APPLICATION AND REGISTRY OPERATOR’S PROPOSAL FOR NEW GENERIC TOP LEVEL DOMAINS (gTLDs) TO BE ISSUED BY THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS (“ICANN”)
prepared by Edward Sweeney and Vincent Hamm on behalf of:
RATHBAWN COMPUTERS LIMITED
Executive Summary
The application, business
plan and supporting documents have been prepared by Edward Sweeney and Vincent
Hamm, acting on behalf of Rathbawn
Computers Limited (“Rathbawn”). Rathbawn is a newly incorporated Irish corporation,
acquired to make application to The
Internet Corporation for Assigned Names and Numbers (“ICANN”) for the allocation to it of new generic Top
Level Domains (gTLDs). If successful, it intends to build and operate a
registry function for as many of the new gTLDs as are allocated to it.
Rathbawn intends to restrict
itself to operating a registry (the maintenance of the registration and the
performance of registrations and changes) and will not conduct business as a
registrar (soliciting and accepting orders for registrations from aspiring
registrants).
Rathbawn will offer all
existing and future qualified ICANN approved registrars appointment as
registrars in the new gTLDs.
Rathbawn will price its
registrar functions at long run incremental cost, repriced every two years. It
will not discriminate between registrars.
This Application and
Business plan follows the format of the ICANN Tender Requirements.
Rathbawn is applying for a
number of new gTLDs. It must be appreciated that the prospects of Rathbawn
being granted all the new gTLDs sought is extremely remote. There is a chance
that it might receive none of them, a chance that it might receive one or two
of them, or one of the groups of gTLDs proposed.
The financial projections
have been prepared separately for each gTLD group proposed and are stand-alone
projections. If more than one group is approved by ICANN for allocation to
Rathbawn, the financials improve dramatically. Essentially, the costs would
remain almost constant except for minor scale increases and the revenue
projections would be aggregated.
It is Rathbawn’s longer term
objective to offer cost based registry management services to country code TLDs
(“ccTLDs”) which do not themselves have sufficient scale or access to similar
levels of efficiency.
Registrations within the
TLDs will be made available through all qualified ICANN approved registrars
which demonstrate technical competence.
An important aspect of the
application is that neither the Registry nor any company in which any of its
directors hold any interest will offer
registration services in any of the gTLDs. The Registry will be bound by the
Competition Principles outlined in this application and by that means,
competition between Registrars will not be inhibited by vertical integration of
the Registry. The Registry will be bound not to discriminate between
Registrars.
Leading edge DNS experience moves to meet emerging demand
ICANN announced in mid
August that it was inviting application for new gTLDs. Applications close on 2
October 2000. For more details, see
http://www.icann.org/tlds/tld-application-process.htm.
At the date of writing this
business plan there have been no known applications, although industry
intelligence suggests that there will be at least two others, one from CORE and
one from a consortium of large US based registrars. CORE is a Geneva based not
for profit organisation which provides intermediate registrar services to its
members. CORE was originally formed for the purpose of applying for the issue
to it of a new gTLD but this proposal did not proceed at the time. CORE has
struggled since to maintain its identity and suffers from institutional
inefficiencies caused in part by its not for profit status and in part by the difficulty
of achieving consensus in a non commercial body with a large an disunited
membership. It must however be regarded as having a strong chance of obtaining
a gTLD. The gTLD that it is intending to apply for is apparently .per, designed
to indicate a personal domain name. The other known competitor is a consortium
of very large US based registrars. It is not known at this stage what gTLD the
consortium will be seeking but it is likely to be one of those discussed at
great length over the last few years such as .firm or .biz. It is also
reasonable to assume that there might be a large number of other applications.
ICANN has established
criteria for selection which are addressed in the application documents and has
imposed a $50,000 non refundable payment on all applicants. This might be
expected to deter unfunded and facetious applications.
Whilst Rathbawn is a start up entity dedicated to making the
application to ICANN detailed in this plan, its principals have exceptional
experience in directly relevant fields. They bring to the venture the
experience of having conceived, established and operated (from a green-fields start up without any
public offering) the world’s first half price .com and .net registry (TotalNIC.com)
which was the catalyst for the collapse of oligopoly pricing in the existing
gTLDs. TotalNIC.com remains among the world’s lowest priced gTLD registrars,
excluding those which offer tied or promotional sales or which impose penalties
for churning. TotalNIC.com is extremely profitable and its directors have
received merchant banker’s advice that it currently has a value of between $25
and $40 million. TotalNIC.com has never
made any public offering.
