.MUSIC / MyTLD comments on COI/COF

["Constantine G. Roussos" <constantine@xxxxxxxxx>]

The current COI/COF is significantly flawed because it fails to consider
two important facts that can be corroborated:

1) There has never been a registry that has failed in the history of
ICANN's existence. Taking the 100% risk-free approach of assuming all
registries will fail does not make statistical sense since. The probability
for this to happen is negligible. The financials are not consistent with
reality and the track record of the backend registry business that has
never witnessed a failure. I recommend ICANN adjust this percentage using
factual assumptions that are consistent with historic and verifiable data.

2) Applicants should be given clarification by ICANN the premise of the the
$185,000 application fee where a large portion of the application fee is
reserved for liability and risk-aversion by ICANN and how it relates to the
COI/COF. Both seem to be interconnected. Again there needs to be
consistency with the numbers. ICANN has never broken down the ICANN
application fee to let applicants know exactly where the proceeds are
divided up and the justification has always been to reduce ICANN's risk.

In conclusion, I do agree that ICANN needs to protect itself from liability
and reduce risk. Applicants should assume that risk but the risk
methodology needs to be consistent with actual numbers, statistics and
verifiable track records of backend-registry failures. Since there hasn't
been any yet, the probability risk of backend registry failure is
statistically significantly low. Furthermore, ICANN will be verifying the
backend DNS registry provider has the technical capability to run the TLD
at hand, which is another measure of reducing risk. Nearly all applicants
will not be building their on DNS backend registry and will be using proven
players in the Industry with zero failure track history. This lowers
ICANN's risk. If the backend registry provider does not meet the technical
requirements set by ICANN then the applicant will be rejected. That is
another measure of risk-aversion that has not been taken into consideration
by ICANN while drafting their COI/COF plan.


-- 
Constantine Roussos

.MUSIC
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MyTLD
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