[Gnso-newgtld-wg] Applicant Support - Bid Credits, Multiplier concerns

[christa at dottba.com]

Hello,

 

Another attempt at raising the flag on the changes to Applicant Support.

 

Bid Credit, multiplier or other mechanism could create an increase in the
volume of AS applications from applicants who otherwise would not have
considered AS because of new larger financial incentives.  Concerns and
comments  that need to be addressed:

 

1.	How AS Applicants are provided with sufficient time to gain
sufficient auction knowledge, impact on business plans, raise funding, etc. 
2.	Do not consider financial benefits of the AS applicants entering
into a JV with a third-party creating a potential opportunity for gaming -
see my email from last week.  
3.	Implications on maximum values - low/mid/high all impact strategy
and raise additional questions and concerns i.e. significant maximum values
increased the financial benefits and potential for abuse  
4.	Consideration on the repayment of auction funds?  What if they are
wildly successful and recover all funds in say the first year?
Consideration to future AS might be nice. 
5.	Repayment of auction 'funds' - Rationale 9 should state that
repayment includes auction credits i.e. "shall require the applicant to
repay the full amount of financial support received including auction bid
credit, multiplier or other mechanism through the ASP Program plus an
additional ten percent (10%)".
6.	Implications on other contention set applicants who are impacted by
the AS applicants who are financially incentivized to only participate in
the Auction of Last Resort.  The AS Applicant now holds the Trump card to
use the Auction of Last Resort and thereby limiting everyone else in that
contention set from the ability to use another auction method.  See item #2
re:  JV.  There should not be a race to the AS Applicant to enter into a JV
to gain the auction multiplier - if the credit no longer apply to this, we
need to state it but again, it then changes the dynamics on resolving the
contention set.

 

In short, the multiplier has been added without the requisite consideration
required to prevent the very concern everyone was trying to prevent in the
2012 round.  The bid credits, multiplier needs further deliberation to
carefully balance the needs of all stakeholders while ensuring we're not
opening the doors to abuse and gaming.  

 

Cheers,

 

Christa

 

 

Christa Taylor

CMO |  <http://www.mmx.co/> MMX.CO

M: +1 (604) 961-9460

Email:  <mailto:christa at mmx.co> christa at mmx.co

 



 

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