In the operation of
efficient registry services, there are no particular advantages in the operator
being a large or diversified corporation.
Limited funding is necessary. What is critical is possession of the
technical skills and experience in registry establishment and operation. Very
few firms have all such skills and Rathbawn’s managers are amongst the world’s
most experienced in these specialist areas.
Competitive
Advantage -Aligning With Customers’
Incentives
It is a key strategy of
Rathbawn’s business plan to position itself so that existing ICANN approved
registrars are its clients rather than its competitors.
TotalNIC.com, a creation of
Edward Sweeney and Vincent Hamm, brought to the Domain Name System (“DNS”) the
business plan of profit maximising by price competition. It has proved an
outstanding success, not only for TotalNIC.com but also for its effect on
market prices. The TotalNIC.com model, although not identical to the Rathbawn
business plan (TotalNIC.com necessarily acted only as a registrar as Network
Solutions still retains a monopoly of registry function for the existing
gTLDs), provides powerful support for
the concept that a highly price competitive approach to the provision of domain
name registration services will be supported by the market.
Rathbawn plans to deploy the gTLDs if allocated to it
as vehicles to take competition in DNS
pricing and service composition to new pricing and structural levels.
Rathbawn’s vision involves a number of innovative features, each of them unique
in DNS history. Rathbawn’s business will be a specialist dedicated registry function.
It will not compete with registrars. Rather it will offer itself as a supplier
of services to registrars. An integral aspect of that strategic positioning is
to provide registrars with structural non competition covenants which ensure
that they view Rathbawn solely as a business partner which depends upon the
custom of registrars for the entirety of its revenue stream. In addition,
Rathbawn will embed structural guarantees to ICANN which ensure that the only
profit maximisation strategy available to it will be from the maximisation of
sales volume, not price.
Potential investors should
appreciate that the provision of these guarantees will limit Rathbawn’s pricing
discretion and it will be essentially required to price domain name registry
services at long run incremental cost, striping away the prospects of monopoly
profits. On the other hand, given the expected volumes, Rathbawn’s business is
expected to be highly successful and both profitable and cash flow positive
from a very early stage.
By means of the pricing
guarantees, Rathbawn’s potential registrar customers will be aware that
Rathbawn’s incentives align with the incentive for registrars to be supported
by the lowest cost registry. Rathbawn’s profits will be maximised when it
attracts the largest possible volume of domain name registrations. They will
therefore be maximised by the gTLDs for which it acts as registry enjoying the
greatest possible price advantage over other gTLDs.
In order to achieve these
objectives, Rathbawn will offer ICANN pledges that:
·
the
registry function will be priced on the basis of long run incremental cost,
(reassessed every two years), the
lowest cost consistent with registry viability;
·
all
structural features which are capable of inhibiting or distorting competition,
such as vertical integration of registry and registrar function, will be
removed;
·
the
registry will be bound to act in accordance with competition principles which
guarantee that all market power will be stripped out of the registry’s
operation;
·
by
these means, Rathbawn will be impelled to maximise profits by focussing solely
on the performance of registry functionality at the lowest possible cost
thereby seeking its rewards from the highest possible volume.
Although the
proposed strategy will forgo an initial period of higher profits, the markets
for domain name registrations have been characterised by rapid commoditisation
following the introduction of competition. Rathbawn’s strategy, like that of
TotalNIC, is that it is preferable to position the business to anticipate
inevitable market moves and establish a reputation as the leading price
competitive registry.
Strategic Positioning-The Competition Policy
COMPETITION PRINCIPLES
Rathbawn’s proposal includes
the adoption of the competition rules which are designed to ensure that registrars view the registry not as another
competitor but as an essential supplier of services. They remove any ability of
the registry to exploit monopoly power by maintaining prices and/or providing
inefficient registry services.
