<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso-8859-1">
<META content="MSHTML 6.00.2600.0" name=GENERATOR></HEAD>
<BODY>
<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></BODY></HTML>