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RE: [registrars] RC WLS Response


Folks, if and until we see the proposed service agreement, we have no idea 
exactly what this proposal is.

Jim

--On Wednesday, January 16, 2002 4:35 PM +0100 Nikolaj Nyholm 
<nikolajn@ascio.com> wrote:

>
>
> I disagree with this black and white point of view.
>
>
> While the poll showed unanimous opposition to WLS _as is_, I believe that
> the general sentiment was to work _with_ VGRS on improving certain aspects
> of the proposal, rather than focusing on new, alternative proposals.
>
> The document does not reflect this nuance, and I can therefore not support
> it in it's current form.
>
>
> Kindest regards
> Nikolaj Nyholm
>
>> -----Original Message-----
>> From: Elana Broitman [mailto:ebroitman@register.com]
>> Sent: 16. januar 2002 16:05
>> To: wessorh@ar.com; Nikolaj Nyholm
>> Cc: 'Registrars List'
>> Subject: RE: [registrars] RC WLS Response
>>
>>
>> I want to second Rick's comments.  We are reacting to the
>> current WLS, and
>> it leaves us with the opportunity to continue to object to
>> any modified WLS.
>> But, we believed that we put ourselves in the strongest position to
>> negotiate by taking this stance. We should not be negotiating against
>> ourselves by telling VGRS what we'd be willing to settle for.
>>  We would only
>> end up with a position somewhere in between theirs and ours.
>>
>> -----Original Message-----
>> From: wessorh@ar.com
>> Sent: Wednesday, January 16, 2002 2:57 AM
>> To: Nikolaj Nyholm
>> Cc: 'Registrars List'
>> Subject: RE: [registrars] RC WLS Response
>>
>>
>>
>> Nikolaj,
>>
>>
>> On Wed, 16 Jan 2002, Nikolaj Nyholm wrote:
>>
>> > I think it is insufficiently nuanced to write: "in fact the
>> unanimous vote
>> > of all those taking a position - is to oppose the WLS."
>> >
>> > I believe that several registrars, ourselves included, were
>> in favour of
>> > working with Verisign on enhancing the WLS, but oppose it
>> in it's current
>> > form.
>>
>> since we could not negotiate with VGRS we could only vote on
>> the proposal
>> as given to us. When we have other proposals on the table I'm sure the
>> vote will come out differently.
>>
>> It also make complete sense that a different WLS proposal may get
>> a completely different voting result. Since every registrar
>> had some way to
>> improve the WLS it was impractical to list every registrars
>> vote and their
>> alternative; we just can't make a consensus statement that
>> says "it would
>> be ok with some changes..." without all agreeing on those
>> changes and VGRS
>> capable of incorporating those into the proposal.
>>
>> > I hope that alternative proposals ("The RC will address
>> these proposals in
>> a
>> > separate position paper.") will include suggestions on how
>> to revise the
>> WLS
>> > proposal.
>>
>> I too expect to see more alternative proposals, we have several at
>> www.icann-registrars.org please review them and provide
>> comments to their
>> authors.
>>
>> -rick
>>
>>
>>
>> > Regards
>> > Nikolaj
>> >
>> > > -----Original Message-----
>> > > From: Rick H Wesson [mailto:wessorh@ar.com]
>> > > Sent: 16. januar 2002 05:21
>> > > To: Registrars List
>> > > Cc: WLSDraftingTeam@ar.com
>> > > Subject: [registrars] RC WLS Response
>> > >
>> > >
>> > >
>> > > all:
>> > >
>> > > attached is the draft response from the WLS Drafting Team
>> composed of
>> > > the following:
>> > >
>> > >    George DeCarlo - dotster
>> > >    Bruce Tonkin - melbourneit.com.au
>> > >    E. Broitman  - register.com
>> > >    David Wascher - iaregistry.com
>> > >    Paul Stahura - enom.com
>> > >
>> > > Please comment on the draft as to if this is an
>> acceptable response.
>> > > The WLS Drafting Team used the comments from the meeting and
>> > > additional
>> > > comments forwarded to them to draft this response.
>> > >
>> > > If you find a general exception to the response please contact the
>> > > drafting team via WLSDraftingTeam@ar.com
>> > >
>> > > A text version is included below for ease in quoting. We must
