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<div>Dear Donna</div>
<div> Looks to me a very balanced proposal. Of course is impossible to preview the right number of applications. Guess if it will be a very low number of application , to guarantee ICANN will not have a deficit may be ICANn itself can analyzing whole application
without external payments. Regarding underserved applicants – being from this kind of region my point would be – if there is no money to pay this front payment it is more possible that the group will have no conditions to explore the domain and this is a risk
for the security and stability. What I could suggest is the full payment shale done before the end of the evaluation process. My rationale is Cities governments for instance, as happened here last time, can be in a middle of election process and as such can
not expend any $ at the window time for the application, but shall do during the evaluation process, before the process is completed. </div>
<div>I could agree with the reimbursement afterwards, but also considering we are working of Auction proceeds and will come out with some suggestion , we also may considere to use the surplus – if any – to continue to sponsor some good projects. </div>
<div>Kisses </div>
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<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Vanda Scartezini</span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Polo Consultores Associados</span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Av. Paulista 1159, cj 1004</span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">01311-200- Sao Paulo, SP, Brazil</span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Land Line: +55 11 3266.6253</span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Mobile: + 55 11 98181.1464 </span></i></b><span style="font-size:10.5pt;font-family:Calibri;color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:10.5pt;font-family:Calibri;color:#009193">Sorry for any typos. <o:p></o:p></span></i></b></p>
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<span style="font-weight:bold">From: </span><<a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">gnso-newgtld-wg-wt1-bounces@icann.org</a>> on behalf of "Austin, Donna via Gnso-newgtld-wg-wt1" <<a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a>><br>
<span style="font-weight:bold">Reply-To: </span>"Austin, Donna" <<a href="mailto:Donna.Austin@team.neustar">Donna.Austin@team.neustar</a>><br>
<span style="font-weight:bold">Date: </span>Friday, August 4, 2017 at 19:13<br>
<span style="font-weight:bold">To: </span>Sara Bockey <<a href="mailto:sbockey@godaddy.com">sbockey@godaddy.com</a>>, "<a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a>" <<a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a>><br>
<span style="font-weight:bold">Subject: </span>Re: [Gnso-newgtld-wg-wt1] [EXTERNAL] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC<br>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Hi Sara, all<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">I’ve had a look at the responses to the CC2 responses as they relate to Application Fees and believe that the responses are largely consistent with the discussions we have already had within
the working group on this topic. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">My rudimentary analysis of the comments suggest the following:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;color:#1F497D">Based on the CC2 responses it would appear that most of the respondents support the principle of an application fee that is cost neutral or break even, which is consistent
with the cost-recovery model that was developed for the 2012 round. However, many of the responses acknowledge that the assumptions of the 2012 round was off the mark because the number of applications exceeded expectations and resulted in a considerable surplus
of funds (approximately $100M).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;color:#1F497D">It would appear from the responses that there is little support for maintaining the $185,000 application fee into the future, with many responses suggesting a reduction,
with the exception of John Poole who recommended that each applicant require a $1m deposit. However, there was support for the principle that the application fee should maintain a bar sufficient to ensure that applications are worth dedicating resources to
evaluation and processing; and fees should not be too low as to be detrimental to security and stability and competition between rounds.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:11.0pt;color:#1F497D">It would also appear that there is support for the WG providing direction on the use of excess funds, in the event that future rounds result in a surplus of funds.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Some suggested considerations for moving this conversation forward:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">While it appears that there is consensus around the concept of an application that achieves the principle of cost-recovery, it is impossible for this group to come up with an actual
number for any future round because we have no way to predict how many applications there will be.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">The number of applications for a future application window will depend on a range of factors, including the amount of the application fee.
<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">We could ask ICANN to provide estimates for costs associated with preparing for the next application window, but I don’t believe we are far along in deciding some of the core issues
to provide them with enough guidance on which to base any estimates or predictions.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">What we do have from the 2012 application round is an application fee of $185,000 that resulted in 1930 applications—some 1400 more than was predicted.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">The policy for the WG could potentially be something along the lines of:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l5 level1 lfo7"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">The application fee should be based on the principle of cost recovery.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">Based on the principles of fairness and competition to 2012 new gTLD applications, $185,000 will be the application fee for any future application window.
