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US Government Responds Harshly To ICANN gTLD Plans
ICANN posted its proposal for expanding gTLDs late in October, and now the US government has issued its scathing response (PDF, 11 pp., linked from there), from the departments of Commerce and Justice. The initial criticism is that John Levine sent a note to a policy mailing list and summarized the concerns raised as ranging from "...insufficient attention to monopoly and consumer protection, to lack of capacity to enforce compliance, to overreach into non-technical areas such as adjudication of morality, to what they'll do with all the extra money since they are a non-profit. Their first concern is that in 2006 the ICANN board said they would commission a study on economic issues in TLD registrations such as whether different TLDs are different markets, substitutability between TLDs, and registry market power, issues which are fairly important in any new TLD process. Here it is two years later, they're rushing to set up the new TLD process, but there's no study. 'ICANN needs to complete this economic study and the results should be considered by the community before new gTLDs are introduced.'"
This is such a bad idea. I think any company who buys these will be shooting themselves in the foot. I mean, in the 90s companies generally hated putting http:/// in advertising. Then they dropped the www part and just made it company.com. Now they are having their ultimate dream. To drop the .com part too. But with that comes a major problem. How are average people going to distinguish what is a internet address from something else?
Imagine this, Ford says in its advertising: "Go to ford.com". Its obvious here what to do. Now imagine they get just the TLD 'ford'. So what do you say. "Go to ford"? What the hell does that mean. Now they'll start having to say things like "Type ford into your web browser's address bar" Yeah, that's a whole lot easier to say than ford.com. Idiots.
I hope this totally backfires on all the marketing and sales people in the world so that they learn their lesson.
The difference is that for a new TLD, ICANN estimates the fees involved as:
The Evaluation Fee is designed to make the new gTLD program self-funding only. This was a recommendation of the Generic names Supporting Organization (GNSO). A detailed costing methodology â" including historical program development costs, and predictable and uncertain costs associated with processing new gTLD applications through to delegation in the root zone â" estimates a per applicant fee of $US185,000. This is the estimated cost per evaluation in the first application round.
The fee also includes $US100,000 per applicant relating to both fixed and variable costs of processing each application.
So if you have $100,000 to give to ICANN plus another $85K or so for expenses, you can have your proposal for .goatse or .profit considered. For a non-profit organization, it's surprising that it costs $100K for just the application fee. Given that they're essentially opening the floodgates for new TLDs, surely their historic costs for organizational overhead with maintaining only a few TLDs will drop drastically, such that the absurd fees they're charging will no longer be warranted.
I predict the ICANN board members and key employees will be given very hefty bonuses and pay raises to offset the potential for profits.
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Thank goodness for John Levin and Meredith Baker. Voices of sanity above the din. I don't know what is going on at ICANN but it clearly has been disabled by special interests, groupthink, and dispersion of responsibility. Their "any tld is fine with us" plan (originally proposed by France's Internic) shows such a profound lack of concern for the consequences that it's clear the bulk of their membership is simply not technically qualified.
The downside this all illustrates, beyond any doubt, is that ICANN does not and can not work in its present format. It needs to be reconstituted to insure that all members have no conflicts of interest and sufficient experience and expertise with technical and security issues. I hope it can retain the non-profit status and multi-country membership, without being so inclusive (of small countries) that it cannot avoid being corrupted as ISO was when Microsoft bought the ISO's endorsement for OOXML, or ICANN itself was when Verisign did the same to win the exclusive contract for .com.