.TEL Application
Registry Operator’s Proposal



                                                

 

 

 

 

 

 

 

 

 

 

 

 

October 2, 2000

 


Table of Contents

 

D1  GENERAL INFORMATION.. 4

D2  Registry’s Name & Headquarters Address. 4

D3  Other Locations. 4

D4  Type of Business Entity. 4

D5  URL of Registry Operator 4

D6  Dun & Bradstreet Number 4

D7   Number of Employees. 4

D8   Revenue. 4

D9  Full names and positions of Board, Officers and Management: 5

D10  Contacts regarding this proposal 5

D11  Subcontractors Identified. 6

D13.1 BUSINESS CAPABILITIES.. 6

D13.1.1  Company Information. 6

D13.1.2  Current Business Operations. 7

D13.1.3  Business History & Intellectual Property. 8

D13.1.4  Database and Internet Related Experience. 9

D13.1.5 Mission. 10

D13.1.6 Management 10

D13.1.7  Staff/Employees. 15

D13.1.8 General Liability Insurance. 15

D13.2  REGISTRY BUSINESS PLAN.. 17

D13.2.1 Services to be Provided. 17

D13.2.2 Revenue Model 17

D13.2.3   Market 17

D13.2.4.   Marketing Plan. 18

D13.2.5.   Estimated demand for registry services for .tel. 19

D13.2.6.  Resources required to meet demand for .tel. 20

Staff resources: 20

Staffing requirements: 90% confidence scenario 2001 – 2004. 21

Staffing requirements: 50% confidence scenario 2001 – 2004. 22

Staffing requirements: 10% confidence scenario 2001 – 2004. 23

Hardware and technology based resources. 25

D13.2.7   Plans for acquiring necessary systems and facilities. 29

D13.2.8  Staff size/expansion capability. 30

D13.2.9  Availability of Additional Management Personnel 30

D13.2.10   Term of Registry Agreement 30

D13.2.11  Expected Costs Associated With Operation Of Registry: 31

D13.2.12   Expected Revenue Associated With Proposed Registry: 31

D13.2.13  Capital Requirements. 32

D13.2.15  Registry Failure Provisions. 32

D13.3   PRO-FORMA FINANCIAL PROJECTIONS 33

D13.3.1  90% Confidence Level Plan. 33

D13.3.2   50% Confidence Level Plan. 39

D13.4  SUPPORTING DOCUMENTATION.. 51

D13.4.1  Registry Operator’s Articles of Incorporation. 51

D13.4.2  References  (Industry and Trade) 51

D13.4.3  Annual Report 55

D13.4.4  Proof of Capital 57

D13.4.5  Proof of Insurance. 57

D14 TECHNICAL CAPABILITIES AND PLAN.. 58

D15. The Technical Capabilities and Plan. 58

D15.1  Detailed description of Registry operator's technical capabilities. 58

D15.2. Technical plan for the proposed registry operations. 63

D15.2.1. General description of proposed facilities and systems. 63

D15.2.2. Registry-registrar model and protocol. 70

D15.2.3. Database capabilities. 71

D15.2.4. Zone file generation. 71

D15.2.5. Zone file distribution and publication. 72

D15.2.6. Billing and collection systems. 72

D15.2.7. Data escrow and backup. 72

D15.2.8. Publicly accessible look up/Whois service. 73

D15.2.9. System security. 73

D15.2.10. Peak capacities. 74

D15.2.11. System reliability. 75

D15.2.12. System outage prevention. 75

D15.2.13. System recovery procedures. 77

D15.2.14. Technical and other support. 77

D15.3  SUBCONTRACTORS.. 78

APPENDIX A. 79

APPENDIX B.. 100

APPENDIX C.. 101

APPENDIX D.. 102

APPENDIX E.. 104

APPENDIX F. 105

APPENDIX G.. 106

D16  SIGNATURE PAGE.. 114

 


D1  GENERAL INFORMATION

D2  Registry’s Name & Headquarters Address

 

NetNumber.com, Inc ("NetNumberä")

650 Suffolk St., Suite 307

Lowell, MA 01854

D3  Other Locations

Network Facility #1:

EMC Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748

Network Facility #2:

Exodus Communications, Inc.
175 Wyman St.
Waltham, MA 02451

D4  Type of Business Entity

NetNumber.com, Inc. ("NetNumber") is a United States corporation organized under Delaware Law and incorporated in August 1998.

D5  URL of Registry Operator

            www.netnumber.com

D6  Dun & Bradstreet Number

            D-U-N-S Number:  14 - 348 - 8661

D7   Number of Employees

  3        General & Administration
15        Development and 2nd Line Operations  (1st line operations outsourced)
  2        Business Development
  1        Intellectual Property

D8   Revenue

NetNumber launched its Global Internet Telephony Directory service in July 2000.  The NetNumber financing plan and GITDä pricing structure call for free GITD registration through the end of 2001.  Billing will begin for GITD service in January 2002.

D9  Full names and positions of Board, Officers and Management:

Board of Directors

Manny Fernandez       Chairman Gartner Group.

John Davis                  Former CTO of AT&T and of Allied-Riser Communications.

John White                  Former CIO Compaq and Texas Instruments.

Roger Nelson              Former Chairman Ernst & Young Consulting.

Joseph Farrelly           CIO of Seagram & Co (recently acquired by Vivendi)

William Turner                        Co-founder Signature Capital.

Paul Finnigan              President Emeritus, International Association For Enhanced Voice Services (VMA). Founder VMI.  CEO of FinniganUSA.

 

Officers

Glenn Marschel           CEO and President

Robert H. Walter         CTO, Development & Operations

Douglas J. Ranalli       Founder, Chief Strategy Officer

Managers

Steve Darrington         VP Finance & Administration

David P. Peek             Director, Technology Strategy

Rick Turmel                Director, Quality Assurance & Test

Scott Weaver              Manager, Graphical User Interfaces

Chuck Santos             Manager, Software Development

Alan Beaulieu              Manager, Database Systems

Entities owning five percent or more of registry operator.

            Signature Capital, LLC  (www.signaturecapital.com)

            Glenn Marschel, CEO and President, NetNumber

            Douglas Ranalli, Founder and Chief Strategy Officer, NetNumber

D10  Contacts regarding this proposal

Douglas Ranalli

Founder & Strategy Officer

NetNumber

Telephone: 1.978.454.4210 ext 22

Facsimile: 1.978.454.5044
Email: dranalli@netnumber.com

Contact for:  General Application Inquiries

 

Robert H. Walter
CTO, VP Development and Operations

NetNumber

Telephone: 1.978.454.4210 x 24
Facsimile: 1.978.454.5044
Email: rwalter@netnumber.com
Contact for:  Technical and operational questions

 

Steve Darrington

VP Finance & Administration

NetNumber

Telephone: 1.978.454.4210 ext 35

Facsimile:  1.978.454.5044

Email:  sdarrington@netnumber.com

Contact for:  Business plan and financial questions

D11  Subcontractors Identified

EMC Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748

Contact:
Brian Harnett
Senior Account Representative
617.618.3400
harnett_brian@emc.com

D13.1 BUSINESS CAPABILITIES

D13.1.1  Company Information

Corporate Structure:  NetNumber.com, Inc. ("NetNumber" or the "Company"), a Delaware corporation founded in August 1998 with headquarters located in Lowell, MA, USA is engaged in the business of providing global Internet directory services. 

 

Capital Structure:  NetNumber is a privately held venture capital backed corporation that has raised $9 million of equity financing and operates with the following high-level fully diluted ownership structure:

 

            Founders                     30%

            Other Staff                  18%

            Venture Investors        42%

 

Strategic Alliances:  NetNumber utilizes the services of several key outsourcing vendors to provide asset financing, asset hosting, Internet access/private peering, and 1st line 24x7 operations support.  The Company's key strategic relationships include:

 

            EMC Corporation (Back office, DNS & LDAP master site)

-          Asset financing, hosting and on-demand data storage services.

-          24 x 7 1st line DBA and operations support staff.

-          Initial assets originally deployed February 2000.

 

            Exodus Communications  (Back-up DNS & LDAP master site)

-          Asset hosting and 24x7 1st line operations support.

-          Private peering with multiple Tier-1 Internet backbone providers.

-          Initial assets being deployed November 2000.

 

            Level3 Communications  (End-point DNS access nodes)

-          Asset hosting and private peering with multiple Tier-1 Internet. backbone providers.

-          24x7 on-site operations support staff.

-          Initial assets being deployed December 2000.

 

            WorldCom Communications  (End-point DNS access nodes)

-          Asset hosting and private peering with multiple Tier-1 Carriers

-          24x7 on-site operations staff

-          Initial assets being deployed Q1 2001.

 

SUN Microsystems  (Network assets)

-          Development and production hardware

-          Architecture consulting

-          Member of the SUN Start-up Essentials Program.

 

LSI Logic (Network assets)

-          Enterprise storage systems

-          Architecture consulting

 

For industry references please see section 13.4.2 "References" later in this document.

D13.1.2  Current Business Operations

 

NetNumber currently provides two Internet directory services:

 

Global Internet-Telephony Directory (GITD):  The GITD is a combination DNS and LDAP directory service that translates telephone numbers into Internet addresses in support of all forms of Internet-Telephony applications.  The GITD is the outgrowth of a three year technology development, intellectual property and standards body effort launched by the NetNumber team in early 1997. 

 

The GITD utilizes a two-tier logical control model to translate a telephone number ("e164 number") into any number of associated Internet addresses – (IP-phone, fax, e-mail, voicemail, PDA, etc.)  The top-tier of the GITD was designed to operate like a top-level domain (TLD) of the Internet Domain Name System (DNS).  As such, the top-tier of the GITD is a DNS-service that translates an e164 telephone number into the location or address of an appropriate second-tier directory that contains authoritative Internet address information for a given number.  Just two months after the launch of service, the GITD, currently deployed under the domain "e164.com", has already begun to gain significant momentum with key Internet-Telephony technology vendors and service providers.  If the ".tel" application is approved by ICANN, the GITD will become the first application to leverage the ".tel" TLD and the existing top-tier of the GITD currently operating under the domain "e164.com" will be migrated to the ".tel" TLD.

 

Virtual Private LDAP Directory (VPD):  As a compliment to the GITD, NetNumber also provides a fully outsourced LDAP directory infrastructure that application vendors can utilize to share directory information across distributed applications.  The VPD is a highly efficient mechanism for enterprise customers and service providers to gain access to a secure, high-performance LDAP infrastructure without having to build and deploy their own solution.

D13.1.3  Business History & Intellectual Property

 

The NetNumber team began working on Internet related directory service opportunities in early 1997 under a technology development and intellectual property effort launched by the team while working at Unifi Communications ("Unifi").  Unifi was an early entrant into the fax-over-IP marketplace that began offering international fax delivery services in 1992. 

 

The directory services program at Unifi picked up momentum in mid-1997 when the team was asked to provide services in support of a joint industry initiative between the Voice Mail Association (VMA) www.ivma.ch and the Electronic Messaging Association (EMA) www.ema.org.   The goal of the joint initiative was to demonstrate that voicemail messages could be sent over the Internet between disparate voicemail platforms using the VPIM protocol.  The role of the directory service was to translate a telephone number into the Internet address information necessary to support the VPIM voice messaging protocol.   VPIM (Voice Profile for Internet Mail) is an IETF standard for voice messaging on the Internet. 

 

A key member of the NetNumber team, David Peek, was elected to the position of Chairman of the Technical Working Group (TWG) of the joint EMA/VMA initiative in December 1998.  As Chairman of the TWG, David coordinate the efforts of seven industry participants including Lucent, Nortel, Comverse, Unisys, Glenayre, Alcatel and Tecnomen in completing a series of VPIM trials, the last of which was performed at the Telecom 99 event in Geneva.

 

These early industry support activities in 1997 and 1998 provided the NetNumber team with direct experience in delivering the Internet-Telephony directory services that represent the baseline application for the ".tel" TLD.  This early work also provided the foundation for the filing of multiple directory related patents. 

 

Intellectual Property :  The NetNumber team has filed three comprehensive patent applications, the first of which, dated June 1998, incorporates the team's initial directory services work that began in early-1997. Outlined below is a brief summary of the three applications that make up the core of the NetNumber intellectual property position as it relates to the ".tel" TLD.  In total the three patents include 156 claims covering process concepts, application specific concepts and implementation specific concepts relating to the use of a shared directory in Internet-Telephony services.

METHOD AND APPARATUS FOR CORRELATING A UNIQUE IDENTIFIER, SUCH AS A PSTN TELEPHONE NUMBER, TO AN INTERNET ADDRESS TO ENABLE COMMUNICATIONS OVER THE INTERNET.

This patent describes the use of a shared "Directory Service" (DS) as a mechanism for converting PSTN telephone numbers into the IP address information necessary to establish a communications link over the Internet between two unrelated communications platforms using standard telephone numbers for addressing. The patent outlines over 50 claims relating to the use of a shared directory in setting up real-time voice, voice messaging, remote printing, and unified-messaging applications over the Internet using standard telephone numbers for addressing. Specific attention is focused in this patent on the implementation concepts incorporated into the directory service provided by NetNumber including billing based on active usage rather than on registration, and on the assignment of multiple IP-device addresses to a single telephone number.

 

IDENTIFYING AND REPLYING TO A CALLER

 
This patent application deals with the use of a shared directory service to expand the role of the Internet in global voice messaging. The patent describes the use of a shared Internet directory in enabling end-users to "reply for free" to voicemail messages over an IP network using a shared directory to convert a return telephone number into a reply address for an Internet enabled voicemail, e-mail or unified-messaging system. The application includes over 50 claims covering various aspects of Internet voice messaging and directory services.

REMOTE PRINTING OF A DOCUMENT

This patent application deals with utilizing a shared Internet directory to convert a telephone number into the IP address of an network enabled printer as a mechanism for enabling a remote printing capability over the Internet.

D13.1.4  Database and Internet Related Experience

While at Unifi, the NetNumber team built a global, secure Internet backbone infrastructure for carrying International fax traffic for corporate customers located in the US, Japan, Hong Kong, China, South Korea, Taiwan, Singapore, Australia, the UK, France and Germany.  Unifi employed 675 people located in 10 wholly owned or majority owned country units and the Unifi IP-Fax distribution network included 28 IP/PSTN gateway network nodes located in 16 countries. 

 

Unifi experienced enormous revenue growth during the period 1992 – 1997 achieving a ranking of #20 on the INC 500 list of fastest growing private companies in the US in 1997.  At its peak, Unifi was providing Fax-over-IP service on a 24x7 basis to 15,000 corporate customers located in nine countries, speaking seven different languages.   

 

While at Unifi, the NetNumber team gained invaluable insight into the challenges of integrating the Internet and the PSTN at both the technical interface level and at the addressing and customer service level.  Specific experiences gained by the team while at Unifi that will be relevant to the ".tel" TLD are as follows:

 

·         Operational experience running a complex global database infrastructure supporting multiple applications in a multi-lingual, 24x7 mission critical environment. 

 

·         Customer support experience running a 24x7, global, multi-lingual customer support team providing services to 15,000 corporate clients. 

 

The Global Internet-Telephony Directory and the ".tel" TLD application are a direct outgrowth of the technical and operational skills gained by the NetNumber team during the process of building the Unifi network and service.

 

Deregulation of international telecommunications brought an end to the underlying core business model for Unifi Communications 1998.  As a result, the NetNumber team purchased a substantial base of intellectual property and underlying technology from Unifi and launched NetNumber as a stand-alone business with venture capital equity financing.

D13.1.5 Mission

"Turning telephone numbers into Internet Numbers"

NetNumber's mission is to provide secure, reliable, independent, network-based directory services to facilitate the smooth convergence of global communications services between the Public Switched Telephone Network (PSTN) and the emerging Internet-Telephony industry. 

D13.1.6 Management

The executive team and Board of Directors of NetNumber includes individuals with direct experience in every aspect of the technology, operations, customer segments, and standards bodies, associated with the business of Internet directory services. Outlined below is background information on the executive team and Board of Directors at NetNumber:

 

Manuel À Fernandez - Director of the company

Mr. Fernandez (Manny) is presently Chairman of the GartnerGroup and a Managing Partner of SI Ventures. 
GartnerGroup (www.gartner.com) is the world's largest and most renowned IT research, advisory, measurement and consultative services company.  Manny has been Chairman of the Board of GartnerGroup since April 1995, and director since January 1991.  He also held the title of Chief Executive Officer for GartnerGroup from April 1991 to December 1998. In fiscal 1998, GartnerGroup revenues were approximately $650 million.  Prior to GartnerGroup, Manny was President and CEO of Dataquest, Inc., a leading IT market research and consulting firm for suppliers of information technology and for the financial and investment communities.

Mr. Fernandez holds a bachelor's degree in electrical engineering from University of Florida, and completed post-graduate work in solid state engineering at University of Florida and in business administration at the Florida Institute of Technology.

 

John H. Davis - Director of the Company:

Mr. Davis (John) is presently Chief Technology Officer and a Director of Allied Riser Communications, Inc., Dallas, TX.  Prior to joining Allied Riser Communications John held several key positions with Bell Labs and AT&T.  At AT&T, John was the Chief Architect and Technology Officer for AT&T Local Services, responsible for strategic technical planning, implementation of the network and the operations infrastructure. While at AT&T, John also filled key roles for management of AT&T's technical resources including Group Technical Officer for Bell Labs and AT&T Communications Services. During the dawn of the cellular era in the early 1980's, John was responsible for the commercialization of AT&T's cellular product line, including the installation of the first ten commercial cellular systems in the United States. Prior to the cellular assignment, John conceived the architecture and managed the development of what became the No. 5 Electronic Switching System (5ESS), presently Lucent Technologies' flagship product line.

Mr. Davis received his BS from the Georgia Institute of Technology, a Masters degree from the Massachusetts Institute of Technology (MIT), and a Ph.D. from the University of Pennsylvania, all in the field of electrical engineering.

 

Roger R. Nelson - Director of the Company:

Mr. Nelson (Roger) recently retired as Deputy Chairman of Ernst & Young LLP.  He was responsible for the E&Y Consulting Practice, the world's third largest management consulting practice, with $10.9 billion in revenues in fiscal 1998, offices in 31 countries, and more than 15,500 consultants around the world.  Roger has over 30 years of experience managing Ernst & Young's consulting practice. Roger was a member of the Ernst & Young U.S. Management Committee, Chairman of the U.S. Consulting Services Executive Committee, Chairman of the U.S. Consulting Services Network, Chairman of the Ernst & Young Global Services Council, a member of the Ernst & Young International Executive Committee, as well as the International Council. His expertise lies in financial planning and control, information systems, performance measurement and general management projects for major multinationals.

Mr. Nelson is a graduate of Northern Illinois University with a B.S. Degree in Accounting.

