Re: [soac-newgtldapsup-wg] continuity of operations funding requirement

[Richard Tindal <richardtindal@xxxxxx>]

Eric,

I don't understand what you're saying below.  Can you put it in more simple 
language?

My understanding of the Financial Continuity Instrument is an amount of cash, 
or an irrevocable cash instrument,  which the registry places under the control 
of ICANN.    In the event the registry goes bankrupt ICANN will use that  cash 
to fund basic registry operations for existing registrants in the TLD for a 
period of three years  ('basic operations' being DNS resolution,  SRS database 
updates,  WhoIs, Escrow,  etc).  

If,  for example,  a registry's business plan has a peak load of 30,000 domains 
and the cost of running basic registry operations for those domains is $100K 
per year then the registry must place $300K in the Financial Instrument.    
Should the failed registry be sold to a new operator the unused portion of the 
$300K in the Financial Instrument would become part of the new operator's 
Instrument with ICANN.

I agree with Tijani and others that three years is over-long.  The basic 
principle is for TLDs where no new operator can be found ----  hence the 
Instrument funds service for existing registrants while they transfer their 
address to a different TLD.  It seems to me 1 or 2 years is adequate time for 
this.  

RT   



On Aug 12, 2010, at 5:21 AM, Eric Brunner-Williams wrote:

> Restricting the instrument to a currency which requires conversion to create, 
> and conversion to consume during a continuity event is avoidable.
> 
> Similarly, restricting the legal form of the instrument to a jurisdiction 
> remote to the actual execution of the continuity function is avoidable.
> 
> I've always thought of this as a "Delaware Incorporation, US Dollars" hidden 
> cost in the DAG. If the applicant is a Delaware Corporation (or more broadly, 
> incorporated in the US and a few other jurisdictions) and its working 
> currency is US or Canadian dollars or Euros, then there is negligible _extra_ 
> cost to obtaining in the instrument itself. If the applicant is not in 
> "Greater Delaware" using dollars-or-euros, then the _extra_ cost to obtaining 
> the same financial instrument is non-negligible.
> 
> This is independent of the length of time the instrument is intended to 
> provide continuity for, Danny's 3m to 6m figure, or Staff's 3y to 5y figure, 
> or the actual cost, my "hard to measure" for mid-five-figures and below or 
> any other estimate (and I don't know of any other, except the implied one in 
> the $25,000/yr recurring cost as a Marina del Rey cost-recovery for staffing 
> each contract).
> 
> Eric
> 
> On 8/11/10 11:41 PM, Richard Tindal wrote:
>> 
>> I agree that the 3 year continuity instrument could reasonably be reduced.
>> 
>> That would represent a good cost saving for applicants
>> 
>> RT
>> 
>> 
>> On Aug 11, 2010, at 7:54 AM, Tijani BEN JEMAA wrote:
>> 
>>> Dear all,
>>> As I said in a previous mail, and even if it’s a general issue that
>>> affects all applicants, not only the needy ones, the 3 to 5 years
>>> continuity of operations funding requirement should be addressed by
>>> our working group because the eligible applicant to the support
>>> would be the most affected by this too heavy financial load that has
>>> to be secured at the application step.
>>> As well explained by Danny younger in his comment, the 3 to 5 years
>>> continuity period required by the DAG doesn’t comport with the
>>> recommendations of the ICANN gTLD registry Failover plan that calls
>>> for a timeframe of a duration of 1 to 3 months. Danny proposed a
>>> period of 6 months (realistic period, much greater than the failover
>>> plan’s one).
>>> I do support Danny’s proposal, and would like this issue to be
>>> reflected in our final report.
>>> ------------------------------------------------------------------
>>> *Tijani BEN JEMAA*
>>> Executive Director
>>> *M*editerranean *F*ederation of* I*nternet *A*ssociations
>>> *Phone : *+ 216 70 825 231
>>> *Mobile : *+ 216 98 330 114
>>> *Fax :* + 216 70 825 231
>>> ------------------------------------------------------------------
>>> ----------------------------------------------------------------------
>>> *De :* owner-soac-newgtldapsup-wg@xxxxxxxxx
>>> <mailto:owner-soac-newgtldapsup-wg@xxxxxxxxx>
>>> [mailto:owner-soac-newgtldapsup-wg@xxxxxxxxx] *De la part de*
>>> Gisella Gruber-White
>>> *Envoyé :* mercredi 11 août 2010 09:04
>>> *À :* SOAC-newgtldapsup-wg@xxxxxxxxx
>>> <mailto:SOAC-newgtldapsup-wg@xxxxxxxxx>
>>> *Objet :* [soac-newgtldapsup-wg] MP3 recording of the JAS work
>>> group/ 10 August 2010
>>> 
>>> 
>>> Dear All,
>>> 
>>> Please find the MP3 recording of the Joint SO/AC WG on New gTLD
>>> Applicant Support work group call held Tuesday 10 August 2010 at
>>> 1300 UTC at:
>>> http://audio.icann.org/gnso/gnso-jas-20100810.mp3
>>> 
>>> On page:
>>> http://gnso.icann.org/calendar/#aug
>>> (transcripts and recordings are found on the calendar page)
>>> 
>>> *Participants on the Call:
>>> 
>>> ALAC
>>> *Evan Leibovitch – Co-Chair
>>> Cheryl Langdon-Or - ALAC chair
>>> Sebastien Bachollet - ALAC
>>> Carlos Aguirre - At Large
>>> Baudoin Schombe – At Large
>>> Tijani Ben Jemaa - AFRALO - At large
>>> *
>>> GNSO
>>> *Avri Doria - NCSG
>>> Rafik Dammak - NCSG - Council liaison
>>> Andrew Mack – CBUC
>>> Tony Harris – ISPCP
>>> 
>>> Elaine Pruis - Mindsandmachines
>>> 
>>> Richard Tindal – Individual
>>> 
>>> Michele Neylon - RrSG
>>> 
>>> *ICANN staff
>>> *Karla Valente
>>> Olof Nordling
>>> Gisella Gruber-White
>>> 
>>> *Apologies:
>>> *Alan Greenberg – ALAC
>>> Alex Gakuru – NCSG
>>> Erick Brunner Williams - Individual
>>> 
>>> ** Please let me know if your name has been left off the list **
>>> 
>>> The mailing list public archives can be viewed at:
>>> 
>>> _http://forum.icann.org/lists/soac-newgtldapsup-wg
>>> <http://forum.icann.org/lists/soac-newgtldapsup-wg>
>>> _
>>> Let me know if you have any questions.
>>> Thank you.
>>> 
>>> Kind regards
>>> Gisella
>>> 
>>> ----------------------------
>>> Gisella Gruber-White
>>> On behalf of GNSO Secretariat
>>> Internet Corporation for Assigned Names and Numbers (ICANN)
>>> 
>>> Email: _gisella.gruber-white@xxxxxxxxx
>>> _Tel: +44 7545 334 360
>>> 
>> 
> 
>