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[soac-newgtldapsup-wg] Improving the FAQ section of v.2.20

  • To: Karla Valente <karla.valente@xxxxxxxxx>
  • Subject: [soac-newgtldapsup-wg] Improving the FAQ section of v.2.20
  • From: Eric Brunner-Williams <ebw@xxxxxxxxxxxxxxxxxxxx>
  • Date: Tue, 26 Oct 2010 15:33:54 -0400


At lines 529 and following:

At 567, question 4.2
===
Additionally, experience has shown that successful registry operations may begin with minimal capitalization -- the marketing budget for .cat was two thousand euros invested as printed bookmarks and distributed by retail bookshops, and in the second month of operation, with a non-exploitive Sunrise/Landrush, reflecting a competently drafted rights of others policy, the operation became profitable, and has remained profitable in every quarter subsequent. Experience has also shown that very high capitalizations does not guarantee successful initial registry operations.

The ability to "fund a registry" is not a neutral or objective criteria. The cost of risk capital in New York and London for a speculative investment is qualitatively and quantifiably different from the the cost in Central and South America, Africa, Asia, and much of Europe.

Additionally, experience has shown that successful registry operations may begin with minimal capitalization -- the marketing budget for .cat was two thousand euros invested as printed bookmarks and distributed by retail bookshops, and in the second month of operation, with a non-exploitive Sunrise/Landrush, reflecting a competently drafted rights of others policy, the operation became profitable, and has remained profitable in every quarter subsequent. Experience has also shown that very high capitalizations does not guarantee successful initial registry operations.

Financial assistance during the pre-revenue period contributes to solving the pre-revenue cost problem for an applicant, lowering the cost to capital. As the cost of capital is significantly greater in the areas defined by the UN as "developing economies", the absence of any program to level the playing field leaves the incumbents and their regional markets and interests with a significant advantage over qualified new entrants, their regional markets, and the interests of their users.
===

I propose to replace the text in 4.2.1 with the text above. Comments?
Eric



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