 

John W. White - Non-executive Chairman:

Mr. White (John) recently retired as Vice President and Chief Information Officer for Compaq Computer Corporation. In this role, John served as a member of the executive management team for Compaq and managed Compaq's worldwide management information systems activities. Prior to Compaq, John had a 28-year career with Texas Instruments where he served in various management and technical roles, including 13 years as vice president and Chief Information Officer and 5 years as President of the Information Technology Group. At Texas Instruments he was responsible for the deployment of worldwide standardized management information systems, implementation of a global voice and data network, and for developing the Information Technology business, including the IEF CASE tool. John also spent 4 years with Electronic Data Systems developing the EDS on-line transaction processing system for the health care, life insurance, and banking industries. John is currently serving on the board, advisory board, and as an advisor for several companies including CITRIX Systems (board member), TIBCO Software (chairman of the advisory board), ECOM Worldwide (board member), MetaSolv Software (chairman of the board), Encentris (board member), and eTopware (chairman of the board).

Mr. White has a B.S. in mathematics and physics from Central Missouri State University and a M.S. in mathematics from the University of Kansas.

 

Paul Finnigan - Director and industry consultant to the Company:

Mr. Finnigan is CEO of FINNIGAN USA (FUSA), a voice messaging consulting firm.  FUSA clients include major network providers, technology vendors and companies worldwide.  Paul was the Founder (1980) and former Chairman of Voicemail International (VMI), a pioneer of the voice services industry. VMI introduced the first voice mail and interactive voice response services in the U.S., Europe and the Pacific Rim (1980 - 1985). VMI customers included telephone companies, airlines, movie and television producers, financial institutions, medical information services and many others.  Paul is the President Emeritus of the International  Association for Enhanced Voice Services (VMA) and is recognized worldwide as a visionary and innovator of voice products and services.

 

Joseph Farrelly - Director of the Company:

Mr. Farrelly (Joe) is presently Senior Vice President and Chief Information Officer (CIO) of Joseph E. Seagram & Sons, Inc., a $20+ billion entertainment and liquor manufacturer and marketer. From 1992 to 1998, Joe was Executive Vice President and Chief Information Officer of Nabisco, an $8.4 billion food manufacturer. From 1988 to 1992, he was Corporate Vice President of Information Systems Development for Automatic Data Processing (ADP), a $2.5 billion computer services company. Between 1980 and 1988, he was Vice President of Research and Development at Applied Data Research (ADR), a software company, where he directed the development and support services of ADR's mainframe and personal computer software products. Joe is currently a member of the Research Board in New York City (a leading information technology analysis company) and participates in Gartner Group's Information Technology Executive Program.

Mr. Farrelly has a B.A. in Mathematics from Providence College, and an M.B.A. from the University of Connecticut.

 

William J. Turner - Director of the Company:

Mr. Turner (Bill) is manager and co-founder of Signature Capital, a venture capital firm, which raised $9 million of equity for NetNumber™ in early 2000. From 1983 to 1989, Bill served in multiple capacities, including President and COO of Automatic Data Processing ("ADP"), a computer services firm with over $2 billion in revenues at the time. In 1989, Bill formed Turner and Partners, a management services firm, and had multiple leveraged buyout firms as clients, including Forstmann Little, where he had responsibility as Executive Chairman and/or CEO for over 30 separate business units with combined sales of over $3 billion. From 1979 to 1983 Bill was employed at the Texas Instruments Consumer Products Division where he held several senior positions including V.P. of Sales and Marketing as well as President. He has served on the Board of Directors of the Federal Home Loan Mortgage Corporation (Freddie Mac-NYSE) since 1990 and since 1996 on the board of Faroudja, Inc. (FDJA-NASDAQ). He also serves on the Boards of several private venture capital stage companies including Hand Technologies, Inc., McCabe & Associates, Inc., Acoustic Technologies, Inc., VIRxSYS, Inc., and Additech, Inc.

Mr. Turner has a Business Administration Degree in mathematics from the University of Maine and a Master of Business Administration Degree from Northeastern University.

 

Glenn Marschel – CEO and Board Member:

Glenn brings both world-class management skills to the NetNumber team as well as specific experience in the global communications space.  Prior to joining NetNumber as CEO, Mr. Marschel (Glenn) was Chief Executive Officer, President, and Co-Chairman of Faroudja, Inc. (FDJA-NASDAQ), a public video processing technology company.  Prior to Faroudja, Glenn was CEO of Paging Network Inc. (PageNet), a provider of wireless messaging services with 9 million subscribers.  Prior to PageNet, Glenn served as Vice Chairman of First Financial Management Corporation, a leading worldwide provider of credit card transaction processing, healthcare claims processing and document management/imaging services with revenues exceeding $3.0 billion. He began his business career at CSI Computer Systems in 1970, and joined Automated Data Processing (ADP) in 1972, a $5 billion company in the information processing industry. Mr. Marschel was employed by ADP from 1972 to 1994, and served as President of several of ADP's largest businesses, including the Automotive and Employer Services divisions, after holding other senior positions in sales, client services, strategy, and marketing.

Mr. Marschel received a BS degree from the University of Missouri, and attended the Stanford University Executive Development Program. He serves on the board of SABRE Holdings, Inc., Travelocity and Additech, Inc.

 

Douglas J. Ranalli, Founder, Chief Strategy Officer and Board Member:

NetNumber.com is Mr. Ranalli's (Doug's) third start-up business. Doug is a seasoned leader and entrepreneur who started his first business as an undergraduate student while earning an Engineering degree at Cornell University. This first business was a magazine for college students called "Student Life" that grew to a controlled circulation of 1.2 million copies reaching a total audience of over 4 million college students before being sold to Time, Inc. in 1987. After selling Student Life, Doug enrolled in the Harvard MBA program where he researched eight different business ideas before starting his second business, Fax International (later named Unifi Communications), in the spring of 1991. Fax International/Unifi was an international IP-Fax business that hit #20 on the INC 500 list of fastest growing private companies in the US in 1997 before deregulation of international telecommunications brought an end to the company's underlying business model. Doug is the subject of multiple case studies developed by the Harvard Business School. The HBS case study "Fax International Japan" is currently being utilized by a variety of MBA programs around the world and is available through HBS Publishing.

Mr. Ranalli holds degrees in Industrial Engineering (BS) from Cornell University and an MBA from the Harvard Business School. Mr. Ranalli is also the holder of multiple communications related patents.

 

Bob Walter, age 37, CTO and Vice President, Development and Operations:

Prior to joining NetNumber™ in November 1999, Mr. Walter (Bob) was a consultant at Cisco Systems. Prior to consulting at Cisco, Bob was VP of Architecture and Technology at Unifi Communications. In this capacity, Bob was responsible for UNIFI's messaging services architecture and technology. Previously, he was the chief architect of UNIFI's Enterprise Network Interface (ENI); a reusable framework of Java/CORBA distributed services capturing the domain of reliable message delivery with support for rendering, real-time status and on-line customer registration. Prior to joining UNIFI in August of 1997, Bob was lead architect on Pratt & Whitney Aircraft's Virtual Jet Engine program, a large scale, object-oriented distributed system involving the simulation and optimization of multi-dimensional jet engine propulsion systems.

Mr. Walter holds degrees in Mechanical Engineering (BSME) from the University of Massachusetts Dartmouth, a Masters Degree in Computer Science (MCS - Software Engineering Option) from Florida Atlantic University and a Certificate of Graduate Studies in Software Engineering from Software Engineering Institute of Carnegie Mellon University.

 

Steve Darrington, age 26, VP Finance & Administration:

 

Steve has thirteen years of international finance experience including five years as corporate controller of the Economist Newspaper in London.  For the last six years Steve has held senior finance positions in venture organizations, most recently UCT International, a biotechnology clinical trials company, which he sold on behalf of DLJ Phoenix Venture Partners in January 2000.

 

Steve attended Leicester and Manchester Business schools gaining Bachelors and Masters degrees in Business Administration.  Steve is a Fellow of The Association of Chartered Certified Accountants.

 

Dave Peek, age 36, Director of Technology Strategy:

Mr. Peek (David) represents NetNumber™ on multiple Internet and Telecommunications standards bodies. David is currently representing NetNumber™ as a participant in the Electronic Messaging Association's VPIM initiative and as Chairman of the Voice Mail Association's (VMA) technical working group on directory services. Prior to joining NetNumber.com, David filled the same role at Unifi Communications. While at Unifi, David was invited to speak on multiple occasions at voice industry conferences held by both the EMA and by CTExpo. During the period 1993 - 1996 he was a development manager at Lernout & Hauspie Speech Products.

Mr. Peek holds degrees a BS degree in Computer Science with a minor in Business Administration from the University of Lowell.

 

Thomas Sosnowski Ph.D., Consultant, Intellectual Property:

Prior to joining NetNumber.com in a consulting capacity, Dr. Sosnowski (Tom) was Executive Director at Unifi Communications responsible for Research and Intellectual Property from 1994 - 1998. Prior to that time, Tom was the Vice President and Director of Engineering of Unifi. Tom was the creative force behind the design, development, and worldwide homologation of the FaxLink intelligent routing device. Tom began his career with Bell Laboratories where he was engaged in applied research in laser physics, optical wave-guide technology, and telecommunications terminal and switching systems. He then held management positions at GTE Laboratories and Eikonix before founding Sosnowski Associates in 1986.

Dr. Sosnowski holds a BS in Engineering Science from Pennsylvania State University, and a Ph.D. in Engineering from Case-Western Reserve University. He is a senior member of IEEE, the author of more than 20 technical publications and a holder of 10 patents.

D13.1.7  Staff/Employees

Current staff:  The current staff of NetNumber includes 21 people, the majority of whom are dedicated to technology development and 2nd line technical operations activities.  In addition to the full time staff, NetNumber leverages a large base of contract staff through its key vendor relationships.  NetNumber has chosen to embrace the emerging model of leveraging outsourced services to compliment a base of core full-time staff.  Outsourced services and staff are being utilized by NetNumber in the following areas of activity:

 

-          Asset hosting

-          First line operations support

-          Accounting

-          Billing

-          Legal & contractual

-          Facilities management

 

See Section D15 "Technical Capabilities and Plan" for a discussion of end-to-end quality control mechanisms incorporated into the Registry plan.  The current level of full-time staff and contract staff is consistent with the operational demands of the business at this time.  However, the ".tel" Registry business plan calls for a steady addition of staff in 2001.  Key areas of staff expansion will be as follows:

 

-          Business development and marketing support

-          Customer support

 

Expansion capabilities:  NetNumber's headquarters facility is fully configured to support the addition of 16 new full-time staff with no incremental asset costs or operational costs.  Additional expansion space is available on demand in the existing physical facility and in surrounding office buildings. 

 

NetNumber is located in the Boston metropolitan area which is one of the world's predominant locations for the development of Internet-Telephony technology.  Related companies operating in the immediate area include 3Com, PingTel, Cisco, CMGI, EMC, iBasis, iperia and Sonus networks.  In addition, the NetNumber team has direct experience with, and access to, a pool of over 350 experienced technology development and customer service staff in the Boston area that worked at Unifi Communications. 

 

Employee Training & Hiring Policies:  NetNumber is an equal opportunity employer.   Every employee owns stock or has stock options in the business and every employee goes through a training program run by the top management of the business.  NetNumber intends to continue the policies of 100% stock participation and top-management lead training for the foreseeable future.

D13.1.8 General Liability Insurance

NetNumber has a current $2 million general liability policy with the Massachusetts Bay Insurance Company.

Massachusetts Bay Insurance Company

100 North Parkway

Worcester, MA  01605

 

NetNumber has engaged William Gallagher Associates, the leading high-technology insurance broker in the United States to complete a detailed insurance audit and RFP process.  Additional insurance coverage tied to the creation of the ".tel" TLD will be incorporated into the audit and RFP.

 

            William T. Frain, III

            Vice President

            William Gallagher Associates

            200 State Street

            Boston, MA  02109

            617-261-6700

 


D13.2  REGISTRY BUSINESS PLAN

D13.2.1 Services to be Provided

".tel" TLD:  NetNumber's primary service will be the operation of the ".tel" TLD as the Registry operator.  Registry services will be provided to all accredited Registrars on a non-discriminatory basis. Services included under the ".tel" Registry umbrella are as follows:

 

Whois Services:  NetNumber will provided a common Whois database service for all ".tel" Registrars as a built-in component of the Registry service. 

 

Update Services:  NetNumber will provide a shared Registry update system and associated "Registry Update Protocol" specification for use by all ".tel" Registrars.  Update services will be included in the Registry fee structure.

 

Conflict Resolution Tool:  NetNumber will provide a shared "Conflict Resolution Tool" (CRT) for use by all ".tel" Registrars as part of the Registry service.  The CRT will provide a common mechanism for identifying and resolving registration conflicts between different Registrars.  The CRT service will be provided as part of the Registry function.

 

Conflict Resolution Center:  NetNumber will provide a staff of conflict resolution service personnel to assist Registrars in resolving conflicts that are not automatically resolved via the use of the CRT.  CRC staff services will be billed on an hourly basis to the Registrars involved in the conflict as per the ".tel" Conflict Resolution Policy.   

 

Initial Registrar Services:  NetNumber will operate the first accredited Registrar service for the ".tel" TLD as a tool for advancing momentum for the ".tel" TLD.  However, the Company's Registrar service is not expected to be an important aspect of the NetNumber business plan so no revenue projections are being made for Registrar services at this time.  NetNumber's objective is to recruit Registrars on a global basis and place primary focus on providing Registry services. 

D13.2.2 Revenue Model

The NetNumber revenue model for inclusion of entries in the ".tel" TLD is a flat fee of US$6.0 or Euro 7.0 per year.

 

Registrars will be billed one twelfth (1/12) of the yearly fee on a monthly basis for each entry in the Registry.

D13.2.3   Market

The market for the GITD is defined by any current e164 telephone number subscriber (individual, corporation or service provider) who wants to register a telephone number and associated Internet addresses on the Internet.  Initial market experience with the GITD has shown that early adopters will be individuals and corporations investing in voice over IP technology. 

 

Market projections call for more than 60 million IP-voice end points by the end of 2005.

 

Market size data references :

                                                                                    2001    2002    2003    2004    2005

Infotechtrends 1999 forecast                                                                              

IP voice enterprise platform ports (000’s)*                3,700   10,800 23,300 37,308 54,862

 

3 Com forecast for IP PBX Port

sales of NBX100 product (000’s)A                          2,000

 

Probe research industry projections 1999                                                                   

IP voice end users (000’s)                                          3,700   10,800 23,300 39,300 66,024

 

*  Years 2004 and 2005 extrapolated from previous years trends.

 

A :     Internet week Jun 19, 2000 / Phillips group research) 3Com market leader in IP PBX sales.

 

D13.2.4.   Marketing Plan

 

NetNumber has defined a multi-stage marketing plan for the ".tel" TLD that is designed to make ".tel" a piece of core infrastructure for the emerging Internet-Telephony industry:

 

Stage 1:  Vendor Integration Agreements:  The first step in tying the ".tel" TLD to the growth of the industry involves gaining agreement from technology vendors to integrate a global directory service based on the ".tel" TLD into their IP-communications products.  NetNumber started discussions with multiple equipment vendors in the July timeframe and has already launched GITD integration work with several key vendors.  For references regarding vendor integration activities please contact the following:

 

            Tom Gentles  

            Service Provider Group                                 

            3Com Corporation     

            Thomas_Gentles@3com.com

 

            Karim Faris

Level3 Communications

Karim.faris@level3.com

 

Stage 2:  Industry Education:  NetNumber is actively engaged in working with all of the key Internet-Telephony industry groups that will be affected by the ".tel" TLD.  NetNumber is a member of the following organizations:

 

International Association for Enhanced Voice Services (VMA) www.ivma.ch

Telemessaging Industry Association (TMIA) www.tmia.org

Electronic Messaging Association (EMA) www.ema.org

Softswitch Consortium www.softswitch.org

Telemanagement Forum www.tmforum.org

Stage 3:  Registrar Recruitment:  The final stage of linking the ".tel" TLD to the growth of the Internet-Telephony industry is based on bringing a large number of Registrars into the process.  The Registrar process fits perfectly into the role played by Internet-Telephony service providers.  Examples of potential Registrars include CLEC's (Competitive Local Exchange Carriers), Communications ASP's (Application Service Providers) and Broadband Service Providers (DSL and Packet-Cable).

 

NetNumber has engaged in early discussions with potential Registrars from all of the customers segments outlined above.  Detailed discussions will begin as soon as a decision is reached regarding the creation of the ".tel" TLD.

D13.2.5.   Estimated demand for registry services for .tel.

NetNumber has created three demand scenarios as follows: 

 

A.         Slow “early adopter” penetration into closed business community user groups (90% confidence level).

 

B.         Moderate penetration into wider corporate community. (50% confidence level).

 

C.        Widespread uptake in corporate user base with initial penetration into domestic market. (10% confidence level).

 

The graph below illustrates the market projections for growth of IP-telephony end-points,  (See Info-tech and Probe research trend lines below) and three market penetration scenarios for end-point registrations in the ".tel" Registry.

The table below outlines NetNumber's three market penetration scenarios:

 

                                                                        2001    2002    2003    2004

 

Scenario A – 90% confidence                        10%     12.5%  15%    17.5%

                                                                                                                                                                                                                                               

Scenario B – 50% confidence                        12.5%  15%    20%    25%

 

Scenario C – 10% confidence                        15%     17.5%  25%    35%

D13.2.6.  Resources required to meet demand for .tel.

The resources required to meet demand for .tel are divided into two categories :

 

1.      Staff

2.      Hardware and technology based resources

Staff resources:

The following tables outline the planned staffing requirements under the 90%, 50% and 10% confidence plans.

 

The current NetNumber facility in Lowell, MA has capacity for 16 additional full-time staff with no increase in asset or housing costs. The pro forma plan makes allowances for the cost elements of additional office space when headcount grows beyond the current space.

