NameSilo

US Gov lets Verisign increase .Com pricing

Labeled as news in Domain Industry News started by offthehandle, Nov 1, 2018.

Replies:
32
Views:
1,289

  1. offthehandle

    offthehandle . Gold Account VIP

    Posts:
    3,313
    Likes Received:
    6,051
    Just saw this.

    https://domainnamewire.com/2018/11/01/breaking-u-s-gov-grants-verisign-com-price-hikes/

    “Content Neutral Operations. The parties agree that Verisign will operate the .com registry in a content neutral manner and that Verisign will participate in ICANN processes that promote the development of content neutral policies for the operation of the DNS.”

    Removal of the Maximum Price restriction under Section 7.3(d)(i) (Maximum Price) of the .com Registry Agreement, which by way of clarification will continue to be subject to Section 3(a) of Amendment 32 setting forth the standard and process for removal;
    https://www.ntia.doc.gov/files/ntia/publications/amendment_35.pdf

    I haven’t studied this document, but it seems that “premium domains” like one word .com’s, couldn’t Verisign figure a way to invent some new pricing tiers to be introduced like the new gtlds?
     
    Last edited: Nov 1, 2018
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. NYJimbo

    NYJimbo Domain Re-Animator

    Posts:
    1,071
    Likes Received:
    1,943
    "Price hikes can’t begin for two years from now. Verisign will still have to get ICANN’s approval for any price hikes, but ICANN has previously acquiesced. ICANN is likely to grant price hikes in return for a higher cut of the action."

    Meh....
     
  3. Internet.Domains

    Internet.Domains Active Member VIP

    Posts:
    792
    Likes Received:
    1,780
    I saw 7% over the last 4 years mentioned. That is such a minimal amount it's almost laughable......Actually it is laughable.:ROFL::ROFL::ROFL:
     
  4. Nat Hunt

    Nat Hunt Upgraded Member Gold Account VIP

    Posts:
    4,768
    Likes Received:
    3,656
    It's 7% a year for 4 years in a row, I think. So it could be a 31% price hike by 2024.
     
  5. Internet.Domains

    Internet.Domains Active Member VIP

    Posts:
    792
    Likes Received:
    1,780
    Still a modest hike to most all customers. Seems crazy that there was a campaign for something so small (to most).
     
  6. NYJimbo

    NYJimbo Domain Re-Animator

    Posts:
    1,071
    Likes Received:
    1,943
    If my math is correct, a $12 .com reg might cost at the most $15.72 as of 2024.
    But I doubt they will do the max % increase per year. Likewise, many registrars charge much less than $12, so.... meh....

    On the other hand if you are paying $35 a year through NetSol, well you deserve to get ripped off. :-P
     
    Last edited: Nov 1, 2018
  7. urlurl

    urlurl Active Member VIP

    Posts:
    2,796
    Likes Received:
    5,334
    do they really need the money, whats the purpose of the hike, and where the hell does all this money go anyways?
     
  8. offthehandle

    offthehandle . Gold Account VIP

    Posts:
    3,313
    Likes Received:
    6,051
  9. GeorgeQuang

    GeorgeQuang Established Member

    Posts:
    459
    Likes Received:
    1,144
    Legal Criminal :)
     
  10. mr-x

    mr-x Acme Domains Gold Account VIP ★★★★★★★★★★

    Posts:
    7,978
    Likes Received:
    7,758
    Not modest if your holding 1K domains.
     
  11. Internet.Domains

    Internet.Domains Active Member VIP

    Posts:
    792
    Likes Received:
    1,780
    I can see your point, that's why I used the word "most" twice.
     
  12. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP

    Posts:
    1,941
    Likes Received:
    3,513
    While it is more modest than some feared, 7% per year (I realize only starting 2 yr from now) after 4 yr and compounding would make (rough figures) $8 wholesale become almost $10.50. At the current number of registrations, the registry is taking in over $300 million extra per year. I think the key question is do they need that amount for what is already a stable huge cash machine for them? But it looks final, barring ICANN not going along, so we all will need to live with it.
     
  13. tonyk2000

    tonyk2000 Active Member VIP ★★★★★★★★★★

    Posts:
    847
    Likes Received:
    1,030
    A quick google search revealed:

    Guide to the Lobbying Disclosure Act

    Section 6: Quarterly Reporting of Lobbying Activities - Organizations must report expenses as they are incurred, though payment may be made later.

    I am neither a lawyer nor U.S. citizen, so the above quote does not necessary apply here. But, if does (since Verisign is U.S. based) - can general public obtain such a report, and determine did Verisign have any lobbying expenses in the first place? Just for educational purposes. Anobody knows?
     
    Last edited: Nov 2, 2018
  14. Rick Ace

    Rick Ace Active Member VIP

    Posts:
    887
    Likes Received:
    932
    Eeeek! :xf.cry:

    Will there be "premium" renewals now though? That would kill. I haven't finished reading the document either.
     
