002.
10. Ensure that the ORG domain remains
open to miscellaneous use and that the renewal rights of existing
holders of ORG domains are not affected in any way by the transfer
of administration.
6. Registrars
constituency
The Registrar Constituency is responding
to the request by the ICANN Board for input regarding the proposed
2001 agreements between ICANN and VeriSign.
We were surprised and disappointed to learn
on March 1st, that VeriSign and the ICANN staff had negotiated
revisions to the 1999 Network Solutions contracts with ICANN
and the Commerce Department that, if approved by the Board and
the Commerce Department, would abolish VeriSign's obligations
to sell either its registrar or registry business. We were deeply
concerned about the very short notice provided to the various
ICANN constituencies regarding such material changes and felt
strongly that there was inadequate time to properly examine the
changes and prepare a response.
When ICANN was in its embryonic development,
little more than two years ago, the registrar community rallied
around ICANN and helped it legitimize its position within the
Internet community. Registrars actively participated in Congressional
hearings and other events that helped ICANN achieve its goals.
The 1999 agreement was a key component to introducing and developing
competition in the registrar sector. The divestiture requirement
in that agreement communicated to the registrars a collective
understanding of the ICANN policy. This understanding formed
the basis for a number of key business and policy decisions taken
by the registrars and new registry entrants.
The Registrar Constituency believes that
the 2001 agreements, as currently drafted, fail to provide any
significant benefit to the Internet community. Furthermore it
significantly improves the windfall to VeriSign, which has long
reaped the benefits of a government-granted monopoly. We believe
that if approved, the agreements will undermine the competition
that has only begun to emerge in the registrar and registry industries.
In effect, these proposed modifications will make a contract
that was already bad for the industry, even worse.
Therefore, given a choice solely between
the 1999 agreement and the 2001 proposed agreements, the Registrar
Constituency respectfully urges the ICANN Board to reject the
proposed 2001 agreements.
However, the Registrar Constituency recognizes
that the ICANN staff is working diligently to achieve benefits
for the ICANN constituencies and the Internet consumers. We,
unfortunately, do not believe that the 2001 proposed modifications
achieve adequate benefits for either group. Therefore if the
Board in its wisdom finds an opportunity to improve these proposed
2001 agreements, the Registrar Constituency hereby proposes certain
changes that could provide the minimum safeguards for the Internet
community to allow the Constituency to support renegotiation
of VeriSign's contract:
(1) Bid the .net registry through an open,
competitive process under the original schedule of November 2003.
NSI/VeriSign to be disqualified from participating in the bidding
process in its own right or through 3rd parties;
(2) Redirect the proposed $200 million
VeriSign R&D spending to a fund that would benefit the goals
of ICANN and the Internet community;
(3) Remove the proposed volume discount
in the .com registry agreement;
(4) Require a minimum120-day notice to
all ICANN-accredited registrars before the VeriSign Registry
provides any new/expanded/enhanced services.
ANTI-COMPETITIVE CONCERNS WITH THE 2001
MODIFICATIONS
The proposed 2001 contract modifications
will undermine competition in two significant ways.
1. VeriSign, unlike competitor registrars,
will continue to bear essentially zero wholesale cost. The registry
fee is the principal cost of selling a registration. VeriSign's
registry fee is simply a payment from one VeriSign division to
another, which nets out on the corporate income statement and
balance sheet. For other registrars this is a real cost. This
position allows the VeriSign registrar to offer aggressive and
sometimes free promotions to customers that its competitors cannot
meet or sustain. Today, VeriSign remains the largest global registrar
by far, and the continuation of this unfair advantage would help
perpetuate its position. Over time, VeriSign's predatory tactics
will be used to drive competition out of the registrar business,
thereby undoing the initial progress made by ICANN to date in
the industry.
