In July 2000, the Internet Corporation for Assigned Names and Numbers (ICANN), a global, non-profit organisation designed to build consensus and oversee administrative functions for the Internet name-and-address system, requested proposals to deal with certain critical issues through the sponsorship of new top-level domains (TLDs).CORPORATE VISION
In its call for proposals, ICANN made it clear that it is seeking innovative solutions from potential registry operators, looking for both the conceptual and practical business frameworks to resolve these issues, which arise from the actual and predicted exponential growth rates in Internet usage . These issues include:
Growing numbers of parents and interest groups are concerned about the easy access children have to harmful or inappropriate content. Internet Content Management Registry (ICM Registry) has developed a proposal that fully meets the tender requirements of ICANN, while providing the blueprint for a stable, sustainable and profitable business. Incorporated in the state of Delaware and with its business headquarters in Toronto, Canada, ICM Registry is proposing the creation of two TLDs-.XXX for adult entertainment and .KIDS for material geared to Internet users aged 12 and under-both managed through a revolutionary registry model developed by the company. The model is applicable for the development and management of any TLD, though the two embedded in the ICM Registry proposal specifically and effectively address some key public policy concerns raised by ICANN.
The system's current address regime, the domain name system (DNS), is running out of space just as demand for Internet addresses is predicted to double. Website names are currently registered after it is determined they are unique; however, the limited number of (TLDs makes it increasingly difficult for new Websites to find appropriate or accurate addresses;
The DNS as it now operates has created a class of "cybersquatters", those who register and hoard prime demand names and addresses in the hope of selling them for exorbitant charges;
Trademark and intellectual-property rights are inadequately protected in the regime of the Internet;
ICM Registry's proposal is built on a coalition of partnerships with existing registry operators, other providers of Internet support services and investors. Pending ICANN approval, ICM Registry is in a position to launch the proposed TLDs in accordance with its registry model. Revenues will be generated in a fast-growing market on a sustainable basis from the registration process and the provision of related services. Details of the business case supporting ICM Registry's proposal are contained in the discussion of operations following and in the financial projections attached.
ICM Registry will become a premier registration-application service provider, and develop enhanced value-added services.Details of the ICM Registry Concept
ICM Registry's vision is to develop benchmark services and products that improve the quality of the Internet.
ICM Registry's mission is to work co-operatively with strategic partners to create winning solutions for Internet-oriented businesses.
ICM Registry's strategy is to collaborate with acknowledged leaders in Internet technologies and service providers to expand Internet capacity in an orderly manner through new charter TLDs.
The firm's initial focus is to launch a reliable registry system in two new TLDs-.XXX and .KIDS-to provide "proof of concept" of its model of registration, trademark protection and auction services.
The ICM Registry model envisions the creation of TLDs, supported by a new registration and support procedure. This procedure also deals with the broader issues of fair access, protection of existing trademark and intellectual property rights, and transparency in the acquisition of Internet addresses. ICM Registry has coined a term for this model: Registructure.Advantages and Benefits of the ICM Registry Solution
The ICM Registry model is based on the premise that if the Internet is to meet user need in the provision of Website addresses, new TLDs must be created. However, the ICM Registry model also recognizes the need for registry operators and registrars to implement systems, which work proactively to balance the rights of new applicants, existing domain name holders, and other trademark and intellectual property holders.
- The establishment of Policy Advisory Boards. These independent policy boards will represent an appropriate range of community interests among users, content providers and public-interest groups. The Boards' role is to develop policies and, where required, guidelines to steer registration on the new TLDs.
- The use of registrars to accept applications and verify the availability of Website names. This reflects current practice.
- The creation of a comprehensive system to protect trademark and other intellectual-property rights. This system is based on the creation of a new "sunrise" provision, which allows existing trademark holders to pre-register to protect their interests in the new TLD. Cross checking for such interests will be an integral part of the registration procedure.
- A system in which requests for an address on the new TLD will be made public, and will be subject to challenge. To ensure transparency and fair access, all applications for addresses will be posted to enable protest or competition by other parties.
- The creation of an "auction" process in cases where competing interests seek a specific Internet address. This process will be run by the registry operator according to rules and a time frame that are transparent and fair to all parties.
- The use of the Uniform Dispute Resolution Process (UDRP) sanctioned by ICANN for any conflicts resulting from the registration process.
- The introduction of a "watch" system to further protect the interests of existing trademark holders. Any applicant whose name selections may impact an existing trademark holder, will be notified so that all parties may resolve the conflict.
- The protection of information filed through the registration process by a vigilant data-watch service.
- The introduction of a mechanism to facilitate self-rating of Internet content. Currently, each TLD maintains a WHOIS data base containing information on addresses within that domain and other registrant information. Under the ICM Registry proposal, new registrants in the new TLDs would , on a voluntary basis, provide additional categorisation of their content for inclusion in the WHOIS data base. This would be made available to users, assisting those who seek access to such content, while enabling the filtering of that same material by those who do not want it.
- The enhancement of trademark protection world-wide. The ICM Registry concept can be extended to enable registrars to check applications against the information in all of the WHOIS data bases of the more than 130 existing TLDs.
ICM Registry proposes to use its model in two areas that present distinct but related public-policy issues on Internet use: adult-oriented sites, and sites appropriate for children 12 and under. These subject areas have been at the center of debate, characterized by deeply held and conflicting opinions. These subject areas raise significant public policy issues of privacy, freedom of expression, access, choice and parental control. These interests are not easily balanced, and have been the source of significant political pressure and lobbying by various interest groups.
