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Agreement to overcharge consumers $1.37 billion dollars by 2012, $5.9 billion by 2020

  • To: <revised-settlement@xxxxxxxxx>
  • Subject: Agreement to overcharge consumers $1.37 billion dollars by 2012, $5.9 billion by 2020
  • From: "Jeff Field" <jfield@xxxxxxxxx>
  • Date: Sun, 19 Feb 2006 19:35:08 -0600

According to Webhosting.info, as of 02/13/2006, there were 47,576,292
registered .COM domain names
(http://www.webhosting.info/registries/reports/domains/COM/).  Assuming a
very conservative 10% yearly increase in the total number of .COM domains
(which is significantly below the current growth rate), here are revenue
figures for VeriSign if this Agreement is passed starting with a base of $6
per domain per year versus re-bidding (or renegotiating) the Agreement (with
the same provisions for fee increases, i.e. 7% rise in 4 of every 6 years)
at a more reasonable starting base of $3.50 per domain per year (the same as
the recently negotiated .NET Agreement):

Agreement starting with a base of $6 per domain per year:

Year   Price   # Domains    Revenue         Cumulative Revenue
----   -----   ----------   ------------    ------------------
2006   $6.00   47,576,292   $285,457,752    $285,457,752
2007   $6.42   52,333,921   $335,983,774    $621,441,526
2008   $6.87   57,567,313   $395,452,902    $1,016,894,428
2009   $7.35   63,324,045   $465,448,066    $1,482,342,494
2010   $7.86   69,656,449   $547,832,373    $2,030,174,867
2011   $7.86   76,622,094   $602,249,659    $2,632,424,527
2012   $7.86   84,284,303   $662,474,625    $3,294,899,152
2013   $8.41   92,712,734   $779,732,634    $4,074,631,785
2014   $9.00   101,984,007  $917,745,310    $4,992,377,095
2015   $9.63   112,182,408  $1,080,186,230  $6,072,563,324
2016   $10.30  123,400,649  $1,271,379,192  $7,343,942,517
2017   $10.30  135,740,714  $1,398,129,349  $8,742,071,866
2018   $10.30  149,314,785  $1,537,942,284  $10,280,014,150
2019   $11.02  164,246,263  $1,810,158,068  $12,090,172,219
2020   $11.79  180,670,890  $2,130,556,047  $14,220,728,265

Agreement starting with a base of $3.50 per domain per year:

Year   Price   # Domains    Revenue         Cumulative Revenue
----   -----   ----------   ------------    ------------------
2006   $3.50   47,576,292   $166,517,022    $166,517,022
2007   $3.75   52,333,921   $195,990,535    $362,507,557
2008   $4.01   57,567,313   $230,680,860    $593,188,416
2009   $4.29   63,324,045   $271,511,372    $864,699,788
2010   $4.59   69,656,449   $319,568,885    $1,184,268,673
2011   $4.59   76,622,094   $351,695,412    $1,535,964,084
2012   $4.59   84,284,303   $386,864,953    $1,922,829,037
2013   $4.91   92,712,734   $455,340,049    $2,378,169,086
2014   $5.26   101,984,007  $535,935,238    $2,914,104,325
2015   $5.62   112,182,408  $630,795,775    $3,544,900,100
2016   $6.02   123,400,649  $742,446,628    $4,287,346,727
2017   $6.02   135,740,714  $817,159,095    $5,104,505,823
2018   $6.02   149,314,785  $898,875,005    $6,003,380,828
2019   $6.44   164,246,263  $1,057,975,881  $7,061,356,708
2020   $6.89   180,670,890  $1,245,237,612  $8,306,594,320

The above figures show that at the end of the term of the revised proposed
.COM Agreement in 2012, consumers will have been overcharged roughly $1.37
billion dollars more than a registry starting from a base of a more
reasonable $3.50 per domain per year.  By the year 2020 (only 14 years from
now) consumers will have been overcharged roughly $5.9 billion dollars.

--
jeff field
952-848-7626
408-228-5202 fax
jfield@xxxxxxxxx <mailto:jfield@xxxxxxxxx>
-----



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