2. The VeriSign registry has over the years
as a government-granted monopoly amassed significant capital,
technical and market experience. Since the new TLDs are important
to registrars' survival and growth, it is imperative that these
new registries be given plenty of opportunity and scope to flourish
and grow. These new agreements raise the bar for new registries
in what will be an uphill battle. While VeriSign will be free
to continue to subsidize its registrar business from the revenues
it derives as a registry. In contrast, the other registrars that
have backed new TLD registries will be in a start-up phase during
which time they will need to contribute significant capital mostly
borrowed or derived from their registrar activities. Therefore
any impact on their Registrar business could seriously impact
their Registry development.
The draft agreements further impede competition
by providing a presumption of a perpetual term for the .com registry.
This predictability will over the long term enable VeriSign to
fund and develop new services that will increase the .com registry's
competitive edge and increase the gap between it and the next
registry by a very significant factor, while during this period
the new registries will be
a. Expected to "prove the concept",
b. Build a brand,
c. Establish a market,
d. Develop new products and services, and
e. Fund this on the basis of a contract
with a limited six-year term divestiture requirement.
For all of the above reasons we do not
believe that this has been a fair deal. The ostensible benefits
to the Internet community, as announced to the press, are nonexistent
or, at best minor. First, the fact that the .org registry will
be returned to its original purpose of serving the non-profit
community is not a win - just a return to the original intent
when the U.S. Government gave VeriSign the monopoly. Second,
the $200 million in research and development spending is not
required to be additional to VeriSign's current research and
development expenses and would therefore already be achieved
by VeriSign's current R&D budget over the period in question.
Furthermore, any proprietary R&D consummated by VeriSign
will simply produce new products and services from which VeriSign
alone can profit, in competition with new TLDs. Third, the termination
of the .org registry term in 2002 and the shortening of the .net
registry term by 22 months (although, there is a presumption
for the incumbent in the .net agreement) are minor when one considers
that approximately 90 percent of the gTLD market is in the .com
and .net domains.
Finally, we do not agree with the suggestion
that the 2001 modification does not change the practical effect
of the 1999 agreement. An arrangement under which VeriSign would
have become a reseller would first have had to pass muster with
ICANN and the Commerce Department as being consistent with the
spirit of the 1999 requirement. If such an arrangement had received
approval, VeriSign would have become a re-seller for an existing
registrar as thousands of other resellers have. But unlike other
resellers VeriSign would be prevented from owning a substantial
share of that Registrar which is why the Registrar community
was in favor of that proposal.
While we do not doubt ICANN's good intentions
and efforts to achieve benefits for the Internet community out
of these negotiations, much more needs to be done in order to
satisfy the Registrar constituency that there is a benefit to
ICANN and its constituencies...
Registrars have been patient with the unfair
advantages afforded the VeriSign registrar by its relationship
with the registry because we believed that this unequal advantage
treatment would end in May 2001.
The registrars strongly urge the Board
to reject the current contract amendments fundamentally because
it is premature and inequitable to alter the contracts upon which
other registrars have built their business plans. Instead, it
should move forward with allowing competition at the registry
level with the introduction of new top-level domains (TLDs) and
test how market forces drive the competitive bid of the .com,
.net and .org registries in 2007.
7. Intellectual
property constituency
IPC members have reviewed the proposal
for new registry agreements regarding .com, .net and .org, with
particular focus on the potential impact on prevention and resolution
of intellectual property-related disputes. The main concern that
has emerged from this review is the impact of the new agreements
on unrestricted public access to registrant contact data (Whois).
Section 9 of the existing ICANN-NSI Registry
Agreement contains specific undertakings on the provision of
registry-level Whois. Section 9(C) also requires Verisign to
cooperate in the development of a Whois service covering all
three gTLDs, including contributing data to a centralized service
if ICANN determines that is required. By contrast, the proposed
revised .com registry agreement (Section 11) and the proposed
revised .net and .org agreements (Section 3.10) are much less
specific, and omit any explicit requirement to participate in
a Whois service spanning .com/net/org. They do, however, obligate
the registry operators to make data available in bulk for a similar
service covering "multiple TLDs." The Appendices (O
and P) which spell out the registries' obligations in detail
have not been made public to date.
