<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 11 (filtered medium)">
<!--[if !mso]>
<style>
v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
shape {behavior:url(#default#VML);}
</style>
<![endif]-->
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:"MS Mincho";
panose-1:2 2 6 9 4 2 5 8 3 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"\@MS Mincho";
panose-1:0 0 0 0 0 0 0 0 0 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman";
color:black;}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{color:blue;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-reply;
font-family:Arial;
color:navy;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body bgcolor=white lang=EN-US link=blue vlink=blue>
<div class=Section1>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Dear Bret,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>I had previously noted that policy is
being changed via contract, but I had not noticed this particular change.
However, I recall that actually .net was one of the $6 registry fees, was it
not? Thus, if that is the case, this would be a decrease to a much lower
fee for the registrars. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Perhaps we have a difference of perspective
with the staff/and even the Board on what constitutes policy, and therefore the
role of the Councils, and even the advisory role of the ALAC. If so, we
need to at least discuss that difference of perspective and bridge the gap so that
there aren’t continued misunderstandings and confusion. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>It is very possible that market forces
would be sufficient to keep a registry at a lower registry fee, however, even
if that is the case, the topic should be put before the Council, it seems to me,
and include consultation with the ALAC. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>I had thought that the price cap was $6
but that registries were free to charge less, but we should ask the registrars.
If that price cap remains in place, then we may have a different level of
concern. </span></font><font size=2 color=navy face=Wingdings><span
style='font-size:10.0pt;font-family:Wingdings;color:navy'>J</span></font><font
size=2 color=navy face=Arial><span style='font-size:10.0pt;font-family:Arial;
color:navy'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<div class=MsoNormal align=center style='text-align:center'><font size=3
color=black face="Times New Roman"><span style='font-size:12.0pt;color:windowtext'>
<hr size=2 width="100%" align=center tabindex=-1>
</span></font></div>
<p class=MsoNormal><b><font size=2 color=black face=Tahoma><span
style='font-size:10.0pt;font-family:Tahoma;color:windowtext;font-weight:bold'>From:</span></font></b><font
size=2 color=black face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma;
color:windowtext'> owner-council@gnso.icann.org
[mailto:owner-council@gnso.icann.org] <b><span style='font-weight:bold'>On
Behalf Of </span></b>Bret Fausett<br>
<b><span style='font-weight:bold'>Sent:</span></b> Monday, July 04, 2005 4:36
PM<br>
<b><span style='font-weight:bold'>To:</span></b> council@gnso.icann.org<br>
<b><span style='font-weight:bold'>Cc:</span></b> ALAC<br>
<b><span style='font-weight:bold'>Subject:</span></b> [council] Removing Price
Caps on Registry Fees</span></font><font color=black><span style='color:windowtext'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>Council Members (with copy to ALAC):<br>
<br>
You may recall that in the draft .NET contract posted for comment several weeks
ago, the pricing section was blank, with the following comment: [To be
negotiated consistent with .NET RFP]. See Section 7.3 here:<br>
<br>
<a
href="http://www.icann.org/tlds/dotnet-reassignment/draft-net-agreement-9mar05.pdf">http://www.icann.org/tlds/dotnet-reassignment/draft-net-agreement-9mar05.pdf</a><br>
<br>
When the final negotiated version was published, I went to that section to find
out what pricing had been negotiated and was surprised to discover that ICANN
will lift the price caps on registry fees effective 1 January 2007. The
language is here:<o:p></o:p></span></font></p>
<blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>(a) Prices for Registry Services. <br>
<br>
>From 1 July 2005 through 31 December 2006, the price to ICANN-accredited
registrars for new and renewal domain name registrations and for transferring a
domain name registration from one ICANN accredited registrar to another, shall
not exceed US$4.25 (consisting of a US$3.50 service fee and a US$0.75 ICANN
fee). On 1 January 2007, the controls on Registry Operator’s pricing set
forth in this Agreement shall be eliminated, provided that the same price shall
be charged to all registrars with respect to each annual increment of a new or
renewal domain name registration, and for transferring a domain name
registration from one ICANN-accredited registrar to another (provided that
volume discounts and marketing support and incentive programs may be made if
the same opportunities to qualify for those discounts and marketing support and
incentive programs is available to all ICANN-accredited registrars).<br>
<br>
(b) Adjustments to Pricing for Domain Name Registrations. <br>
<br>
Registry Operator shall provide no less than six months prior notice in advance
of any price increase for domain name registrations and shall continue to offer
domain name registrations for periods of up to ten years.<o:p></o:p></span></font></p>
</blockquote>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt'>See Scetion 7.3 here: <a
href="http://www.icann.org/tlds/agreements/net/net-registry-agreement-01jul05.pdf">http://www.icann.org/tlds/agreements/net/net-registry-agreement-01jul05.pdf</a><br>
<br>
This strikes me as a significant departure from past practices, and I do not
recall any discussion of this at either the Council level or within the ALAC. I
wonder whether market forces will be sufficient to prevent Verisign from
raising the .NET registry fees significantly. At a minimum, we should have had
a conversation about this. Have I missed something?<br>
<br>
Bret<o:p></o:p></span></font></p>
</div>
</body>
</html>