 

 


Staffing requirements: 90% confidence scenario 2001 – 2004

 

NetNumber staffing plan

 

2001

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

3

4

4

4

Service delivery

 

 

 

3

4

4

4

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

9

9

9

9

Selling and Business Development

 

5

6

6

6

Finance & Administration

 

 

3

3

3

3

Executive Management

 

 

2

2

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

25

28

29

29

 

 

NetNumber staffing plan

 

2002

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

4

4

4

5

Service delivery

 

 

 

4

4

4

6

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

10

11

11

11

Selling and Business Development

 

7

7

7

8

Finance & Administration

 

 

4

4

4

4

Executive Management

 

 

3

3

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

32

33

33

37

 

 

NetNumber staffing plan

 

2003

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

5

5

6

6

Service delivery

 

 

 

6

7

8

9

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

13

13

15

15

Selling and Business Development

 

8

8

8

8

Finance & Administration

 

 

4

5

6

6

Executive Management

 

 

3

3

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

39

41

46

47

 

 

NetNumber staffing plan

 

2004

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

7

7

8

8

Service delivery

 

 

 

12

14

16

18

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

16

16

16

16

Selling and Business Development

 

8

9

9

9

Finance & Administration

 

 

6

7

7

8

Executive Management

 

 

3

3

3

4

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

52

56

59

63

 

 

Staffing requirements: 50% confidence scenario 2001 – 2004

 

NetNumber staffing plan

 

2001

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

3

4

4

4

Service delivery

 

 

 

3

4

4

4

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

9

9

9

9

Selling and Business Development

 

5

6

6

6

Finance & Administration

 

 

3

3

3

3

Executive Management

 

 

2

2

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

25

28

29

29

 

 

NetNumber staffing plan

 

2002

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

4

4

4

5

Service delivery

 

 

 

4

4

4

6

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

10

11

11

11

Selling and Business Development

 

7

7

7

8

Finance & Administration

 

 

4

4

4

4

Executive Management

 

 

3

3

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

32

33

33

37

 

 

NetNumber staffing plan

 

2003

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

5

6

6

7

Service delivery

 

 

 

7

8

9

10

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

13

13

15

15

Selling and Business Development

 

8

8

9

9

Finance & Administration

 

 

5

6

7

8

Executive Management

 

 

3

3

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

41

44

49

52

 

 

NetNumber staffing plan

 

2004

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

8

9

10

11

Service delivery

 

 

 

12

14

18

20

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

16

16

16

16

Selling and Business Development

 

9

10

11

12

Finance & Administration

 

 

8

9

10

10

Executive Management

 

 

4

4

5

5

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

57

62

70

74

 

 

Staffing requirements: 10% confidence scenario 2001 – 2004

 

NetNumber staffing plan

 

2001

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

3

4

4

4

Service delivery

 

 

 

3

4

4

4

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

9

9

9

9

Selling and Business Development

 

5

6

6

6

Finance & Administration

 

 

3

3

3

3

Executive Management

 

 

2

2

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

25

28

29

29

 

 

 

NetNumber staffing plan

 

2002

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

4

4

4

5

Service delivery

 

 

 

4

4

5

8

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

10

11

11

11

Selling and Business Development

 

7

7

8

8

Finance & Administration

 

 

4

4

5

5

Executive Management

 

 

3

3

3

3

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

32

33

36

40

 

 

NetNumber staffing plan

 

2003

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

6

6

7

8

Service delivery

 

 

 

8

9

10

12

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

13

13

15

15

Selling and Business Development

 

8

8

9

10

Finance & Administration

 

 

5

6

8

8

Executive Management

 

 

3

3

4

4

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

43

45

53

57

 

 

NetNumber staffing plan

 

2004

Q1

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

Staff Included in Cost of Service

 

 

 

 

 

Operations

 

 

 

9

10

12

13

Service delivery

 

 

 

14

16

20

22

 

 

 

 

 

 

 

 

 

Staff included in Operating Expenses

 

 

 

 

 

Research & Development

 

 

16

16

16

16

Selling and Business Development

 

11

12

13

14

Finance & Administration

 

 

8

9

9

10

Executive Management

 

 

4

5

5

6

 

 

 

 

 

 

 

 

 

Total Staff

 

 

 

62

68

75

81

 

Hardware and technology based resources.

The following tables illustrate the two main component parts (and associated costs) of the  ".tel" Registry – Master sites and Edge sites.  The initial deployment of the ".tel" Registry represents the deployment of two Master sites and four Edge sites.

 

As of the date of this document, NetNumber has already deployed one fully redundant Master site and one fully redundant Edge site.  In addition, assets for the deployment of the next Master site and the next two Edge sites have been purchased and are currently in pre-deployment testing in NetNumber's office.  The full deployment of two complete Master sites and four Edge sites will be finished during Q4 2000 and Q1 2001.

 

The physical hardware component requirements and costs associated with the initial ".tel" Registry deployment is outlined below in detailed spreadsheet format.  Performance testing on the currently deployed production assets indicate that the initial ".tel" Registry asset deployment will deliver the following results using the operating assumptions outlined below:  

 

Queries per second:   15,840                                     (at 60% system utilization)

 

Average query size                                                     250 bytes

Number of times each number is queried per day     50   (positive and negative queries)

Percentage of daily queries during peak hour            25%

Maximum system utilization                                       60%

 

Using the above assumptions this “baseline” GITD deployment is scaled to manage up to 2.4 million directory entries, each being queried an average of 50 times per day.

 

Index of tables

A.                  Consolidated Master site cost summary

B.                 Master site – DNS Master

C.                 Master site – Back office (NNBO)

D.                 Master site – Web Systems (WEB)

E.                 Master site – Whois  Systems (WHO)

F.                  Master site – Registry Update Protocol  Systems (RUP)

G.                 Master site – Cost summary

H.                 Slave site – DNS Slave

I.                     Slave site – LDAP Slave


Table A : Consolidated Master Site cost summary

 

Description

Quantity

Non Recurring Unit Cost

Annual Recurring Unit Cost

Non Recuring Cost

Recurring Monthly Cost

Monthly Recurring Costs (24M)

DNS Master

1

 

 

$68,074

$186

$3,022

NNBO

1

 

 

$204,188

$3,936

$12,443

WEB

1

 

 

$121,778

$185

$5,259

WHO

1

 

 

$118,778

$185

$5,134

RRP

1

 

 

$118,778

$185

$5,134

Installation Fees

1

$20,000

$0

$20,000

$0

$833

Storage Array

1

$191,299

$10,175

$191,299

$10,175

$18,146

SAN Switches

2

$5,795

$0

$11,590

$0

$483

Network Switches

4

$1,500

$0

$6,000

$0

$250

Backup

1

$1,995

$2,000

$1,995

$2,000

$2,083

Firewall

2

$16,000

$7,000

$32,000

$14,000

$15,333

Load Balancing

2

$20,995

 

$41,990

$0

$1,750

Monitoring Service

1

$995

 

$995

$0

$41

Rack Space

2

$1,210

$1,100

$2,420

$2,200

$2,301

Bandwidth

2

$3,850

$8,880

$7,700

$17,760

$18,081

 

 

 

 

$947,585

$50,812

$90,295

 

Table B : Master site – DNS Master

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recuring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware (see hardware detail)

1

$61,444

$0

$61,444

$0

$2,560

Disk Array Storage

 

 

 

$0

$0

$0

Veritas HA VCS

1

$6,630

$2,229

$6,630

$186

$462

BIND 9

2

$0

$0

$0

$0

$0

 

 

 

 

$68,074

$186

$3,022

DLS Hardware Detail

 

 

 

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

2

$1,077

$2,154

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

2

$1,995

$3,990

 

 

 

Fibre Cables

2

$150

$300

 

 

 

 

 

 

$61,444

 

 

 

 

Table C : Master site – Back office (NNBO)

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recuring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware

2

$61,444

$0

$122,888

$0

$5,120

Disk Array Storage

 

 

 

$0

$0

$0

Veritas HA VCS

2

$6,630

$2,229

$13,260

$372

$924

Oracle Enterprise Edition - 180 units

1

$68,040

$42,768

$68,040

$3,564

$6,399

 

 

 

 

$204,188

$3,936

$12,443

Hardware Detail

 

 

 

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

2

$1,077

$2,154

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

2

$1,995

$3,990

 

 

 

Fibre Cables

2

$150

$300

 

 

 

 

 

 

$61,444

 

 

 

 

 

 

 

 

 

 

 

 

Table D : Master site – Web Systems (WEB)

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recuring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware

2

$56,077

$0

$112,154

$0

$4,673

Disk Array Storage

 

 

 

$0

$0

$0

Veritas Foundation Suite

2

$3,312

$1,112

$6,624

$185

$461

Stronghold 3

2

$1,000

$0

$2,000

$0

$83

Jrun 3

2

$500

$0

$1,000

$0

$42

 

 

 

 

$121,778

$185

$5,259

Hardware Detail

 

 

 

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

1

$1,077

$1,077

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

0

$1,995

$0

 

 

 

Fibre Cables

0

$150

$0

 

 

 

 

 

 

$56,077

 

 

 

 

 

 

 

 

 

 

Table E : Master site – Whois  Systems (WHO)

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recuring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware

2

$56,077

$0

$112,154

$0

$4,673

Disk Array Storage

 

 

 

$0

$0

$0

Veritas Foundation Suite

2

$3,312

$1,112

$6,624

$185

$461

 

 

 

 

$118,778

$185

$5,134

 

 

 

 

 

 

 

Hardware Detail

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

1

$1,077

$1,077

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

0

$1,995

$0

 

 

 

Fibre Cables

0

$150

$0

 

 

 

 

 

 

$56,077

 

 

 

 

 

 

 

 

 

 

 

 

Table F : Master site – Registry Registrar Protocol Systems (RRP)

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recuring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware

2

$56,077

$0

$112,154

$0

$4,673

Disk Array Storage

 

 

 

$0

$0

$0

Veritas Foundation Suite

2

$3,312

$1,112

$6,624

$185

$461

 

 

 

 

$118,778

$185

$5,134

 

 

 

 

 

 

 

Hardware Detail

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

1

$1,077

$1,077

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

0

$1,995

$0

 

 

 

Fibre Cables

0

$150

$0

 

 

 

 

 

 

$56,077

 

 

 

 

 

 

 

 

 

 

 

 

Table G : Consolidated Edge site – Cost summary.

 

Description

Quantity

Non Recurring Unit Cost

Recurring Unit Cost

Non Recuring Cost

Recurring Monthly Cost

Monthly Recurring Costs (24M)

DNS Edge

1

 

 

$118,778

$185

$5,134

Network Switches

4

$1,500

$0

$6,000

$0

$250

Firewall

2

$16,000

$7,000

$32,000

$14,000

$15,333

Load Balancing

2

$20,995

$0

$41,990

$0

$1,750

Monitoring Service

1

$995

 

$995

$0

$41

Rack Space

1

$1,210

$1,100

$1,210

$1,100

$1,150

Bandwidth

2

$3,850

$8,880

$7,700

$17,760

$18,081

 

 

 

 

$208,673

$33,045

$41,740

 

Table H : Edge site – DNS Edge Server

 

Description

Quantity

Non Recurring Unit Cost

Yearly Recurring Unit Cost

Non Recurring Cost

Monthly Recurring Cost

Monthly Recurring Cost (24M)

Hardware

2

$56,077

$0

$112,154

$0

$4,673

Veritas Foundation Suite

2

$3,312

$1,112

$6,624

$185

$461

BIND 9

2

$0

$0

$0

$0

$0

 

 

 

 

$118,778

$185

$5,134

 

 

 

 

 

 

 

Hardware Detail

 

 

 

Description

Quantity

Unit Cost

Total Cost

 

 

 

Sun 420R

1

$55,000

$55,000

 

 

 

Memory Upgrade

0

$3,240

$0

 

 

 

Quad Fast Ethernet Cards

1

$1,077

$1,077

 

 

 

Redundant Power Supply

0

$695

$0

 

 

 

JNI Fibre Cards

0

$1,995

$0

 

 

 

Fibre Cables

0

$150

$0

 

 

 

 

 

 

$56,077

 

 

 

 

D13.2.7   Plans for acquiring necessary systems and facilities

Over the past year, NetNumber has established the following systems & facilities.

            - Headquarters facility for 40 people.

            - $9 million equity financing

            - Hired executive team: CEO, CTO, CSO, VP Finance, VP Sales

            - Hired 15 person development and operations team

            - Acquired $1 million enterprise class network operations equipment

            - Executed operating lease on additional $1 million hardware and software

            - Deployed first production release of Global Internet-Telephony Directory.

- Established strong strategic relationships with key vendors

 

The projected systems and facility investments necessary to execute the ".tel" Registry business plan fall well within the resources, skills, and experience of the team.

D13.2.8  Staff size/expansion capability

 

Despite operating in a tight technical labor market in the Boston area, the NetNumber team has already demonstrated its ability to hire technical and operations staff as required.  In this regard the NetNumber team is benefiting greatly from having built a large development and operations staff in the exact same geographic area while at Unifi Communications.   Access to necessary staff will not be a limiting factor in the operation of the ".tel" Registry.

D13.2.9  Availability of Additional Management Personnel

NetNumber is well down the path of completing its executive team.  Outlined below is a summary of filled and outstanding positions.  Access to management will not be a limiting factor in the operation of the ".tel" Registry.

 

            - Chief Executive Officer                                 Filled

            - Strategy Officer                                            Filled

            - Chief Technology Officer                              Filled

            - VP Finance & Administration                        Filled

            - VP Sales & Marketing                                   Filled  (accepted 9/25/00)

            - VP Operations & Service                             Identified – scheduled Q1 2001

D13.2.10   Term of Registry Agreement

Initial Term:                                         6-years

 

NetNumber believes that a six-year initial term is justified considering the long lead time that may be required to cause a new TLD to gain momentum in the market.

 

Performance Extension:                     4 - years

 

The Registry contract will automatically extended for a 4-year period if the event the Registry operator achieves one of two key performance targets during the initial term:

           

(a)   The Registry operator and its marketing partners make investments of at least $20 million in ".tel" related sales, business development, public relations, advertising and marketing expenses during the initial term.   (Incentive for making the up-front investments necessary to build momentum for the Registry during the first term.)

 

(b)   The Registry operator achieves at least 4 million registered entries in the ".tel" TLD by the end of the initial term.  (Reward for finding a way to cause the Registry to achieve a baseline critical mass of entries during the first term.)

 

Intellectual Property Extension:          4 – years

The Registry operator will be granted an additional 4-year extension in the event that the Registry operator is awarded one or more patents containing claims that apply to the operation of the ".tel" domain.  Such patents must be awarded before the expiration of the initial term or performance extension. 

D13.2.11  Expected Costs Associated With Operation Of Registry:

See Section 13.2.6 for a detailed breakdown of staff requirements and physical asset requirements at various demand levels.  See Section 13.3 for a detailed break-down of expenses on a quarterly basis across three different demand scenarios.

D13.2.12   Expected Revenue Associated With Proposed Registry:

Registry revenue projections are based on multiplying a flat monthly fee per registered entry by the number of entries defined in each demand scenario.  The revenue model for the ".tel" TLD is as follows:

 

            2001 – All Registry services provided at no charge to stimulate initial registrations.            2002 - $0.50/month ($6/year) flat rate billing for Registry services.

 

 

D13.2.13  Capital Requirements

The NetNumber conservative case operational model (90% confidence model) calls for $20 million of incremental equity financing and $3 million of incremental asset financing beyond the current cash reserves on-hand. 

 

The Company's proven ability to raise equity and hardware financing indicates that this level of incremental financing is well within the capabilities of the NetNumber management team and Board of Directors. 

 

See Section D13.4.4 "Proof of Capital" for a copy of a letter from NetNumber's lead venture capital firm attesting to their willingness to raise additional equity capital as appropriate.

D13.2.15  Registry Failure Provisions

Registry Failure Provisions:

 

(a)   (a)   The iTAB-NetNumber Registry Agreement provides for Data Escrow of all Registry data that is under the control of iTAB.

 

(b)   (b)   The iTAB-NetNumber Registry Agreement provides for the pre-funding of $200,000/year of iTAB fees by the Registry to ensure continued operation of baseline iTAB activities even in the event of financial failure of the Registry.

 

(c)   (c)   NetNumber will negotiate in good faith with iTAB to incorporate an additional clause into the Registry Agreement that will give iTAB control over at least one Master node location (and all associated physical assets) and at least one Edge node location (and associated physical assets) in the event of financial failure of the Registry.

 

(d)   (d)   NetNumber will negotiate in good faith with iTAB to provide iTAB with the ability to seize control of the assets described in (c) above and the ability to terminate the Registry Agreement in the event that NetNumber is judged to be insolvent or bankrupt. 

 

 

 

 

 

    


D13.3   PRO-FORMA FINANCIAL PROJECTIONS

 

D13.3.1  90% Confidence Level Plan

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Income Statement annual summary

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

0

5,209,394

14,613,311

30,713,913

 

 

 

 

 

Cost of Service

5,627,886

5,938,793

7,309,118

10,622,513

 

 

 

 

 

Gross Margin

(5,627,886)

(729,400)

7,304,193

20,091,400

Gross Margin %

N/A

-14.0%

50.0%

65.4%

 

 

 

 

 

Operating expenses

 

 

 

 

Research & Development

1,759,654

2,087,077

2,796,769

3,199,154

Selling and Business Dev

1,329,087

1,694,518

2,705,473

3,682,282

Marketing and Promotion

1,500,000

2,500,000

3,000,000

4,607,087

Finance & Administration

1,409,077

1,789,538

2,210,093

2,644,077

Executive Management

672,038

734,269

771,192

822,788

Depreciation

144,958

172,875

211,625

251,417

Total operating expenses

6,814,814

8,978,278

11,695,153

15,206,805

 

 

 

 

 

Operating Profit

(12,297,742)

(9,534,802)

(4,179,335)

5,136,012

 

 

 

 

 

Taxes (@ 42%)

0

0

0

0

 

 

 

 

 

Net profit

(12,297,742)

(9,534,802)

(4,179,335)

5,136,012

Net Profit %

N/A

-183.0%

-28.6%

16.7%

 

 

 

 

 

EBITDA Gross Profit

 

 

 

 

EBITDA  Net Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Directory entries

370,000

1,350,000

3,495,000

6,703,200

Market penetration

10.0%

12.5%

15.0%

17.5%

 

 

 


 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Balance Sheet annual summary

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

Assets

 

 

 

 

   Cash and Cash equivalents

11,162,676

2,576,940

854,291

2,395,608

   Accounts receivable

0

623,683

1,630,443

3,172,422

 

 

 

 

 

Total Current Assets

11,162,676

3,200,624

2,484,734

5,568,030

 

 

 

 

 

Intangible assets

40,000

40,000

40,000

40,000

 

 

 

 

 

Tangible assets at cost

 

 

 

 

   GITD Network equipment

3,300,000

3,350,000

4,689,532

7,964,640

   Leasehold Improvements

176,000

176,000

176,000

176,000

   Other computer Hardware / Software

142,000

224,500

299,500

419,500

   Furniture, Fixtures & Fittings

150,000

150,000

200,000

200,000

 

 

 

 

 

Less accumulated Depreciation

1,529,131

3,239,833

5,211,165

8,523,817

 

 

 

 

 

Net Tangible assets

2,238,869

660,667

153,866

236,323

 

 

 

 

 

Total Net Assets

13,441,545

3,901,291

2,678,601

5,844,353

 

 

 

 

 

Liabilities

 

 

 

 

   Accounts payable

282,451

378,121

474,275

634,936

   Hardware financing

0

0

3,000,000

1,000,000

   Accrued expenses

211,838

283,591

355,707

476,202

Total current liabilities

494,289

661,712

3,829,982

2,111,139

 

 

 

 

 

Shareholders equity

9,500,000

9,500,000

9,500,000

9,500,000

Additional paid in capital

20,000,000

20,000,000

20,000,000

20,000,000

Accumulated profit / (Deficit)

(16,552,744)

(26,260,421)

(30,651,381)

(25,766,786)