Once the gTLDs are operating
and have achieved more than insubstantial scale, Rathbawn considers that
registrars will consider that they cannot competitively resist offering domain
names in the proposed gTLDs to their customers. There will be no competitive
incentive for them not to do so, as they will not risk losing the customer to a
competitor. On the contrary, that risk only arises if the registrar elects not
to offer registrations in the new gTLD spaces. Rathbawn therefore expects
nearly universal registrar acceptance of the new offerings.
BACKGROUND
The history of the pricing
of domain name registrations has been characterised by the exploitation of
monopoly power resulting in high prices and inefficient registries. The leading
example is Network Solutions’s charging regime before the prospect of the
appointment of ICANN approved registrars emerged. It is not the only example. A
current instance is Australia, where Melbourne IT currently holds a de facto
monopoly over registrations in .au arising from the failure of the cc TLD
administrator to appoint other registrars. Melbourne IT is also an ICANN
approved registrar. In the competitive market for .com and .net registrations,
its prices go as low as AUD 17 (USD 9.18) or perhaps even lower, whereas in
.au, it never discounts from its published retail prices of AUD 125 for two
years and reseller prices of AUD 100 for two years. These rates equate to USD
33 and USD 27 per year. Thus, Melbourne IT’s prices for its monopoly product
are three times the price it charges for its competitive product, even though
its costs are presumably much higher for the competitive product, given the $6
charge of Network Solutions. Further, its .au registrations are not
instantaneous and this indicates that its system is not fully automated even
today. Other examples abound. Many of the cc TLD registries are inefficient and
do not deliver to their stakeholders the price and service levels achievable.
This is essentially because they exploit monopoly power.
In the absence of specific
legislation controlling prices, antitrust laws do not prohibit the charging of
monopoly prices per se. In critical areas such as telecommunications, where
incumbent advantage acts contrary to the interests of consumers, legislation to
prohibit the extraction of monopoly rents is invariably necessary to protect
the interests of consumers.
Partly because development
of the internet has outstripped the ability of legislators to act to protect
consumers, and partly because no one legislature can effectively mandate
conduct for more than one cc TLD, the pricing conduct of cc TLD registries has
been unconstrained except by the limits of their monopoly. Hence pricing has
been high and will remain high (in comparison to cost) unless and until
effective competition is introduced.
The applicants have an
established track record in bringing effective price competition to domain name
pricing. Capital Networks was a founding member of CORE and an early ICANN
approved registrar. Through its
TOTALNIC.com Division, Capital Networks LLC pioneered price competition in
.com, .net and .org immediately upon commencement of business. Its pricing
offers forced the breakdown of what until then appeared to be emerging
oligopoly pricing which shadowed Network Solutions’ high prices. TotalNIC.com,
of which the applicants are the directors, was the world’s first firm to offer
half price .com and .net registrations and it has been a price leader ever
since. It remains among the cheapest in terms of untied, non-promotional sales.
Other firms advertise cheaper prices but the fine print usually involves
charges for changing registrars or the domain name sale is promotional. Many
apparently cheap registrars tie registration services to other services, such as
web hosting. TotalNIC sells domain names without ties of any description and
does not impose any costs to protect itself from churn.
Rathbawn will operate the
new TLD registries on the same principles. Although the TLDs will be
constrained by other TLDs, and will in turn compete with them, the applicants
do not ask ICANN or consumers to trust their statements of intention.
Rathbawn will offer a unique
contractual compact, embodied in the competition rules idnetified in this
application. The adoption of these rules means that the registries will be the
world leaders in pricing, both in absolute dollar terms and in the
establishment of the principle that consumers have the right to purchase domain
names for the lowest possible price consistent with the continued viability of
the service. We expect that the pricing of the registries will become the
industry benchmark.
Once the new TLDs are
operating and have achieved more than insubstantial scale, the availability of
their prices will lead to a recognition by consumers (and other stakeholders)
that the real per unit of registration costs of operating TLD registries are
very low. This will lead to public pressure on other TLD registries to lower
their prices. It may also lead to the threat of legislation if public pressure
is insufficient.
In the case of domain name
registrations, the problem of monopoly is exacerbated by the presence of
vertical integration. Registries also compete downstream with their customer
registrars and therefore have an incentive to increase their customers’ costs
and lower their own.
The competition rules set
out below will bind Rathbawn not to compete as registrar but to confine itself
to operating the registries.
