Re: [alac] Posting: VeriSign Settlement documents

[Jacqueline Morris <jam@xxxxxxxxxxxxxxxxxxxx>]

If they can justify the  rate increase 2x every 6 - why can't they justify
it every time? And 7% is above inflation, I think... How about suggesting
that they can automatically raise for inflation, but anything above that
they need to justify (capital investment, etc)
Jacqueline

On 2/3/06, Roberto Gaetano <alac_liaison@xxxxxxxxxxx> wrote:
>
> Bret,
>
> >
> >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.
> >
>
> There's one point that I find specifically problematic, and I raised also
> this issue to the Board.
> To say that 2 times out of 6 they have to motivate the raise of price
> simply
> means to me that the other 4 times out of 6 the raise is unmotivated (and
> therefore should not be allowed in first place).
>
> Or is the raise motivated economically by the fact that Verisign cannot
> pass
> down the line the ICANN fees, and recovers them through a raise? I think
> we
> (ALAC) should think and elaborate on this aspect, because it impacts the
> individual users' interests.
>
> Regards,
> Roberto GAETANO
> ALAC
> ICANN BoD Liaison
>
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--
Jacqueline Morris
www.carnivalondenet.com
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