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

It can mean only one thing...

[mislam]

We as owners of .net domains we will be screwed soon. Question is what is ICANN getting out of it?

It's not the end of the world

[Kookus]

I'm not understanding why they should be allowed to charge more. Does the registration business really follow the same dynamics that other businesses follow?
Let's say the costs to maintain their business follow inflation, wouldn't they always be profitable on the ever increasing numbers of domains being registered? It's not like a buy once and you're set type of deal, you're locked into a service forever unless you're ready to part with your "name".

I don't see a problem with it

[CaptainTux]

I suppose I'm missing what the big deal is about this issue. I understand that Verisign has a lock on the .net TLD but the company is really no different than any other business: what they can get away with is directly regulated by what people are willing to pay. When Verisign sees the slowing down of .net registrations and the increased registrations of non Versign controld TLD's then they will either have to stand their ground and lose revenue or lower their prices.

The decisions of what Verisign can charge and how long they can charge is are really up to YOU: the customer. Vote with your feet and start looking at some non Versign controlled TLD's!

Anthony

HELP AN OPEN SOURCE PROJECT:
https://www.fundable.org/groupactions/groupaction. 2005-07-08.3911172488/

Re:I don't see a problem with it

[Skellbasher]

But why should anyone be forced to pick a suck-ass TLD just because Verisign has control over .com and .net? What site is Joe Consumer going to go to first, www.mybiz.com or www.mybiz.web? .com and .net are universially recognized and accepted. Verisign should lose it's monopoly on .net if they are going to be able to jack up prices, allow some competition, somehting they are afraid of.

Re:I don't see a problem with it

[wfberg]

The decisions of what Verisign can charge and how long they can charge is are really up to YOU: the customer. Vote with your feet and start looking at some non Versign controlled TLD's!

This works because there is absolutely no cost or inconvenience associeted with changing your internet address!

People will magically assume that they should go to yourdomain.someobscurenonversigingTLDlikedotbizorp erhapsdotus in stead of yourdomain.net when you drop it (and when it's subsequently re-registered by a domain spammer or your competitor).

Also, e-mail will magically be rerouted so you won't miss a single e-mail, and said domainspammers/competitors won't get mail meant for you on their mailserver (you know, like paypal password reset links and stuff).

Re:I don't see a problem with it

[uss_valiant]

I suppose I'm missing what the big deal is about this issue. I understand that Verisign has a lock on the .net TLD but the company is really no different than any other business: what they can get away with is directly regulated by what people are willing to pay.

Nope, there's no alternative to Verisign if you need .net domains, it's a monopoly.
Just think of all existing .net domains. A lot of websites are bound to their .net domain name. If Verisign decided to charge more and more for .net domains, you have the choice between losing a lot of bookmarks, your well known domain name, your page rank etc. and just paying what Verisign charges.
Either let more than a single company manange and sell .net domains or regulate the price. Free marker vs. regulation. But don't give a single company the monopoly and let them charge whatever they want at the same time.
The DNS is hierarchical, so the ICANN could decide that Verisign manages the .net server, but other companies can sell .net domains too, and the ICANN should then at least regulate what the other companies have to pay for the license to sell .net domains.

Re:What about 3rd party registrars?

[Skellbasher]

Since the registrar (GoDaddy,Network Solutions, Dotster, etc) has to pay Verisign to register a .net domain, any price increase will be passed along by the registrar to the end comsumer registering the domain. Of course, this announcement only says that Verisign CAN raise prices in Jan, doesn't say they will. Although based on Verisign's past practices, I'd expect an annoucement on Jan 2nd that starts the 6 month grace period mentioned in the article.

Re:Relax!

[vandon]

Since they are the sole suppliers of .net domains to everyone, normal free-market pricing doesn't come into play. If you want or must have a .net domain because your domain name fits with it or a business need, you're going to pay whatever verisign says to pay. It's like going to the doctor and wanting drug X that does everything you need with few side-effects, but only being able to afford less effective generic drug Y because multiple companies make it.

If you are the sole supplier of something, whether it's a tld, OS, or drug, you can charge whatever you want and free market be damned.

VeryLame

[Doc Ruby]

It still blows my mind that VeriSign can hold a monopoly on these registrations, getting so much value out of the DNS system and Internet that everyone else operates without charging VeriSign. Without giving much back - and with notoriously bad customer service, and attempted coups in breaking the protocol, by offering their own proprietary promotional database of "what you were looking for", rather than failure responses. Monopoly sure is nice - they're printing money.

Re:This just isn't right

[timeOday]

Dude, if you don't like, start your own DNS structure.

Oh please. Do you have anthing practical to add to this discussion?

I registered my own domain about 4 years ago so I'd never have to change my email address again; it happens to be a .net. Now I face what amounts to a retroactive price hike.

It's stupid to allow ICANN to charge whatever the market will bear for an infrastructure service which costs very little to operate. Maybe we should open ICANN's position up to competitive bidding instead.