The result of this
limitation is that the economic incentives which influence the conduct of the
registries change dramatically. A vertically integrated registry has an
incentive to limit sales by maintaining high
prices. It also has an incentive to limit sales through registrars other
than its own registrar. It has an incentive to discourage independent
registrars from discounting prices, as such discounts adversely impact its own
registrar operations.
A dedicated cost based non
discriminating registry has only the incentive of maximising sales through all
registrars without discrimination. It has an incentive to facilitate the entry
of new registrars, whereas a vertically integrated registry has an incentive to
restrict new entry as much as possible.
THE PRINCIPLES
The following principles
will form part of the contract between ICANN and Rathbawn as Registry of each of the proposed gTLDs:
1.
The
registry will offer all ICANN approved registrars, which can demonstrate
technical competence appointment as registrars.
2.
Neither
the registry nor any registrar in which any director of the registry holds any
interest will compete for registrations as a registrar, thus ensuring that
competition is not distorted by market power arising from vertical integration.
3.
The
registry will not discriminate between registrars in relation to pricing or
service levels.
4.
The
registry will not engage in any conduct which constitutes an abuse of a
dominant position.
5.
The
registry will price registrations on estimated long run incremental cost
principles (initially $3 plus ICANN contribution per name per year, this price
to be revised in two years). The registrar will cause its application of these
principles to be audited every two years by Ormsby Rhodes, Dublin and certified
to ICANN by the auditor. The application of these principles will lead to
registration charges much lower than those of Netsol in .com and .net. In the
first two years before long run incremental cost can be accurately determined,
the registry will charge $3 plus any required ICANN contribution per automated
registration. The Registry does not expect that the TSLRC price for automated
registrations will exceed $3. The Registry expects that the two yearly review
will result in a significant reduction in charges, which the registry presently
budgets at $2.50 exclusive of ICANN charges.
6.
The
Registry will require a contractual commitment from registrars that a registrar
which operates a gTLD or a ccTLD registry or for any other reason enjoys a
dominant position in any market shall not abuse its dominant position by any
conduct in relation to the registration of domain names in any of the TLDs
administered by the applicant. If it is established that this provision is
breached, the registry may suspend or terminate the appointment of the
registrar.
7.
Registrars
will be prohibited from charging domain name owners any fee for changing
registrars except a fee (approved by the Registry or by the CEO of ICANN)
strictly limited to the registrar’s actual costs incurred by reason of the
change. Substantial breach will be a ground for suspension or cancellation of
appointment.
Principles 2 to 5 govern the
conduct of the registry. Principle 6 is calculated to ensure that dominant
registries or other dominant industry professionals do not use domain
registrations in the TLDs as a tool in the abuse of their dominant position.
This provision is unnecessary in the USA and in the EC where antitrust
legislation also prohibits such conduct, but it has potential application in
other jurisdictions without effective antitrust laws. In such jurisdictions, the
applicant wishes to be able to ensure that registrations in the TLDs for which
it manages the registries serve the interests of promoting competition and are
not able to be captured by a dominant firm. Principle 7 is calculated to
prevent registrars from abusing market power in the after market of customers
of the registrar, who might in the absence of such a provision be effectively
prevented from churning to more competitive registrars.
MARKETING
Rathbawn’s business model
will be confined to the wholesale operation of providing registrar services to
registries, whose customers require registration of domain names. As a
consequence, Rathbawn’s prime marketing efforts will be directed to registrars.
As a fully informed and small group of professionals, marketing will consist of
the provision of technical, pricing and service level information. Rapid
response is expected. Rathbawn believes that virtually all active ICANN
registrars will take up the Rathbawn offering.
Rathbawn will also initially
advertise, predominantly by way of banner advertisements on major portals, to
generate public awareness of such of the proposed gTLDs as are approved by
ICANN. This advertising will be funded in the first instance by Rathbawn but
consideration will be given after a period of three months to establising a
permanent advertising fund equal to possibly $0.50 per registration. This
decision will depend in part on the extent of market awareness generated within
the first three months. Rathbawn’s present view is that this may well prove to
be unnecessary.
