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Username: UIA / Diversitas
Date/Time: Mon, August 5, 2002 at 8:38 PM GMT (Mon, August 5, 2002 at 9:38 PM CET)
Browser: Netscape Communicator V4.79 using Windows 98
Score: 5
Subject: Response to Shelton Johnson's questions


We still are unable to post a direct response.  Shelton's post is linked below.
Q (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. 

Q (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 of funds. 

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.

Q (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 Award.


Link: Concerns for Applicants re: Finances

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