Questions to and Answers from Applicant for .nom

ICANN Questions:

ICANN is in the process of reviewing dotNOM's TLD Application. As outlined in the October 23, 2000 TLD Application Review Update which appears at http://www.icann.org/tlds/tld-review-update-23oct00.htm, ICANN may "gather the additional information [it] require[s] by posing specific questions to applicants in e-mail and requesting a written response."

Keeping in mind the goal to evaluate applications to operate or sponsor new TLDs in as open and transparent a manner as possible, both the questions posed by ICANN and the Applicant's responses will be publicly disclosed on the ICANN website.

Accordingly, ICANN requests your reponses to the following questions:

1. Identify and summarize Applicant's assumptions with respect to the existence of other general purpose TLDs in determining the total number of registrations in your application.

dotNOM Responses:

1. The number of registrations proposed in the dotNOM Consortium’s .nom application are:

90% certainty:	2.6 million
50% certainty:	6.1 million
10% certainty:	17.5 million

In preparing our estimates, we recognized a high likelihood that several TLDs will be granted and based our pro forma calculations on this assumption. Earlier in the year 2000, Bear Sterns estimated that 27-29 million domain names would be registered by year’s end; there were already in excess of 30 million registered domains at the end of September. With an estimated 100 million additional domain names to be issued over the next three years, it was clear to the dotNOM Consortium that there are a number of constituencies requiring domain name registration services. Based on dotTV, 7DC, SK Telecom, and OnlineNIC’s experience selling domain names, as well Bear Sterns research, we realistically expect a domain for individuals’ websites will address approximately one-third of this total need, exceeding our Consortium’s most optimistic pro forma estimates by nearly a factor of two.

Our provision for 2.6 million sales over five years is therefore extremely conservative and, we believe, well-reasoned. Our pro forma financials are predicated on serving a small fraction of the new gTLD market. Annual sales of 500,000 .nom names would result in breakeven (at the lowest-submitted wholesale price point of $3.50) after five years, and this volume falls well short of expectations of every source we consulted.

As a final note, I would like to emphasize the dotNOM Consortium’s willingness to abide by ICANN’s identified “best-of-class” solutions for the rollout of new TLDs, and to adjust our proposed policies to better dovetail with these solutions. We recognize that we do not have all the answers and can benefit greatly from ICANN's perspective on what will be required to best serve the internet community with regard to new TLDs. Furthermore, we are receptive to suggestions to partner with other consortia to the extent that ICANN identifies a desirable fit.

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