Total Stockholders equity

12,947,256

3,239,579

(1,151,381)

3,733,214

 

 

 

 

 

Total Net Liabilities

13,441,545

3,901,291

2,678,601

5,844,353

 

 

 

 

 

 

 

 

 

 

Notes :

 

 

 

 

              1. No adjustment made for deferred stock based compensation.

 

              2. Assumes funding of $20 million at end of Q1 2001.

 

 

 


 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2001

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2001

 

 

 

 

 

 

Revenue

0

0

0

0

0

 

 

 

 

 

 

Cost of Service

1,348,940

1,426,315

1,426,315

1,426,315

5,627,886

 

 

 

 

 

 

Gross Margin

(1,348,940)

(1,426,315)

(1,426,315)

(1,426,315)

(5,627,886)

Gross Margin %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

439,913

439,913

439,913

439,913

1,759,654

Selling and Business Dev

297,115

343,990

343,990

343,990

1,329,087

Marketing and Promotion

250,000

500,000

250,000

500,000

1,500,000

Finance & Administration

352,269

352,269

352,269

352,269

1,409,077

Executive Management

154,760

154,760

181,260

181,260

672,038

Depreciation

32,750

35,875

37,333

39,000

144,958

Total operating expenses

1,494,058

1,790,933

1,567,433

1,817,433

6,669,856

 

 

 

 

 

 

Operating Profit

(2,842,998)

(3,217,248)

(2,993,748)

(3,243,748)

(12,297,742)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,842,998)

(3,217,248)

(2,993,748)

(3,243,748)

(12,297,742)

Net Profit %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

EBITDA Gross Profit

(1,007,702)

(1,085,077)

(1,085,077)

(1,085,077)

(4,262,934)

EBITDA  Net Profit

(2,436,260)

(2,804,260)

(2,577,843)

(2,824,510)

(10,642,873)

Depreciation

406,738

412,988

415,905

419,238

1,654,869

Tax c/fd allowance

2,842,998

6,060,246

9,053,994

12,297,742

 

 

 

 

 

 

 

Number of Directory entries

108,182

195,455

282,727

370,000

 

Market penetration

10.0%

10.0%

10.0%

10.0%

 

 

 


 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2002

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2002

 

 

 

 

 

 

Revenue

764,931

1,101,798

1,471,614

1,871,050

5,209,394

 

 

 

 

 

 

Cost of Service

1,479,969

1,479,969

1,479,969

1,498,886

5,938,793

 

 

 

 

 

 

Gross Margin

(715,038)

(378,171)

(8,355)

372,164

(729,400)

Gross Margin %

-93.5%

-34.3%

-0.6%

19.9%

-14.0%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

490,644

532,144

532,144

532,144

2,087,077

Selling and Business Dev

396,058

396,058

396,058

506,345

1,694,518

Marketing and Promotion

500,000

750,000

250,000

1,000,000

2,500,000

Finance & Administration

447,385

447,385

447,385

447,385

1,789,538

Executive Management

183,567

183,567

183,567

183,567

734,269

Depreciation

40,875

42,750

43,375

45,875

172,875

Total operating expenses

2,058,529

2,351,904

1,852,529

2,715,316

8,805,403

 

 

 

 

 

 

Operating Profit

(2,773,567)

(2,730,075)

(1,860,884)

(2,343,152)

(9,534,802)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,773,567)

(2,730,075)

(1,860,884)

(2,343,152)

(9,534,802)

Net Profit %

-362.6%

-247.8%

-126.5%

-125.2%

-183.0%

 

 

 

 

 

 

EBITDA Gross Profit

(373,800)

(36,933)

332,883

713,402

635,552

EBITDA  Net Profit

(2,350,579)

(2,303,337)

(1,432,896)

(1,910,164)

(7,996,975)

Depreciation

422,988

426,738

427,988

432,988

1,537,827

Tax c/fd allowance

15,071,309

17,801,383

19,662,267

22,005,419

 

 

 

 

 

 

 

Number of Directory entries

587,434

821,676

1,078,106

1,350,000

 

Market penetration

10.6%

11.3%

11.9%

12.5%

 

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2003

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2003

 

 

 

 

 

 

Revenue

2,473,333

3,221,324

4,027,323

4,891,330

14,613,311

 

 

 

 

 

 

Cost of Service

1,691,360

1,738,881

1,860,715

2,018,162

7,309,118

 

 

 

 

 

 

Gross Margin

781,973

1,482,443

2,166,608

2,873,168

7,304,193

Gross Margin %

31.6%

46.0%

53.8%

58.7%

50.0%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

655,817

655,817

742,567

742,567

2,796,769

Selling and Business Dev

617,369

654,768

695,068

738,268

2,705,473

Marketing and Promotion

750,000

1,000,000

250,000

1,000,000

3,000,000

Finance & Administration

525,846

550,471

558,679

575,096

2,210,093

Executive Management

192,798

192,798

192,798

192,798

771,192

Depreciation

48,375

51,292

55,667

56,292

211,625

Total operating expenses

2,790,205

3,105,146

2,494,780

3,305,022

11,483,528

 

 

 

 

 

 

Operating Profit

(2,008,232)

(1,622,703)

(328,171)

(431,854)

(4,179,335)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,008,232)

(1,622,703)

(328,171)

(431,854)

(4,179,335)

Net Profit %

-81.2%

-50.4%

-8.1%

-8.8%

-28.6%

 

 

 

 

 

 

EBITDA Gross Profit

1,123,211

1,826,323

2,561,727

3,341,014

8,852,275

EBITDA  Net Profit

(1,570,244)

(1,176,240)

178,280

148,576

(2,419,627)

Depreciation

437,988

446,464

506,452

580,429

1,759,708

Tax c/fd allowance

24,013,651

25,636,355

25,964,526

26,396,379

 

 

 

 

 

 

 

Number of Directory entries

1,827,656

2,344,375

2,900,156

3,495,000

 

Market penetration

13.1%

13.8%

14.4%

15.0%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2004

 

 

 

 

 

 

 

 

     Scenario A - 90% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2004

 

 

 

 

 

 

Revenue

5,909,319

7,042,340

8,244,989

9,517,266

30,713,913

 

 

 

 

 

 

Cost of Service

2,246,285

2,481,462

2,787,511

3,107,255

10,622,513

 

 

 

 

 

 

Gross Margin

3,663,034

4,560,878

5,457,478

6,410,010

20,091,400

Gross Margin %

62.0%

64.8%

66.2%

67.4%

65.4%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

799,788

799,788

799,788

799,788

3,199,154

Selling and Business Dev

796,956

900,482

960,615

1,024,229

3,682,282

Marketing and Promotion

886,398

1,056,351

1,236,748

1,427,590

4,607,087

Finance & Administration

642,019

661,019

661,019

680,019

2,644,077

Executive Management

196,260

196,260

196,260

234,010

822,788

Depreciation

59,417

61,917

63,792

66,292

251,417

Total operating expenses

3,380,838

3,675,817

3,918,222

4,231,927

14,955,388

 

 

 

 

 

 

Operating Profit

282,196

885,060

1,539,256

2,178,083

5,136,012

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

282,196

885,060

1,539,256

2,178,083

5,136,012

Net Profit %

4.8%

12.6%

18.7%

22.9%

16.7%

 

 

 

 

 

 

EBITDA Gross Profit

4,216,570

5,209,785

6,207,619

7,267,245

22,901,218

EBITDA  Net Profit

954,565

1,657,801

2,416,980

3,167,901

8,197,247

Depreciation

672,369

772,741

877,724

989,818

3,061,235

Tax c/fd allowance

26,114,183

25,229,123

23,689,867

21,511,784

 

 

 

 

 

 

 

Number of Directory entries

4,226,719

5,005,325

5,830,819

6,703,200

 

Market penetration

15.6%

16.3%

16.9%

17.5%

 

 

 

D13.3.2   50% Confidence Level Plan

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Income Statement annual summary

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

0

6,337,272

18,789,547

42,760,090

 

 

 

 

 

Cost of Service

5,602,762

5,945,919

7,968,468

13,045,735

 

 

 

 

 

Gross Margin

(5,602,762)

391,352

10,821,079

29,714,355

Gross Margin %

N/A

6.2%

57.6%

69.5%

 

 

 

 

 

Operating expenses

 

 

 

 

Research & Development

1,732,855

2,054,323

2,740,194

3,133,645

Selling and Business Dev

1,366,270

1,823,522

3,086,534

4,703,609

Marketing and Promotion

1,500,000

2,500,000

3,000,000

6,414,013

Finance & Administration

1,413,097

1,794,452

2,344,163

2,872,403

Executive Management

656,629

715,435

738,661

973,871

Depreciation

143,292

169,958

228,917

298,042

Total operating expenses

6,812,142

9,057,690

12,138,468

18,395,584

 

 

 

 

 

Operating Profit

(12,271,613)

(8,496,380)

(1,088,472)

11,616,813

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

 

 

 

 

 

Net profit

(12,271,613)

(8,496,380)

(1,088,472)

11,616,813

Net Profit %

N/A

-134.1%

-5.8%

27.2%

 

 

 

 

 

EBITDA Gross Profit

 

 

 

 

EBITDA  Net Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Directory entries

462,500

1,620,000

4,660,000

9,576,000

Market penetration

12.5%

15.0%

20.0%

25.0%

 


 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Balance sheet Annual summary

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

Assets

 

 

 

 

   Cash and Cash equivalents

11,183,775

3,544,491

679,217

8,767,951

   Accounts receivable

0

750,455

2,159,099

4,510,687

 

 

 

 

 

Total Current Assets

11,183,775

4,294,946

2,838,316

13,278,638

 

 

 

 

 

Intangible assets

40,000

40,000

40,000

40,000

 

 

 

 

 

Tangible assets at cost

 

 

 

 

   GITD Network equipment

3,300,000

3,330,000

6,287,524

11,342,206

   Leasehold Improvements

113,000

113,000

113,000

113,000

   Other computer Hardware / Software

200,000

267,500

380,000

545,000

   Furniture, Fixtures & Fittings

150,000

150,000

235,000

235,000

 

 

 

 

 

Less accumulated Depreciation

1,526,631

3,231,499

5,525,192

9,945,082

 

 

 

 

 

Net Tangible assets

2,236,369

629,001

1,490,332

2,353,125

 

 

 

 

 

Total Net Assets

13,460,145

4,963,946

4,368,648

15,671,763

 

 

 

 

 

Liabilities

 

 

 

 

   Accounts payable

281,881

379,104

506,012

782,781

   Hardware financing

0

0

500,000

0

   Accrued expenses

211,411

284,328

379,509

587,085

Total current liabilities

493,292

663,432

1,385,522

1,369,866

 

 

 

 

 

Shareholders equity

125,000

125,000

125,000

125,000

Additional paid in capital

29,375,000

29,375,000

29,375,000

29,375,000

Accumulated profit / (Deficit)

(16,533,147)

(25,199,485)

(26,516,874)

(15,198,103)

Total Stockholders equity

12,966,853

4,300,515

2,983,126

14,301,897

 

 

 

 

 

Total Net Liabilities

13,460,145

4,963,946

4,368,648

15,671,763

 

 

 

 

 

 

 

 

 

 

Notes :

 

 

 

 

              1. No adjustment made for deferred stock based compensation.

 

              2. Assumes funding of $20 million at end of Q1 2001.

 

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2001

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2001

 

 

 

 

 

 

Revenue

0

0

0

0

0

 

 

 

 

 

 

Cost of Service

1,342,659

1,420,034

1,420,034

1,420,034

5,602,762

 

 

 

 

 

 

Gross Margin

(1,342,659)

(1,420,034)

(1,420,034)

(1,420,034)

(5,602,762)

Gross Margin %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

433,214

433,214

433,214

433,214

1,732,855

Selling and Business Dev

306,411

353,286

353,286

353,286

1,366,270

Marketing and Promotion

250,000

500,000

250,000

500,000

1,500,000

Finance & Administration

353,274

353,274

353,274

353,274

1,413,097

Executive Management

150,907

150,907

177,407

177,407

656,629

Depreciation

32,333

35,458

36,917

38,583

143,292

Total operating expenses

1,493,806

1,790,681

1,567,181

1,817,181

6,668,851

 

 

 

 

 

 

Operating Profit

(2,836,466)

(3,210,716)

(2,987,216)

(3,237,216)

(12,271,613)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,836,466)

(3,210,716)

(2,987,216)

(3,237,216)

(12,271,613)

Net Profit %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

EBITDA Gross Profit

(1,001,421)

(1,078,796)

(1,078,796)

(1,078,796)

(4,237,810)

EBITDA  Net Profit

(2,430,561)

(2,798,561)

(2,572,144)

(2,818,811)

(10,620,078)

Depreciation

405,905

412,155

415,071

418,405

1,651,535

Tax c/fd allowance

2,836,466

6,047,181

9,034,397

12,271,613

 

 

 

 

 

 

 

Number of Directory entries

113,099

217,665

334,132

462,500

 

Market penetration

10.5%

11.1%

11.8%

12.5%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2002

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2002

 

 

 

 

 

 

Revenue

948,222

1,350,986

1,786,698

2,251,366

6,337,272

 

 

 

 

 

 

Cost of Service

1,472,292

1,472,292

1,500,667

1,500,667

5,945,919

 

 

 

 

 

 

Gross Margin

(524,070)

(121,306)

286,031

750,698

391,352

Gross Margin %

-55.3%

-9.0%

16.0%

33.3%

6.2%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

482,456

523,956

523,956

523,956

2,054,323

Selling and Business Dev

407,419

407,419

484,294

524,389

1,823,522

Marketing and Promotion

500,000

750,000

250,000

1,000,000

2,500,000

Finance & Administration

448,613

448,613

448,613

448,613

1,794,452

Executive Management

178,859

178,859

178,859

178,859

715,435

Depreciation

40,458

42,333

42,958

44,208

169,958

Total operating expenses

2,057,805

2,351,180

1,928,680

2,720,025

8,887,732

 

 

 

 

 

 

Operating Profit

(2,581,876)

(2,472,487)

(1,642,649)

(1,969,327)

(8,496,380)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,581,876)

(2,472,487)

(1,642,649)

(1,969,327)

(8,496,380)

Net Profit %

-272.3%

-183.0%

-91.9%

-87.5%

-134.1%

 

 

 

 

 

 

EBITDA Gross Profit

(182,832)

219,932

627,269

1,091,936

1,756,304

EBITDA  Net Profit

(2,159,721)

(2,046,582)

(1,215,494)

(1,539,672)

(6,961,469)

Depreciation

422,155

425,905

427,155

429,655

1,534,910

Tax c/fd allowance

14,853,489

17,325,975

18,968,624

20,937,951

 

 

 

 

 

 

 

Number of Directory entries

725,653

1,004,271

1,305,076

1,620,000

 

Market penetration

13.1%

13.8%

14.4%

15.0%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2003

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2003

 

 

 

 

 

 

Revenue

3,033,491

4,065,411

5,213,347

6,477,298

18,789,547

 

 

 

 

 

 

Cost of Service

1,711,709

1,880,880

2,077,865

2,298,014

7,968,468

 

 

 

 

 

 

Gross Margin

1,321,782

2,184,531

3,135,482

4,179,285

10,821,079

Gross Margin %

43.6%

53.7%

60.1%

64.5%

57.6%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

641,673

641,673

728,423

728,423

2,740,194

Selling and Business Dev

665,001

716,597

820,869

884,067

3,086,534

Marketing and Promotion

750,000

1,000,000

250,000

1,000,000

3,000,000

Finance & Administration

552,593

577,218

587,384

626,968

2,344,163

Executive Management

184,665

184,665

184,665

184,665

738,661

Depreciation

53,792

55,667

58,792

60,667

228,917

Total operating expenses

2,847,724

3,175,820

2,630,134

3,484,790

11,909,551

 

 

 

 

 

 

Operating Profit

(1,525,943)

(991,290)

505,348

694,495

(1,088,472)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(1,525,943)

(991,290)

505,348

694,495

(1,088,472)

Net Profit %

-50.3%

-24.4%

9.7%

10.7%

-5.8%

 

 

 

 

 

 

EBITDA Gross Profit

1,663,020

2,582,855

3,630,434

4,780,630

12,656,938

EBITDA  Net Profit

(1,077,121)

(481,632)

1,117,884

1,417,174

976,304

Depreciation

448,821

509,658

612,535

722,678

2,064,776

Tax c/fd allowance

22,463,894

23,455,183

22,949,835

22,255,340

 

 

 

 

 

 

 

Number of Directory entries

2,262,813

2,983,750

3,782,813

4,660,000

 

Market penetration

16.3%

17.5%

18.8%

20.0%

 

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2004

 

 

 

 

 

 

 

 

     Scenario B - 50% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2004

 

 

 

 

 

 

Revenue

7,987,239

9,696,257

11,544,532

13,532,062

42,760,090

 

 

 

 

 

 

Cost of Service

2,600,270

3,045,211

3,493,957

3,906,298

13,045,735

 

 

 

 

 

 

Gross Margin

5,386,969

6,651,046

8,050,575

9,625,764

29,714,355

Gross Margin %

67.4%

68.6%

69.7%

71.1%

69.5%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

783,411

783,411

783,411

783,411

3,133,645

Selling and Business Dev

970,451

1,102,777

1,242,065

1,388,317

4,703,609

Marketing and Promotion

1,198,086

1,454,439

1,731,680

2,029,809

6,414,013

Finance & Administration

694,226

713,226

732,476

732,476

2,872,403

Executive Management

224,593

224,593

262,343

262,343

973,871

Depreciation

69,042

72,167

77,167

79,667

298,042

Total operating expenses

3,939,808

4,350,612

4,829,142

5,276,023

18,097,542

 

 

 

 

 

 

Operating Profit

1,447,161

2,300,435

3,221,433

4,349,742

11,616,813

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

1,447,161

2,300,435

3,221,433

4,349,742

11,616,813

Net Profit %

18.1%

23.7%

27.9%

32.1%

27.2%

 

 

 

 

 

 

EBITDA Gross Profit

6,115,414

7,523,348

9,078,455

10,820,945

33,538,161

EBITDA  Net Profit

2,313,689

3,317,069

4,403,647

5,704,255

15,738,660

Depreciation

866,528

1,016,635

1,182,213

1,354,514

4,121,848

Tax c/fd allowance

20,808,179

18,507,744

15,286,311

10,936,569

 

 

 

 

 

 

 

Number of Directory entries

5,748,338

6,930,450

8,206,337

9,576,000

 

Market penetration

21.3%

22.5%

23.8%

25.0%

 

 


D13.3.3  10% Confidence Level Plan

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Income Statement annual summary

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

0

7,465,150

22,965,783

57,518,574

 

 

 

 

 

Cost of Service

5,602,762

5,985,544

8,727,840

15,505,873

 

 

 

 

 

Gross Margin

(5,602,762)

1,479,606

14,237,943

42,012,701

Gross Margin %

N/A

19.8%

62.0%

73.0%

 

 

 

 