  15. Ategy.com

    Ategy.com NameCult.com Gold Account VIP

    Posts:
    2,961
    Likes Received:
    9,210
    Just to clarify ... it's 4 increases of 7% allowed within the 6 years of the contract extension. The decision is truly incomprehensible if this is indeed true! :(
     
  16. Domains - Wanted

    Domains - Wanted Active Member VIP

    Posts:
    1,335
    Likes Received:
    2,727
    Never mind whether this is 7% increase or more. Never mind the useless, fruitless public campaign against this. What's needed here is another campaign entirely, aimed at breaking Verisign's monopoly! If so, I vote for the introduction of a transparent, international tender process! You'll see how fast Verisign lowers .com and .net pricing at the first serious public push in this direction!
     
  17. Rick Ace

    Rick Ace Active Member VIP

    Posts:
    887
    Likes Received:
    932
    Be careful what you wish for. It might make it easier for the new international system to raise renewal prices. There's no easy solution to this.
     
  18. Domains - Wanted

    Domains - Wanted Active Member VIP

    Posts:
    1,335
    Likes Received:
    2,727
    What "new international system"?

    There is a very easy solution. It's called competition! The company meeting all technical conditions, that offers the lowest pricing, wins the next 10 year contract. No price increases allowed. Verisign is welcome to compete.
     
    Last edited: Nov 2, 2018
  19. Rick Ace

    Rick Ace Active Member VIP

    Posts:
    887
    Likes Received:
    932
    And who exactly ensures no price increases would be allowed? ICANN? They can do that now, if they'd like to do it.

    No one other than ICANN is currently qualified to make such rules. So, who do you suggest regulates price increases?

    Competition hasn't solved all our problems. The registrar for .com will have a monopoly of a sort when it goes to one company. And the lowest pricing will continue to increase.
     
  20. Domains - Wanted

    Domains - Wanted Active Member VIP

    Posts:
    1,335
    Likes Received:
    2,727
    The 10-year binding contract, which the offerent agrees to, ensures this. Subject closed... for the next 10 years!

    Then, ten years on, there is a new tender, covering a period of another 10 years, where everyone (of consequence) is invited to bid again.
     
    Last edited: Nov 2, 2018
  21. offthehandle

    offthehandle . Gold Account VIP

    Posts:
    3,313
    Likes Received:
    6,051
    Here is the latest public 3rd Quarter earnings info:

    https://www.bloomberg.com/research/...Key=600-201810251605BIZWIRE_USPRX____BW5843-1

    And some older articles.

    https://www.marketwatch.com/story/verisign-slims-down-but-troubling-lawsuit-remains-2010-02-11

    In 2010 in above article as reported by Marketwatch they had some issues.

    “The domain name business remains the subject of a lawsuit originally filed in 2005, by a group calling itself the Coalition for ICANN Transparency - arguing that VeriSign's deal with ICANN violates antitrust laws, while artificially inflating prices.

    The lawsuit had been dismissed, but the U.S. Court of Appeals for the Ninth Circuit reversed course and potentially re-started the case on June 5 of last year. That day, VeriSign's stock price started a slide from over $23 to roughly $18, a 22% decline.”

    “VeriSign has also spent heavily on preserving its influence among Washington, D.C. decision makers. The company reported spending roughly $2.4 million last year lobbying Congress, the White House, a Commerce Department agency and others on issues including "domain name registration and pricing," and "issues related to the Internet Corporation for Assigned Names and Numbers," according to public records.”

    An earlier article in 2009 on lobbying.

    https://domainnamewire.com/2009/08/05/domain-name-companies-spend-2m-lobbying-washington/
     
  22. Rick Ace

    Rick Ace Active Member VIP

    Posts:
    887
    Likes Received:
    932
    That would be great. Though, consumers would have to put one heck of a fight to get such a contract. It's unlikely any capitalist corporation would want such an agreement.
     
  23. offthehandle

    offthehandle . Gold Account VIP

    Posts:
    3,313
    Likes Received:
    6,051
    This is a website to determine lobbying expenditures and other details.

    Here is Verisign History:

    https://www.opensecrets.org/lobby/clientsum.php?id=D000022307&cycle=2018

    NOTE: All lobbying expenditures on this page come from the Senate Office of Public Records. Data for the most recent year was downloaded on October 24, 2018.

    Feel free to distribute or cite this material, but please credit the Center for Responsive Politics. For permission to reprint for commercial uses, such as textbooks, contact the Center: [email protected]
     
  24. Domains - Wanted

    Domains - Wanted Active Member VIP

    Posts:
    1,335
    Likes Received:
    2,727
    Why wouldn't they want it? Guaranteed business for 10 years? :cigar::cigar:
     
  25. urlurl

    urlurl Active Member VIP

    Posts:
    2,796
    Likes Received:
    5,334
    well they should be careful if they do increase prices too much, if they do, i can see a lot more names dropping and less names being registered. the net effect will bring in more per name, but less overall total dollars...
     
    Last edited: Nov 2, 2018

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:

Share This Page

Lysted
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...