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Opposed to .jobs plan of "phased allocation"

  • To: jobs-phased-allocation@xxxxxxxxx
  • Subject: Opposed to .jobs plan of "phased allocation"
  • From: George Kirikos <gkirikos@xxxxxxxxx>
  • Date: Tue, 15 Jun 2010 13:33:20 -0700 (PDT)

We oppose the plan. We support the position of Ted Daywalt discussed at:


If ICANN were to approve this proposal, it would be encouraging moral hazard 
for registry operators.


Registry operators (and TLD applicants in general) can promise the world to 
ICANN and to the public. When their business plans inevitably fail, they come 
to ICANN seeking unilateral changes, at no cost to themselves. In other words, 
instead of being allowed to "fail" (i.e. re-tender/redelegate the TLD to 
another operator), they can seek a bailout from ICANN. This not only affects 
that single registry/TLD, but other TLDs via the "equitable treatment" clauses 
of the various agreements, a domino effect that causes unintended consequences. 
It makes a mockery of the initial contractual negotiations and processes, as 
registry operators are able to make promises that they have no intention of 
ever keeping to ICANN and to the public, obtain the TLD, and then renegotiate 
later to get what they *really* want.

In short, this plan should be rejected. The registry operator should be allowed 
to fail, or be re-bid to another party willing to fulfill the terms of the 
original agreement.

By ICANN accepting this proposal (and other proposals like the .asia fee 
reductions, etc.), they are telling the world that every registry operator is 
"too big to fail." That should ring alarm bells amongst the true folks in 
charge (DOC/NTIA/DOJ), as it's a sign that ICANN is not doing its job properly, 
and is increasing the systemic risk in the DNS by propping up (indeed 
subsidizing) weak registry operators at the expense of the public interest.

This is proof that "presumptive renewal" continues to be a bad idea for TLDs 
(both existing and new ones). Instead, the public would be best served via 
fixed-length contracts and regular tender processes for the operation of every 
TLD, just like how nearly every other procurement is done in government or the 
private sector.


George Kirikos
Leap of Faith Financial Services Inc.

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