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Domain Name Registration Transaction Fee Drops Again | Accredited Registrars approve second fee reduction in a row

MARINA DEL REY, Calif.: Registrars and ICANN have negotiated a reduction in the transaction fees paid for each domain name registration. It is the second such reduction in two years, which means a drop from US$0.25 to US$0.20 cents.

"This reduction was achieved through discussion and negotiation with Registrars and it demonstrates the effectiveness of the ICANN model," said Dr Paul Twomey, President and CEO of ICANN.

"Registrars are encouraged by ICANN's willingness to consider our position on issues such as revenue projections and we look forward to continuing our cooperative relationship going forward," said Jon Nevett, Chair of the Registrar Constituency. The constituency provides input and advice to ICANN’s Generic Names Supporting Organization.

Transaction fees, which are paid to ICANN for each domain name registered, were set at US$0.25 per year per registration. The fees were cut to US$0.22 last year and this reduction negotiated for the 2007-08 budget pegs it at US$0.20.

The Accredited Registrars — who have a say in the revenue structure — took less than a week to grant their approval. So far, more than 540 registrars out of over 880 have expressed their support. These registrars account for more than 70% of fees paid by registrars to ICANN (registrar approval requires two-thirds support) and additional support is expected which will push this number higher.

"The collaboration we have seen on this issue will be showcased again in coming months as together we examine ways to provide greater protection for registrants through a new data escrow program and improvements to the contract between ICANN and its accredited registrars," Dr Twomey added.

A workshop on Registrant protection was held at ICANN’s recent meeting held in San Juan, Puerto Rico.

About ICANN:

ICANN is responsible for the global coordination of the Internet's system of unique identifiers like domain names (for example .org, .museum and country codes like .uk) and the addresses used in a variety of Internet protocols that help computers reach each other over the Internet. Careful management of these resources is vital to the Internet's operation, so ICANN's global stakeholders meet regularly to develop policies that ensure the Internet's ongoing security and stability. ICANN is an internationally organized, public benefit non-profit company. For more information please visit: www.icann.org.

Media Contacts:

Jason Keenan
Media Adviser, ICANN (USA)
Ph: +1 310 382 4004
E: jason.keenan@icann.org

International: Andrew Robertson
Edelman (London)
Ph: +44 7921 588 770
E: andrew.robertson@edelman.com


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Domain Name System
Internationalized Domain Name ,IDN,"IDNs are domain names that include characters used in the local representation of languages that are not written with the twenty-six letters of the basic Latin alphabet ""a-z"". An IDN can contain Latin letters with diacritical marks, as required by many European languages, or may consist of characters from non-Latin scripts such as Arabic or Chinese. Many languages also use other types of digits than the European ""0-9"". The basic Latin alphabet together with the European-Arabic digits are, for the purpose of domain names, termed ""ASCII characters"" (ASCII = American Standard Code for Information Interchange). These are also included in the broader range of ""Unicode characters"" that provides the basis for IDNs. The ""hostname rule"" requires that all domain names of the type under consideration here are stored in the DNS using only the ASCII characters listed above, with the one further addition of the hyphen ""-"". The Unicode form of an IDN therefore requires special encoding before it is entered into the DNS. The following terminology is used when distinguishing between these forms: A domain name consists of a series of ""labels"" (separated by ""dots""). The ASCII form of an IDN label is termed an ""A-label"". All operations defined in the DNS protocol use A-labels exclusively. The Unicode form, which a user expects to be displayed, is termed a ""U-label"". The difference may be illustrated with the Hindi word for ""test"" — परीका — appearing here as a U-label would (in the Devanagari script). A special form of ""ASCII compatible encoding"" (abbreviated ACE) is applied to this to produce the corresponding A-label: xn--11b5bs1di. A domain name that only includes ASCII letters, digits, and hyphens is termed an ""LDH label"". Although the definitions of A-labels and LDH-labels overlap, a name consisting exclusively of LDH labels, such as""icann.org"" is not an IDN."