ICM Registry believes that its model presents the best opportunity to successfully balance these interests, while preserving the Internet as the key medium not just for consumer choice but for the free exchange of ideas. For this reason, the ICM Registry proposal centers on the creation of two new TLDs:
- .XXX for adult entertainment;
- .KIDS for Internet use by children 12 and under.
ICM Registry proposes to operate two restricted high-level domain registry systems.Market
In operating .XXX, adult-oriented content will be provided with a clearly identifiable "home" for those who wish to access this content, By the same token, that content can be easily filtered or screened by parents. A separate TLD clearly enables choice by adult users, while making all Internet users aware of the nature of a site's content simply by its address. Providing access without censorship while protecting the rights of those who do not wish to be exposed to such content helps resolve the criticism various interest groups have directed at the Internet's current structure and processes.
While .XXX as a TLD is a means of dealing with the issue of protecting children, there is in addition a growing need for a TLD that represents a welcoming home for child-appropriate content. For this reason, .KIDS provides a means of making the Internet a safe environment for children's entertainment and education.
The difference and value of ICM Registry's proposal for both .XXX and .KIDS is found in its use of Policy Advisory Boards. In both instances, these Boards have a role to play in establishing norms, ensuring that processes are followed, and maintaining appropriate values. In doing so, they represent a community of interest with respect to specific types of content. Rather than imposing an undesirable and unwanted arbiter or censor on the registry operator, the groups themselves will regulate the Websites since they are the most directly involved and interested in the content. The use of Public Advisory Boards in both instances avoids the imposition of a policing role on the Internet, while recognizing the need for a framework that balances competing public interest.
The creation of these Boards, together with the ICM Registry proposal to add new information on the categorization of content to the WHOIS data base, will enable potential users to clearly understand the nature of what they are about to access. This is particularly effective in enhancing parental choice and control of their children's use of the material on the proposed .KIDS TLD. ICM Registry's proposal is to provide parents with the assurance that there is a welcoming and safe place on the Internet for their children. While it is ICM Registry's intention to run both TLDs on a commercial basis, given the nature of .KIDS and the public policy interests which lead to its creation fees and charges related to .KIDS would be provided on a discounted basis. The ICM Registry processes respond to the issues being addressed by the Commission on the Child On-Line Child Protection Act (COPA) of the U.S. Congress. At the request of Congress, that Commission is examining:
The concept of a specialized domain for adult material equipped with the proposed mechanisms for registration provides an opportunity for the adult-oriented industry to establish its own response to the concerns at the heart of COPA. At the same time, these same mechanisms address the concerns of such groups as the Center for Democracy in Technology, which argue that the Internet should be a medium of free expression and continue to provide adult services to those who want them.
- the need for a common resource for parents to use to help protect minors;
- provision of a means for filtering services;
- provision of systems to rate content;
- the establishment of a domain name which enables the identification of material harmful to minors;
- use of existing or the creation of new methods to screen content and reduce access by minors to adult-oriented material.
ICM Registry intends to provide the registry service for both .XXX and .KIDS through the Internet's two leading domain name registry-service providers: dotTV Corporation and Verisign Global Registry Services. Primary registry application functions will be performed by dotTV. Verisign will provide a supporting role for all registration functions, ensuring the registry is reliable and stable.
ICM Registry and its partners will offer superior quality and reliable services based on their track records, expertise and experience. In particular, ICM Registry's proposal is predicated on:
ICM Registry will also offer:
- verifiable service-level agreements to protect customers from liability and service interruption;
- providing registrars with a fast, ultra-reliable service to meet registrant expectations;
- back up and escrow services to safeguard data and information;
- an advanced registration software system to facilitate integration of registration services.
ICM Registry will be established as a single point of accountability for all aspects of its domain name service. ICM Registry has developed a model for a registry process which addresses the key challenges facing the Internet, and which meets ICANN's criteria for innovative and sustainable service deliver.
- a complete suite of value added services to meet the specialized and different needs of registrars, registrants, and trademark holders;
- optimal security, firewall, anti-virus and intrusion detection;
- strategically located service nodes worldwide.
Entering the 21st century, the Internet is poised to become the primary tool for acquiring information and conducting business. Over the past three years, all predictions of growth in Internet usage have been dwarfed by the actual results. That trend will continue, and the estimated 220 million people currently accessing the Internet world-wide is expected to exceed 500 million by 2004. Business conducted on the Internet is predicted to reach $1.3 trillion by 2003.Product Strategy
There are estimated to be more than 900,000 adult-oriented Websites, accounting for approximately 3 per cent of all domain addresses. These sites, however, account for 34 per cent of all Internet traffic. Analysts estimate that the online adult Website market is a $2B industry capturing almost 20% of the total pornography industry which is expected to be more than $10 B per year in revenues this year. This represents from 5-10% of total consumer purchases on-line at the present time.
A new .XXX domain will appeal to those adult sites wishing to be instantly recognized as such, and those interested in accessing new addresses that are currently restricted or unavailable on existing TLDs. The new .XXX domain offers an opportunity for enhanced product branding in the adult entertainment industry for those who want it. Initial discussions with operators of adult content sites indicates that more than 18 per cent would be interested in capturing a new ".XXX" domain in its first year of operation.
With respect to the proposed .KIDS domain, the availability of a new TLD exclusively devoted to providing content appropriate to children under 12 will appeal to a wide range of existing providers of Website services. The ICM Registry proposal to set up Public Advisory Boards and a mechanism for the voluntary rating and listing of content means that parents can be confident that sites on .KIDS enjoy "a seal of approval," a significant value added to those potential registrants addressing that audience. ICM Registry anticipates that demand for addresses on the new .KIDS domain will mirror general growth rates for the Internet.
