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ICANN Confirms: Tiered Pricing Not Forbidden in New .BIZ, .INFO and .ORG Contracts

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ICANN Confirms: Tiered Pricing Not Forbidden in New .BIZ, .INFO and .ORG Contracts
Topic: Intellectual Property 10:37 am EDT, Aug 25, 2006

Looks like they've found a new way to squeeze money out of artificial domain name scarcity.

I finally got the “official” word from Vint Cerf of ICANN, “on the record”, who confirmed that my interpretation is correct, that differential/tiered pricing on a domain-by-domain basis would not be forbidden under the .biz/info/org proposed contracts. This means that the registries could charge $100,000/yr for sex.biz, $25,000/yr for movies.org, etc.

As there is no competition for registries, if your domain fees go up neither you nor your registrar can do anything about it. This means that domains will go up until the registry finds the equilibrium point between revenue generated per domain and the reduction in the total number of registered domains.

Vint said it would be “suicide” for a registry to do it, because there’d be the 6-month notice period to raise prices and the ability for registrants to renew for up to 10 years at “old prices”, that supposedly “protects” registrants.

Most businesses are looking at a longer timeframe then 10 years and most individuals can't afford 10 years of registration, so this helps who?

This will cause broad reorganization of DNS.

ICANN Confirms: Tiered Pricing Not Forbidden in New .BIZ, .INFO and .ORG Contracts



 
 
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