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<p class="defaultFont" style="margin: 0in 0in 10pt;"><span style="line-height: 115%; font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">1 October 2014</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">To:</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Mr. Steve Crocker</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Chair - ICANN Board
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Re:<span style="mso-tab-count: 1;">
</span>Recommendations on Metrics from the Implementation Advisory Group for Competition, Consumer Trust and Consumer Choice (IAG-CCT) for the CCT Review Team</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Dear Steve,</font></span></p>
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<font face="Calibri Regular"><span style="font-size: 12pt; mso-bidi-font-family: Calibri;">In response to
</span><span style="font-size: 12pt;">the Board’s resolution in Durban (Resolutions
<a href="http://www.icann.org/en/groups/board/documents/resolutions-18jul13-en.htm#2.b" target="_parent">
<u><font color="#0000ff">2013.07.18.06</font></u></a> and <a href="http://www.icann.org/en/groups/board/documents/minutes-28sep13-en.htm" target="_parent">
<u><font color="#0000ff">2013.07.18.07</font></u></a>) calling for the convening of a volunteer group (the IAG-CCT) to provide recommendations for the collection of metrics in advance of a future AoC Competition, Consumer Trust and Consumer Choice Review Team,
I am pleased to deliver to you the group’s final recommendations. The group’s members have been engaged in discussions for nearly 10 months to deliver this comprehensive set of recommendations, which we hope prove to be useful to the CCT Review Team.
</span></font></p>
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<span style="font-size: 12pt;"><font face="Calibri Regular">Reflected below are the recommendations from the IAG-CCT for the collection of relevant data elements to establish a benchmark of the current state of the generic domain name sector prior to the widespread
adoption and use of new gTLDs, others to be evaluated after new gTLDs have been in operation for one year, and some which will be revisited on a regular basis. From the 70 metrics the ALAC and GNSO recommended in December 2012, the IAG-CCT is recommending
collecting 65 of these metrics and has added one new metric related to name collisions. The core document remains the original recommendations from the GNSO and ALAC, combined into a single document and modified with the deliberations of the IAG-CCT. It is
that document which is most likely to drive the deliberations by the review team on the use of data.</font></span></p>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"><font face="Calibri Bold">Background</font></span></b></p>
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<span lang="X-NONE" style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-ansi-language: X-NONE;"><font face="Calibri Regular">In December, 2010, the Board requested advice from the ALAC, GAC, GNSO, and ccNSO on establishing the definition, measures, and
three year targets for competition, consumer trust, and consumer choice in the context of the domain name system (</font><a href="http://www.icann.org/en/groups/board/documents/resolutions-10dec10-en.htm#6" target="_parent"><span lang="EN-US" style="mso-ansi-language: EN-US;"><u><font color="#0000ff" face="Calibri Regular">http://www.icann.org/en/groups/board/documents/resolutions-10dec10-en.htm#6</font></u></span></a><font face="Calibri Regular">).<span style="mso-spacerun: yes;">
</span>This advice was requested to support ICANN’s obligations under the AoC </font>
</span><span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">to review</font></span><span lang="X-NONE" style="font-size: 12pt; mso-bidi-font-family: Calibri; mso-ansi-language: X-NONE;"><font face="Calibri Regular"> the
extent to which the introduction or expansion of gTLDs has promoted competition, consumer trust, and consumer choice.</font><a name="_ftnref1" style="mso-footnote-id: ftn1;" href="file:///C:/Users/jzuck_000/Documents/ACT/IG/BoardLetter-IAG-CCT-FinalReport.doc#_ftn1" target="_parent"><sup><span style="mso-special-character: footnote;"><sup><span lang="X-NONE" style="line-height: 115%; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Calibri; mso-ansi-language: X-NONE; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><u><font color="#0000ff">[1]</font></u></span></sup></span></sup></a></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">In 2013, the Board (Resolutions
</font><a href="http://www.icann.org/en/groups/board/documents/resolutions-18jul13-en.htm#2.b" target="_parent"><u><font color="#0000ff" face="Calibri Regular">2013.07.18.06</font></u></a><font face="Calibri Regular"> and
</font><a href="http://www.icann.org/en/groups/board/documents/minutes-28sep13-en.htm" target="_parent"><u><font color="#0000ff" face="Calibri Regular">2013.07.18.07</font></u></a><font face="Calibri Regular">) called for the convening of a volunteer group
to advance the work on the set of proposed metrics provided by the </font><a href="http://gnso.icann.org/en/group-activities/inactive/2012/consumer-trust" target="_parent"><u><font color="#0000ff" face="Calibri Regular">GNSO</font></u></a><font face="Calibri Regular">
