Re: [soac-newgtldapsup-wg] The GAC weighs in on MR2

["Michael D. Palage" <michael@xxxxxxxxxx>]

Richard,

I asked Kurt a similar question approximately a year ago noting that the 185k 
application fee had stayed fix since the first DAG despite several years and 
several  additional million being spent. 

His response was that ICANN would recoup the money by keeping the application 
fee at 185k in future rounds to recoup the initial money before lowering the 
fees.

Therefore I do not see the scenario you paint based on this previous answer.  
However, ICANN has been known to change it's mind.

Actually the more interesting number is the 500 percent increase ICANN has 
imposed on the annual registry fee which Kurt et al have never been able to 
answer.

Around the time of the first DAG I help .coop renegotiate a registry agreement 
for 50,000 domain names at $5,000 per year.  However, the new registry fee for 
the same 50,000 names is now $25,000.  

Perhaps ICANN can document this 500 percent increase which represents a real 
barrier to entry for registries from developing countries.

Best regards,

Michael

Sent from my iPhone

On May 29, 2011, at 7:29 PM, Richard Tindal <richardtindal@xxxxxx> wrote:

> It'll be very interesting if there's a detailed review of the $185K 
> Evaluation Fee.    The most current (I think) analysis of the fee is here:
> 
>       
> http://www.icann.org/en/topics/new-gtlds/cost-considerations-04oct09-en.pdf;  
> and
> 
>       
> http://www.icann.org/en/topics/new-gtlds/explanatory-memo-new-gtld-program-budget-22oct10-en.pdf
> 
> These documents spell out the three components of the fee:  (i) Development 
> costs; (ii) Processing costs and (iii) Risk costs ---  though not in the 
> detail the WG is looking for.
> 
> Since these analyses were done Development work has extended about eight 
> months longer than anticipated, and the rules and procedures for the program 
> have gone from about 145 pages worth (in the AG then) to about 215 pages now. 
>    Each extra page of AG adds processing cost (for ICANN and/or the 
> applicant).
> 
> I'm not recommending against further review/ analysis of the Evaluation Fee,  
> but everyone should keep in mind that a possible outcome of review is an 
> increase in the $185K baseline.
> 
> Richard
> 
> 
> On May 29, 2011, at 12:10 PM, Evan Leibovitch wrote:
> 
>> Hi Rafik,
>> 
>> I agree that we should give Karla a more detailed request. Obviously generic 
>> questions will be met with generic responses.
>> 
>> I would like to start a brief discussion on what we will need from ICANN 
>> staff in order to move ahead. Personally, I think that amongst the specific 
>> details that we need is a detailed breakdown of the $185K. Such a detail 
>> breakdown must indicate how much of the $185K is allocated to:
>> 
>> - cover the actual (ie, real time) cost to process the application
>> - apply various tests and controls (ie contention) that may not be 
>> appropriate to JAS-qualified applications
>> - repay costs of historic policy work
>> - replenish the reserve fund for costs incurred by previous applications 
>> (ie, .XXX)
>> - mitigate risk of lawsuits
>> - fund any other relevant cost category (i'm quite sure I don't have them 
>> all here)
>> 
>> I would also like to obtain a fairly comprehensive set of the assumptions 
>> and formulas that have been made in order to deduce the current scheme.
>> 
>> I'm sure (and I hope) that others can contribute to build a specific 
>> request, one that (if answered truthfully and completely) will result in 
>> information that can better guide our ability to derive a suitable and  
>> justifiable amount for a reduced price.
>> 
>> - Evan
>> 
>> 
>> On 29 May 2011 13:19, Rafik Dammak <rafik.dammak@xxxxxxxxx> wrote:
>> Hello,
>> 
>> We now have further justification for the additional resources requested in 
>> the last JAS phone call
>> 
>> regarding the additional resources requested, it will be helpful to draft 
>> the questions that JAS WG is asking and the exact nature/expertise that we 
>> are looking for, especially about the legal knowledge, few questions and 
>> requests which Karla can pass to legal staff and letting them ready in prior 
>> to confcall.
>> 
>> Regards
>> 
>> Rafik 
>> 
>> 
>> 
>> -- 
>> Evan Leibovitch, Toronto Canada
>> Em: evan at telly dot org
>> Sk: evanleibovitch
>> Tw: el56
>> 
>