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New gTLD Economic Study Phase II Report is Released

Following on from the previously published Economic Framework for the Analysis of the Expansion of Generic Top-Level Domain Names [334 KB] (June 2010), Phase II of this independent economic analysis has now been completed. See Economic Considerations in the Expansion of Generic Top-Level Domain Names, Phase II Report: Case Studies (Phase II Report) [PDF, 782 KB].

In this Phase II Report, Greg Rosston from Stanford University and Michael Katz from the University of California Berkeley, with the cooperation of Compass Lexecon and its Theresa Sullivan, provide an analysis including a taxonomy of gTLD types, potential benefits of new gTLDs, potential costs of new gTLDs, results from empirical research on the domain names associated with top international brands, and a high-level summary of the empirical findings of their overall analysis.

All other economic studies performed in preparation for the New gtLD Program can be found on under the heading, "TLD Demand and Economic Analysis."

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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"""" is not an IDN."