Overall, demand for registration on the two new TLDs is expected to be 3 per cent of the total demand for new TLDs, with .XXX accounting for the majority of registrations in the initial years of operation but greater growth in registrations for .KIDS in subsequent years. ICM Registry projects that the market for registrations on these new TLDs would reach 165,000 in the first year, climbing to 485,000 in 2003.
In the initial years of operation, the creation of new TLDs places focus primarily on registration, and the growth of services tied directly to it such as name auctions. The ICM Registry plan envisages the development of new, value-added features as the new TLDs mature. While registration and auctions will remain a key element of ICM Registry's business, they will be supplemented by an increasing focus on the provision of a complete range of services to enable its customer users to grow their e-commerce. These include:Marketing Strategy
The majority of these services would be offered through ICM Registry's partnerships with registrars.
- filtering, through the identification of particular words or character strings in the TLD system, to identify desirable materials or block unwanted content.
- enhanced protection of trademark and other intellectual-property rights by extending the processes of domain naming to include a broader range of cases. These would include, for example, cases where a proposed name potentially constitutes illegal use of a mark, derogates from the mark, or constitutes a "substring" containing the mark.
- the generation of statistical data for legitimate requests from the new WHOIS data bases.
- tools for account management.
- digital certificates to ensure that under-age users are denied access to specific categories of Internet content.
- enhanced search engine and listing services.
- advanced tracking and monitoring tools for customers.
The existence of a specialty domain clearly identified as adult-oriented will provide the adult entertainment industry with an opportunity to enhance its branding, directly reach its target audience. It also provides the industry with an opportunity to take the lead in proactively responding to the concerns surrounding their products and their availability on a public medium like the Internet. Once ICM Registry wins the right to operate a new .XXX TLD it will undertake an extensive marketing campaign within the adult entertainment industry to inform them of the advantages and the availability of the new domain.Financial Projections
The target audience for ICM Registry is the adult content Webmaster, and registrant trademark holders. The ICM Registry proposal creates a new TLD which provides the adult entertainment with a platform in which they can organize themselves into a self-managed entity. They can take charge of their response to their critics, and in meeting on their own terms the social and political forces world wide which have demand that the unmanaged distribution of adult content be addressed. Any marketing strategy must recognize the controversial nature of the industry, the depth of emotional response it triggers in some audiences and cultures, and the sensitivities involved in balancing an adult's right to access any material with a parent's right to ensure children are not exposed to harmful material.
In reaching that audience however, ICM Registry will ensure that it enhances its own brand reputation as a premier registry operator providing a neutral service serving a range of publics.
ICM Registry's plan envisages the use of an extensive public relations campaign, direct mail to target audiences, use of promotional strategies, media, and participation in trade shows. ICM Registry also recognizes that marketing for both .XXX and .KIDS ultimately depends on its relationship with registrars as equal partners. Registrars will be the primary point of contact with potential registrants on these TLDs, and ICM Registry will utilize the channels already developed with registrars by its partners VeriSign and dotTV.Marketing the Service
Because of the sensitivities surrounding the very different but linked issues which lead to the creation of .XXX and .KIDS, ICM Registry recognizes it needs a solid promotional and public relations strategy dealing with publics beyond its target business audience. ICM Registry has secured The Gable Group to develop a North American promotional strategy and assist it to create public awareness for the brand. As a leader in Internet communications, The Gable Group will enable ICM Registry to establish .XXX in North America, and develop support for the brand internationally through a campaign which respects differences between cultures.
Initially ICM Registry will begin to integrate the registrars and the adult content community through on-line media (banner advertising, Website links), as well as traditional media. This campaign is designed to create awareness of the domain within the North American marketplace in the first two quarters of Year 1, and will see $500,000 spent on public relations, on-line content development, media packages, tradeshows, public speaking and research.Public Relations Strategy
ICM Registry will develop co-operative advertising with all ICANN hanism to force the industry to abandon existing domain name marks; while adult content should be available to those who choose to access it, ICM Registry believes that the Internet community has a responsibility to protect children and provide a safe and welcoming home for them on the Internet. To this end, ICM Registry will contribute $6 per domain name for the creation of the .KIDS corporation, support the operation of the .KIDS registry, develop research on children's programming, protect children form exposure to adult-oriented content and provide children with tools to go on-line; it is not ICM Registry's role to address policy issues, but to respond to policy created by Public Advisory Boards for both .XXX and .KIDS. In doing so, ICM Registry will ensure that these Boards fairly represent all of the relevant stakeholders within the Internet community.
ICM Registry's public relations strategy leverages the demand for adult content within the North American marketplace in order to support the protection of children from that content.Strategy for Partners
To do so successfully ICM Registry must undertake a dynamic communications strategy with clear and consistent messages to the Internet community that ICM Registry is responsive to both the concerns and interests of adult webmasters as well as the broader Internet community. Its public relations strategy must target, and balance, the many diverse groups who are interested in and seek to influence this unique service. The Gable Group will co-ordinate these services initially.
To establish its brand and position in this policy area, ICM Registry will focus on strategic announcements with its partners to build interest in and support for its TLDs. In Year 1, these will focus on the approval of a .XXX domain, the announcement of joint marketing agreements with the leading adult content players internationally, and the creation of the Policy Advisory Board of leading Internet representatives to start building consensus-drive solutions to the Internet's adult content issues.
The success of ICM Registry's marketing efforts depends on the strength of its relationships with partners, and the success of joint marketing efforts with those partners.