 

Operating expenses

 

 

 

 

Research & Development

1,732,855

2,054,323

2,740,194

3,133,645

Selling and Business Dev

1,366,270

1,830,205

3,342,221

5,816,534

Marketing and Promotion

1,500,000

2,500,000

3,000,000

8,627,786

Finance & Administration

1,413,097

1,843,702

2,333,829

2,852,903

Executive Management

656,629

715,435

814,161

1,049,371

Depreciation

143,292

171,208

233,917

309,917

Total operating expenses

6,812,142

9,114,873

12,464,321

21,790,156

 

 

 

 

 

Operating Profit

(12,271,613)

(7,464,059)

2,007,538

20,532,462

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

3,311,882

 

 

 

 

 

Net profit

(12,271,613)

(7,464,059)

2,007,538

17,220,580

Net Profit %

N/A

-100.0%

8.7%

29.9%

 

 

 

 

 

EBITDA Gross Profit

 

 

 

 

EBITDA  Net Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Directory entries

555,000

1,890,000

5,825,000

13,406,400

Market penetration

15.0%

17.5%

25.0%

35.0%

 

 

 


 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

     Balance Sheet annual summary

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

2001

2002

2003

2004

Assets

 

 

 

 

   Cash and Cash equivalents

11,183,775

4,428,484

2,339,460

14,245,676

   Accounts receivable

0

877,227

2,687,755

6,270,140

 

 

 

 

 

Total Current Assets

11,183,775

5,305,711

5,027,216

20,515,816

 

 

 

 

 

Intangible assets

40,000

40,000

40,000

40,000

 

 

 

 

 

Tangible assets at cost

 

 

 

 

   GITD Network equipment

3,300,000

3,350,000

8,091,081

15,652,221

   Leasehold Improvements

113,000

113,000

113,000

113,000

   Other computer Hardware / Software

200,000

282,500

410,000

590,000

   Furniture, Fixtures & Fittings

150,000

150,000

235,000

235,000

 

 

 

 

 

Less accumulated Depreciation

1,526,631

3,233,999

5,865,062

11,550,998

 

 

 

 

 

Net Tangible assets

2,236,369

661,501

2,984,019

5,102,223

 

 

 

 

 

Total Net Assets

13,460,145

6,007,211

8,051,234

25,658,038

 

 

 

 

 

Liabilities

 

 

 

 

   Accounts payable

281,881

386,072

540,587

938,382

   Hardware financing

0

0

0

0

   Accrued expenses

211,411

289,554

405,441

703,786

Total current liabilities

493,292

675,626

946,028

1,642,168

 

 

 

 

 

Shareholders equity

125,000

125,000

125,000

125,000

Additional paid in capital

29,375,000

29,375,000

29,375,000

29,375,000

Accumulated profit / (Deficit)

(16,533,147)

(24,168,415)

(22,394,793)

(5,484,130)

Total Stockholders equity

12,966,853

5,331,585

7,105,207

24,015,870

 

 

 

 

 

Total Net Liabilities

13,460,145

6,007,211

8,051,234

25,658,038

 

 

 

 

 

 

 

 

 

 

Notes :

 

 

 

 

              1. No adjustment made for deferred stock based compensation.

 

              2. Assumes funding of $20 million at end of Q1 2001.

 

 

 

 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2001

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2001

 

 

 

 

 

 

Revenue

0

0

0

0

0

 

 

 

 

 

 

Cost of Service

1,342,659

1,420,034

1,420,034

1,420,034

5,602,762

 

 

 

 

 

 

Gross Margin

(1,342,659)

(1,420,034)

(1,420,034)

(1,420,034)

(5,602,762)

Gross Margin %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

433,214

433,214

433,214

433,214

1,732,855

Selling and Business Dev

306,411

353,286

353,286

353,286

1,366,270

Marketing and Promotion

250,000

500,000

250,000

500,000

1,500,000

Finance & Administration

353,274

353,274

353,274

353,274

1,413,097

Executive Management

150,907

150,907

177,407

177,407

656,629

Depreciation

32,333

35,458

36,917

38,583

143,292

Total operating expenses

1,493,806

1,790,681

1,567,181

1,817,181

6,668,851

 

 

 

 

 

 

Operating Profit

(2,836,466)

(3,210,716)

(2,987,216)

(3,237,216)

(12,271,613)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,836,466)

(3,210,716)

(2,987,216)

(3,237,216)

(12,271,613)

Net Profit %

N/A

N/A

N/A

N/A

N/A

 

 

 

 

 

 

EBITDA Gross Profit

(1,001,421)

(1,078,796)

(1,078,796)

(1,078,796)

(4,237,810)

EBITDA  Net Profit

(2,430,561)

(2,798,561)

(2,572,144)

(2,818,811)

(10,620,078)

Depreciation

405,905

412,155

415,071

418,405

1,651,535

Tax c/fd allowance

2,836,466

6,047,181

9,034,397

12,271,613

 

 

 

 

 

 

 

Number of Directory entries

118,017

239,876

385,537

555,000

 

Market penetration

10.9%

12.3%

13.6%

15.0%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2002

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2002

 

 

 

 

 

 

Revenue

1,131,513

1,600,173

2,101,783

2,631,681

7,465,150

 

 

 

 

 

 

Cost of Service

1,472,292

1,472,292

1,500,667

1,540,292

5,985,544

 

 

 

 

 

 

Gross Margin

(340,780)

127,881

601,115

1,091,389

1,479,606

Gross Margin %

-30.1%

8.0%

28.6%

41.5%

19.8%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

482,456

523,956

523,956

523,956

2,054,323

Selling and Business Dev

407,419

407,419

484,294

531,072

1,830,205

Marketing and Promotion

500,000

750,000

250,000

1,000,000

2,500,000

Finance & Administration

448,613

448,613

473,238

473,238

1,843,702

Executive Management

178,859

178,859

178,859

178,859

715,435

Depreciation

40,458

42,333

42,958

45,458

171,208

Total operating expenses

2,057,805

2,351,180

1,953,305

2,752,583

8,943,665

 

 

 

 

 

 

Operating Profit

(2,398,585)

(2,223,299)

(1,352,190)

(1,661,194)

(7,464,059)

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(2,398,585)

(2,223,299)

(1,352,190)

(1,661,194)

(7,464,059)

Net Profit %

-212.0%

-138.9%

-64.3%

-63.1%

-100.0%

 

 

 

 

 

 

EBITDA Gross Profit

458

469,119

942,353

1,432,627

2,844,558

EBITDA  Net Profit

(1,976,430)

(1,797,394)

(925,035)

(1,229,039)

(5,927,899)

Depreciation

422,155

425,905

427,155

432,155

1,536,160

Tax c/fd allowance

14,670,198

16,893,497

18,245,687

19,906,880

 

 

 

 

 

 

 

Number of Directory entries

863,873

1,186,866

1,532,045

1,890,000

 

Market penetration

15.6%

16.3%

16.9%

17.5%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2003

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2003

 

 

 

 

 

 

Revenue

3,593,648

4,909,498

6,399,370

8,063,266

22,965,783

 

 

 

 

 

 

Cost of Service

1,813,620

2,024,942

2,273,190

2,616,088

8,727,840

 

 

 

 

 

 

Gross Margin

1,780,029

2,884,556

4,126,180

5,447,178

14,237,943

Gross Margin %

49.5%

58.8%

64.5%

67.6%

62.0%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

641,673

641,673

728,423

728,423

2,740,194

Selling and Business Dev

693,009

758,801

880,170

1,010,240

3,342,221

Marketing and Promotion

750,000

1,000,000

250,000

1,000,000

3,000,000

Finance & Administration

552,593

560,801

593,718

626,718

2,333,829

Executive Management

184,665

184,665

222,415

222,415

814,161

Depreciation

54,417

55,667

60,667

63,167

233,917

Total operating expenses

2,876,357

3,201,608

2,735,393

3,650,963

12,230,405

 

 

 

 

 

 

Operating Profit

(1,096,328)

(317,052)

1,390,787

1,796,215

2,007,538

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

0

0

0

 

 

 

 

 

 

Net profit

(1,096,328)

(317,052)

1,390,787

1,796,215

2,007,538

Net Profit %

-30.5%

-6.5%

21.7%

22.3%

8.7%

 

 

 

 

 

 

EBITDA Gross Profit

2,144,253

3,353,931

4,720,965

6,182,022

16,401,172

EBITDA  Net Profit

(623,271)

263,657

2,106,905

2,657,393

4,404,684

Depreciation

473,058

580,709

716,119

861,177

2,397,146

Tax c/fd allowance

21,003,209

21,320,261

19,929,474

18,133,259

 

 

 

 

 

 

 

Number of Directory entries

2,697,969

3,623,125

4,665,469

5,825,000

 

Market penetration

19.4%

21.3%

23.1%

25.0%

 

 


 

 

 

Registry Business Model 2001 - 2004

 

 

 

 

 

 

 

 

 

     Income Statement Quarterly summary

2004

 

 

 

 

 

 

 

 

     Scenario C - 10% Confidence Level

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All amounts in US$ 000's

 

 

 

 

 

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Total 2004

 

 

 

 

 

 

Revenue

10,227,379

12,809,881

15,670,894

18,810,419

57,518,574

 

 

 

 

 

 

Cost of Service

3,081,183

3,558,163

4,143,333

4,723,194

15,505,873

 

 

 

 

 

 

Gross Margin

7,146,197

9,251,718

11,527,561

14,087,225

42,012,701

Gross Margin %

69.9%

72.2%

73.6%

74.9%

73.0%

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research & Development

783,411

783,411

783,411

783,411

3,133,645

Selling and Business Dev

1,176,208

1,352,208

1,542,133

1,745,985

5,816,534

Marketing and Promotion

1,534,107

1,921,482

2,350,634

2,821,563

8,627,786

Finance & Administration

693,976

713,226

713,226

732,476

2,852,903

Executive Management

224,593

262,343

262,343

300,093

1,049,371

Depreciation

71,542

75,292

79,667

83,417

309,917

Total operating expenses

4,483,836

5,107,961

5,731,414

6,466,944

21,480,239

 

 

 

 

 

 

Operating Profit

2,662,361

4,143,757

5,796,147

7,620,281

20,532,462

 

 

 

 

 

 

Taxes (@ 42%) less C/fd loss

0

0

111,364

3,200,518

3,311,882

 

 

 

 

 

 

Net profit

2,662,361

4,143,757

5,684,783

4,419,763

17,220,580

Net Profit %

26.0%

32.3%

36.3%

23.5%

29.9%

 

 

 

 

 

 

EBITDA Gross Profit

8,063,205

10,386,109

12,902,778

15,726,712

47,078,803

EBITDA  Net Profit

3,722,452

5,428,731

7,330,697

9,426,601

25,908,481

Depreciation

1,060,092

1,284,974

1,534,550

1,806,320

8,687,901

Tax c/fd allowance

15,470,899

11,327,142

5,530,995

(2,089,286)

 

 

 

 

 

 

 

Number of Directory entries

7,439,025

9,240,600

11,229,725

13,406,400

 

Market penetration

27.5%

30.0%

32.5%

35.0%

 

 

D13.4  SUPPORTING DOCUMENTATION

D13.4.1  Registry Operator’s Articles of Incorporation

 

    See attached Appendix A for copy of NetNumber's Bylaws

 

D13.4.2  References  (Industry and Trade)

Following the first production release of the GITD in July of this year, NetNumber began holding integration discussions with a large number of Internet-Telephony technology vendors and network service providers.  After just a few months of focused interaction, NetNumber has already begun to establish relationships with many of the large players in the industry.  Outlined below is a list of industry references that can be contacted to better understand the role that a global directory under the ".tel" TLD will play within the Internet-Telephony industry.  All of the strategic contacts outlined below are still in the early stage of discussions with NetNumber and most of the interactions are taking place under Non-Disclosure Agreements.  However, each of these individuals has agreed to act as a contact for ICANN to discuss the role of the GITD within the industry and to discuss their expectations for the growth of registrations in the ".tel" TLD as the Internet-Telephony industry matures.

 

3Com Corporation

United States

-         

-          [Redacted]

 

3Com Corp. is a broad-based supplier of local area network (LAN) and wide area network (WAN) systems.  IP-Telephony systems include the large-scale CommWorks IP-Telephony Platform for service provider environments and the enterprise class NBX-100 and NBX-25 IP-PBX platforms. 

 

Klaus Dietre-Liedtke

Chairman of the International Enhanced Voice Services Association (VMA)

T-Mobile Communications,  (Deutsche Telecom Mobil Communications Subsidiary)

Germany

-         

 

T-Mobile Communications is a wholly owned subsidiary of Deutsche Telecom and the dominant wireless service provider in Germany.

 

Orly Rappaport

Director of Advanced Technologies

Comverse Network Systems

Israel

-         

-          [Redacted]

 

Comverse Network Systems (CNS) offers the industry's most advanced and comprehensive solution for enhanced services.  The CNS complete suite of integrated services gives mobile service providers the ability to attract new subscribers, create new revenue sources and stay ahead of the competition.

 

David Kerr

Messaging Product Manager

Value Added Services

Unisys Corporation

United States

-          [Redacted]

-          [Redacted]

 

Unisys Corporation is a worldwide information services and technology company with offices in over 100 countries. The Company provides services, systems and solutions, and its Unisys e-@ction Solutions, that help customers apply information technology to seize the opportunities and overcome the challenges of the internet economy.

 

Tom Guthrie

Senior Vice President, Technical Services

Allied-Riser Corporation

United States

-          [Redacted]

-          [Redacted]

 

Allied Riser Communications Corporation (ARC) is a provider of broadband data, video and voice communications services to businesses of all sizes inside office buildings in 49 major metropolitan areas in the United States. ARC delivers its services over fiber optic networks that it owns and operates inside large and medium-sized office buildings.

 

Karim Faris

Director, New Ventures

Level3 Communications

United States

-          [Redacted]

-          [Redacted]

 

Level3 is the world's first communications company to build an international communications network using Internet Protocol (IP) technology end-to-end.  To date over 20,000 miles of the Level3 fiber network have been completed in the United States and Europe. 

 

Les Mezaros

Vice President, Business Development, Voice Services

Intel Corporation

United States

-          [Redacted]

-          [Redacted]

 

Stefan Marti
Swisscom AG
Business Development
Mobile IT, Value Added Services
CH-3072 Ostermundigen

 

- [Redacted]
- [Redacted]


George Krucik

President & CEO

EleTel, Inc.

United States

-          [Redacted]

-          [Redacted]

 

David Noone

Head of Strategic Initiative

Intervoice-Brite

United Kingdom

-          [Redacted]

-          [Redacted]

 

Bill Ehlinger

Director of Business Development

CES Computer Solutions, Inc.

United States

-          [Redacted] 

-          [Redacted]

 

Bertrand Gatellier

President

VMA (International Association of Enhanced Voice Services)

United Kingdom

-          [Redacted]

-          [Redacted]

 

Dr. Herman R. Silbiger

ITU, World Telecommunication Standardization Assembly member

APPLICOM

United Kingdom

-          [Redacted]

 

 

Trade References: Outlined below is a list of key trade references that are all actively engaged in providing services to NetNumber.

 

Ms. Jacky Gottesman,

Internet Program Manager

EMC Corporation

117 South Street

Hopkinton, MA 01748-9103

[Redacted]

[Redacted]

 

Mr. Jack Rummel,

Account Representative

Office Environments of New England

280 Summer Street

Boston, MA 02210-1169

[Redacted]

[Redacted]

 

 

Mr. Brian Hunt,

Director of Operations

CB Richard Ellis-Whittier Partners

660 Suffolk Street

Lowell, MA 01854-3636

[Redacted]

[Redacted] (phone)

 

 

 

 


D13.4.3  Annual Report

Outlined below are un-audited financial statements for NetNumber from 1/1/99 through 6/1/00.  NetNumber has appointed Ernst & Young as auditors and has initiated an audit review through 6/00.  See Appendix F for a copy of a recent letter from Ernst & Young regarding the status of this audit. 

 

[REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED] [REDACTED]

NetNumber.com Inc.

 

 

 

Income statement for periods 1/1/99 - 12/31/1999  and 1/1/2000 - 1/6/2000

 

 

 

 

 

Period 1/1/1999 -

 

Period 1/1/2000 -

 

12/31/1999

 

6/30/2000

 

$ US

 

$ US

 

 

 

 

Revenue

0

 

0

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

Total operating expenses

289,566

 

2,160,483

 

 

 

 

Operating Loss

(303,155)

 

(2,567,167)

 

 

 

 

 

 

 

 

Net Loss

(301,863)

 

(2,473,466)

 

 

 

 

 

 

 

 

 


 

[REDACTED] [REDACTED] [REDACTED]

NetNumber.com Inc.

 

 

 

 

 

 

 

Balance Sheet as at 12/31/1999  and  1/6/2000

 

 

 

 

 

 

 

Period Ending

 

Period Ending

 

December 31st 1999

 

June 30th 2000

 

$ US

 

 

Assets

 

 

 

 

 

 

 

Total Net Assets

728,709

 

7,028,114

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Total Net Liabilities

728,709

 

7,028,114

 

 

 

 

 

 

 

 

D13.4.4  Proof of Capital

 

Proof Of Existing Capital: 

-          See NetNumber balance sheet presented in section 13.4.3 above.

-          See Appendix B for copy of NetNumber's most recent short-term note maturity statement from Fleet Bank showing a short-term deposit balance of $5,400,000 cash. 

 

 

Source Of Future Capital:

 

-          See Appendix C for a letter from William Sick, the Managing Partner of the venture capital firm Signature Capital regarding their expectations for raising additional funds as required.

 

D13.4.5  Proof of Insurance

 

Existing Insurance Policy:

 

-          See Appendix D for a copy of NetNumber's $2 million general liability insurance policy. 

 

 

Access To Additional Insurance:

 

-          See Appendix E for copy of letter from NetNumber to William Gallagher regarding engagement of services to negotiate additional insurance as required.   

 

 

 

 

 

 

 


D14 TECHNICAL CAPABILITIES AND PLAN

D15. The Technical Capabilities and Plan

D15.1  Detailed description of Registry operator's technical capabilities

 

The NetNumber technical staff and culture was born from UNIFI Communications, Inc.  UNIFI was an early entrant in the Fax-over IP market that wholly owned and operated a global IP-based communications network which offered value added messaging services such as store-and-forward fax, broadcast fax, and PC-based desktop messaging.

UNIFI Communications operated a 24x7 worldwide network that included sites in the United States located in California, New Jersey, and Massachusetts.  In Asia-Pacific it operated sites in Tokyo, Osaka and Nagoya - Japan, one site within Singapore, as well as Korea, Hong Kong/China, Taiwan, and Australia.  In Europe, sites were located in the United Kingdom, France, and Germany.  All sites were operated and monitored from UNIFI's headquarters in Lowell, Massachusetts.

