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No to variable pricing. Why stop 8 years of growth?

  • To: biz-tld-agreement@xxxxxxxxx, info-tld-agreement@xxxxxxxxx, org-tld-agreement@xxxxxxxxx
  • Subject: No to variable pricing. Why stop 8 years of growth?
  • From: "Jon Cline - Enthusiast, Inc." <jcline@xxxxxxxxxxxxxxxxx>
  • Date: Mon, 28 Aug 2006 18:23:43 -0700

To: ICANN Board Of Directors
Re: Proposed .BIZ, .INFO AND .ORG gTLD Registry Agreements


The last ten years have seen unprecedented economic growth in
technology related industries both in America and abroad. The ability
for organizations of all sizes to communicate, for commerce or
otherwise, has been a tremendous win for business, jobs, community,
and society.

In my opinion, the reason for this was in large measure due to the
accessibility of the Internet and its related requirements.  Any
computer could plug into the every growing "network" and suddenly be
accessible across the world. This computer could then be accessed by a
simple address or name that would be easily remembered and acquired.
The domain name quickly became the pathway to growth for education,
business, and community on the Internet.

In the early days of the Internet, there was a single organization
that managed these domain names -- InterNIC also known as Network
Solutions. The domain names were not cheap at $75 but were nonetheless
attainable for many. I believe this was a significant factor in the
early growth of the commercial Internet.

Even more significant was the emergence of new ICANN rules allowing
for a managed but increased number of registrars and choice for the
customer. This was coupled with simple but very effective price
controls.

It has come to my attention that ICANN is currently debating whether
to abandon this "pro-competitive" stance in favor or a "variable
pricing" that allows the domain name registrars to charge what the
market will bear. This is in direct contradiction to the "extensive
consideration and discussion" claimed in the CFIT litigation on May
26th. These statements asserted

"...as ICANN explained in its opening brief, price caps in a single
supplier market are considered pro-competitive."

We at Enthusiast provide goal oriented web site solutions for our
clients. In order to do so, a domain name is required and often
multiple domain names are recommended. We are opposed to variable
pricing as it stifles competition and allows for a small number of
companies to basically extort money from organizations wishing to
purchase or renew their domain names. This would have a significant
impact on the services we are able to offer as well as the services
our customers would be able to procure.

Certainly the "six months notice" required in the agreement doesn't
begin to solve the myriad problems it creates.

Domain names and the WHOIS database are enabling services much like
the Los Angeles County Registrar-Recorder or Education related
property taxes. These fees are kept intentionally low to minimize
their impact and encourage other service providers to enter the
markets they serve. What if property taxes were variable based on
locality demand or other market factors?

Please reconsider this agreement, extend the public comment period,
and learn from recent history. Please vote NO to variable pricing.

Thank you for your consideration.

jc

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Jon Cline
Chief Executive Officer
Enthusiast, Inc
www.enthusiastinc.com
jcline@xxxxxxxxxxxxxxxxx
626.256.3505

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