To build those partnerships, ICM Registry must establish brand awareness, and develop broader relationships which generate additional goodwill among other stakeholders:
ICM Registry will measure the success of its marketing initiatives, and the participation of registrars in them. ICM Registry will set registration targets and co-operatively work with registrars to achieve them. ICM Registry will monitor and evaluate levels of marketing activity in both electronic and traditional media, and awareness levels this media was able to generate across the registrar Website
- Internet leaders
- advocacy and industry groups
- regulatory bodies
- adult trade organizations
- opinion leaders and analysts.
The Policy Advisory Board
The Public Advisory Boards are a mechanism for balancing interests and building consensus to resolve long-standing problems. To succeed they must constitute a fair representation of the stakeholders in the adult content management arena, motivated to identify consensus-driven solutions.Public Policy Involvement
ICM Registry will provide a forum to facilitate a dialogue for Internet users to participate in the development of policy and procedure for services related to both .XXX and .KIDS. In particularly, ICM Registry will:
Establishing Brand Credibility
- distribute regular reports (policy and general)
- seek registrants to communicate their concerns
ICM Registry will:
- establish its presence at all the major adult content shows to assist in branding .XXX, educate, and facilitate the building of consensus on .XXX within the industry;
- secure speaking engagements and presence in media which establishes visibility, trust and credibility on the issue;
- protect trademark holders through notification related to name auctions on the new TLDs;
- target adult content providers with information about the service and the benefits of participating in a self-identified, self-regulated .XXX site.
The launch of this specialized domain will be a significant, world-wide media event. ICM Registry's public relations campaign will generate interest and reactions from hundreds of thousands of Internet users world-wide.
Success in launching these services hinges on providing all media with a clear and consistent message, engaging senior political, social and business leaders in building consensus and endorsing the solutions available through the new TLDs, and acting in a culturally sensitive way to ultimately build the new TLDs as truly international services.
Success in positioning these new services, and attracting public interest in these unique new domains will ultimately heighten awareness and drive demand for and use of these services.
In its initial year of operation, ICM Registry anticipates revenues of $12.2 million (US). Revenues are not expected to begin until the end of the second quarter while the company focuses on preparing for the upcoming sunrise auction period. ICM Registry expects to generate $4.7 million from registrations and other services, and $6.4 million from the auction of highly desirable Web names on the new TLDs.ICM Registry's Team
In Year 2, revenues are projected to reach $19.5 million ($13.4 million from registrations, $5.1 million from the auction process and the balance from other services), while in Year 3 they are expected to reach $29 million ($24.4 million from registrations, $4.1 million from the auction process, and the balance from other services). In Year 4, ICM Registry anticipates revenues of $39.7 million ($35 million from registrations, $3.3 million from auction services, and the balance from other services).
Year 1 will generate the highest revenues from the auction process because all names in the new TLDs will be up for sale. Since the ability of existing domains to meet demand for additional Web names has been constrained for some time, there will be a significant initial demand to register space on the new TLDs. After the initial surge in Year 1, auction revenues will subsequently stabilize and decline due to fewer auctions and the lower value of remaining name choices. At the same time, revenues will increase from growth in registration and the introduction of the full range of value-added services.
In spite of initial start-up costs, the first year will see net profit of $1.3 million as a result of revenues from the auction process for the most valued addresses. After this initial year, net profits are projected to increase to $1.5 million in Year 2 (7.5% margin on revenue), $2.8 million in Year 3 (9.4% margin on revenue) and $4.4 million in Year 4 (11.1% margin on revenue). Economies of scale should allow for a leveling off or even decline of operating expenses, increasing ICM Registry's profit margin.
Capital expenditures are expected to grow from $0.9 million at startup, to a total of $1 million by the end of Year 1, with additional expenditures in years 2 and 3 of $1 million. Most of the expenditures are for network and computer-hardware assets.
ICM Registry's founder is Jason Hendeles, a long-standing participant in the development of the Internet infrastructure, and President of ATECH Company Inc, one of the first privately owned and operated, licensed, domain-name registrars.Risks
Michael Palage is Senior Vice President. An intellectual-property attorney and an information-technology consultant, Mr. Palage is Co-Chair of ICANN's Working Group B for the protection of famous trademarks in connection with the domain-name registration system. As Secretary of the Domain Name Supporting Organization DNSO) Registrar Constituency for ICANN, he is involved in shaping international policy on domain-name registrations.
ICM Registry's strengths derive from the experience of its management team in the development of the Internet and in the communications industry. ICM Registry's management has a long history of involvement in helping shape Internet standards, developing registration-software systems, and running registry operations. In particular, ICM Registry draws on Mr. Hendeles' strengths in building alliances and shaping coalitions among business and community interests.
ICM Registry's proposal is based on partnerships with existing registry operators, investors, and other related Internet support services. This coalition of partners will ensure that ICM Registry can provide a robust, stable and premier-quality service.