While unrestricted public access to current
and complete registrant contact data is universally recognized
as a key tool in preventing and resolving intellectual property
disputes as well as bolstering public confidence in the online
environment generally, the status of Whois accessibility in the
gTLDs currently is extremely disappointing. As ICANN staff have
observed, most registrars are not in compliance with their Whois
obligations under the Registrar Accreditation Agreement, and
there has been very little discernible progress toward gTLD-wide
Whois provision on a distributed basis. Accordingly, it would
be timely for ICANN to give immediate consideration to invoking
the terms of section 9(C) and requiring the gTLD registry to
contribute data for a centralized cross-registry Whois service.
IPC recognizes that the proposed revised
registry agreements, if adopted, could provide authorization
for similar steps to be taken. However, because the provisions
of the proposed new agreements are general and refer to Appendices
that have not yet been made public, IPC recommends that the ICANN
Board obtain appropriate specific assurances from Verisign regarding
cross-registry Whois services before approving the revised agreements.
Such assurances should include, but not necessarily be limited
to, the following:
(1) Verisign's commitment, as of the effective
date of the new agreements or a specified date within six months
thereafter, to cooperate and contribute nameserver and registrant
contact data on registrations throughout .com, .net, and .org,
for the purpose of maintaining either a distributed or a centralized
Whois service covering all three TLDs, as contemplated by section
9(C) of the current registry agreement;
(2) Earmarking of a specified portion of
Verisign's promised $200 million R&D/investment fund to the
development and implementation, in an open and transparent process,
of the platform and search capabilities for a unified, publicly
accessible Whois service that spans .com, .net and .org, and,
to the extent possible, all other TLD registries.
The IPC also welcomes the opportunity of co-operating with ICANN
on a transparent review of the services provided by the Verisign
registry to owners of .com, .org and .net names with the aim
of contributing to the better running of the registry.
General
Assembly.
The following statement was generated in
the GA and approved by a vote in which 27 individuals participated.
After thorough discussion, the GA has shown
rough consensus in favour to option A, i.e. to keep the current
contract.
A straw poll conducted between the 15 and
20 March has given the following results:
24 in favour of the current contract (option
A)
2 in favour of the new contract (option
B)
1 neither of the above .
The reasons for the choice, as expressed
by some participants, are mainly.
1) "horizontal" separation between
Registrar and Registry, foreseen in option A, is perceived as
a better deal than "vertical" separation among TLDs,
and a better safeguard against a monopolistic position.
2) The switchover to option B is perceived
as a change in policy, done without previous consultation of
the DNSO (whose mission is to provide recommendations on policy),
and moreover within very strict deadlines, absolutely inappropriate
to evaluate in depth the implications of such change. For instance,
some of the details of the new proposal, like some attachments,
are still unknown at time of writing. Also, this change in policy
is considered irreversible.
3) The financial advantages for the Internet
community of option B are not balancing off the drawbacks above,
as it is understood that the investment will be done by VeriSign
at its discretion, based on a commercial logic that is perfectly
legitimate but out of the control of the Internet community.
The benefits for the Internet community are therefore not identifiable
at this point in time, and it may be even assumed that other
competing operators might invest comparable amounts of money
in the infrastructure as well, if granted similar contracts by
ICANN.
4) The other claimed advantage of option
B, i.e. a different management of .org, is minimal in value if
of any value at all, because years of practice of sale of names
without enforcement of the original charter have irreversibly
altered the content of .org Moreover, should a charter be enforced
by ICANN and/or agreed with the .org registry (and this regardless
on whether the registry changes owner, i.e. independently from
option A or B being chosen), the GA is opposed to any action
to cancel existing registrations. Any action of this type would
be contrary to the legitimate interest of bona-fide owners of
.org names.
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