[soac-newgtldapsup-wg] "WT1" -- Review of the existing application fee structure

["Anthony Harris" <harris@xxxxxxxxxxxxx>]

Dear colleagues,

I will be unable to participate in Monday's call, since I am in
transit travelling to the LACNIC meeting at the time scheduled.

Perhaps the following can contribute to starting the discussion:

"WT1" -- Review of the existing application fee structure

We have heard comments to the effect that:

- ICANN will be most reluctant to consider reducing the application fee.
  Bringing this subject up would be a waste of our time.

- To push in that direction, could cause ICANN to review the fee and add in
  the additional costs incurred by the emergence of the "overarching issues"
  which have significantly delayed the process, and generated unforeseen
  expenditures.

- It would be unfair to request reduction of fees for some and not for others.

- Etc., etc.

And of course, the GNSO Council has yet to approve the charter as submitted.

While WT2 deliberate on the other issues related to this WG, perhaps a useful
exercise might be to adopt the ICANN document that Olof pointed us to as our
source of information:
http://www.icann.org/en/topics/new-gtlds/cost-considerations-23oct08-en.pdf 

It is not a long document, and I would urge those who are interested in this
discussion to read it.

It basically divides the fee structure as follows:

         1.  New gTLD Program Development Costs                                 
       U$S   26.000
         2.  Fixed and variable Application evaluation costs - Predictable  -   
 U$S 100.000
         3.  Variable processing costs - uncertain                              
              U$S  60.000

Note: Item 2 would actually be U$S 99.000 to arrive at the total Application fee
of U$S 185.000.

>From the few exchanges we have had in the WG on this subject, a suggestion was
made that the cost of Program Development might be waived for selected entities
qualifying for financial assistance. Perhaps some concession might be 
justifiable
related to the "uncertain" processing costs (item 3), as well.

We might also want to bear in mind that the total cost of the previous round of
applications, which the document quantifies as $1.8MM for all ten applications,
( $ 180.000 per application), most probably includes costs associated with the 
conflict that arose from the rejection of the ".XXX" application, which went on 
for quite a while. The actual evaluation and administrative costs for the other 
nine applications should have  been considerably less than $ 180.000 per piece.

To summarize, a close look at how the application fee has been constructed
(and explained/justified), could help us all see if there is any potential for 
requesting the fee be revisited in line with the results that WT2 come up
with.

Tony Harris











  ----- Original Message ----- 
  From: Evan Leibovitch 
  To: Olof Nordling 
  Cc: soac-newgtldapsup-wg@xxxxxxxxx 
  Sent: Friday, May 14, 2010 10:05 AM
  Subject: Re: [soac-newgtldapsup-wg] JAS WG - Draft agenda for next call





  On 14 May 2010 07:56, Olof Nordling <olof.nordling@xxxxxxxxx> wrote:

    Dear all,

    Please find a draft agenda for Monday’s JAS WG call below.


  It looks good, except that I haven't seen much discussion on WT1 or WT2. So 
there won't be much of an update on Monday unless some initial discussions 
start happening.

  Would the leaders of the two teams like to start something? Toss out an 
initial idea of what the issues are and perhaps and opening position. To assist 
people in following, start the Subject with
  "WT1" -- Review of the existing application fee structure
  "WT2" – Who should qualify for subsidies and where to find the subsidy money

  We will certainly have some discussion on the call but it will go easier if 
there is some preliminary discussion on this list first.

  Thanks!

  - Evan