Re: [soac-newgtldapsup-wg] African statement

[Avri Doria <avri@xxxxxxx>]

Hi,

Adding a personal opinion with co-chair hat off.

I think that a lot of our assumptions about profitability are based on the 
level of wealth in particular economy.  And our assumptions that entrepreneurs 
are fat cats is most local (I know it looks that way to me a lot of the time).  
The fees set by ICANN are based on the assumptions of rich people from a rich 
region (most of the salaries of those deciding on fair pricing could fund a 
whole village on their salaries - some could fund a city - ok, slight hyperbole 
there - but)

For a small group in an impoverished region to start building a business, the 
initial fees and recurring fees are prohibitive.  Their income is  lower, their 
local costs are lower, their profit making expectations are much lower and 
there view of what it means to be rich is lower - breaking even is a good thing 
and allows survival of the business and those responsible for the business.

The current pricing (to use one IMF metric) is based on the per capita income 
of the 6th richest country.  This may still be in scope for the 9th richest 
country (Ireland).  However for the country at the 148th position (Kenya) this 
might be prohibitive even though the country gives every appearance of being a 
reasonable place to expect a new registry to thrive (i.e there is a viable 
market, there is a talent base and there is an Internet culture - I only list 
Kenya and not other countries not to favor them but because we have seen the 
culture first hand).

Encouraging  competition is one of the ICANN key values.  While I am a member 
of the non-commercial sector in ICANN and thus am particularly keen to push for 
the assistance of the non profit, I recognize that the mainstay of the 
registry/registrar world are the businesses that compete.  To me, that means, 
that we should also be offering the hand up to the budding entrepreneur from a 
developing region.  I  think we have to be careful with the criteria we use for 
choosing and we have to include obligations for eventual repayment of services 
or a helping hand once the entrepreneurial enterprise is on its feet.

One last consideration.  If we insist that only entrepreneurs who can afford LA 
prices should be allowed to create registries in developing regions, we will be 
encouraging the neo-colonialism of investment - only those from the top tier of 
financial regions will be able to participate. I personally do not think this 
is an outcome we should be facilitating.

a.



On 11 Aug 2010, at 09:37, Tijani BEN JEMAA wrote:

> Michele,
>  
> Why should entrepreneurs get support from the ICANN community?
>  
> Sorry - I'm just not seeing that as being in scope
>  
> I don't have any issue with the others, but that one jars on me. If the 
> business model isn't viable and doesn't fit into one of the other categories 
> you listed, then why should we subsidise it?
>  
> It’s the African Community point of view. They believe that for applicants 
> from countries where the market is not wide enough for a reasonable profit 
> making industry (like African countries) should be helped to apply for gTLDs 
> that they consider as a source of development for their countries. They think 
> the new gTLD program inclusiveness, mentioned in the Board resolution 20 as a 
> goal of this action wouldn’t be achieved if those people are not supported.
>  
> ------------------------------------------------------------------
> Tijani BEN JEMAA
> Executive Director
> Mediterranean Federation of Internet Associations
> Phone : + 216 70 825 231
> Mobile : + 216 98 330 114
> Fax     : + 216 70 825 231
> ------------------------------------------------------------------
> -----Message d'origine-----
> De : owner-soac-newgtldapsup-wg@xxxxxxxxx 
> [mailto:owner-soac-newgtldapsup-wg@xxxxxxxxx] De la part de Michele Neylon :: 
> Blacknight
> Envoyé : mercredi 11 août 2010 13:32
> À : <soac-newgtldapsup-wg@xxxxxxxxx>
> Objet : Re: [soac-newgtldapsup-wg] African statement
>  
>  
>  
> On 11 Aug 2010, at 11:38, Tijani BEN JEMAA wrote:
>  
> > Hi,
> > 
> > As promised during yesterday’s call, here are the key points of the African 
> > statement:
> > 
> > ·        The following categories are eligible for support:
> > o       Geographic, cultural, linguistic, ethnic, and more generally 
> > community based applications
> > o       Civil society, NGOs and not for profit applicants
> > o       Entrepreneur applicants from countries, where the market is not 
> > wide enough for a reasonable profit making industry.
>  
> Why should entrepreneurs get support from the ICANN community?
>  
> Sorry - I'm just not seeing that as being in scope
>  
> I don't have any issue with the others, but that one jars on me. If the 
> business model isn't viable and doesn't fit into one of the other categories 
> you listed, then why should we subsidise it?
>  
> Using the logic of the "market" and "profit" then I'd be eligible!
>  
> > 
> > ·        The support should include, but is not limited to the following:
> > o       Financial, by reducing the application and the on-going fees
> > o       Linguistic, by translating all the application documents, 
> > especially the Applicant Guidebook,  in the six UN languages
> > o       Legal, by assisting the applicants in preparing their applications 
> > properly.
> > o       Technical, by
> > §         Helping the applicants to define the infrastructure options,
> > §         Addressing the issue of infrastructure problems such as IPV6, 
> > DNSSEC etc.
> > 
> > ·        Cost reduction:
> > o       Waiving the cost of Program Development ($26k).
> > o       Waiving the Risk/Contingency cost ($60k).
> > o       Lowering the application cost ($100k)
> > o       Waiving the Registry fixed fees ($25k per calendar year), and 
> > charge the Registry-Level Transaction Fee only at its minimum applied value 
> > ($xxx per domain name registration or renewal).
> > 
> >     • The reduced cost to be paid incrementally
> > 
> > ------------------------------------------------------------------------
> > Tijani BEN JEMAA
> > Executive Director
> > Mediterranean Federation of Internet Associations
> > Phone : + 216 70 825 231
> > Mobile : + 216 98 330 114
> > Fax     : + 216 70 825 231
> > ------------------------------------------------------------------------
> > 
>  
> Mr Michele Neylon
> Blacknight Solutions
> Hosting & Colocation, Brand Protection
> ICANN Accredited Registrar
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>  
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