1. Identify and describe in detail the exit strategy for NSI as your registry operator.
2. Identify and describe in detail NSI's roles and responsibilities as provided in the "Secondary Role" described in the application.
3. Identify and describe in detail KDD's expected marketing costs for the first four years of operation.
4. Identify and summarize Applicant's assumptions with respect to the existence of other general purpose TLDs in determining the total number registrations in your application.
5. State in detail your position as it relates to possible legal claims by certain applicants and/or non-applicant third parties based on alleged trademark, patent or other violations of purported rights in the TLDs identified in your application.
6. If you receive a new TLD, state whether you will indemnify ICANN for claims arising from legal challenges regarding your right to operate the new TLD. If you will indemnify ICANN, identify and describe in detail the resources you propose to utilize for the indemnification.
7. Hypothetically, if you receive .home as a new TLD instead of .biz, describe in detail the effect, if any, on the pro forma financial statements submitted with your application.
8. Identify and describe in detail the timetable in which you will allow full access to ICANN accredited registrars.
9. Identify and describe in detail the your average and worst case transaction times for post to appearance on Whois.
10. Identify and describe in detail the service level to which you are willing to contractually commit for post to appearance on Whois.
11. Identify and describe in detail your projected level of Whois query traffic.
12. Identify and describe in detail the projected query traffic level to the Whois function to which you are willing to contractually commit.
13. Assuming you receive a new TLD, identify and describe in detail the timetable for the availability of the following services:
b. full operation; and
c. full access by accredited registrars.
14. Identify the service availability timetable to which you are willing to contractually commit for the following:
b. full operation; and
c. full access by accredited registrars.
15. Assuming your primary site experiences a catastrophic failure, identify and describe in detail the timetable required to restore partial SRS service.
16. Identify whether you will provide a test-bed for registrars to validate their protocol software.
1. Our exit strategy for NSI is as follows:
Step-7: Ready for the transition from NSI-based registry system to KDDISOL's registry system.
2. The basic strategy underlying our planned relationship with NSI is that our control will increase over time until we're in a position to exit from NSI-based registry system. Especially for the initial phase, where the precise prediction of actual demand for our proposed TLD's is very difficult, we concluded that outsourcing to NSI would be the most practicable in terms of economy, system flexibility and stability. However, within two to three years, we will be fully capable of essentially independent operation. Consequently, the basic role of NSI will then be reduced to that of the DNS software provider.
We are responding to this part on the assumption that you are requesting an explanation not for the term "Secondary Role" but for "Support Role" as described in D13.2.1 of our proposal.
In phase 2 of our business plan, we will be responsible for the primary operation of the registry and NSI will provide sufficient support upon request of us.
Details of NSI's "support roles" are as follows:
When KDDISOL CS receives a call from one of its Registrars, it will collect all necessary information and resolve the issue. If it is unable to resolve the issue, KDDISOL CS will forward the call to NSI Registry CS. NSI Registry CS will log the call in the CS tracking system and assign a tracking number. The NIS Registry CSR will work closely with KDDISOL CS to resolve and close the ticket. If necessary, NSI Registry CSR will forward the ticket to the appropriate Registry department for investigation and resolution. Once resolution is obtained, the NSI Registry CSR will forward this information to the KDDISOL CSR who then contacts Registrar for closure. The NSI Registry CS will always be the single point of contact for the KDDISOL CS for updates and additional information until closure of the ticket.
3. As an initial matter, we would like to clearly state that this new effort to serve the Internet community as a gTLD registry represents one of the most important activities within the new KDDI. KDDISOL, a wholly owned subsidiary company of KDDI, will be able to efficiently utilize the well established channels for marketing as well as other network resources of KDDI. Therefore, we anticipate that the marketing costs, especially the cost to associate new registrars, may not be significant and will be covered by the "others" costs set forth in sections D.13.2.11 and D.13.3. Should it be necessary in the future to increase the budget allocation for our marketing efforts in order to promote the penetration of Internet, we will not hesitate to allocate such amounts in order to achieve our goal and to thereby make a significant contribution to the world Internet community.
