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<DIV><FONT face=Arial color=#0000ff size=2><SPAN
class=404242319-02102003>Further to this note, ICANN has requested our response
by October 15th in order to allow them to process their bills on schedule.
I would suggest that we schedule a call next week to determine what
constituency position to take</SPAN></FONT></DIV>
<DIV> </DIV>
<P><FONT face=Arial size=2>Elana Broitman</FONT> <BR><FONT face=Arial
size=2>R</FONT><FONT face=Arial size=2>egister.com</FONT> <BR><FONT face=Arial
size=2>575 Eighth Avenue</FONT> <BR><FONT face=Arial size=2>New York, NY
10018</FONT> <BR><FONT face=Arial size=2>Phone (212) 798-9</FONT><FONT
face=Arial size=2>215</FONT> <BR><FONT face=Arial size=2>Fax
(212)</FONT><FONT face=Arial size=2> 629-9309</FONT> <BR><FONT face=Arial
size=2>ebroitman@register.com</FONT><FONT face=Arial size=2> </FONT></P>
<BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px">
<DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma
size=2>-----Original Message-----<BR><B>From:</B> Elana Broitman
<BR><B>Sent:</B> Thursday, October 02, 2003 2:51 PM<BR><B>To:</B>
'registrars@dnso.org'<BR><B>Subject:</B> Conference Call with ICANN regarding
the Budget<BR><BR></FONT></DIV>
<DIV><SPAN class=501371317-02102003><FONT face=Arial size=2>Dear all - this
morning, the constituency held a conference call with ICANN to discuss the
ICANN Budget.</FONT></SPAN></DIV>
<DIV><SPAN class=501371317-02102003></SPAN> </DIV>
<DIV><SPAN class=501371317-02102003><FONT face=Arial size=2><U>Attendees on
the call:</U></FONT></SPAN></DIV>
<DIV><SPAN class=501371317-02102003><FONT face=Arial
size=2></FONT></SPAN> </DIV>
<BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px">
<DIV><SPAN class=501371317-02102003><U><FONT face=Arial
size=2>ICANN</FONT></U></SPAN></DIV>
<DIV><SPAN class=501371317-02102003>Dan Halloran</SPAN></DIV>
<DIV><SPAN class=501371317-02102003>Kurt Pritz</SPAN></DIV>
<DIV><SPAN class=501371317-02102003><U><FONT face=Arial
size=2></FONT></U></SPAN> </DIV>
<DIV><SPAN class=501371317-02102003><U><FONT face=Arial
size=2>Registrars</FONT></U></SPAN></DIV></BLOCKQUOTE><SPAN
class=501371317-02102003><FONT color=#0000ff>
<BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px">
<P><FONT face=Arial color=#000000 size=2>Ross Rader</FONT></P>
<P><FONT face=Arial><FONT color=#000000><FONT size=2><SPAN
class=501371317-02102003>Bob Connelly</SPAN></FONT></FONT></FONT></P>
<P><FONT face=Arial><FONT color=#000000><FONT size=2><SPAN
class=501371317-02102003></SPAN>Elana Broitman</FONT></FONT></FONT></P>
<P><FONT face=Arial color=#000000 size=2>Ken Stubbs</FONT></P>
<P><FONT face=Arial color=#000000 size=2>Bruce Tonkin</FONT></P>
<P><FONT face=Arial color=#000000 size=2>Tom Keller</FONT></P>
<P><FONT face=Arial color=#000000 size=2>Tim Ruiz</FONT></P>
<P><FONT face=Arial color=#000000 size=2>Steve
Heflin</FONT></P></BLOCKQUOTE></FONT></SPAN>
<DIV><SPAN class=501371317-02102003><FONT face=Arial color=#0000ff
size=2></FONT></SPAN> </DIV>
<DIV><SPAN class=501371317-02102003><U><FONT face=Arial
size=2>Summary notes of the call:</FONT> </U></SPAN></DIV>
<BLOCKQUOTE class=cite cite="" type="cite">The ICANN staff explained that
the vote required from the registrars is the approval of registrars' payment
of the variable fee. If registrars representing 66% of the CNOBIN fees
collected (note, it is based on fees, not names) do not support ICANN's
collection from the registrars, ICANN will collect from the gTLD
registries. The registries, would then most likely collect from
us. Also noted was the fact that a side agreement to NSI's Registrar
Accreditation Agreement requires NSI to support payment of the fees.
Given that NSI represents approximately 25% of the fees, ICANN needs only
the registrars representing about 40% of the fees.<BR><BR>The discussion
centered around two general themes: greater transparency and
deliverables.<BR><BR>A. Transparency - The registrars on the call asked for
greater transparency regarding ICANN's work, particularly Paul Twomey's
agenda and work. We also requested more budgetary details - at an
earlier time in the process - in order to allow registrars to play a
more<SPAN class=501371317-02102003><FONT face=Arial color=#0000ff
size=2> <FONT
color=#000000>participatory</FONT> </FONT></SPAN>role in framing the
budget. The ICANN staff heard us loud and clear and reported that they
have proposed to Paul that ICANN present a project-based budget, in addition
to the current presentation. They also support doing this earlier in
the process. The idea behind the project-based budget is that money is
tied to specific mission goals, so that stakeholders like registrars can
help negotiate which of the goals are changed or delayed according if we
want to constrain budgetary growth.<BR><BR>On the budgetary note, ICANN will
present the next budget from a zero-base perspective.<BR><BR>B. Deliverables
- We also made the point that at a time when registrars' business budgets
are experiencing little or negative growth, it is difficult for us to
justify supporting the growth of ICANN's budget. We need to see what
we are getting out of the organization, as the popular perception is that
ICANN focuses much more on issues of interest to non-payers, rather than on
registrars. The ICANN staff assured us that this is not the case, and
will do a better job of shedding light on their work in order to show how
much of it affects us directly or indirectly.<BR><BR>Moreover, ICANN was
asked to "deliver" by clearing out old agenda items before moving onto new
ones. Kurt, as ICANN's new VP, Business Operations, pledged to do just
that - and said he has already been happily impressed that this is ICANN's
staff's mode of operation.<BR><BR></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>