[Comments-draft-financial-projections-fy2021-2025-14jun19] Personal statement - Maureen Hilyard

[Maureen Hilyard]

*Personal statement by Maureen Hilyard on the Draft Financial Assumptions
and Projections*

The assumptions and market trend documents place a great load on the
assumption that a new round of new gTLDs will continue to allow for the
creation of new gTLD-based business models and greater identity
specialisation for registrants. This is also assuming that registries and
registrars will encourage greater awareness of what these models might be
and how they can help registrants develop their businesses based on
geographic or brand gTLDs.

But established domain registries are doing the same with their brands as
well. Some  have been most proactive in helping to build their particular
brands by offering support and advice for registrants and businesses to
make the most of their domains and websites with marketing and website
development advice to support a successful digital presence for their users
via social media as well as individually.

Registrar advice and support for new registrants overall is poor, yet it is
much needed in underserved regions especially where there is 70+% growth in
brand gTLD domains under management. New registrants need any support they
can get to establish their online identity and it would could contribute to
the encouragement of  renewals once a successful digital presence has been
established.  But this is reliant on the will of the registry and registrar
wanting to help their registrant rather than the actual initial domain name
sale.  Resellers have a chance to develop a better relationship with their
registrants because they are more local and can better identify with
registrant needs. More outreach and support at this level could help to
build domain growth as well as create job opportunities within underserved
regions.

Social media and other platforms are still largely reliant on the use of a
digital presence. Businesses still rely on their online identity and
presence so that they can maintain control over their digital presence and
its functionality. Most social media information that is being sent refers
back to a website with the full information given.  Social media is very
much dependent on user behaviour and cultural norms and with 900 million
WeChat users and 717 million Facebook users in the Asia Pacific region (APAC
Social Media survey, 2017
<https://thenextweb.com/contributors/2017/09/28/everything-need-know-state-digital-asia-pacific-2017/>
),
this is an influential medium.

Cable connectivity in previously unconnected areas is opening up
opportunities for more users connecting to social media rather than a
website of their own. For example, even without a cable connection, the
Cook Islands with its population of 13000 was identified by the same 2017
survey as having 70% social media penetration, yet 113% of social media
growth. Kiribati with a population of 25000 had 163% social media
penetration growth. The Pacific is an area of expansion for outreach with a
focus on supporting these new connections and the development of Internet
use to encourage a new source of demand for domain names and new registrars
and thus encouraging growth for small island developing state economies.

At the same time, it is important that awareness about privacy and security
issues are directed to the decision-makers of these developing countries to
protect new users and their businesses.

With regards to ensuring ICANN's long term financial sustainability, the
first operational initiative reinforces that there needs to be a better
understanding of the marketplace of the future and to concentrate on those
areas of stakeholder needs where there is identified growth.

An important imperative set by the CCWG of the Auction Proceeds CCWG has
been that the drive for the selection of any of its projects must come from
the community. At the same time there must be some alignment with ICANN's
mission.  This gives ICANN the potential for the impact of outreach,
capacity building, engagement and enhanced participation by communities
who  benefit from the funds and which will eventuate through the results of
the projects that will be carried out across more parts of the world than
current projects reach, and that they are community-needs driven.

The work on evolving ICANN's multistakeholder model has major implications
on optimising the effectiveness and efficiency of ICANN's activities. It is
perceived that the current ICANN model with its siloed mentality may not be
as effective as it was first envisaged. The greatest successes within ICANN
have been through equitably established multistakeholder-engaged working
groups. ICANN should be structured in a way that improves and facilitates
this model of working together and more regularly encourages this. At the
same time specialist groups need to be able to meet together to provide for
their specialist  policy development and discussions. But there has to be a
more effective way of restructuring what has become an overly large and
unwieldy organisation to enable the work of CANN to be carried out more
efficiently.

ICANN Reserves appear to be set according to current ICANN needs which are
always perceived to be overly high for ICANN Org and minimal and falling
for the volunteers who do a lot of the heavy lifting with regards to the
policy setting which is a considerable part of ICANN's work. We have
endured lots of reorganising through regular reviews of individual ICANN
sections  and now the multistakeholder model that impacts on the volunteers
at great cost to the ICANN coffers, Yet there has been no opportunity for
the community can make suggestions to potentially improve levels of
efficiency and effectiveness of the current structure of ICANN Org and if
any cost savings can be made within the Org system itself. The Reserve Fund
may not necessarily require such a high target if operating expenses were
not so demanding.
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