INVESTMENT NEEDS OF THE NEW TLD REGISTRY
"TotalNIC has commited sufficient funds to enable the registry to be built from internal funding. This funding is held in cash at bank and will be transferred to Rathbawn immediately following approval of one or more gTLDs. Further funding has been commited by seed funding client's of Rathbawn's lawyers. This is held in cash and will be transferred to Rathbawn immediately upon approval of the gTLDs. In addition the same clients have commited further funding which is available on demand. It is held in cash at bank and will be transferred to Rathbawn's account following approval. TotalNIC has commited to place its borrowing capacity, currently wholy undrawn, at Rathbawn's disposal.
An Australian merchant bank has also indicated that their clients would be interested in providing further substantial funding if required.
The directors of Rathbawn estimate that the company has cash resources more than sufficient for its start up requirements and the ability to raise further multiples of many times its forseeable needs."
The first and by far the
greatest risk to success is that ICANN will decide not to grant any of the
proposed gTLDs to Rathbawn. If that risk eventuates, Rathbawn will have no
business and all funds committed to it and expended will have been lost. ICANN has indicated that it
intends to notify applicants which have survived initial screening of the fact
that they are invited to enter into further negotiations with ICANN. Rathbawn’s founding
directors have advanced the funds necessary to enable the preparation and
lodging of Rathbawn’s application, including all professional and lodging fees
and the fees involved in progressing any negotiations with ICANN. If Rathbawn’s
application does not survive intial screening, no funds will be accepted from
investors. Rathbawn is at the stage
prior to determination of the application by ICANN accepting only conditional
commitments. These commitments, to the extent to which they are represented by
cash, will be held in the client accounts of the investors’ attorneys until
Rathbawn shall have delivered to the attorneys an attorney certified copy of ICANN
documents which indicate that ICANN has agreed to grant Rathbawn’s application
in whole or in part. Thus, the most serious
initial risk will not be one to which investors are exposed. If Rathbawn’s proposal
survives initial scrutiny, the prospects of its success greatly increase. At
that stage, an important consideration from ICANN’s perspective is likely to be
an assessment of whether Rathbawn’s application is sufficiently technically and
financially robust. The directors consider that
the risk of ICANN concluding insufficient technical robustness is remote. The
directors have an established track record of operating very similar businesses
and ICANN is aware of this history. The directors consider that
the major issue will then focus on financial resources. The directors believe
that ICANN will be likely to be extremely conservative in its assessment of the
funding necessary to bring a new registry to operation at sufficient scale. The
application has been prepared to accommodate this expectation. Rathbawn already has
sufficient committed cash from its founders and from initial investors to
internally fund all costs associated with the registry up to and well beyond
operation at full capacity. At this stage, however,
Rathbawn will be inviting applications to invest. The directors consider that
the risk of failure are low at this stage. However the possible risks include: n the risk that ICANN will
grant so many gTLDs that Rathbawn’s gTLDs will not be viable. The directors do
not consider this to be a significant risk. n the risk that registrars
will refuse to offer Rathbawn’s gTLDs; this is considered a very low risk. n the risk that Rathbawn will
underestimate registration costs to such an extent as to become insolvent. This
is not considered to be a serious risk. Rathbawn’s management has extensive
experience in all factors relevant to the generation of registry costs and
Rathbawn expects that its assessment of the initial price of $3 will prove in
hindsight to have erred on the conservative side. Edward Sweeney has been
involved in domain name registration since 1996. He has been responsible for the establishment and operation of
all types of domain name registration activities, including one of the earliest
fully automated ccTLDs, CORE based registration interface and direct (ICANN
accredited) registry interfaces for .com, .net and .org. Edward has also had
responsibility for directing the marketing of TotalNIC, the world’s first half
price gTLD registrar. Edward has a long established reputation as one of the
leading innovators in domain name registration on both technical and marketing
solutions. Vincent Hamm currently heads
the US operations of TotalNIC and has extensive experience in synthesising
innovative technical and marketing solutions to meet marketing strategies
necessary to deliver competitive advantage. Vincent has been involved in domain
