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ICANN Stockholm Meeting Topic: Registrar Application Fees and Annual Registrar Fixed Accreditation Fees

Posted: 17 April 2001

Proposal to Change Registrar Application Fees and Annual Registrar Fixed Accreditation Fees Effective July 1, 2001

One of the topics to be discussed at the ICANN Public Forum on 3 June 2001 in Stockholm is a proposal to change the registrar accreditation application and fixed annual fees. Public comment is invited and may be made at the 3 June Public Forum or on the web-based forum that you can enter by clicking below.

Click here to enter the Public Comment Forum on revision of fees for registrar accreditation.

Proposed Change in Registrar Application Fee

The fee for new registrar accreditation applications is now US$1,000. This amount is very much lower than the actual cost of processing the application. Because of insufficient funding, turnaround on these applications is not as fast as it should be. Furthermore, because the fee is not cost-based, other sources of funding are subsidizing these applications.

ICANN proposes to raise this fee to US$2,500. This figure is closer to—although still believed to be somewhat less than—actual cost. A key benefit to the community in bringing this fee in closer alignment with actual costs should be faster turnaround and improved service.

The proposed fee is very small compared with overall costs of establishing a performing registrar function, so it should not discourage serious applicants from applying. Staff will not have to devote time unproductively to processing applications that are not intended to go into operation in the near-term.

Proposed Change in Annual Registrar Fixed Accreditation Fees

Registrars now pay a single fixed fee of $5,000 each year for accreditation to register for the .com, .org, and .net registries. With new unsponsored top-level domains (TLDs) planned to come on line in the near future, it would be burdensome for registrars to pay $5,000 for each additional TLD in which they perform registrar services.

ICANN, therefore, proposes to change the fee structure to where registrars pay US$4,000 annually for the first TLD in which they are accredited to perform registrar services, and US$500 for each additional TLD. This allows registrars more freedom of choice in becoming associated with multiple registries without becoming burdened with significant additional costs.

For example, under the present fee structure if a registrar were to perform services for four unrelated TLDs, it would pay a fee of 4 x US$5,000 = US$20,000. Under the proposed scheme the registrar would pay US$4,000 + (3 x US$500) = US$5,500, which is significantly less. A registrar that now provides services for .com, .net, and .org would pay US$5,000 under either fee structure.

This effect is likely to make it somewhat more attractive for registrars, particularly smaller registrars, to perform services for all TLDs. The revenue-positive effect of having registrars become accredited for more TLDs would be offset by the lower fixed accreditation fees paid for the second and subsequent TLDs. Accordingly, the effect on overall revenues may be positive or negative, but in either case the charge will more closely reflect the cost of administering the accreditation program.

Public Comment Forum

Public comments on the proposed fee changes should be submitted, and can be reviewed, by means of the ICANN Public Comment Forum.

Click here to enter the Public Comment Forum on revision of fees for registrar accreditation.

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