We still are unable to post a direct response. Shelton's post is linked below.
(a) I'd like each bidder to identify the funds that they are relying on for the transition.
Do you have money in the bank set aside or are you relying on the third party partners
or money from capital markets for the transition?
A (a) We have the least transition
difficulties of any bidder since we subcontract the back-end technical management
of the registry to VeriSign for three years. We have done our homework and
believe we can make the business work. It helps to be a non-profit.
(b) To what extent does your financing for the transition depend on timely receipt
of all or part of the Verisign endowment? What are your plans for alternative financing
if a dispute or a delay arises in the transfer of those funds?
A (b) We are counting
on the VeriSign endowment and will not accept operation unless this is part of the
handover package. We see no reason why there should be a delay in the transfer
Q (c) Are you financially prepared to deal with unforeseen costs
that might arise in the transition, particularly those related to the technical operation
of the registry?
A (c) We foresee many types of costs involved with taking over
the operation, and believe we have accounted for them in our financial planning.
(d) Are you financially prepared to deal with lower than expected numbers of new
names being purchased/registrants renewing. What tolerances do you have in your cash
projections before being forced to seek further funding
A (d) We indeed expect
a fall in the income of .org registry reflecting the current downward trend both
in renewals and new registrations. Our technical subcontractors are paid on
a pro rata basis so we will never overspend on these services. However, we
must be very skilful in using our remaining financial resources very efficiently
to attract a new flush of .org registrations.
Q (e) I'm also concerned about the
stability of the .org registry if it goes to a bidder that is relying in substantial
part on the Verisign endowment for funding. How solid is the commitment from Verisign
to turn over the money? I understand that there is a signed agreement between Verisign
and ICANN with respect to the endowment, but what are the remedies if Verisign delays
or receives a waiver on the agreement? And most important, do the bidders relying
on the endowment have the resources to function in the meantime as well as to engage
in a legal dispute and perhaps protracted litigation?
A (e) This is outside our
control. We would negotiate appropriate protective terms into the Notice of