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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:
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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