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Re: [discuss] RE: [IFWP] Re: Register.com and the Testbed charges effect

(originally sent to the following:
To: list@ifwp.org, william@dso.net
Cc: Roberto.Gaetano@etsi.fr, domain-policy@lists.internic.net,
    dnso.discuss@lists.association.org, discuss@dnso.org

Resent to discuss@dnso.org after I subscribed.)

> >The big issue, as I see it, is not "prepayment yes" vs.  "prepayment no",
> >but "prepayment yes for some and no for others".
> >It is self-evident (please correct me if I'm wrong) that this situation is
> >not a level field for competition.
> More like this should not be an issue imposed by the registry or
> ICANN, but a decision each registrar should make.  The registry should
> not penalize or charge registrars for cancellations provided they do
> not excessively exceed the normal averages for non-pay cancellations.
> Lets face it, the registry has EXTREMELY little cost involved for
> inserting and then removing that entry (I'd venture to say none at
> all).

The cost may be small, but it is not zero. I find it perfectly reasonable
that a registry should charge *some* fee for a domain registration, even
if that registration is later cancelled. Having zero cost encourages
rampant domain name speculation. Having a small fee (not the cost of a
full registration) will make speculation possible, but it won't be free.
Compare with the stock markets - speculation in the stock markets is not

> Let the registrars decide what is the best model for them and
> their target markets.  The registrar that sets up a no prepay secure
> email interface for ISPs to funnel new registrations through will see
> an influx of millions of dollars of registrations from the ISPs that
> are tired of dealing with NSI, and are awaiting a registrar that will
> meet their needs.

If we're talking about TLDs other than just COM this may also depend on
the policy of the TLD in question. A TLD may have a policy which says
for instance that a domain name cannot be *reserved* - that domains are
only for those who pay for the domains and have real name servers.

A domain name registration and a later cancellation of the same is for
all practical purposes equivalent to a temporary reservation of the
domain name - it will block others from registering the same domain.
To avoid speculation in such reservations, a fee seems reasonable, even
if the registration is later cancelled.

Steinar Haug, Nethelp consulting, sthaug@nethelp.no