RE: [registrars] Verisign registry requirements for credit during 45 day grace period after domain name expiry

["Bhavin Turakhia" <bhavin.t@directi.com>]

hi,

i agree. the former system is better, where Verisign does not debit the
account unless the 45 day grace period is over.

assuming there is approximately 30 million domains out there means in any 45
day period there are averagely 3.6 million domains stuck on Auto-renew. This
translates to a 21.6 million dollars in working capital obtained by the
registry, of which if average 50% domains get renewed, translates to 10.3
million US Dollars interest free short term borrowing for Verisign :)

bhavin

> -----Original Message-----
> From: owner-registrars@dnso.org [mailto:owner-registrars@dnso.org]On
> Behalf Of Bruce Tonkin
> Sent: Monday, April 29, 2002 11:10 AM
> To: 'registrars@dnso.org'
> Subject: [registrars] Verisign registry requirements for credit during
> 45 day grace period after domain name expiry
>
>
> Hello All,
>
> At present the Verisign registry requires a credit balance to be
> maintained
> by registrars.
>
> After a domain name passes the expiry date, the registry "auto-renews" the
> name, and charges against the funds maintained by the registrar.
>
> There is then a 45 day grace period, during which the domain name may be
> deleted, and the registry fee refunded.
>
> Given that probably only around 50% of domain names are renewed,
> there is a
> need for a registrar to maintain a higher credit balance than necessary
> (unless the registrar chooses to not take advantage of the 45 day grace
> period, and explicitly delete the domain on the day of expiry).
>
> Melbourne IT feels that either:
> (1) Verisign should not debit the account balance until the end of the 45
> day grace period
> (2) Verisign should only debit the registrar at the beginning of
> the 45 day
> grace period for an amount that reflects the average renewal rate of that
> particular registrar (e.g if the registrar on average renews 10%
> of domains
> by the end of the 45 day period, then the registry could debit the
> registrars account by that number of domains at the beginning of
> the 45 day
> period).
>
> What do other registrars think?
>
> We have found that as our total number of domains under management has
> grown, the requirement for a large credit balance is increased (and hence
> the opportunity cost of providing those funds that could be used
> effectively
> elsewhere).
>
> Regards,
> Bruce Tonkin
>
>