Re: [alac] Posting: VeriSign Settlement documents
Let me just add that the new price formula can be gamed easily by Verisign through the way it accounts for its registry investments. In other words, in years in which Verisign chooses to invest in new infrastructure or recognize such past or future costs, it petitions ICANN for an increase for cause. In the other years, it takes its permissive increase. In other words, through simple accounting measures, Verisign can funnel its costs into single years in order to trigger increases for cause. This is why I don't view the "4 of 6 year price increase" provision as a meaningful restriction. Third, we criticized Verisign's ability to raise prices 7% a year without any checks on its monopoly power to do so. The response was to permit Verisign to raise its prices up to 7% a year in four of six years for any reason. In the other two years, it can raise prices if it can demonstrate that its costs of providing secure and stable services are rising. Personally, I think these changes don't really respond to our criticism. Verisign's pricing is still not subject to market forces-- since it does not face competitive renewal -- and the new price caps still allow price increases in spite of the fact that the cost of delivering the services is decreasing. My feeling is that ICANN did not address this concern.
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