name registration business since 1997 and in the computer industry for many
years. Edward and Vincent are
supported by a specialist finance committee and an established and dedicated
team of marketing, business development, network operations and customer
support executives who have worked together in developing and operating domain
name registrar and registry businesses. Membership of the team currently stands
at 14 but is designed for rapid scaling up. Rathbawn is seeking from
ICANN the allocation of the following five groups of gTLDs: ·
The
incorporated and registered business TLDs: (Schedule 1) LLC, LLP, PLC, LTD, GMBC, AG, SocA, RBN (registered business name)
and all other suffixes denoting incorporation or business registrations. ·
The
wireless application protocol TLD: ·
(Schedule
2) .wap WAP is the acronym for
wireless application protocol, the protocol which governs wireless based
internet access, such as from mobile telephones. Later it will be extended to
many other devices connected to the internet, such as stoves, airconditionig
units, etc. ·
Chinese
expression TLDs (Schedule 3) At the present time the
application is for the popular Chinese words set forth below. Currently this
application is limited in that manner by ICANN restrictions. ICANN presently
prohibits applications for gTLDs which commence with a number or which are
expressed in foreign language characters. Hence in this current application,
Rathbawn cannot apply for gTLDs in the form of the Chinese characters which
represent in Chinese language the meanings of the proposed gTLDs. Nor can it
apply for gTLDs which commence with a number. Rathbawn is therefore
applying immediately for the following five groups of gTLDs: The Chinese characters, in
both traditional and simplified Chinese for the following expressions: .SanSanSan (meaning 333);
and three33 (as one gTLD) .BaBaBa (meaning 888); and
eight88 (as one gTLD) Shuang Xi (Double Happiness) Fu (Good Fortune) Hao Yuen (Good Luck) Hao (Good) Xing Yun (Fortune, riches) Rathbawn is aware that it
will very shortly be feasible for gTLDs to consist of numbers and non-English
language characters. Rathbawn is already working towards attaining these
objectives. As soon as they are proved up, Rathbawn will apply to ICANN to vary
the proposed gTLDS to add (as part of the same gTLDs) the numberical equivalent
and the chinese language equivalent in both simplified and tradtitional
Chinese. The relevant simplified and traditional characters are shown in
annexure 1. ·
The
adult content gTLDs ·
(Schedule 4) .xxx and .sex ·
The
African continent TLD ·
(Schedule 5) .Africa The application for the
incorporated and registered business TLDs, the wireless application protocol
TLD and the adult content TLDs offers, for the first time, the opportunity for
ICANN address one striking structural defect in the existing DNS, namely the
fact that the existing gTLDs do not of themselves communicate any reliable
information or precise meaning. (A domain name in .com may be a business of any
type and it may not even be a commercial operation of any sort; a domain name
in .net these days is likely to have no connection with a network service
provider). The application identifies an existing need not presently being
served by the DNS by means of a gTLD which of itself immediately capitalises on
established community definitional understandings so that the identification of
the TLD by itself communicates certain, useful and reliable information at the
intuitive level. Financial projections for domain name registrations in the
proposed TLDs is dealt with in detail for each proposed group of TLDs in
Schedules 1 to 5. The market for domain name
registry services has experienced exponential growth in recent years. In recent
months the rate of growth has fallen, to a considerable extent apparently as a
result of the declining availability of choice domain names. The introduction of new
gTLDs is expected to re-stimulate demand. Potential investors will
appreciate from the proposed business models that Rathbawn is intending to seek
the support of the specialised demand represented by the requirement of
registrars for registry services. Operation of a fully
automated registry is a much lower cost business that of a full service retail
registrar. It is also much more readily scalable. If more than one of
Rathbawn’s application is successful in the current round, it is intended that
scalability will be achieved by development of
separate registries based upon shared network architecture. This would
lead to further scale economies, which would reduce Rathbawn’s costs below
those shown in the financial projections. Competition must be assessed
at a number of points. First, there will be intense competition for the
allocation of new gTLDs by ICANN. This competition does not affect investors as
it will have been successfully experienced before any further investment is
invited. Once obtained the gTLD will
face competition from: ·
the
other gTLDs, ie .com, .net, .org and any other new gTLDs commissioned by ICANN.
