[soac-newgtldapsup-wg] Request for financial data

[Alan Greenberg <alan.greenberg@xxxxxxxxx>]

Here are my thoughts on the detailed questions regarding new gTLD fees:

> A detailed and comprehensive breakdown of the components of the 
> $185K gTLD fee, including assumptions and formulas that determined 
> the costing numbers.  Such a detail would include a breakdown 
> outlining how much of the $185K is allocated to:
> - cover the actual (i.e. real staff time) cost to process a basic application
I am not sure what this means. We would have to define "basic 
application" and I don't believe that we have. I am not sure it has 
much merit though.
> - apply various tests and controls (i.e. contention) -- tests that 
> may or may not be appropriate to JAS-qualified applications
Many of the "tests" will be applicable. Some we predict may not be 
(string contention for example, but it is unclear if we will be 
correct on this). Some of this is broken down in the published budget 
(http://icann.org/en/topics/new-gtlds/explanatory-memo-new-gtld-program-budget-22oct10-en.pdf).
> - repay costs of historic policy work
Haven't they already stated that this is the (I think) $26k, perhaps 
rounded to 25.
> - replenish the reserve fund for costs incurred by previous 
> applications (i.e. to - cover costs associated with .XXX)
I have never seen any statement that this is being done. It would be 
more appropriate to ask if such costs have been factored in, and if 
so, provide details.
> - mitigate risk of lawsuits (the legal reserve)
This is reasonable, but I think it may be covered in my global 
request for parameters below.
> - ICANN legal costs (real and anticipated)
Is this different from above? If so, perhaps integrate lawsuits into this one.

> - Costs specifically related to due diligence of applicants
Not sure what is meant by "due diligence of applicants". If it is 
reviewing and to the extent possible testing what is said in the 
application, hasn't this already been addressed in the published 
budget 
(http://icann.org/en/topics/new-gtlds/explanatory-memo-new-gtld-program-budget-22oct10-en.pdf)?
> - Any other relevant cost category (and if so, what is that category?)
I think that focus of the question should be on the parameters used 
to determine "Risk Cost" of $60,000. This is the area that we may be 
able to identify assumptions that we deem
unfair to disadvantaged applicants.

I do note that the largest single number that we would need to USE 
any financial input to build a case for lower fees is the number or 
percentage of applicants that will fall under our program. Without 
that, it is impossible to assess how to re-adjust fees (assuming 
there is a will to do so). And we have so far punted on this question.
Alan