All sites were co-located in major telecommunications facilities and data-centers, which provided uninterrupted power, air conditioning, humidity control, fire suppression equipment, multiple/backup WAN connections and personnel to assist in hardware replacement. Each of UNIFI's site consisted of Cisco routers, several Unix-based platforms, multiple WAN data connections and a plentitude of PSTN connections as well as backup hardware in case of any failure.

All of the software that ran UNIFI Communication’s network was developed in-house to provide value-added reliable messaging, internalization and optimized network utilization. The software was optimized to meet the requirements of individual PSTN operations in each country.

From this heritage NetNumber has carried forth the following key technical staff:

Walter, Robert - V.P. Development and Network Operations:

Mr. Walter currently provides managerial and technical leadership to NetNumber’s Development and Network Operations organizations. Prior to joining NetNumber™ in November 1999, Mr. Walter (Bob) was a consultant at Cisco Systems working on the Cisco Network Registrar (CNR) product. Prior to consulting at Cisco, Bob was VP of Architecture and Technology at UNIFI Communications. In this capacity, Bob was responsible for UNIFI's messaging services architecture and technology. Previously, he was the chief architect of UNIFI's Enterprise Network Interface (ENI); a reusable framework of Java/CORBA distributed services capturing the domain of reliable message delivery with support for rendering, real-time status and on-line customer registration. Prior to joining UNIFI in August of 1997, Bob was lead architect on Pratt & Whitney Aircraft's Virtual Jet Engine program, a large scale, distributed object-oriented system involving the simulation and optimization of multi-dimensional jet engine propulsion systems. Mr. Walter holds degrees in Mechanical Engineering (BSME) from the University of Massachusetts Dartmouth, a Masters Degree in Computer Science (MCS - Software Engineering Option) from Florida Atlantic University and a Certificate of Graduate Studies in Software Engineering from Software Engineering Institute of Carnegie Mellon University.

Santos, Charles – Principal Engineer, DNS and Network Services:

Mr. Santos is responsible for leading the design, development and operations of NetNumber’s DNS and RRP systems. Prior to joining NetNumber™ in November 1999, Mr. Santos (Chuck) was a consultant at Cisco Systems working on the Cisco Network Registrar (CNR) product. Prior to consulting at Cisco, Mr. Santos was employed at UNIFI Communications from March 1995 to March 2000.  At UNIFI, Mr. Santos obtained the position of Director for the Network Transport group, responsible for all software application composing an intelligent message delivery network including Real-time Status, and an expert system for auto-retry of failed delivery messages.  Prior to UNIFI, Mr. Santos spent 9 years at Digital Equipment Corporation (DEC).  Responsibilities at DEC included software development for the Fault-Tolerant Computing Group, and the Transactional Processing Products Group.  Prior to join DEC, Mr. Santos was employed at General Electric, Turbine and Compressor Division, developing an automated product proposal and design software system.  Mr. Santos holds a degree in Computer Science from Fitchburg State College.

Beaulieu, Alan – Principal Engineer, Database/Directory Services:

Mr. Beaulieu is currently responsible for leading the design, development and operations of NetNumber’s Oracle database and LDAP directory products.  Prior to joining NetNumber™ in January 2000, Mr. Beaulieu ran his own consulting practice, specializing in the design, construction, and implementation of large, mission-critical data warehouses for major financial services companies in the Boston area.  Prior to running his consulting practice, Alan was a Principal Engineer at UNIFI Communications, where he was charged with designing and building databases and data-access layers in support of UNIFI's next-generation messaging product.  Prior to his work at UNIFI, Alan consulted to various companies in the Boston and New York area, specializing in the design and development of mission-critical Oracle database applications.  Mr. Beaulieu holds a degree in Operations Research Engineering from Cornell University.

Weaver, Scott – Principal Engineer, Web Services:

Mr. Weaver is currently responsible for leading the design, development and operations of NetNumber’s production network operations web sites. Before joining NetNumber™ in November 1999, he consulted in the Network and Service Management business unit of Cisco Systems where he was responsible for converting Cisco's Next Generation IP Address Management Platform Web UI from a proprietary-based architecture (Netscape Application Server) to an open standard (Java Server Pages).  Previously, he was responsible for the strategic development and architecture of web-based user interfaces for UNIFI Corporation's national and international service offerings.  He has also served as a senior consultant developing graphical, object oriented components for Gensym Corporation's real-time expert system offering.  He has developed systems for United Technologies Advanced Computing Technologies group.  Projects included the development of a peer-to-peer, distributed finite scheduling system; a graphical process control environment; and jet engine performance enhancements via digital electronic control.  Additional experience includes user interface consulting at GTE's Telecommunication Laboratories.  Mr. Weaver holds a Masters Degree in Computer Science (MSCS) from Rensselaer Polytechnic Institute and a Mechanical Engineering Degree (BSME) from the University of Massachusetts Dartmouth.

 

 

Khirallah, Lynette - Principal Engineer, Security Services:

Ms. Khirallah is responsible for all aspects of security in NetNumber production network environment, including distributed applications security and the definition of a public key infrastructure (PKI). Prior to joining NetNumber in April 2000, Ms. Khirallah held the position of Software Architect in the Security Product Development Group at Concept Five Technologies. As project lead, Ms. Khirallah was responsible for the completion of a Java version of a CORBA compliant, certificate-based, security system, which is currently being sold as part of Hitachi America’s CORBA product and Iona Technologies OTM product. Prior to joining Concept5, Ms. Khirallah was responsible for distributed systems security and public key infrastructure at UNIFI Communications, Inc. where she was a Principal Security Engineer.  Ms. Khirallah worked at Hewlett Packard for 10 years prior to working for UNIFI. At HP, she worked in various capacities, the most recent of which included work for the Internet Technology Lab in the Enterprise Security Group and as a senior member of the HP team that designed the CORBA/ORB architecture that was standardized by the OMG (Object Management Group) in 1990.  Ms. Khirallah holds a degree in Computer Science (BTCS) from Rochester Institute of Technology, NY.

Chan, Douglas – Principal Engineer, DNS and Network Services:

Mr. Chan is responsible for the design, development and implementation of a NetNumber’s Whois Service and Back-Office Application Programming Interface.  In a previous incarnation, Mr. Chan worked as a senior software engineer at UNIFI Communications in Lowell, Massachusetts. His area of specialty is in data communications and telecommunications.  At UNIFI Communications, Doug was responsible for designing a CORBA based interface for allowing external and internal customers to integrate with UNIFI’s messaging network.  He was responsible for creating components of UNIFI’s inbound fax-to-email (eFax) service.  He was also responsible for platform homologation/integration efforts with numerous international telecommunications carriers.  Mr. Chan holds a Bachelor of Science degree in Computer Engineering from Boston University.

John, Christopher – Principal Engineer, Integration Services:

Mr. John is responsible for leading the NetNumber integration services team.  Prior to joining NetNumber in June of 2000, Mr. John (Chris) was Director of Testing Solutions for Gresham Computing, Inc, deploying automated test systems for Fortune 500 companies.  Prior to Gresham, Chris was one of the founders of Automated Solutions, Inc., a software-testing consulting company that was later purchased by Gresham in February 1999.  While with Automated Solutions, Chris helped develop and market Autoscriptor Inferno, a hardware-based, non-intrusive automated test system.  Autoscriptor Inferno is currently used to automate the testing process for many Fortune 500 companies.  Prior to starting Automated Solutions, Chris completed GE's prestigious Information Systems Management Program (ISMP) where he worked primarily for GE's Global Telecommunications Organization.  Mr. John holds a degree in Operations Management (BS) from Penn State University.

Abbanat, Paul – Principal Engineer, Release and Deployment Services:

Mr. Abbanat is responsible for all aspects of on-line distribution and release of software into NetNumber’s production network. Prior to joining NetNumber™ in May 1999, Mr. Abbanat (Paul) was a consultant for The Eliassen Group bringing 14 years of Release Engineering experience to client companies in the Boston area (such as John Hancock and the Gale Group). Prior to consulting for Eliassen, Paul was Senior Manager of Release Engineering at UNIFI Communications. In this capacity, Paul built and managed a diverse engineering team and was responsible for defining and implementing all phases of UNIFI's Release Engineering process. This included source code control, software packaging, installation and roll-back procedures, release scheduling and project management. Before joining UNIFI in May of 1996, Paul worked at Prime Computer (formerly Computervision) for eight years in the CAD/CAM Continuing Engineering Department. Paul held several roles at Computervision, starting as a QA Engineer he quickly moved into Release Engineering before being promoted to manager of the Release Engineering team. This team successfully managed all phases of the release process for a worldwide customer base of over 80,000 installed seats. Mr. Abbanat holds degrees in Mechanical Engineering (BSME) from the University of Massachusetts at Amherst and a Masters Degree in Business Administration (MBA) from Northeastern University in Boston, Massachusetts.

Turmel, Richard – Director of Quality Assurance:

Mr. Turmel joined NetNumber.com in January 2000 as the Director of Quality Assurance.  In this capacity, he is responsible for the overall quality of NetNumber’s production products and services.  Prior to joining NetNumber, Mr. Turmel worked at UNIFI Communications in as Senior Manager of Test System Development.  At UNIFI, Mr. Turmel built a 25-person organization to meet all quality assurance, testing, and lab services needs for the Research and Development organization.  Mr. Turmel’s key strengths are building successful teams, architecting automated test systems and solutions, and developing test strategies.  Prior to UNIFI, Mr. Turmel worked at Digital Equipment Corporation/BEA Systems as a manager of Test Engineering in the ObjectBroker product groups.  Throughout his career, Mr. Turmel has authored and presented various papers on automated testing and building behavioral simulation libraries.  Prior to Digital/BEA, Mr. Turmel held several software engineering positions at Digital and Sanders Lockheed working in the middleware space (Transaction Processing and Object Request Brokers) and CAD/CAE space.  Mr. Turmel holds a Bachelor of Science degree in Mathematics and Computer Science from Merrimack College in North Andover, Massachusetts.

Fotino, Richard – Network Operations Manager:

Mr. Fotino (Rick) joined NetNumber in November of 1999 and took responsibility for the internal corporate network systems, development and integration systems as well as managing the production network systems.  Prior to coming to NetNumber, Rick worked for Comverse Network Systems in Andover, MA as Customer Support Manager; directly responsible for the engineering support of Comverse systems deployed to SBC and BellSouth.  Prior to Comverse, Rick was the QA and Development Lab Manager at UNIFI Communications.  His responsibilities there included the creation and operation of the pre-production, test and development labs, the deployment and support of new UNIFI releases to both the test environment and to the UNIFI production systems as well as the direct support of the production systems. Prior to joining UNIFI, Rick was employed by Hewlett-Packard Co. (formerly Apollo Computer), in Chelmsford, MA where he held a number of engineering and management positions over his 14-year tenure. As a Technical Consultant, Rick developed and delivered many software engineering and programming courses for both the Domain/OS and HP-UX operating systems, most notably courses of instruction in Distributed Programming and Posix Thread Programming. Mr. Fotino also served in a capacity as the Chelmsford System Software Lab Liaison where his responsibilities included the management and resolution of all HP customer escalations involving CSSL systems and software. Finally, in 1998 Rick took on the role of Engineering Support Manager where his responsibilities included developing a team of support personnel responsible for the maintenance and support of all engineering systems and software.

 

 

 

 

D15.2. Technical plan for the proposed registry operations.

D15.2.1. General description of proposed facilities and systems.

NetNumber will operate a multi-site registry consisting of two (2) master and four (4) edge sites.  The network sites are located at Internet Data Center’s (IDC) in North America, Europe and Asia Pacific.  Figure 1 illustrates the registry’s high-level site architecture.

Figure 1 - Registry Global Site Diagram

Each IDC is located at strategic Internet IP peering intersections and carefully selected to provide an exceptional operating environment. The master sites provide centralized services, such as, registration, administration, Whois, conflict resolution and billing.  They are redundant replicas of each other and are configured in an active-passive (N+1) formation. The active-master replicates in real-time to the passive-master.  In the event of that the active-master fails, the passive-master takes over. The edge sites provide DNS resolution services and are configured as slaves to the DNS master.  Incremental zone transfers (IXFR) are performed from the master to the slaves on a periodic basis.  The architecture of the registry is based on the following principles:

Standards      The registry is implemented with Internet standard technologies including, DNS, RRP, WHOIS, HTTP, SSL and X.509 digital certificates.

Availability     The registry is a fault resilient system that leverages clustering and replication technologies to ensure availability.  Geographically dispersed, clustered architectures are uniquely suited for the deployment of highly available services featuring redundant paths between all systems, between all disk subsystems, and to all external networks.  No single point of failure — hardware, software, or network — can bring a cluster down.  Fully integrated fault management software in the cluster detects failures and manages the recovery process automatically.

Scalability      The registry is designed to scale by leveraging multi-site clustered Symmetric Multiprocessing (SMP) systems.  Each node in a cluster may be scaled by adding additional processors, memory and disk storage (vertical scaling).  Clustering of multiple SMP systems provides for greater throughput than SMP systems due to additional system bus, I/O bandwidth and operating system capacity (horizontal scaling).

Security          Physical security is provided through sophisticated smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, as well as video camera surveillance and security breach alarms. Network security is provided through state-of-the-art firewall, Virtual Private Network (VPN) and load balancing equipment. Application security is provided through the use of X.509 digital certificate authentication and Secure Socket Layer (SSL). 

Dedication     Dedication of the software processes on a given platform promotes reliability and security. Each additional service introduces unwanted crossover effects and system resource contention.  It is consider best that a host does a few things well rather than many things poorly. 

Simplicity       Keep It Simple Stupid (KISS) -- Providing useful telecommunications information in a standard, secure, efficient and reliable manner is a primary objective.

D15.2.1.1 Master-Site Facilities and Architecture

The master registry sites are housed in fully redundant, premium grade Internet data centers at Exodus Communications in Waltham, Massachusetts and EMC Internet Services Group in Hopkinton, Massachusetts.

Exodus Communications is a leading provider of complex Internet hosting facilities for enterprises with mission-critical Internet operations. The company offers sophisticated system and network management solutions through a worldwide network of Internet Data Centers.

Exodus Internet Data Centers provide the physical environment to keep the Master-registry sites up and running 24 hours a day, 7 days a week. These world-class facilities are custom designed with raised floors, HVAC temperature control systems with separate cooling zones, and seismically braced racks. They offer the widest range of physical security features, including state-of-the-art smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, as well as video camera surveillance and security breach alarms. Exodus is able to deliver the highest levels of reliability through a number of redundant subsystems, such as multiple fiber trunks coming into each IDC from multiple sources, fully redundant power on the premises, and multiple backup generators.

The Exodus Network one of the largest IP networks in the world—with a peak Internet exchange rate of over 10.3 gigabits per second. Comprising the Exodus Network is a global backbone, high performance network architecture and industry-leading public and private interconnect arrangements.  The master sites leverage the Exodus “MultiLine LAN Connection” services with 100 Mbps burstability to/from the Internet.

All registry equipment is housed in cabinets with secure locking front doors and ventilation fans.  Exodus Internet Data Centers combine around-the-clock systems management with onsite personnel trained in the areas of networking, Internet, and systems management. The result is a physical and technical environment affording NetNumber the reliability and flexibility necessary to operate its mission-critical Internet master registry sites.

The NetNumber master registry sites are deployed on highly scalable clusters of Sun enterprise servers, fiber channel storage arrays, hardware load balancers, hardware firewalls/VPN and Cisco networking equipment.  The architecture of a master registry site is secure, reliable, fully redundant and may be scaled without practical limitation through the addition of new server platforms into the clustered environment.

D15.2.1.2 Master-Site Architecture Details

Figure 2 illustrates the master registry sites physical architecture.

Figure 2 – Master-site Physical Architecture Diagram

IP Networking Equipment Details:  Redundant Nokia IP440 firewall appliances running Checkpoint Firewall-1 guard the entrance to the master site.  The firewalls are cross-connected in an active-passive configuration.  Two network paths may be followed from the firewalls into the master site.  Redundant public networks expose the Alteon load balancers, Web and RRP servers via a DMZ to the Internet.  Redundant private networks may only be accessed via the VPN and provide a resource for updates, replication, backup, maintenance and monitoring.  All layer 2 switching equipment is fully redundant and manufactured by Cisco Systems.  The following network equipment is used.

 

Storage Area Networking (SAN) Equipment Details:  The DNS master and NetNumber Back-Office databases are stored on a LSI Logic MetaStor E4400 full fibre channel storage system.  The E4400 provides a maximum capacity of 16.06 TB and a peak throughput of 400 MB/sec.  The Sun server platforms are connected to redundant 8 port Gadzoox Capellix 2000 SAN switches that in turn connect to redundant hardware array controllers on the E4400.  The following equipment is used:

 

 

Master DNS System Details:  Protected from the Internet by the firewalls the DNS master systems (MxNS1 & MxNS2) respond to DDNS update requests from registry RRP servers from within the site and zone transfer requests from well-known registry DNS slave systems across the Virtual Private Network at the edge sites.  All BIND configuration and zone files are stored on the LSI MetaStor E4400 Fibre Channel Array on mirrored (RAID 0,1) disk storage.  The master DNS systems are implemented as a highly available cluster (N+1) of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Additionally, each node in the cluster runs the following software components:

The performance characteristics of the master DNS servers are dominated by edge system zone transfer requests.  Each master DNS server is designed to support 20 million entries at maximum (100%) utilization, where each entry is approximately 100 bytes.  This enables the system to operate at peak (50%) utilization and perform a full zone transfer of 10 million entries without system degradation due to swapping.  BIND 9.0.0 provides for incremental zone transfers (IXFR), thus the peak utilization may actually be much larger.  Greater operational experience with BIND 9.0.0 is required to determine the actual maximum number of entries when using IXFR.

NetNumber Back-Office (NBO) System Details:  Protected from the Internet by the site firewalls the NetNumber Back-Office systems (MxNBO1 & MxNBO2) provide registry database services by responding to SQL requests from the registration, RRP, Whois and Billing systems.  All Oracle redo log, indices, table space and data are stored on the LSI MetaStor E4400 Fibre Channel Array on mirrored (RAID 0,1) disk storage.  The NBO systems are implemented as a highly available Oracle Parallel Server (OPS) cluster (N+N) of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Each node in the OPS cluster runs the following software components:

The performance characteristics of the NBO servers are dominated by the amount of customer registration/administration, RRP transactions and WHOIS queries.  The amount of storage required for each registered E.164 number is 500 bytes on average, including data and indexes.  Thus, every 100 million registered numbers will require approximately 50 GB of storage.  To allow for high throughput and fast, efficient backups, the data will be divided into multiple partitions and stored across many disks.

NetNumber Whois System Details: The NetNumber Whois systems (MxWHO1 & MxWHO2) have limited exposure to the Internet TCP on port 43 via a DMZ.  They provide registry Whois services by responding standard Whois protocol requests from anywhere.  The Whois server daemons directly query the NBO via NET*8 on the private network. The Whois systems are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Each node in the cluster runs the following software components:

The number of concurrent connections serviced dominates the performance characteristics of the Whois servers.  The Whois protocol is extremely simple and lightweight.  The Alteon switches provide ISO layer-4 load balancing to distribute the load amongst the platforms. Additional servers may be easily added to support increased demand.