It should be assumed that there will be a number of them. ·
ccTLDs Rathbawn’s business plan
means that it will face competition only in the registry function to which it
will confine its business. In respect of the exsting gTLDs, Network
Solutions is currently the monopoly
provider of registry services and charges $6 per name per year. Rathbawn
intends to charge registrars half this amount for fully automated
registrations. It therefore does not expect price competition to be a major
problem. Rathbawn believes that, at
the time that investors are invited to participate, the risks of failure are
low and the prospects for the proposed business are very good. The business is
expected to be revenue positive from an early stage in all proposed TLDs except
.africa. but to operate below its peak for between eighteen months and two
years. This portion of the application
follows the format of the pro formas stipulated by ICANN for use in the
application. [A
Registry Operator's Proposal is to be submitted as part of every new TLD
application. In case of applications for unsponsored TLDs, the registry
operator will be the applicant and should prepare and submit the proposal as
part of the application. In the case of applications for sponsored TLDs, the
sponsoring organization (or, where the sponsoring organization has not yet been
formed, organization(s) or person(s) proposing to form the sponsoring
organization) will be the applicant. The sponsoring organization should select
the proposed registry operator, have it prepare the Registry Operator's
Proposal, and submit it as part of the application. Please
place the legend "CONFIDENTIAL" on any part of your description that
you have listed in item F3.1 of your Statement of Requested Confidential
Treatment of Materials Submitted. The
Registry Operator's Proposal should be separately bound (if more than one
volume, please sequentially number them) and labeled: "Registry Operator's
Proposal." and must cover all topics described below. This page, signed on
behalf of the registry operator, should be included at the front of the
Registry Operator's Proposal.] I. GENERAL INFORMATION D1. The first section of the
Registry Operator's Proposal (after the signed copy of this page) should be a
listing of the following information about the registry operator. Please key
your responses to the designators (D1, D2, D3, etc.) below. D2. The full legal name,
principal address, telephone and fax numbers, and e-mail address of the
registry operator. The Registry operator will be Rathbawn Computers Limited c/- Price Waterhouse Coopers Limerick City Co Limerick Eire The registry will be constructed
for Rathbawn (and owned by it) by the TotalNIC.com Division of its shareholder: Capital Networks LLC 7826 Lone Pine Drive Golden Co 80402 2301 Ford Street Golden Co 8042 5 Badham St Level 1 Dickson ACT 2602 Australia 30 Lonsdale St Suites 3&4 Braddon ACT 2601 Australia Telephone contacts for both
firms: Edward Sweeney +61 2 62576758 Fax +61 6257 6759 +61 2 6262 8511 fax +61 2 6262 8522 Vincent Hamm +1 303 271 1288 fax +1 303 279 8667 D3. The addresses and telephone
and fax numbers of all other business locations of the registry operator. The Registry operator will carry
on business initially from the offices of TotalNIC.com set out above. Rathbawn
currently has facilities at Canberra, Australia and Golden, Colorado and a
staff of 14. Existing facilities can
accommodate a staff of approximately 170. It is intended
that intially, Rathbawn will operate out of its facilities in Canberra and in
Colorado. An expansion to the Shannon Industrial Centre, Ireland will occur
after the intial set up process has been overseen in existing premises.
TotalNIC intends to establish at Shannon at the same time. Discussions with the Shannon Development
Corporation are at an advanced stage. The expansion to
Shannon, which has been planned by TotalNIC.com for some time will ensure that
the move will not occur until the new business systems are fully functional. D4. The registry operator's type
of business entity (e.g., corporation, partnership, etc.) and law (e.g.,
Denmark) under which it is organized. Rathbawn Computers Limited is a
corporation incorporated under the laws of the Republic of Ireland. D5. URL of registry operator's
principal world wide web site. Registry operator does not
currently have a web site, but one will be established immediately following
the lodging of this application. It will be notified to ICANN. The web site of Capital Networks
LLC is http://www.totalnic.com/ D6. Dun & Bradstreet D-U-N-S
Number (if any) of registry operator. N/A D7. Number of employees. At present 20 employees have
been designated to the registry set up stage. This number will be scaled
immediately following ICANN approval. D8. Registry operator's total
revenue (in US dollars) in the last-ended fiscal year. Rathbawn Computers is a start up
firm. TotalNIC is a highly profitable firm. D9. Full names and positions of
(i) all directors, (ii) all officers, (iii) all relevant managers, and (iv) any
persons or entities owning five percent or more of registry operator. Directors: Vincent Hamm Edward Sweeney Shareholder: Capital Networks LLC It is intended to appoint
further directors shortly to strengthen the financial adminstration skills.