4. We recognize that the competitive situation under multiple general purpose TLDs will affect the total number of registrations for our proposed TLDs. However, we opted not to recognize this parameter in our calculations for the following reasons:
Under our most confident business plan, in five years the total number of registrations will reach approximately 23 million, which seems to be near the number of the existing gTLDs (".com", ".net", and ".org"). The estimation has been made as follows based on the fact that the potential market of Asia is huge. If the Internet penetration rate of those Asian countries, where the present rate is approximately 1%, increases to 15%, Internet users increase by about 500 million. This may amount to more than the current level of Internet users all over the world. Of course, this calculation is very rough. But it represents the potentiality of the Asian market. We are confident of our strategic business position in the Asian markets and in our ability to expand the distribution channels of TLDs. Accordingly, it is for these reasons that we think it may be possible to have the same level of registrations as the existing gTLDs, even if we consider the possible implications arising from competition among new general purpose TLDs.
5. In the communique of the GAC dated 24 August 1999, the following recommendations to the ICANN Board were given:
Also, in Item 3.(b) of the UDRP, it is stated that the complainant shall conclude their complaints with the following statement:
Our position to the issues is identical to the above statements.
We are aware of assertions made by certain parties suggesting the existence of some proprietary claim to "biz". In this regard, we have read and fully agree with ICANN's response to such assertions.
6. We are willing to indemnify ICANN for any liability that ICANN might incur as a result of challenges regarding KDDISOL's right to operate the Registry for its proposed gTLD's along with the worldwide consensus mentioned in 1 above.
Should there be any necessities to allocate resources for the indemnification, we expect to utilize general corporate resources.
7. In the case where both ".biz" and ".home" are granted as our TLD strings, we predict that over half of the domain names could be for ".biz". In the case where only ".home" is granted as our TLD string, the actual growth rate of our domain names would be somewhat reduced as compared with the case where both ".biz" and ".home" are granted. Three factors, operating together, produce this result - (i) the huge growth potential of the Internet community, (ii) the generic nature of the ".home" string, and (iii) the concentration of our marketing power into ".home". Although we anticipate that when taken together, ".home" will be the less dominant TLD, if it is our only TLD all of our considerable resources will be focused on it in such a way as to result in total registrations equal to 85 -90% of that set forth in our application. We believe that the most important ingredient in the determination of total registrations is the fact that we would be the first Asian-based registry with a marketing program specifically focused on largely untapped sectors of the potential internet community. Consequently, although there will be some financial impact associated with our registry operations in the event we are awarded only one of the two proposed gTLD's, it is not expected to be great and, in either case, it will not represent a financial or operational deterrent to KDDISOL's commitment to serve the internet community.
Please note that although one of the proposed TLD strings may be used without the other as stated above, we believe there would be a great benefit to the world internet community in general, and to the potential Asian internet community in particular, by KDDISOL's administration of a multi-TLD registry.
8. The systems will be available to register the new gTLD January 31, 2001.
9. We anticipate a worst case transaction time for posting on Whois to be 24 hours. As our capability and experience increases, we expect to significantly reduce this time to 12 hours or less.
10. Contractually, we will commit to once every 24 hours.
11. On the average we anticipate that there will be (2) queries per domain name per day.
12. Initially, we will commit to supporting up to 5 million queries per day. However, the technology is very scalable, and we can add additional systems as necessary as the Whois query rates increase.
b. and c. The SRS for the new gTLD's will be fully operational and accessible by accredited and certified registrars by January 31, 2001.
14. Same as for question 13, above.
15. As set forth in Section D15 of our application, we will be capable of recovering from catastrophic failures involving specific systems almost instantaneously. Recovery time for a complete catastrophic failure at our primary site involving equipment, systems, networks and personnel will take up to 72 hours and we expect to substantially reduce this transition time during the first six months of our registry operations.
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