[registrars] knowing when to fold 'em

[Thomas Barrett - EnCirca]

 Rick,

I assume all one needs to do is to stop using the batch pool by November 1.
Or, is it before the last month of the quarter?

What is missing from the new fees is how ICANN determines if a registrar is
participating in the batch pool.

I Assume that they have asked EACH of the gtld registries for a monthly
report detailing the number of transactions by registrar.  I Also assume
that the gtld registries will make this report available to EACH registrar
for review at the same time.

Without the registries making these reports available to the registrars, any
invoiced fee from ICANN could not be substantiated.

We need to know from each of the registries if these reports will be monthly
or quarterly and, if quarterly, if it measures the entire quarter or just
the last month of the quarter.

Best,

Tom

-----Original Message-----
From: owner-registrars at gnso.icann.org
[mailto:owner-registrars at gnso.icann.org] On Behalf Of Rick Wesson
Sent: Thursday, October 14, 2004 2:25 PM
To: Registrars List
Subject: [registrars] knowing when to fold 'em


I had an excellent conversation with ICANN's CFO (Diane Schroeder) about the
new budget and how it will apply to registrars. I am especially concerned
about the "phantom accreditations" and their business model.

The 3.8M variable-fee portion of our ICANN obligation will theoreticly be
about 4K per quarter per registrar. If a registrar participates in the
batch-pool they will not qualify for "forgiveness."

The new budget, and the new criteria, becomes effective Nov 1, 2004. This
means that if a registrar is participating in the batch-pool and their
accreditation renews after Nov 1 2004 they will be on the hook for about 7K
which will be invoiced in Q1 2005.

If you want to avoid all the fees you could stop participating in the
batch-pool and ask for forgiveness but those "fantom registrars" they will
have to clear at least 2K/month to be able to cover the minimum ICANN fees.

As the ICANN fees are associated with business models the net effect will be
to encourage the smaller registrars to leave the pool and larger registrars
will continue picking up any slack left in the system.

I've requested that ICANN instruct me on how to "shutdown" a registrar as I
have several clients that would now like to "leave" the registrar business
before Nov 1, 2004. I've been told that Ellen Sondheim is on vacation and
won't be back before the 20th leaving only 10 days for ICANN to process an
"application for de-creditation."

If anyone else learns how to exit this market before the bills come, do post
your thoughts.

-rick

ps Alice's Registry will not seek de-accreditation -- we are here for the
  long term; though, we have worked with several registrars that their
  sole business is to peruse names in the batch-pool