The following are the notable risks associated with this business opportunity, and ICM Registry management's assessment of them:
To date, governments have not materially restricted the use of the Internet. However, that regulatory and legal environment can change as issues arise. These issues include sales and other taxes, user privacy, pricing, content, consumer protection or cross-border commerce. As with all Internet-service providers, the imposition of new regulatory changes could materially impact ICM Registry's business. Management believes these risks are low, and would in any event have only a medium impact. The ICM Registry proposal on .XXX, in fact, provides an alternative to regulation on one of the most difficult political issues related to the Internet, the protection of minors from exposure to adult-oriented material.Financing
ICM Registry's initial capital inflow and projected cash flow from operations will be more than sufficient to meet both working-capital and capital-expenditure requirements for the initial three years. Revenue is generated in the first three years from a variety of services implemented in phases and the initial levels of interest shown by the adult entertainment industry in ICM Registry's proposal indicate that ICM Registry will be in a strong financial position from inception. Management assesses this as a low risk, but one that could have a medium to high impact on the business.Competition
In its proposal, ICM Registry has positioned itself as a specialized service provider in a unique market niche. The corporation's potential competitors are companies with strong brand recognition and Internet-industry experience, including telecommunications and cable companies.Litigation
As a registrar of domain names on two new TLDs, ICM Registry is exposed to risks of various claims related to the rights of third parties whose rights may have been infringed by a registration. While ICM Registry will set aside a portion of revenues as a contingency fund for litigation, it believes that its innovative approach to registration creates procedures and mechanisms that provide a level of trademark protection considerably superior to that currently available on the Internet. Litigation presents a low risk.Key Employees
ICM Registry's initial success is dependent on the abilities and experiences of its senior executives, particularly the ability of Mr. Hendeles to formulate ICM Registry's business plans and negotiate partnerships. Initially, the loss of its key executives would have a significant impact on the successful implementation of the ICM Registry concept. Recruitment and succession planning as the company grows is a priority for the corporation.Accreditation
The provision of domain-name registry services is dependent upon the regulatory approval of ICANN every four years. ICM Registry believes its unique concept provides innovative and appropriate solutions to such key Internet issues as: balancing competing interests on access; protection of property rights; and freedom of expression. Its technology exceeds the technical standards expected, while its processes will exceed the anticipated requirements for license renewal.Technological Change
As with all Internet service providers, technological change remains an important challenge to maintaining ICM Registry's products and services. ICM Registry will mitigate the risk of technological change with significant plans for on-going investment in upgrades to its services and for the recruitment of highly competent technical staff.Systems
The success of ICM Registry is dependent on the satisfaction of its customers, advertisers and partners. That satisfaction is predicated on continuous quality service. ICM Registry will mitigate its exposure to risks of interruptions in service through software solutions, regular backup, distributed processing and industry relationships to handle contingency situations.Growth of Advertising on the Internet
As a new medium, the long-term ability of the Internet advertising market to generate revenues cannot be easily gauged. ICM Registry's future success depends on continuing growth in the use of the Internet as a key advertising and marketing medium. Management believes that the risks of a drop-off in demand through the Internet is low.
dotTv teaming agreement
CDR Consulting Proposal
ICM Registry Securities Purchase Agreement
ICM Registry Disclosure Memorandum
Organizational Consent For ICM Registry
Resolution Of Sole Incorporator
Written Consent of Sole Director
ANNEX 3: DOTTV COMPANY INFORMATION
DotTV Financial disclosure:
DotTV is a privately held company. DotTV is confident that it has the financial resources to fully perform its obligations under this contract. DotTV has made confidential financial disclosures to ICANN in connection with its application for the management of other top level domains. In the event that ICANN requires financial information from dotTV as part of its review process of this application, DotTV would be willing to supply such information subject to an appropriate confidentiality agreement.
VP and General Counsel
Web site: www.tv
Additional information can be found in:
ANNEX 4: VERISIGN GLOBAL SERVICES COMPANY INFORMATION
ANNEX 5: DMR CONSULTING COMPANY INFORMATION
DMR Consulting Group Inc. is a large, well-established and financially sound Canadian-based firm operating world-wide. DMR Consulting Group Inc. is incorporated under the laws of Canada.
The ultimate parent company of DMR Consulting is Fujitsu Limited. Fujitsu is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935, the Fujitsu Group had consolidated revenues of US $43.3 billion in the fiscal year ended March 31, 1999.
In 1995, DMR Consulting became a wholly-owned subsidiary of Amdahl Corporation, a world-wide supplier of large-scale processing systems, advanced software and services, providing enterprise-wide computing across the organization. Amdahl is a wholly owned subsidiary of Fujitsu Limited. This acquisition contributed further to the financial strength, capability and resources of DMR Consulting with Amdahl's US$1.5 billion of business in 1998.
DMR Consulting Group Inc. is a leading international provider of management consulting and information technology (IT) services to businesses and public enterprises, with more than 60 offices in the United States, Canada, Europe and Asia-Pacific. With annual revenues of $US920 million for 1999 and a global base of close to 10,000 professionals worldwide, DMR Consulting is known for providing integrated business and IT solutions that enable clients to improve their competitive position, market share and productivity. To date, DMR Consulting has served thousands of businesses and public enterprises internationally.
Revenue Profile & Service Breakdown
Figure 1: Revenues by Region
Figure 2: Revenues by Service
Figure 3: Revenues by Industry
Company HistoryDMR Consulting Group has 26 years of experience in management consulting, emerging technologies, as well as managing large-scale systems development and integration projects. The following paragraphs outline DMR Consulting's history in brief:DMR Consulting's Reputation for Excellence
DMR Consulting has been providing services in the Ottawa marketplace for over 25 years. The Ottawa branch of DMR Consulting employs over 300 practitioners, is one of the oldest in the company, and has enjoyed consistent growth since it was opened.