<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">In the event of surplus application fees, ICANN will provide all applicants (successful/unsuccessful?) with a reimbursement of an equal share of the surplus application fees; or<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">In the event of surplus applications fees, ICANN will provide all applicants a reimbursement up to an amount of $50,000/$80,000/$100,000 (successful applicants may choose this reimbursement
as a contribution to ICANN’s annual fee); and<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l3 level1 lfo4"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">The remainder of the surplus application fees will be used to support ICANN’s efforts in Universal Awareness and Universal Acceptance (or some other designated activity)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Some exemptions/exceptions:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l4 level1 lfo5"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">Applications from underserved regions would/could (depending on the policy) have the application fee waived so that it is not considered a barrier to entry.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l4 level1 lfo5"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">There may be other exclusions or exemptions from the application fee that could be developed to remove other possible barriers to entry perceived by some as being too high.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Rationale:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo6"><!--[if !supportLists]--><span style="font-size: 11pt; color: rgb(31, 73, 125);"><span style="mso-list:Ignore">·<span style="font-style: normal; font-variant-caps: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size:11.0pt;color:#1F497D">We have a principle of cost recovery, but rather than requiring complex economic modelling (or somebody’s best guess) to arrive at the amount of the application fee, we achieve
the principle in an order of reverse by providing a reimbursement of a portion of the application fee equal to the distribution of excess funds.<o:p></o:p></span></p>
<p class="MsoListParagraph"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">I don’t believe we can solve this problem absent a considerable amount of data that at this point in time simply doesn’t exist, so I offer this as a possible way to enable us to move forward
and certainly to encourage discussion.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">Donna<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="font-size:11.0pt">From:</span></b><span style="font-size:11.0pt">
<a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">gnso-newgtld-wg-wt1-bounces@icann.org</a> [<a href="mailto:gnso-newgtld-wg-wt1-bounces@icann.org">mailto:gnso-newgtld-wg-wt1-bounces@icann.org</a>]
<b>On Behalf Of </b>Sara Bockey<br>
<b>Sent:</b> Thursday, August 03, 2017 9:31 AM<br>
<b>To:</b> <a href="mailto:gnso-newgtld-wg-wt1@icann.org">gnso-newgtld-wg-wt1@icann.org</a><br>
<b>Subject:</b> [EXTERNAL] [Gnso-newgtld-wg-wt1] Work Track 1 Agenda for 8 August 2017 @ 3:00 UTC<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">Dear All,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">The next call for the New gTLD Subsequent Procedures Sub Team – Track 1 - Overall Process/Support/Outreach Issue will take place on <b>Tuesday, 8 August 2017 at 3:00 UTC.</b><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">The proposed agenda is as follows:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="mso-list:l1 level1 lfo3"><span style="font-family:"GT Walsheim Regular"">Welcome & Agenda Overview<o:p></o:p></span></li><li class="MsoNormal" style="mso-list:l1 level1 lfo3"><span style="font-family:"GT Walsheim Regular"">SOIs<o:p></o:p></span></li><li class="MsoNormal" style="mso-list:l1 level1 lfo3"><span style="font-family:"GT Walsheim Regular"">Review of CC2 responses to WT1 questions</span><span style="font-family:"GT Walsheim Regular""><o:p></o:p></span>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="mso-list:l1 level2 lfo3"><span style="font-family:"GT Walsheim Regular"">Application Fees<o:p></o:p></span></li><li class="MsoNormal" style="mso-list:l1 level2 lfo3"><span style="font-family:"GT Walsheim Regular"">Systems<o:p></o:p></span></li></ol>
</li><li class="MsoNormal" style="mso-list:l1 level1 lfo3"><span style="font-family:"GT Walsheim Regular"">AOB<o:p></o:p></span></li></ol>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">The CC2 responses we will be covering may be review in the google document: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__docs.google.com_spreadsheets_d_1427pgTCkguOj2NZZzMnz-5FH-5FlPe54dtvUErSJd9uhkZw_edit-23gid-3D1442059046&d=DwMGaQ&c=MOptNlVtIETeDALC_lULrw&r=CwipU91YB6EkpFXK9ynnT_QUef4yC5p7jpsDm8cU97g&m=KxXpBeMo6gbRQ-BqdZ0TqFv_TRF2rGQiCdN-DB_qN84&s=4vy3M-5mmpfeBvqqyXWRPSI-t6ZrUwBiYzDw4G8yxqQ&e=">https://docs.google.com/spreadsheets/d/1427pgTCkguOj2NZZzMnz_H_lPe54dtvUErSJd9uhkZw/edit#gid=1442059046</a>. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">Chat soon!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""> <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular"">Sara<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"GT Walsheim Regular""><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:1.0pt"><b><span style="font-size:9.0pt;font-family:"GD Boing";color:#02C54C">sara bockey</span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:1.0pt"><b><span style="font-size:9.0pt;font-family:"GD Boing";color:#111111">policy manager |
</span></b><b><span style="font-size:9.0pt;font-family:"GD Boing";color:#02C54C">Go</span></b><b><span style="font-size:9.0pt;font-family:"GD Boing";color:black">Daddy<sup>™</sup></span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:1.0pt"><b><span style="font-size:9.0pt;font-family:"GD Boing";color:#111111"><a href="mailto:sbockey@godaddy.com">sbockey@godaddy.com</a> 480-366-3616</span></b><span style="color:black"><o:p></o:p></span></p>
<div>
<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"GD Boing";color:#111111">skype: sbockey</span></b><span style="font-size:10.5pt;font-family:"GT Walsheim Light";color:black"><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"GT Walsheim Light";color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:10.0pt;color:black;background:white">This email message and any attachments hereto is intended for use only by the addressee(s) named herein and may contain confidential information. If you have received this email
in error, please immediately notify the sender and permanently delete the original and any copy of this message and its attachments.</span></i><o:p></o:p></p>
</div>
</div>
</div>
</blockquote>
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