Potential domain registrars cry foul
The initial phase for creating competition in the domain name registering business causes concern among registrars, who worry that the plan's pricing structure will leave them at a disadvantage.
Under the plan put in place this week by the nonprofit Internet Corporation for Assigned Names and Numbers (ICANN), five initial companies gained permission to register domain names with the popular endings ".com," ".net," and ".org." The plan--which is only in effect for a 60-day "test-bed" phase--requires the new registrars to pay Network Solutions just $9 per year per domain name, even as the Herndon, Virginia, company continues to charge others $35.
The pricing details, however, are causing concern among at least three of the companies that have been accredited to register domain names once the trial period ends. For the duration of the period, which these registrars say could be extended, they are stuck reselling NSI's domain names at $35 per year, while the five trial registrars are not.
Domain name registration "is a commodity, and it's going to be very price sensitive, so if any of the test-bed registrants do any serious price cutting, why would people go anyplace else?" said Dick Halavais, vice president of MS Intergate, a Web design and hosting firm that is among the 29 companies accredited to register domain names once the process opens up completely.
Two other accredited registrars--Moraga, California-based Namesecure.com and Alldomains.com of Pleasant Hill, California--are voicing similar complaints.
So far, none of the five test-bed registrars--which include America Online and Register.com--have said how much they plan to charge to register a domain name. But Register.com chief executive Richard Forman said the future registrars' concerns are far too speculative.
Up to now, only NSI has had the authority to register the domain names ending in ".com," ".net, and ".org," which account for an estimated 50 percent to 75 percent of the world's Internet addresses. The Commerce Department, which oversees administration and governance of the Net, has been searching for a way to turn its duties over to the private sector. The controversy over the pricing structure is yet another reminder that forging a plan that is palatable to everyone--especially as Internet use continues to explode--is a difficult balancing act.
"The ball is back in the court of Commerce and Network Solutions to keep working," he said.