Today's DMR Consulting Group consists of four independently operated divisions (DMR Consulting Canada, DMR Consulting Europe, DMR Consulting Asia-Pacific and DMR Consulting U.S.) operating over 60 branches worldwide. The growth of DMR Consulting continues to be fueled by an acclaimed track record for delivering competitive business solutions, and by continuous investment in the development of methods and processes. As a result, DMR Consulting's professionals remain at the leading edge of information technology expertise and evolution.Other value-added characteristics that DMR Consulting brings to the table are best summarized in the International Data Corporation (IDC) report entitled "Top Services Firms in Canada: An Image Perception Study" (June 1999, Vol. 1, IDC #19870, Tab Report) which categorizes DMR Consulting as follows:DMR Consulting's Commitment to Quality
Top Ten in such categories as: Excellent Track Record, Strong Technical Expertise, Industry Expertise, Ability to Work with our People, Knowledge Transfer, Speed of Implementation, Flexibility, A Methodology-Based Approach, and Thought Leadership and Innovations.Corporately, DMR Consulting has made a strong and ongoing commitment to quality. DMR Consulting has created an organization where the quality chain-of-command starts with the CEO, Mr. Michael Poehner. DMR Consulting's corporate commitment to Quality Management is evidenced by the DMR Consulting Quality Policy Statement. This document provides top-level quality management direction to DMR Consulting employees. It was issued in 1997 by Michael Poehner, Chief Executive Officer for DMR Consulting worldwide, and endorsed for immediate application in Canada, by the Canadian President at the time the policy was issued.DMR Consulting's is ISO 9001 CertifiedSince DMR Consulting was formed in 1973, its clients have been provided with quality products and services. In 1992, DMR Consulting took the necessary measures to formalize its quality ethic by implementing an industry certified quality system. This system was developed as a comprehensive set of policies, manuals, procedures and associated forms and checklists, and was compliant with the ISO 9001:1987 standard and CSA Q396.1.1.DMR Consulting's Alliances
DMR Consulting passed the registration audit on the initial attempt, an accomplishment shared by only 20% of all firms. DMR Consulting has subsequently passed two annual maintenance audits, in 1997 and 1998, and in May of 1999, it passed the first re-certification audit (conducted every three years). In May 2000, DMR Consulting passed its annual maintenance audit since its re-certification audit. All of these audits were conducted by the ISO 9001 Registrar, and DMR Consulting was found fully compliant each time.DMR participates in many non-exclusive technological relationships with vendors for the purpose of acquiring enhanced knowledge in support of system integration and consulting activities. These relationships are varied in nature, ranging from the ability to obtain early copies of products to collaborative product development. Often these relationships entitle DMR consultants to a higher level of support that leads to faster resolution of problems. It also makes DMR consultants privy to future vendor direction and strategy that are helpful in assessing the relative merits of different projects.
DMR has also partnered with several hardware vendors who provide key technologies or services. Typical of these are Compaq and Digital Equipment (both before and since their merger), Amdahl, Hewlett-Packard and IBM, as well as many third party hardware vendors and Value-Added Resellers. In addition to supplying hardware these alliances provide DMR and, through us, our clients with access to better technical information and support, and in some cases better prices. We have actively used these alliances in support of may hardware acquisition and roll-out assignments on behalf of our clients.
The following provides a brief discussion of relationships DMR currently has in place:
Microsoft Solution Provider Partner. The Solution Provider program entitles a DMR business unit to access the Microsoft Developers Network, no-cost copies of MS products for internal training purposes, beta programs, Microsoft TechNet, resource kits, premier comprehensive technical support at discounted pricing, technical training events, self-study kits, and preparation for the Microsoft Certified Professional Program. It also facilitates partnerships with Microsoft Consulting Services on strategic projects requiring exceptionally in-depth product expertise. The Solution Provider program is administered at the local DMR business unit level.
Microsoft Enterprise Partner. DMR, Amdahl and Microsoft formed a worldwide strategic alliance to help Global 2000 organizations exploit new enterprise-wide solutions and Web-based computing while protecting current investments in host applications and data. The alliance positions the three partners to jointly offer a unique value-chain of enterprise-ready solutions that integrate the Microsoft Windows NT Server network operating system and the Microsoft BackOffice family of solutions into their IBM OS/390 environments. The alliance initiatives include areas such as electronic commerce and Web-host integration, enterprise messaging, enterprise integration, business intelligence (data warehousing), and application re-hosting.
IBM. DMR is a member of IBM's BESTeam program. This relationship provides extensive access to many of IBM's software products, with emphasis on client/server support. Software is provided for trial and development purposes along with technical information resources. The program is administered at the local DMR business unit level.
Oracle. DMR Consulting Group Inc. and Oracle Corporation have two cooperative agreements in place. The first, known as the "Oracle Alliance Agreement", (number 5043, effective June 1st, 1998), designates DMR as an authorized reseller of Oracle products. It also gives us access to development licenses (i.e. as an ISV), marketing support licenses (demos and testing) and sub-licences (i.e. for resale). This agreement applies worldwide to all of DMR.
The second agreement is the Oracle Partner Program. This agreement is signed on a country by country basis and gives access to a number of development licenses, training discounts, technical support and marketing support. This agreement requires that DMR have a number of Oracle certified professionals on staff and that we influence a certain level of Oracle sales.
For DMR, these agreements lay the foundation for a higher level of cooperation with Oracle in order to reduce our risks and costs associated with the delivery of complex, state of the art business solutions incorporating Oracle software products.
Other strategic vendor alliances and relationships include:
- ABT Corporation (Project Workbench)
- AD Technologies (Micro Focus)
- Amdahl Corporation
- Apertus Technologies
- CA Associates
- Dell Computer Corporation
- Entrust Technologies
- HP (UNIX servers)
- INFORMIX Software, Inc.