NetNumber RRP System Details:  The NetNumber Registry-Registrar Protocol systems (MxRRP1 & MxRRP2) have limited exposure to the Internet on TCP port 648 via a DMZ.  They provide registry RRP services to authenticated (SSL) registrars by responding to extended RRP requests from anywhere.  The RRP systems directly manipulate the NBO via NET*8 on the private network and are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Each node in the cluster runs the following software components:

The number of concurrent connections serviced dominates the performance characteristics of the RRP servers.  The Alteon switches provide ISO layer-4 load balancing to distribute the load amongst the platforms. Additional servers may be easily added to support increased demand.

NetNumber Web System Details:  The NetNumber web systems (MxWEB1 & MxWEB2) have limited exposure to the Internet on TCP port 80 and 443 via a DMZ.  They provide registrar account management and information services to authenticated (SSL) registrars. The web systems directly manipulate the NBO via NET*8 on the private network and are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Each node in the cluster runs the following software components:

The number of concurrent connections serviced dominates the performance characteristics of the web servers.  The Alteon switches provide ISO layer-4 load balancing to distribute the load amongst the platforms. Additional servers may be easily added to support increased demand.

D15.2.1.3  Edge-Site Facilities and Architecture

The NetNumber edge sites will be housed in fully redundant, premium grade Internet data centers at Level(3) - Chicago, UUNet - NY, UUNet – London and UUNet – Hong Kong.

UUNet and Level(3) are leading providers of communications and information services in support of international advanced Internet Protocol (IP) technology-based networks.  Both offer exceptional collocation services providing hosting facilities for enterprises with mission-critical Internet operations. The company offers sophisticated system and network management solutions via an international network of Internet Data Centers. UUNet and Level(3) offer world-class facilities with raised floors, HVAC temperature control systems with separate cooling zones, state-of-the-art smoke detection and fire suppression systems, motion sensors, 24x7 secured access, as well as closed-circuit video surveillance. In addition, they offer the highest levels of reliability through a number of redundant subsystems, such as multiple fiber trunks coming into each IDC from multiple sources, fully redundant power on the premises, and multiple backup generators.  Each provider offers international IP networks with guaranteed service level agreements. Each edge site leverages the multi-path Internet connections services with 100 Mbps burstability.

All equipment is housed in cabinets with secure locking front doors and ventilation fans.  UUNet and Level(3) provide around-the-clock systems management with onsite personnel trained in the areas of networking, Internet, and systems management. The result is a physical and technical environment affording NetNumber the reliability and flexibility necessary to operate its mission-critical Internet edge registry sites.

The NetNumber edge sites are deployed on highly scalable clusters of Sun Microsystems enterprise servers, hardware load balancers, firewalls/VPN and Cisco networking equipment.  The architecture of an edge registry site is secure, reliable, fully redundant and may be scaled without practical limitation through the addition of new server platforms into the clustered environment.

D15.2.1.4  Edge-Site Architecture Details

Figure 3 illustrates the physical architecture of a registry edge site.

Figure 3 – Edge-site Physical Architecture Diagram

 

IP Networking Equipment:  Redundant Nokia IP440 firewall appliances running Checkpoint Firewall-1 guard the entrance to the master site.  The firewalls are cross-connected in an active-passive configuration.  Two network paths may be followed from the firewalls into the master site.  Redundant public networks expose the Alteon load balancers and DNS servers via a DMZ to the Internet.  Redundant private networks may only be accessed via the VPN and provide a resource for updates, replication, backup, maintenance and monitoring.  All layer 2 switching equipment is fully redundant and manufactured by Cisco Systems.  The following network equipment is used.

DNS System Details:  The DNS slave systems (ExNS1 & ExNS2) have limited exposure to the Internet on port 53 via a DMZ defined in the site firewalls. The DNS slave systems are load balanced via the Alteon switches and respond to DNS queries from anywhere.  Zone transfer notify requests from the well-known DNS master are performed across the VPN from the active master site.  All BIND configuration and zone files are stored on internally mirrored (RAID 0,1) disk storage.  The slave DNS systems are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:

Additionally, each node in the cluster runs the following software components:

The performance characteristics of the slave DNS servers are dominated by the DNS queries made from the Internet.  Each slave DNS server running BIND 9.0.0 can support an average of 3300 queries per second at 100% utilization.  It is NetNumber’s policy to operate at a peak throughput of 60% utilization, hence a pair of slave DNS servers can field upward 4000 queries per second under normal peak operating conditions.

D15.2.2. Registry-registrar model and protocol.

NetNumber operates a shared registration system where multiple accredited registrars may directly manipulate the information in the registry.  Network Solutions Inc. developed Registry-Registrar Protocol (RRP) as specified in RFC2832 under the auspices of the Shared Registration System program. This protocol permits multiple registrars to provide limited second level Internet domain name registration services in the top-level domains (TLDs) administered by a TLD registry.

NetNumber proposes to provide full second level Internet name registration services in the registry by extending RRP 1.1.0 to support registrant information.   This will enable NetNumber to operate a fully functional or complete registry Whois service that results a more technically sound and consistent Whois service, while promoting a more competitive registrar environment by eliminating barriers to entrance.  Extending RRP verses building from scratch leverages the current investment registrars have made in the existing protocol and is a faster track to production deployment.

D15.2.3. Database capabilities.

NetNumber’s Back-Office database is implemented using Oracle 8i and provides an extremely flexible and scaleable infrastructure for the registry. The amount or capacity of storage required for each registered number averages 500 bytes, including domain name, name servers, IP addresses, registrant (administrative, technical and billing), registrar, creation date, renewal date, last modified date and indexes.  Thus, every 100 million registered numbers will require approximately 50 GB of raw storage.  To allow for high throughput and fast and efficient backups, the data is divided into multiple partitions and spread across many disks in a high-performance fibre channel disk array with RAID (0,1,5) hardware controllers.

All business logic for adding, modifying, and deleting information from the registry is handled by stored logic compiled within the database engine.  To allow for scalability and fault tolerance, multiple database servers will be configured in a parallel server architecture.  In such a configuration, some servers will be deployed to process registration requests from registrars, while other servers can be targeted for backups, reporting, and/or replication.

The NetNumber Back-Office is capable of performing over 200 update transactions per second and can scale with the addition of server platforms to the cluster.

D15.2.4. Zone file generation.

The registry operator prohibits direct manipulation of the master zone files. Registrars and the registry operator are encouraged to leverage the registry’s RRP servers to perform indirect administration.  This insures that all manipulations are logged and auditable.  Master zone file incremental backups are performed nightly and full backups are performed once a week.

 

The name space of the registry as it is currently operated under “E164.COM” partitioned across the ITU country codes. The country code “1” zone has been further partition across area codes. In the future, partitioning will be required and the partition scheme will be dependent on the specific country-dialing plan.

Registrars will not be permitted to directly edit zone file data.  Registrars must leverage the registry’s RRP servers to perform indirect administration.  This minimized editing mistakes and minimizes security issues.  Registrars can verify the zone data updates via the Registry API, Whois, and/or DNS lookup.

Zone file updates are performed dynamically using the DNS Dynamic Update feature on the NetNumber private network.  Updates will be done via the Registry API and applied to the master name server.  The master name server will notify slave name servers when updates have occurred and the slave name servers will request an incremental zone transfer from the master name server.

All DNS servers will be protected behind firewalls and in secure buildings.  All name servers have a public and private IP network interface.  The public IP network interface will be used for domain name resolution while the private IP network interface is used for zone transfers and dynamic updates. The master name server is configured to prevent zone data transfers to unknown name servers by using the "allow-transfer" feature to define a list of slave name servers allowed to receive transfer zone data.  Request for zone transfer from an unknown slave server will be reject.  All zones are defined with the "allow-update" feature, restricting dynamic updates to a list of well-known hosts on the private IP network.  Dynamic updates from an unauthorized host will be rejected.

Logging captures all registrar activity including zone data updates. Logs files are rolled over daily and preserved with the zone data backup.  All zone files are backed up daily and stored off-site.  Restoration can be performed from the daily backups or regenerated from the data in the NetNumber Back Office.

D15.2.5. Zone file distribution and publication.

Zone file information is replicated from the master DNS servers to the edge DNS servers by DNS incremental zone transfer (IXFR) across the NetNumber Virtual Private Network.  All zone data updates are applied to the master name server and distributed to the slave name servers via the zone transfer feature of DNS. Complete zone file publications may be provided upon explicit request.

D15.2.6. Billing and collection systems.

Billing of registrars is a reasonably simple process due to the fact that the number of registrars is expected to be relatively low in the 10’s or 100’s and they are billed monthly on a per entry basis.  Each month NetNumber will extract from the Back-Office database billing information and provide a statement to each registrar itemizing the registry entries for which they are responsible.  The itemized statement will include a summary of the current months charges and a detailed itemized list of the billable entries.

D15.2.7. Data escrow and backup.

All master systems undergo nightly backup cycles.  A backup cycle consists of bringing a 3rd mirror set online, synching the 3rd mirror with the live mirrors, and writing the contents of the 3rd mirror to tape.  The data written to tape will include configuration files, zone files, data files, indexes, and redo logs. The DataVault Service at Exodus Communications will perform data escrow.  For our database files, full nightly backups of data, indexes, and redo logs will be done using Veritas NetBackup software and DLT tape drives (incremental backups are not possible with raw disk partitions). For all other data on 'cooked' file systems (OS, servers, applications), weekly full backups along with nightly incremental backups will take place. One set of tapes each week will be sent to IronMountain for secure, off-site storage.

Each master system's data files will be replicated to a standby site in a different geographic region of the U.S.  In the event of a system loss at the primary site, global clustering software will initiate a site fail-over to our standby site.  Therefore, a tape restore will only be necessary in the following low-probability scenarios:

Only in the case of a failure to activate the standby site will a tape restore be necessitated.  In this event, Exodus guarantees a 15-minute delay from the time the call is logged until the restore commences.  During a restore, modifications to registered data will be unavailable, but queries will continue to be fielded by our slave DNS servers.

D15.2.8. Publicly accessible look up/Whois service.

NetNumber will provide a fully functional or complete registry Whois service in accordance with RFC954 that supports domain name, registrant administrative contact, registrant technical contact, registrant billing contact, responsible registrar, name servers, IP addresses, record creation date, record expiration date, and record last modification date.  Because of the potentially large number of entries in the registry, NetNumber will provide load balanced Whois protocol servers fronting the NetNumber Back Office.  Since the registry Whois service is a complete service, coordination of referrals to registrar Whois will not be necessary.

D15.2.9. System security.

NetNumber is concerned about physical, network and application security.  NetNumber’s Internet Data Center facilities offer the widest range of physical security features, including modern smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, video camera surveillance, security breach alarms and secured equipment cabinets.  State-of-the-art firewall appliances, VPN equipment, load balancing switches and hardened Unix server operating systems provide network security.  NetNumber employs the use of public-key cryptography along with the Secure Sockets Layer protocol, or SSL, to secure communication via TCP/IP from our customers to the registry registration services. The combination of these two mechanisms supports security in the following ways:

The SSL protocol is widely used for authentication, tamper detection, and encryption over TCP/IP networks and the Internet. This protocol make use of public key cryptography, a set of well-established techniques and standards that provide tamper detection, authentication via certificates, encryption and decryption, and non-repudiation. To enable SSL with client authentication, each entity must have a public and private key pair and a certificate that identifies the holder. All registrars wishing to update information in the registry must obtain a certificate issued by a trusted authority.  By using a certificate and SSL, the registry is assured of the registrar’s identity, providing not only authentication, but also providing authorization for registrar actions. The certificates that are used to authenticate registrars are X509 standard certificates and the cryptographic algorithms that are used to sign the certificate and encrypt the data have withstood years of extensive cryptanalysis.  

D15.2.10. Peak capacities.

The registry is designed to scale by leveraging multi-site clustered Symmetric Multiprocessing (SMP) systems.  Each node in a cluster may be scaled by adding additional processors, memory and disk storage (vertical scaling).  All systems are designed to run at a peak throughput that is 60% of the platforms maximum throughput.  All storage systems are designed to operate at a peak capacity of 75% the maximum storage requirements.  Internal testing of BIND 9.0.0 on a NetNumber’s specified DNS platform loaded with 10 million entries results in the ability to field a peak of ~3300 randomized queries per second with a average latency of <6 milliseconds.

Figure 4 - BIND 9.0.0 Throughput Diagram

The following equation provides the aggregate throughput for all slave sites:

Number of network Sites        NS = 4

Number of host Platforms      NP = 2

Queries Per Second               QPS = ~3300

Peak Operating Utilization      POU = 60%

NS * NP * QPS * FS = 4 * 2 * 3300 * 0.60 = 15840 Peak Throughput (QPS)

By operating at a peak utilization of 60%, the system will readily handle spikes up to 100%, which results in the following throughput:

NS * NP * QPS * FS = 4 * 2 * 3300 * 1.00 = 26400 Maximum Throughput (QPS)

Additional DNS slave servers may be added to handle increased throughput requirements.  To scale the system beyond 10 million entries per zone the host platforms must be outfitted with additional memory and/or the DNS zones must be further partitioned on the E.164 name space to additional host platforms running within the site.  NetNumber sees no practical limitation on the number of entries the system may be scaled to service.  BIND 9.0.0 is in its first production release and NetNumber fully expects follow-on releases to provide improved performance.

D15.2.11. System reliability.

The registry is designed to operate at 99.999% or better availability.  This is achieved through the use of multiple sites that used different network backbones and power grids.  Loss of a single network site does not compromise the reliability of the system.

Each network site is provisioned with redundant hardware clusters configured in N+1, N+N and/or shared-nothing formations.  Additionally, each site is provisioned with redundant load balancing hardware switches that are configured to spread the load across the sites hosts, as well as, other peer network sites.  The load balancing switches determine the best site based on server health, proximity to the client and server response time. The switches automatically exchange this information with all other switches. With a global view of every site's health and performance, each switch develops a list of the best performing sites. The switches then direct traffic to sites in proportion to the sites' performance measurements. As a result, the best performing sites receive more traffic than others, according to their ability to handle more traffic.

Depending on the type of service (DNS, RRP, Whois, Web, etc.) being requested, NetNumber applies a variety of load balancing algorithms including:  round-robin, least-connections, and minimum misses.  Maximum connection thresholds and different weightings can be assigned to avoid overloading any host system.

D15.2.12. System outage prevention.

In order to prevent system outages, NetNumber operates a multi-site registry where great care has been taken in the selection of reliable, fault-tolerant hardware platforms, modern co-location facilities, and state-of-the-art clustering, data availability and recovery technologies.  Each co-location facility selected by NetNumber has met the following requirements:

Physical Security – Access to the building and to the data center itself is strictly controlled by access lists, passwords, keycards, badging and identification systems, 24 hour access monitoring, closed-circuit audio and video surveillance, secured loading and unloading facilities, metal detection and/or X-ray systems, secured individual data enclosures prohibiting outside access to systems, cables, switches etc…

Redundant Utilities – All utilities are redundant and sufficient to support the hosting facility and the NetNumber systems in the event of a disastrous situation. The co-location facilities have been inspected for compliance to the following NetNumber requirements:

 

Hardware Sub-systems:  NetNumber utilizes reliable, fault tolerant hardware systems wherever possible. All server platforms are configured with redundant power and cooling systems, multiple CPUs and Network Interfaces such that no single component failure may render a system unusable. Each sub-system within a network site is monitored on a continuous basis using ISO layer 2, layer 4 and layer 7 monitoring.  Clustered N+1, N+N and shared nothing architectures ensure availability.  Wireless event notifications to 24x7 registry systems administration staff ensure rapid response to outage events.

 

Network Security:  Firewalls and Virtual Private Network (VPN) Technologies are employed at each NetNumber Network Node ensuring a secure, encrypted channel from the NetNumber network operations center (NOC).  Firewall systems are employed to implement both the VPN connections and to provide protection against numerous forms of attack including SYN FLOOD, Ping of death etc… Additionally, Firewalls are configured such that access to NetNumber systems and Services is allowed on a port-by-port basis. No unnecessary or unused ‘holes’ are permitted. Firewall reports are generated daily and weekly and reviewed for possible indications of attack. System passwords are rotated on a monthly basis or more often as necessary.

 

Data Availability:  Where necessary, all NetNumber systems maintain redundant data paths to reliable, fault-tolerant hardware data storage systems. All data disks are doubly mirrored (in some cases triply mirrored) and hot swappable to ensure against any one-disk failure rendering a system unusable. Spare disk drives are maintained on-site to expedite recovery in the event a disk becomes inoperable.

Operating System and Application disk drives are also mirrored. Tape Backups are performed nightly (incremental) and weekly (full), on-site and the tapes are stored (escrowed) off-site in an approved data warehousing facility.  Periodic tape restoration and audits are performed to ensure validity and availability of recoverable media and data.

Spares:  A supply of ‘spares’ is maintained on-site at each of the NetNumber sites. Any component that is field replaceable by NetNumber maintenance personnel or their agents, is required to be supported by a minimum of one like, on-site, spare component, i.e. disk drive, NIC, etc.

Maintenance Staff:  NetNumber maintenance staff members are employed within a “reasonable distance” of each NetNumber site, in order to facilitate the field replacement of defective components or other on-site maintenance. Where it is not possible to have an employee within this distance, it is necessary to contract on-site maintenance services from that co-location facility or other similar service provider. If support is contracted in this way, support personnel must be identified to and trained by NetNumber operations personnel or otherwise demonstrate expertise in the technical area for which support is contracted.  All maintenance is to be scheduled and supervised by NetNumber operations personnel.

D15.2.13. System recovery procedures.

NetNumber operates a fully redundant multi-site registry where all sub-systems are deployed as redundant N+1, N+N or shared nothing clusters.  As a consequence, the primary strategy for restoring a system in the event of an outage is to perform a coordinated fail-over to a redundant site or node.  At the highest level, one site may be failed to another.  For example, the master sites are deployed in an active-standby (N+1) architecture.  The entire active master site can be failed to the standby master site should conditions warrant the action.  Recovering the failed master site involves repairing the problem that caused the outage and re-synchronizing the master systems.

Edge sites are configured as shared nothing clusters, hence, a the procedure for restoring a failed edge site is to remove it from the global load balancing rotation, repair the problem that caused the outage and return it to the global load balancing rotation.  The Alteon switches provide the ability to load balance systems across network sites.  This provides the registry with an automated mechanism for the removal/restoration of a failed site or sub-system in the global load balancing rotation.

Site monitoring and availability reporting is performed with a software product called “SiteScope” and a global monitoring service called “SiteSeer”.  Web based reports pertaining to the relative health of the registry are continuously available via NetNumber’s “Pulse” web site.  Internet users and registrars will find information on current throughput, systems experiencing outages and projected time for system restoration.   In addition to current status reports, monthly reports of system availability are published for public review.

