VeriSign Can Raise .net Prices in 2007

miller60 writes "ICANN is lifting restrictions on VeriSign's pricing of .net domains as of Jan. 1, 2007, eliminating a cap that dictated the amount VeriSign could charge registrars for each .net domain. The cap, now at $4.25 per name, expires at the end of 2006. The pricing details were not included in a draft contract published by ICANN prior to the bidding process, but negotiated after VeriSign prevailed in a controversial evaluation by Telcordia. VeriSign must give six months before any price change, allowing time to lock in current pricing with multi-year renewals."

Comments

Re:What about 3rd party registrars?

[Sawbones]

They're not raising their own prices, they're raising the price they sell domains to companies like Dotster. When you buy something through them you pay $9 (or whatever) per year, of which $4.25 goes to verisign since they need *some* money to run the physical infrastructure for handling all of the lookups. So for dotster to keep their $5 per domain profit margin they'll have to raise their rates by as much as whatever verisign increases their price by.