- Ingram Micro
- Lotus Corporation
- McCabe and Associates
Mercury Interactive Merisel MetaLink Metasolv Micro Focus Business Partner Netscape Novell Objecstar Oracle Corporation Powersoft and Sybase Prism Solutions Prologic Remedy Corporation SAP Canada Inc. Siebel Sigma System Group SSA SUN Systems Reseller Program Symantec Toshiba Visio Waldata Wiltel Xerox
Revenues by Service 2000
Revenues by Region 2000
Revenues by Industry 2000
The DMR Extended Enterprise Framework
List of Offices
United StatesAtlanta GA
Jersey City NJ
Kansas City KS
Los Angeles CA
New York NY
San Francisco CA
St. Louis MO
Walnut Creek CA
Quebec City QC
Saint John NB
Kuala Lumpur, Malaysia
Wellington, New Zealand
South AmericaBuenos Aires, Argentina
United States:DMR Consulting
333 Thornall Street
Edison, NJ 08837
Tel.: (732) 549-4100
Fax: (732) 549-2375
1000 Sherbrooke Street West
Canada H3A 3R2
Tel.: (514) 877-3301
Fax: (514) 877-3351
Status 4, Status Park
Nobel Drive, Hayes
Middlesex, UB3 5EY
155 George Street
Sydney NSW 2000
Consolidated Revenues by Year
(Year end December 31st)
48 million $US
192 million $US
64 million $US
215 million $US
87 million $US
219 million $US
135 million $US
213 million $US
(DMR and TRECOM Merger)
519 million $US*
700 million $US
853 million $US
920 million $US
Changes in the way DMR Consulting reports revenues
ANNEX 6: ATC REGISTRAR SUBMISSION
In 2000, DMR Consulting started reporting its revenues on a fiscal basis. As of May 31, 2000 (fiscal 1999-2000), DMR Consulting’s worldwide revenue is US$888 Million.
Net Consolidated Revenues by Service
(Year end December 31st)
- System Development and Integration
- APM/Year 2000 and Euro
Strategic IT Consulting:
- IT Strategy, Re-engineering and Benefits Realization
Net Consolidated Revenues by Sector
Manufacturing, Retail and Distribution
Net Consolidated Revenues by Region
Fujitsu Limited Consolidated Revenues by Year
* Equivalent Fujitsu Limited Consolidated Revenues for 1997: US$36.3 billion (in the fiscal year ended March 31, 1997).
** Equivalent Fujitsu Limited Consolidated Revenues for 1998: US$37.7 billion (in the fiscal year ended March 31, 1998).
(Conversion rate of $1 = 132 yen)
*** Equivalent Fujitsu Limited Consolidated Revenues for 1999: US$43.3 billion (in the fiscal year ended March 31, 1999).
(Conversion rate of $1 = 121 yen)
**** Equivalent Fujitsu Limited Consolidated Revenues for 2000: US$49.6 billion (in the fiscal year ended March 31, 2000).
Financial Strength and Ownership Structure
Ownership and Operational Structure
The ultimate parent company of DMR Consulting is Fujitsu Limited. Fujitsu is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935, the Fujitsu Group had consolidated revenues of US$49.6 billion in the fiscal year ended March 31, 2000.
DMR Consulting is a wholly owned subsidiary of Amdahl Corporation. Amdahl is a wholly owned subsidiary of Fujitsu Limited. With over 500 group companies, including Amdahl Corporation, DMR Consulting and ICL (UK), Fujitsu is one of the world's largest suppliers of computers and information systems solutions, telecommunications, semiconductor products, software and services. Fujitsu has over 188,000 employees worldwide and operations in more than 100 countries.
As of the most recent fiscal year end, DMR Consulting (formerly listed on the Canadian stock exchange) was a fully owned subsidiary of Amdahl Corporation (formerly listed on the US stock exchange). Amdahl Corporation acquired 100% of DMR in 1995. Amdahl Corporation also acquired TRECOM Business Systems Inc. in 1996 which was later merged with the US operations of DMR. In September 1997, Fujitsu Limited obtained all remaining shares of Amdahl Corporation thus making Fujitsu the sole shareholder of Amdahl Corporation and, thus, DMR. Company de-listings for DMR and Amdahl occurred as a consequence of the acquisitions.
The expanded DMR Consulting consists of five independently operated regions: DMR Canada, DMR Europe, DMR Asia-Pacific, and DMR U.S.-Commercial, and DMR U.S.-Telecommunications.
Figure: Operational StructureHistory of Ownership
Headquartered in California with locations in more than twenty countries and sales in nearly thirty, Amdahl Corporation is an international company founded in 1970 to develop and manufacture large-scale mainframe systems and peripherals.
In the past years, a process of rapid transformation has been under way to make Amdahl a complete supplier of fully integrated hardware, software and service solutions from desktop to data center.
To this end, in November 1995, Amdahl purchased DMR Group Inc. (formerly listed on the Canadian stock exchange), a global information technology consulting company with a strong presence in the western United States, Canada, Australia and Europe.
In April 1996, Amdahl Corporation acquired TRECOM Business Systems Inc., which was founded in 1985 and was a privately held corporation until the Amdahl purchase.
On January 1, 1997, DMR Consulting Group Inc. was created, composed of both DMR Group Inc. and TRECOM Business Systems, Inc., which were integrated into a single concern.
In September 1997, Fujitsu Limited obtained all remaining shares of Amdahl Corporation thus making Fujitsu the sole shareholder of Amdahl Corporation and, thus, DMR. Amdahl Corporation is wholly owned by Fujitsu Limited.
Financial Strength and Viability
As part of a large multinational firm, DMR's strength derives from its parent's financial resources and builds on its own assets, as detailed below:
Fujitsu Limited (TSE: 6702), the ultimate parent company of DMR Consulting, has a Moody's rating of A2. There is no Standard and Poors rating available on DMR.
- Fujitsu Limited - Over US$49.6 billion in sales in 2000.
- DMR Consulting - Close to US $900 million in revenues for fiscal year 1999.
Today, DMR Consulting has over 500 active customers worldwide. This attests to two important characteristics: repeat business from existing customers and ability to retain talent.