D15.2.14. Technical and other support.

The Registry On-line Technical Support Page(s) provide registrars, Internet users and registrants with the first line of support.  The web site consists of online documentation, FAQ’s, real-time registry health reports “Registry Pulse”, monthly availability reports, downloadable development and operational tools and additional contact information if additional technical support is needed.

Technical support is provided by the NetNumber Operations Support Staff; a 24x7 Operations and Support organization. The support staff is comprised of several on-line and on-call support and engineering personnel with graduated levels of application and system expertise. The operations and support staff is managed by shift supervisors who in turn report directly to the VP of Operations.  All operations and support personnel are trained in and knowledgeable of the NetNumber Operational Policies and Procedures.

NetNumber employs a 24x7 help desk that in turn is supported by a team of on-call operations and engineering personnel. The NetNumber help desk is accessible via: Internet Phone and/or E-mail as well as Toll-Free PSTN-based phone service.  For the year ending 12/31/2001, The NetNumber Technical Support Center will be an English language support center only.  International language support will be implemented starting in 2002.

D15.3  SUBCONTRACTORS

NetNumber utilizes extensive subcontracting services in two areas of Registry operations:

 

(a)   Asset hosting

(b)   First line technical operations

 

The ".tel" Registry operating plan calls for establishing operational support relationships with four key vendors:  EMC Corporation, Exodus Communications, Level3 Communications and WorldCom Communications.  Of these four key vendors, the EMC relationship has been in operation since March 2000.  Current expansion plans call for the launch of service at Exodus in November, Level3 in December and WorldCom in Q1 2001.  NetNumber utilizes the following contract services from the EMC Internet Services Group:

 

-          Asset leasing

-          Asset hosting

-          Redundant power systems

-          Redundant data network systems

-          Redundant Internet connectivity services

-          24x7 DBA services

-          24x7 Facility management services

-          24x7 First line technical support services

 

See Appendix G for a copy of the EMC services contract that defines the scope and standards of excellence under which the EMC services are provided.

 

 


APPENDIX A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



APPENDIX B

 

 

 


APPENDIX C

 

 

 


APPENDIX D

 

 

 

 

 

 

 

 

 

APPENDIX E

 


APPENDIX F

 


APPENDIX G

 

Internet Services Agreement

 

 

This Internet Services Agreement (the “Agreement”), by and between EMC Corporation (“EMC”), a Massachusetts corporation with a principal place of business at 171 South Street, Hopkinton, MA  01748, and Net Number, (the “Company”) a Massachusetts corporation with a principal place of business at 650 Suffolk Street, Suite 307, Lowell, MA 01854, is made this 14th day of 2000 (the “Effective Date”).

 

WHEREAS, EMC HAS PRODUCTS AND SERVICES WHICH IT INTENDS TO EMPLOY TO SATISFY COMPANY’S REQUIREMENTS; AND,

WHEREAS, COMPANY DESIRES TO HAVE EMC PERFORM INTERNET SERVICES FOR COMPANY; AND,

WHEREAS, COMPANY OWNS AND OPERATES ONLINE INFORMATION SERVICES WHICH CONSIST OF CERTAIN HARDWARE, SOFTWARE AND APPLICATION SUBSYSTEMS THAT IT WISHES EMC TO INSTALL, OPERATE AND MAINTAIN FOR COMPANY AT EMC’S INTERNET SERVICES CENTER AS FURTHER DEFINED IN THE STATEMENT (S) OF WORK,

 

NOW, THEREFORE, IN CONSIDERATION OF THE ABOVE AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

Definitions: 

“Services” shall mean the computer hardware and all related interfaces, software, data storage and network interface connections and other such items necessary for operation of the internet services complex to provide to Company storage space on, and access to, the Server, and related materials, facilities and services, in order to host the Site and to otherwise make the Site accessible on demand by users of the World Wide Web, and any other requirements defined in each Statement of Work; the network connections necessary for Company to manage Applications and deliver content as defined in each Statement of Work; the internet services described in Section 2 below and in the Statement of Work; all other services described in the Statement of Work.

“Application” shall be defined in each Statement of Work.

“Content” shall mean editorial content contained in the Application(s).

1.                General Scope of Agreement.

Company is solely responsible for the Applications and the Content of the Applications as well as issuing a purchase order once agreement is signed.  EMC is responsible for the equipment, facilities and services as defined herein and in each Statement of Work.

 

2.                Services to be Performed

EMC will perform the Services as detailed in each Statement of Work, appended to this Agreement as defined herein, and perform the Services according to the Functional Specifications in Section 2.1.

            2.1 Functional Specification

EMC shall supply, maintain and operate the Services including its various parts in accordance with the functional specification (the “Functional Specification”) set forth below:

The hardware and software and other equipment items as specified in each Statement of Work to be attached to this Agreement.

A protected and secure computer room environment with physical access restricted to authorized personnel and network and remote access restricted by firewall and other electronic means to authorized users, sufficient fire repression equipment so as to protect the computer hardware and network hardware used by the applications, and backup power supplies to provide uninterrupted supplies of electricity; automatic and regularly scheduled backup of all related data and the restoration of such backups on demand by Company, with such backups stored at a location different than that of the original data; twenty-four hour per day, seven days per week support of the computer room; and complete facilities management, including data backups, computer hardware maintenance, network hardware maintenance, installation of software updates and fixes as supplied by the manufacturers of the computer and network hardware in place, and any such other tasks as required to operate the computer hosting services in accordance with the requirements and obligations identified in each Statement of Work. During the term of this Agreement, the allocation of hardware, software and other equipment and services supplied by EMC may be re-allocated to other projects by Company and EMC upon submission of a revised Statement of Work, subject to both parties acceptance which will not be unreasonably withheld or delayed. 

           

            2.2 Statement of Work

The parties will use documents (“Statements of Work”) that define each assignment, task or project to be performed by EMC for Company.  The Statements of Work will be as complete in details as is required to meet the function of the work. As a minimum, each Statement of Work must contain the following items: explanation of the project; coordinators for both EMC and Company that will be responsible for the efforts; schedule for performance; reports and/or meetings required, and, for a list of equipment and services with prices.

As each Statement of Work is prepared and approved by both parties, that Statement of Work will be incorporated by reference into this Agreement.

 

3.         Other Duties of EMC

           

3.1 Appointment of Contact Personnel

EMC shall appoint a single, primary contact person who shall be Company’s main representative at EMC and whose primary responsibility will be to assure that the obligations and responsibilities herein are performed in accordance with the specifications and requirements herein stated.

From time to time it may be necessary to designate a new primary contact person. EMC will notify Company promptly in writing of the new primary contact person.  Upon reasonable request from Company, EMC will change the primary contact person.

 

            3.2 Proprietary Rights

EMC is the sole owner of all right, title and interest in the Services, including any patent, copyright or trade secret rights, provided EMC does not use the Confidential Information of the Company.        

4.                Duties of Company

            4.1 Supply of Operational Data

Company shall supply to EMC all necessary operational data and all such other data that EMC reasonably requires in order to perform the Services. EMC shall not, without prior written authorization from Company, alter, modify or change in any way the operational data, Content or other data or materials provided by Company.  EMC shall use all such materials in strict compliance with any instructions provided by the Company.

            4.2 Supply of Server and Database Software and Licenses

Company shall supply Applications, Hardware, Software and associated licenses or maintenance agreements as defined in each Statement of Work.

            4.3 Appointment of Contact Personnel

Company shall appoint a single, primary contact person who shall be EMC’s main representative at Company and whose primary responsibility will be to assure that the obligations and responsibilities herein are performed in accordance with the specifications and requirements herein stated.

From time to time it may be necessary to designate a new primary contact person. Company will notify EMC promptly in writing of the new primary contact person.

 

            4.4 Proprietary Rights

 

Company represents that the Application(s) contain information gathered, selected, coordinated and arranged by company at considerable expense by the application of methods, editorial standards and judgment that is proprietary to Company and that that Content is a valuable asset of Company, and that title and ownership of the Content Application(s), Company’s Confidential Information, operational data and other data/materials provided by Company to EMC under this agreement remains exclusively with company and its licensors.

 

EMC shall not use the Content, Application(s), Company’s Confidential Information, operational data and other data/materials provided by Company to EMC for any purpose other than that of fulfilling EMC’s obligations under this Agreement, nor will the Content, or any part thereof, including, without limitation, any trademark or font or type style or graphic or pictorial images or text be disclosed, transmitted, sold, assigned, leased or otherwise disposed of to, or made available for access by, third parties by EMC, or be commercially exploited by or on behalf of EMC, its employees, agents, or subcontractors, except as expressly provided in this Agreement.  All of the Content and the Site, including, without limitation, any and all copyrights, trademarks or trade names and other proprietary rights inherent therein or appurtenant thereto, are and shall remain the exclusive property of Company.  EMC acknowledges that it is not acquiring any proprietary or copyright interest in the Content Application(s), Company’s Confidential Information, operational data and other data/materials provided by Company to EMC by Company.

5.             Payment

Payment terms will be established by the parties and included in each Statement of Work. Unless specified otherwise in an agreed Statement of Work, Company may, upon written notice to EMC given within ten (10) days of receipt of invoice, withhold payments for Services if it reasonably questions any item (s) reflected on EMC’s invoice.  Pending the settlement or resolution of the issue (s), the non-payment of these items shall not constitute a breach of this Agreement and such non-payment shall not be cause for either party to fail to perform any and all duties as required herein.  Company shall pay all amounts due that are not in dispute.

6.             Term and Termination

            6.1 Term of the Agreement

This Agreement is effective as of the Effective Date and shall remain in effect for two (2) years or until terminated in accordance with the terms contained in the following sections and elsewhere in the Agreement.

            6.2 Renewal of the Agreement

This Agreement shall automatically renew for successive one (1) year periods.  Either party may elect not to renew by giving written notice to the other party in accordance with the notice provisions contained in Section 9 of this Agreement, not less than ninety (90) days prior to the end of the then current term.

            6.3 Termination of the Agreement

Either party may terminate this Agreement upon written notice in the event of a material breach by the other party; provided however, that the non-breaching party has provided written notice of such material breach, and such material breach was not cured to the reasonable satisfaction of the non-breaching party within thirty (30) days after the providing of the written notice.

 

            6.4 Effect of Termination

Upon termination of this Agreement, however arising, (i) any amounts due and payable to EMC shall be paid by Client upon the effective date of termination, (ii) EMC shall return (or at Company’s instruction destroy) any copies of the Content and the Company’s Confidential Information, and (iii) the parties will work together in good faith to ensure the smooth transition of hosting services from EMC to a third party of Company’s choice with no interruption of uptime to Company.

7.             Warranties

            7.1 EMC Warranties

EMC represents and warrants that (i) all of the Services to be performed by it hereunder will be rendered using sound, professional practices and in a competent and professional manner by knowledgeable, trained and qualified personnel; (ii) it has full authority to enter into this Agreement; (iii) all obligations owned to third parties with respect to the activities contemplated to be undertaken by EMC pursuant to this Agreement are or will be fully satisfied by EMC, so that Company will not have any obligations with respect thereto; (iv) EMC is the owner of or otherwise has the right to use and distribute all materials and methodologies used in connection with providing the Services hereunder; (v) EMC will comply with all applicable federal, state and local laws in the performance of its obligations hereunder; (vi) EMC will make a best effort attempt to provide a spare server available and ready to put into use in the event a Server ceases to make the site available.  EMC’s ability to provide spare servers is related to available inventory at the time of the failure.

EMC Performance Warranties.  EMC represents and warrants the following:

Except as otherwise agreed in writing by the Parties, the Content and Application(s) shall be accessible to Internet users twenty-four (24) hours per day, seven (7) days per week, with the sole exception of scheduled maintenance periods, which shall last no longer than one (1) hour per day and which shall take place each morning between the hours of 3 a.m. and 4 a.m. Eastern Standard Time.

The Server shall have a response time, measured at the Server, from the receipt at the Server of a request until the commencement of the responsive transmission from the Server, of no more than one-half (½) of one (1) second.  The “Request Response Time” shall be defined in writing and mutually agreed upon by both parties.

If the Server becomes unavailable to users, other than for scheduled maintenance, EMC shall have qualified personnel respond in the form of an on-premises service call within one (1) hour of notification of such unavailability and shall, to the extent reasonably practicable, remedy such unavailability at such time.

 

            7.3       Company Warranties. 

Company represents and warrants that:  (i) it has full authority to enter into this Agreement;    (ii) Company will comply with all applicable federal, state and local laws in the performance of its obligations hereunder, and (iii) no Content provided by Company infringes any intellectual property, publicity or privacy rights of any third party.

 

7.4              Disclaimer of Warranties.

EXCEPT AS EXPRESSLY STATED IN THE ABOVE WARRANTY SECTIONS, EMC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, BY OPERATION OF LAW OR OTHERWISE, OF ANY PRODUCTS FURNISHED UNDER OR IN CONNECTION WITH THIS AGREEMENT.  EMC DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT AND THOSE WARRANTIES ARISING BY STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF DEALING OR USAGE OF TRADE.

 

8.         Limitation of Liability

8.1       EACH PARTY’S ENTIRE LIABILITY FOR ANY CLAIM, LOSS, DAMAGE OR EXPENSE FROM ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM          OF THE ACTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, SHALL BE LIMITED TO THE GREATER OF THE AMOUNTS PAID BY THE COMPANY TO EMC DURING THE PREVIOUS 12 MONTH PERIOD OR $100,000.

 

8[E1] .2       EXCEPT FOR INDEMNITY OBLIGATIONS OF EACH PARTY HEREUNDER, NEITHER PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, OR ANY OTHER INDIRECT LOSS OR DAMAGE, INCLUDING LOST PROFITS OR LOST DATA, ARISING OUT OF THIS AGREEMENT OR ANY OBLIGATION RESULTING THEREFROM, OR THE USE OR PERFORMANCE OF ANY SERVICE, WHETHER IN AN ACTION FOR OR ARISING OUT OF ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE. NO ACTION OR PROCEEDING AGAINST EITHER PARTY MAY BE COMMENCED MORE THAN EIGHTEEN (18) MONTHS AFTER THE CAUSE OF ACTION ACCRUES

 

8.3       EMC SHALL NOT BE LIABLE FOR ANY CONTENT PROCESSED OR STORED ON THE SYSTEM EVEN IF SUCH CONTENT WAS KNOWN BY EMC. COMPANY SHALL HOLD HARMLESS AND INDEMNIFY EMC FROM ANY LOSS OR DAMAGES (INCLUDING REASONABLE ATTORNEYS FEES) INCURRED BY EMC BECAUSE OF ANY CLAIMS, SUITS OR DEMANDS OF THIRD PARTIES ARISING OUT OF OR RESULTING FROM ANY CONTENT PROVIDED BY COMPANY TO EMC FOR PLACEMENT ON THE APPLICATION.

 

9.         Confidentiality

 

9.1       “Confidential Information” shall mean information or materials provided by one party to the other which are identified as being confidential at the time of disclosure and shall include all user information.

 

9.2       Confidential Information shall not include information or materials that (1) were, on the effective date of this Agreement, generally known to the public; or (2) become generally known to the public after the effective date of this Agreement other than as the result of an act or omission of the receiving party; or (3) were rightfully known to the receiving party prior to that party receiving same from the disclosing party; (4) are or were disclosed by the disclosing party to a third party generally without that third party’s breach of agreement or obligation of trust; or (6) are independently developed by the receiving party without the use of the Confidential Information.

 

9.3       The receiving party shall not (1) disclose Confidential Information to any third party, (2) make Confidential Information available to any of its employees or consultants who do not have a “need to know” in order to any third party; or (3) use Confidential Information for any purpose other than contemplated by this Agreement.  The receiving party shall be held to the same standard of care it applies to its own information and materials of a similar nature.  EMC shall adhere to all privacy and data protection laws applicable to its gathering, processing, storing and transmitting of user information.  EMC shall maintain the strict confidentiality of all user information.  EMC shall use reasonable measures and reasonable efforts to provide protection for Confidential Information, including measures at least as strict as those EMC uses to protect its own Confidential Information, but at least reasonable care.

 

9.4       All Confidential Information disclosed under this Agreement shall remain the property of the disclosing party.

 

10.             General

10.1    This Agreement, including any Statement(s) of Work attached, is the complete and exclusive statement of the parties and supersedes all prior written agreements with respect to the subject matter.  Neither this Agreement nor any Statement of Work may be altered or amended except in writing and executed by their authorized representatives.

 

 

10.2         Neither party will be liable for any failure or delay in performance, except the obligation to pay money, due in whole or in part to the extent that such failure or delay is caused by events beyond the control of the parties.

 

10.3         This Agreement shall be governed by the laws of the Commonwealth of                                  Massachusetts, excluding its choice of laws provisions.

 

10.4         Sections 3.2, 4.4, 5, 6, 7, 8, 9 and 10 shall survive termination of this Agreement.

 

10.5         All notices under this Agreement shall be in writing and shall be given in person or by certified or registered mail or overnight courier to the attention of the respective General Corporate Counsel at the addresses set forth above.

 

10.6         All headings in this Agreement are inserted for convenience only and are not intended to affect the meaning or interpretation of this Agreement or any clause.

 

10.7         No omission or delay on the part of either party in requiring the fulfillment by the other party of its obligations hereunder shall constitute a waiver of its rights to require the fulfillment of any other obligation hereunder, or a waiver of any remedy it might have hereunder.

 

10.8     EMC shall not be in breach of this Agreement due to any failure to meet any Target Completion Date (as defined in the (Statement of Work) due to any cause under the reasonable control of Company or as stated in section 10.2.

 

Signed by authorized representatives of both parties.

 

NetNumber.com, Inc.

EMC Corporation

By: ______________________________________ ______________________________________ ______________________________________

By: ________________________________________ ___________________________________________

Name: Robert H. Walter

Name: Charles Cavallaro

Title: Vice President, Development and Operations

Title: SR VP, OPERATIONS, MARKETS & CHANNELS _____________________________________

Date: ____________________________________ ______________________________________ ______________________________________

Date: ______________________________________ __________________________________________

 

 

8/27/99 4:47 PM

 

D16  SIGNATURE PAGE

 

By signing this Registry Operator's Proposal, the undersigned certifies (a) that he or she has authority to do so on behalf of the registry operator and, on his or her own behalf and on behalf of the registry operator, (b) that all information contained in this proposal, and all documents attached to this proposal, is true and accurate to the best of his/her/its knowledge and information. The undersigned and the registry operator understand that any material misstatement or misrepresentation will reflect negatively on any application of which this proposal is a part and may cause cancellation of any delegation of a top-level domain based on such an application.

 

_______________________________
Signature

Glenn Marschel                                  
Name (please print)

Chief Executive Officer                      
Title

NetNumber.com, Inc.                         
Name of Registry Operator

_______________________________
Date

 

 



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