>> > > finish this
>> > > response by Thursday so that we can formally deliver it to VGRS as
>> > > requested by Friday the 18th of January, 2002.
>> > >
>> > > Thanks for your corporation.
>> > >
>> > > -rick
>> > >
>> > > Rick Wesson
>> > > CTO, Registrars Constituency
>> > >
>> > > -------------------- txt version of RC-WLS-Response.pdf
>> > > ---------------
>> > >
>> > >
>> > > To Chuck Gomes,
>> > >
>> > >  The Registrar Constituency (RC) is hereby providing its formal
>> > >  position to the VeriSign Global Registry Services (VGRS)
>> regarding
>> > >  its proposal to manage a Wait Listing Service (WLS), the
>> subscription
>> > >  service for deleted domain names.  VRSN sent its proposal to the
>> > >  Registrar Constituency on December 30, 2001, and allowed
>> registrars
>> > >  to comment until January 18, 2002.
>> > >
>> > >
>> > >  The RC has considered the WLS, holding discussions and voting by
>> > >  email and through a conference call.  The overwhelming
>> posi tion of
>> > >  the RC - in fact the unanimous vote of all those taking
>> a position -
>> > >  is to oppose the WLS.  Considering VRSN's obligation under its
>> > >  agreements with ICANN to vet any proposed price
>> increases or service
>> > >  modifications for registry services with ICANN, and
>> ICANN's bottom
>> > >  -up approach, it is the RC's understanding that the RC
>> position will
>> > >  be considered within the Domain Name Supporting
>> Organization (DNSO)
>> > >  before the DNSO would make a recommendation to the ICANN
>> Board, and
>> > >  that the RC position would be a significant factor in ICANN's
>> > >  consideration of the WLS proposal.
>> > >
>> > >  Prior to reviewing the RC's concerns, it would be instructive to
>> > >  recall the history of this issue.  In Spring 2001, VGRS
>> temporarily
>> > >  shut off registrar connections, preventing new and/or s mall
>> > >  registrars from registering .com, .net and .org domain names.
>> > >  Ostensibly to address this technical load problem VGRS had
>> > >  temporarily closed the process of deleting expired names.  Rather
>> > >  than effectively solving the technical load problem,
>> VGRS implemented
>> > >  an interim solution, relegating batch requests for
>> deleting names to
>> > >  one of three pools to prevent this high -volume traffic from
>> > >  overloading its systems.  But according to VGRS, this
>> solution has
>> > >  not solved the connection problems.  In fact, VGRS is once again
>> > >  announcing that it is limiting connections.
>> > >
>> > >  The RC has a number of key concerns with WLS: a) price, b)
>> > >  transparency, c) benefit to the Internet, and d) lack of
>> a solution:
>> > >
>> > >    a) The proposed $40.00 price point for WLS (which is
>> in addition to
>> > >       the $6.00 registry fee) is exorbitant.  VGRS has
>> not justified
>> > >       this price with cost requirements.  Not only does
>> WLS create a
>> > >       much higher price point for the end consumer, it effectively
>> > >       undermines competitive registrars' financial
>> wherewithal.  It is
>> > >       highly u nlikely that registrars would be able to
>> increase their
>> > >       margins in proportion to the increased margin
>> charged by VGRS.
>> > >       In fact, market data (such as the Snapames price
>> point of $49)
>> > >       demonstrates that competitive registrars would have to
>> > >       dramatically lower , or eliminate, their current margins in
>> > >       order to compete for WLS names.  This would undermine
>> > >       competitive registrars' revenues and jeopardize
>> their ability to
>> > >       remain profitable.  * The one registrar that may be
>> able to take
>> > >       effectively advantage of this price is the VeriSign
>> registrar,
>> > >       which continues to enjoy the largest market share.
>> It would be
>> > >       able to use the new higher margin of $46.00 to price below
>> > >       wholesale, as it has in the past with the $6.00
>> fee.  The result
>> > >       is to unfairly undermine competitor regi strars.
