[soac-newgtldapsup-wg] On Vertical Integration

[Eric Brunner-Williams <ebw@xxxxxxxxxxxxxxxxxxxx>]

All,

On the call today there was discussion of the comment that qualified 
applicants are excepted from Vertical Separation requirements.
I'm repeating comments I made during the call.

The VI WG is not in broad agreement that qualified applicants should 
be excepted from Vertical Separation requirements.
First, the VI WG is dominated by contracted parties, registries and 
registrars, attempting to capture each other's margins.
Second, the VI WG blocks of advocates are committed to winning their 
goals, and have crafted positions that attempt to obtain the support 
of brand managers (non-contracted parties) and the ALAC members.
In summary:
o the "Free Trade" block of advocates is opposed to exception to the 
Vertical Separation requirements if it is limited, whether limited to 
qualified applicants in the SOAC sense, or to brand managers as 
advocated by the IPC, they want no limits on integration,
o the RACK+ block of advocates is divided on the issue of exceptions 
to Vertical Separation requirements, and opposed to them if the 
exception includes brand managers,
o the JN2 block of advocates is also divided on the issue of 
exceptions to Vertical Separation requirements, and opposed to them if 
the exception does not include brand managers,
o the CAM block of advocates, which includes a Co-Chair, proposes that 
national competition authorities determine if and when an applicant 
should be subject to Vertical Separation requirements,
o the IPC as a Constituency is only concerned with obtaining an 
exception to the Vertical Separation requirements for brands.
Being allowed to be both registry and registrar is attractive, but it 
has some disadvantages, and it also has limited utility. Richard can 
make this case, or I can, if it is necessary.
My recommendation is that the SOAC not take a position on the Vertical 
Separation requirements, and if it does take a position, that the 
position it takes is beneficial to the largest number of qualified 
applicants, and that is to support the Nairobi Resolution for strict 
separation between the registry and registrar function.
Eric