DMR Consulting's Senior Executives:
As of August 2000
Michael J. Poehner
Vice-president, Sales and Marketing
Vice-president, Asset Management
Chief Financial Officer
Edison, NJ and Montreal, QC
President Canada and Europe
London, UK and Montreal, QC
President United States
Walnut Creek, CA
As of December 31, 1999, DMR Consulting had 8,407 professionals in 65 offices in the United States, Canada, Europe and Asia-Pacific.
As of March 31, 2000, Fujitsu Limited’s total number of employees was 188,000 (excluding DMR Consulting).
Allocation of employees according to career path:
Systems delivery professionals
Technology consulting professionals
Management consultants and industry experts
Project management professionals
Company management and administrative support
Allocation of employees according to geography:
PRESIDENT & CHAIRMAN
ICM Registry, Inc.
2300 Yonge Street, Suite 907 PO Box 2326
Toronto, Ontario Canada M4P 1E4
Michael D. Palage, Esq.
ANNEX 8: RESUME OF KEY TECHNICAL PERSONNEL
DOTTV'S KEY TECHNICAL PERSONNEL
Philip Reese, Ph.D.
DotTV Management Profiles
DotTV brings with its operation the highest quality and experience senior managers in the multi media field. They include:
DMR Consulting Management
DMR Consulting's Senior Executives:
VeriSign Global Registry ServicesManagement Profiles
VeriSign senior management complement includes:
Bruce Chovnick, Senior Vice President & General Manager
Mr. Chovnick is senior vice president and
general manager of the VeriSign Global Registry Services. At the heart of the
Internet, the Global Registry designs and operates the Shared Registry System
where all .com, .org, and .net Internet domain names are housed. Additionally,
the Global Registry is responsible for the global Internet system of domain name
servers that make it possible to search for Web sites around the world.
Chovnick originally joined Network
Solutions (a VeriSign company) in September 1997 as the senior vice president
and general manager of the Internet Technology Services division responsible for
the growth and expansion of the division's enterprise network consulting
services, focusing on Internet enabling technologies for commercial customers.
Chovnick is an internationally recognized industry expert in electronic commerce
technologies, and a sought-after visionary of market trends and
business/technical corporate extranet strategies.
Prior to joining NSI, Chovnick was vice president of Global Internet Solutions at General Electric's (GE) Information Services, Inc. where he led both the Internet and Network Services divisions. In 1996, under Chovnick's leadership, GE Information Services delivered a record number of Internet-based services to the market. In addition, Chovnick founded Actra Business Systems, a joint venture between Netscape Communication Corporation and GEIS. Previously he led GE Information Services' worldwide network engineering and software development.
Chovnick joined GEIS in 1993, after having spent almost 10 years with IBM.
His last position at IBM was as the manager of Networking Products Development
for their Advantis subsidiary. Chovnick held numerous leadership positions at
IBM, spanning software product development, network services, and Industrial
Chovnick received a bachelor's of science in computer science from the University of Florida. His graduate studies at the University of Florida were in electrical engineering. He is also an instrument rated private pilot.
Adam Zimmerman, Vice President of Business Operations
As vice president of Business Operations for VeriSign Global Registry Services, Mr. Zimmerman is responsible for leading the operating activities of the division.
Prior to joining Network Solutions, Mr. Zimmerman served in a variety of leadership roles at the General Electric Company. During his 10 years at General Electric, He helped establish several new businesses including the Internet Electronic Commerce Service business at GE Information Services, Inc. He also led the development of several new Internet-based service offerings designed for mission critical electronic commerce via the web. Mr. Zimmerman was a member of the leadership team that launched GE Information Services' Internet Consulting Services business. His background also includes responsibility for leading a profit and loss center with $30M in annual sales and managing GE's global network services business.
Mr. Zimmerman holds a master's of business administration with a finance concentration from the University of Kansas, and a bachelor's of science in mechanical engineering from the University of Massachusetts.
Chuck Gomes, Vice President, Internet Relations and ComplianceAs vice president, Internet Relations and Compliance Mr. Gomes serves as the primary interface for the VeriSign Global Registry Services to the Internet community and also oversees contract compliance. Mr. Gomes has played a key role in the transition of domain name registration services to a more commercial environment and is well known in the industry. He has been a part of Network Solutions' (a VeriSign company) management team since 1984, previously serving as vice president, customer programs. In that role, he helped build the staff from 25 to more than 350 and the customer base from about 135,000 to more than 5 million.
In prior responsibilities, Mr. Gomes managed various Network Solutions programs and projects involving delivery of technical services to various state and federal government agencies. Projects ranged in scope from data center construction and equipment and software procurement to computer center operations, training and information center support.
Before joining Network Solutions in 1984, Mr. Gomes was a secondary school math teacher. He has a master's degree in education from Boston University and a bachelor's of arts degree in mathematics from the University of California at Davis.
Aristotle, Balogh, Vice President Engineering
Resume can be made available by VeriSign Global Registry Services
Tom Newell, Vice-President of DNS Programs
Mark Rippe, Vice President of Technical Operations
As Vice President of Technical Operations for VeriSign Global Registry Services, Mr. Rippe is responsible for overseeing all the technical operations within the division.
Lori Whitted, Vice President of Business Development
Ms. Whitted is vice president of Business Development for VeriSign Global Registry Services. She leads the division's efforts to identify and enter new strategic markets. Ms. Whitted joined VeriSign in June 2000.
Russ Helbert, Director of Finance and Administration
As director of Finance and Administration for VeriSign Global Registry Services, Mr. Helbert is responsible for all of the financial and administrative functions associated with the operations of the Global Registry Services Division.
ANNEX 10: DOTTV TECHNICAL PROPOSAL
(Confidentiality Designation Removed by Applicant)