<span style="mso-spacerun: yes;"> </span>and </font><a href="http://atlarge.icann.org/correspondence/correspondence-08sep12-en.htm" target="_parent"><u><font color="#0000ff" face="Calibri Regular">ALAC</font></u></a><font face="Calibri Regular">.<span style="mso-spacerun: yes;">
</span>Specifically, the IAG-CCT was tasked with:</font></span></p>
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<p style="color: rgb(0, 0, 0); line-height: normal; font-size: 11pt; font-style: normal; font-weight: normal; margin-top: 0in; margin-bottom: 0pt; -ms-text-autospace:; mso-layout-grid-align: none; mso-list: l0 level1 lfo1;">
<span style="font-size: 12pt; mso-bidi-font-family: Calibri;">Evaluating and reporting to the Board on the feasibility, utility and cost-effectiveness of adopting the recommendations of the GNSO Council and the ALAC;
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</li><li style="color: rgb(0, 0, 0); font-family: "Calibri","sans-serif"; font-size: 12pt; font-style: normal; font-weight: normal;">
<p style="color: rgb(0, 0, 0); line-height: normal; font-family: "Calibri","sans-serif"; font-size: 11pt; font-style: normal; font-weight: normal; margin-top: 0in; margin-bottom: 0pt; -ms-text-autospace:; mso-layout-grid-align: none; mso-list: l0 level1 lfo1;">
<span style="font-size: 12pt; mso-bidi-font-family: Calibri;">Evaluating other inputs, including historical data regarding metrics used to evaluate earlier rounds of New gTLDs (2000, 2004);
</span></p>
</li><li style="color: rgb(0, 0, 0); font-family: "Calibri","sans-serif"; font-size: 12pt; font-style: normal; font-weight: normal;">
<p style="color: rgb(0, 0, 0); line-height: normal; font-family: "Calibri","sans-serif"; font-size: 11pt; font-style: normal; font-weight: normal; margin-top: 0in; margin-bottom: 0pt; -ms-text-autospace:; mso-layout-grid-align: none; mso-list: l0 level1 lfo1;">
<span style="font-size: 12pt; mso-bidi-font-family: Calibri;">Engaging with the GNSO, ALAC and staff in an effort to reach agreement on the metrics; and
</span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;">Proposing a set of metrics to be compiled by ICANN for use in the future AoC Review of the New gTLD Program.</span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"> </span></p>
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<span style="font-size: 12pt;">The IAG-CCT was convened in late 2013 to analyze the feasibility, utility and cost-effectiveness of adopting the recommendations of the GNSO Council and the ALAC, as well as analyzing other potential metrics to be made available
for the future CCT review under the AOC. In March 2014, the IAG-CCT presented to the Board its interim recommendations to authorize funding for a global consumer survey and an economic study, both of which required engaging the services of third party vendors.
At the ICANN 49 meeting in Singapore, the Board approved these recommendations and ICANN staff published two RFPs in the intervening months; one for the consumer survey, for which staff are currently in the final stages of negotiation with a vendor; and the
second for the economic study, for which a vendor will be selected by late October 2014. The IAG completed its work analyzing the recommended metrics in September.
</span></p>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"></span></b><br>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;">Recommendations</span></b></p>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt;"> </span></b></p>
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<span style="font-size: 12pt;">In its deliberations, the IAG-CCT reached consensus on the majority of the 70 metrics that were suggested by the GNSO and ALAC working group. In a few instances, the group’s members diverged in their opinions on the relative usefulness
of some metrics, as well as on the availability of data, and on how some terms were defined. Those differences are noted in the attached report. The IAG-CCT recommends ICANN staff begin collecting data on all the recommended metrics as best as possible to
offer the eventual CCT Review Team with a comprehensive data set to conduct its evaluation.
</span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"> </span></p>
<p style="color: rgb(0, 0, 0); line-height: normal; font-family: "Calibri","sans-serif"; font-size: 11pt; font-style: normal; font-weight: normal; margin-top: 0in; margin-bottom: 0pt; -ms-text-autospace:; mso-layout-grid-align: none;">
<span style="font-size: 12pt; mso-bidi-font-family: Calibri;">Accordingly, the IAG-CCT is providing to the Board its recommendations on all of the metrics developed by the GNSO and ALAC. The IAG-CCT realized it was engaged an exercise of refinement and execution,
not vision and therefore, its recommendations are most easily realized via a refined version of the advice submitted by the GNSO and ALAC on December 5<sup>th</sup>, 2012. In addition to the modified advice, appended to this letter, we’ve included the IAG-CCT
final report, where we detail the rationale behind the changes we’ve made to the recommendations and requests we’ve made to the board.
