Vertical Integration comments by Leap of Faith Financial Services Inc.
- To: vi-pdp-initial-report@xxxxxxxxx
- Subject: Vertical Integration comments by Leap of Faith Financial Services Inc.
- From: George Kirikos <gkirikos@xxxxxxxxx>
- Date: Mon, 9 Aug 2010 17:23:49 -0700 (PDT)
Comments on Initial Report on Vertical Integration Between Registrars and
By: George Kirikos
Company: Leap of Faith Financial Services Inc.
Date: August 9, 2010
Normally, we would not bother to even comment, as per our recent statement at:
But, I shall be brief, to be on the record. The Vertical Integration "debate"
only exists because ICANN is planning to allocate new TLDs in a manner that is
against the public interest, where all the "surplus" goes to the registry
operator, rather than to consumers. This happens because price caps continue to
not exist in the latest version of the DAG. If TLDs were operated via a regular
tender process, whereby the registry applicant with the lowest price to
consumers wins the contract for a set period, like 5 years, and *without
presumptive renewal* (like just about every procurement contract in existence),
then it would be *consumers* who would receive most of the benefits.
Recall that VeriSign owned 100% of Network Solutions, but that wasn't a huge
issue because the wholesale prices were capped at $6/yr (and it would have been
even less of an issue with a proper tender process for the registry operation,
which would have yielded a price closer to $2/yr).
Eliminate presumptive renewal. Have regular tender processes (including for
important existing TLDs like com/net/org). Then it won't matter which vertical
integration policy is chosen.
In conclusion, this "debate" is a smokescreen that distracts from the important
issues of price caps, presumptive renewal, and regular tender processes. While
registrars and registries debate amongst themselves on the best ways to help
themselves, it is the consumers (registrants) who are the losers, paying higher
prices than they would under a tender process.
Leap of Faith Financial Services Inc.