>> > >
>> > >    b) There would be a lack of transparency if VGRS runs
>> the primary
>> > >       registry, the largest registrar, and the
>> subscription service.
>> > >       As long as the same company is operating this vertically
>> > >       powerful chain of companies, it may be possible for
>> it to shift
>> > >       domain names from the $6.00 registry to the $46.00 WLS.  In
>> > >       fact, only the registry would know all of the WLS
>> subscriptions
>> > >       and the timing for deleting names.  Such
>> information could be
>> > >       abused by its registrar.  Considering that there is
>> a history -
>> > >       some of it still unresolved - of VeriSign not
>> deleting expired
>> > >       names, the RC is doubly concerned that VGRS'
>> operating the WLS
>> > >       provides new opportunities for domain name hoarding.
>> > >
>> > >    c) The WLS provides an incentive and reward for
>> speculators, while
>> > >       squeezing registrants seeking to build a web presence and
>> > >       registrars (as explained above).  The WLS provides a "sure
>> > >       thing" to Internet insiders who are savvy enough to
>> get to the
>> > >       head of the line.  This primarily means
>> speculators.  They will
>> > >       be willing to pay the adde d $40 fee for a
>> guarantee of getting
>> > >       the expired name if 1) they are sure the name will
>> be deleted
>> > >       and 2) they believe that they can resell the domain
>> name at a
>> > >       higher price.  Insiders will be virtually the only
>> ones able to
>> > >       ensure that a certain name will be deleted.  The
>> end user will
>> > >       still have to pay the market price, which will be
>> determined on
>> > >       the secondary market.  Moreover, the fact that a WLS
>> > >       subscription has been placed on any given name
>> would prompt a
>> > >       speculator holding such domain name to renew it, rather than
>> > >       release it.
>> > >
>> > >    d) In addition to creating new problems, WLS will not solve the
>> > >       problem of batch pool slamming.  In fact, t here is the
>> > >       potential to create the same technical loading
>> problems on the
>> > >       WLS as currently exist on the main registry.  F or example,
>> > >       there will be competition amongst speculators to be
>> the first to
>> > >       get the WLS on the best names about to be deleted.
>> There could
>> > >       also be a landrush effect to place WLS on well known popular
>> > >       names, at the moment when the new WLS service goes liv e.
>> > >       Registrars will still compete for the expiring
>> names that do not
>> > >       have WLS subscriptions.  Since it costs the same
>> "to slam" a $40
>> > >       name as to slam a name greater than $40, there is
>> no incentive
>> > >       not to.  Finally, since WLS subscriptions are not tied to a
>> > >       name, this will create many WLS -switches
>> immediately after the
>> > >       zone file is released daily.
>> > >
>> > >  While the RC opposes the WLS in its current form, it
>> recognizes the
>> > >  need for a permanent solution to the apparent problem of deleted
>> > >  names not being released or b eing released in a manner that
>> > >  undermines other registry functions.  Therefore, the RC welcomes
>> > >  other ideas for addressing these issues, and has discussed other
>> > >  alternatives.  The RC will address these proposals in a separate
>> > >  position paper.  The RC is ope n to VGRS' comments on these other
>> > >  proposals, as well as any modified VGRS proposal that
>> modifies the
>> > >  WLS per the comments herein.
>> > >
>> > >  The RC  is  clearly  very  interested  in  this  issue
>> and   welcomes
>> > >  questions or further dialogue.
>> > >
>> > >
>> > >
>> >
>>



*****************************
Jim Archer, CEO
Registration Technologies, Inc.
10 Crestview Drive
Greenville, RI 02828
voice: 401-949-4768
fax: 401-949-5814
jarcher@RegistrationTek.com
http://www.RegistrationTek.com



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