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Registrant Impact: 50% fee increase over 7 years

  • To: settlement-comments@xxxxxxxxx
  • Subject: Registrant Impact: 50% fee increase over 7 years
  • From: Danny Younger <dannyyounger@xxxxxxxxx>
  • Date: Wed, 26 Oct 2005 06:42:38 -0700 (PDT)

The new.com registry agreement stipulates:

"The Maximum Price for Registry Services subject to
this Paragraph 7.3 shall be as follows:

(i) from the Effective Date through 31 December 2006,
US$6.00;
(ii) for each calendar year beginning with 1 January
2007, the smaller of the preceding year's Maximum
Price or the highest price charged during the
preceding year, multiplied by 1.07.

7% doesn't sound like a lot, but this is how it will
impact registrants:

YEAR --  FEE  -- EXAMPLE .COM REGISTRATION FEE
2006 -- $6.00 -- $35.00
2007 -- $6.42 -- $37.50
2008 -- $6.87 -- $40.00
2009 -- $7.35 -- $42.75
2010 -- $7.86 -- $45.75
2011 -- $8.42 -- $49.25
2012 -- $9.00 -- $52.50

Registrars are businesses that are astute enough to
pass on their costs to the consuming public.  When a
registry hikes its fees to registrars, ultimately the
public bears the burden.

Insofar as other entities have already made it known
that they can perform registry services at a
substantially lower cost than VeriSign, permitting any
increase whatsoever is a slap in the face of the
public at-large.

Increasing costs to registrants is not a proactive
measure to bridge the digital divide.  

ICANN should renegotiate this agreement stipulating
that the maximum price will be decreased by 7% per annum.


                
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