</span><span style="font-size: 12pt;">The proposal calls for the immediate collection of all the recommended metrics to the extent data is available.
</span></p>
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<p style="margin: 0in 0in 0pt;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;"> </span></p>
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<p style="margin: 0in 0in 0pt;"><b style="mso-bidi-font-weight: normal;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;">Rationale</span></b></p>
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<p style="margin: 0in 0in 0pt;"><b style="mso-bidi-font-weight: normal;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;"> </span></b></p>
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<p style="margin: 0in 0in 0pt;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;">Although the group was divided on the relative usefulness of some measures, we
felt that recommending the list of 66 metrics for collection would allow the to-be-formed CCT Review Team to have access to the largest swath of data. The IAG members agreed that the Review Team would be better suited to determine which data sources are the
most fruitful for their evaluation of the New gTLD Program. </span></p>
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<p style="margin: 0in 0in 0pt;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;"> </span></p>
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<p style="margin: 0in 0in 0pt;"><span style="letter-spacing: -0.05pt; font-family: "Calibri","sans-serif"; font-size: 12pt; mso-bidi-font-family: Arial; mso-ansi-language: EN-US;">Some of the recommended metrics may come with a price tag for data from third
party sources. The Board has already approved funding for the metrics to be tested by the consumer survey and the economic study. The group recognizes that these are significant investments and supports careful scoping to ensure that these activities support
the important goal of analyzing competition, consumer choice, and consumer trust.</span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Sincerely,</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular"> </font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Jonathan Zuck</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Chair</font></span></p>
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<span style="font-size: 12pt; mso-bidi-font-family: Calibri;"><font face="Calibri Regular">Implementation Advisory Group for Competition, Consumer Trust and Consumer Choice</font></span></p>
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<p style="margin: 0in 0in 10pt;"><a name="_ftn1" style="mso-footnote-id: ftn1;" href="file:///C:/Users/jzuck_000/Documents/ACT/IG/BoardLetter-IAG-CCT-FinalReport.doc#_ftnref1" target="_parent"><span style="mso-special-character: footnote;"><span style="line-height: 115%; font-family: "Calibri","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-ansi-language: EN-US; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"><u><font color="#0000ff">[1]</font></u></span></span></a><font face="Calibri Regular">
<u><span style="color: rgb(85, 85, 85); mso-fareast-font-family: "Times New Roman";">9.3 Promoting competition, consumer trust, and consumer choice</span></u><span style="color: rgb(85, 85, 85); mso-fareast-font-family: "Times New Roman";">: </span><span style="mso-fareast-font-family: "Times New Roman";">ICANN<span style="color: rgb(85, 85, 85);"> will
ensure that as it contemplates expanding the top-level domain space, the various issues that are involved (including competition, consumer protection, security, stability and resiliency, malicious abuse issues, sovereignty concerns, and rights protection)
will be adequately addressed prior to implementation. If and when new gTLDs (whether in ASCII or other language character sets) have been in operation for one year, </span>ICANN<span style="color: rgb(85, 85, 85);"> will organize a review that will examine
the extent to which the introduction or expansion of gTLDs has promoted competition, consumer trust and consumer choice, as well as effectiveness of (a) the application and evaluation process, and (b) safeguards put in place to mitigate issues involved in
the introduction or expansion. </span>ICANN<span style="color: rgb(85, 85, 85);"> will organize a further review of its execution of the above commitments two years after the first review, and then no less frequently than every four years. The reviews will
be performed by volunteer community members and the review team will be constituted and published for public comment, and will include the following (or their designated nominees): the Chair of the </span>GAC<span style="color: rgb(85, 85, 85);">, the CEO
of </span>ICANN<span style="color: rgb(85, 85, 85);">, representatives of the relevant Advisory Committees and Supporting Organizations, and independent experts. Composition of the review team will be agreed jointly by the Chair of the </span>GAC<span style="color: rgb(85, 85, 85);"> (in
consultation with </span>GAC<span style="color: rgb(85, 85, 85);"> members) and the CEO of </span>ICANN<span style="color: rgb(85, 85, 85);">. Resulting recommendations of the reviews will be provided to the Board and posted for public comment. The Board will
take action within six months of receipt of the recommendations.</span></span></font></p>
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