ICANN will be advised of any appointments. It is intended to issue further
shares to investors immediately following application and these shareholdings
will be notified to ICANN
following issue. D10. Name, telephone and fax
number, and e-mail address of person to contact for additional information
regarding this proposal. If there are multiple people, please list all their
names, telephone and fax numbers, and e-mail addresses and describe the areas as
to which each should be contacted. Vincent Hamm Telephone +1 303 271 1288 Fax +1 303 279 8667 Email: vince@totalnic.com Edward Sweeney Telephone +61 2 6257 6758 Fax +61 2 6257 6759 Email: ed@totalnic.com D11. The full legal name,
principal address, telephone and fax numbers, e-mail address, and Dun &
Bradstreet D-U-N-S Number (if any) of all subcontractors identified in item
D15.3 below. Capital Networks LLC 7826 Lone Pine Drive Golden Co 80402 Telephone: +1 303 271 1288 Fax: +1 303 279 8667 II. BUSINESS CAPABILITIES AND
PLAN D12. The second section of the
Registry Operator's Proposal (after the "General Information"
section) is a description of the registry operator's Business Capabilities and
Plan. This section must include a comprehensive, professional-quality business
plan that provides detailed, verified business and financial information about
the registry operator. The topics listed below are representative of the type
of subjects that will be covered in the Business Capabilities and Plan section
of the Registry Operator's Proposal. [
ICANN will extensively review and analyze this section of the Registry
Operator's Proposal. The content, clarity, and professionalism of this section
will be important factors in ICANN's evaluation of applications. We strongly
recommend securing professional assistance from financial and management
consultants to aid in the formulation of your business plan, in securing the
necessary sources of financing, and in preparation of this section.] D13. The Business Capabilities
and Plan section should consist of at least the following: D13.1. Detailed description of
the registry operator's capabilities. This should describe general capabilities
and activities. This description also offers the registry operator an
opportunity to demonstrate the extent of its business and managerial expertise
in activities relevant to the operation of the proposed registry. The following
items should, at a bare minimum, be covered: D13.1.1. Company information.
Date of formation, legal status, primary location, size of staff, formal
alliances, references, corporate or other structure, ownership structure. Rathbawn Computers Limited C/- Price Waterhouse Coopers Limerick City Co. Limerick Eire Rathbawn’s certificate of
incorporation is attached. It is a body corporate incorporated under the laws
of the Republic of Ireland on August 11 1999. It’s registered office is c/-
Price Waterhouse Coopers, Limerick City, Co. Limerick, Eire. At present Rathbawn has 14 staff
seconded from Totalnic.com and fully funded by TotalNIC.com D13.1.2. Current business
operations. Core capabilities, services offered, products offered, duration of
provision of services and products. Rathbawn is a recently
incorporated Irish company, acquired for the purpose of making this application
to ICANN. Rathbawn’s initial funding and staff requirements are being met by
TotalNIC.com, a division of Capital Networks LLC. Rathbawn's management have
extensive experience in the domain name industry. They have been responsible
for the establishment from a green-fields start up of an ICANN approved
registrar of domain names in .com,
.net. As a start up registrar, TotalNIC enjoyed rapid success as a result of
its discounted pricing policy. In addition, management has been responsible for
the design and operation of the ccTLD
.hm registry, which was one of the earliest fully automated ccTLDs. As founding
members of CORE and through its involvement in operating the .hm top
level domain, the management through their firm Capital Networks have been industry leaders and have contributed to the
maintenance of the DNS and discharging
service provider accountability. Upon the opening of the .com
registry to ICANN approved registrars, Capital introduced its Totalnic.com
business unit. Totalnic immediately became the price leader in the gtld market
by charging prices of half the level of Networks Solutions. This has fostered
keen competition in the domain name registration market and has been the
catalyst for dramatic reductions in average prices. Totalnic continues to
compete vigorously on price and service with other registrars. TotalNIC has
always provided its domain name registration services without ties of any kind
and has never imposed penalties for churning. In these respects it is unique
amongst low cost domain name providers. TotalNIC.com and Capital
Networks LLC have been very successful business models, which have been
developed without any public funding and which have been profitable and cash
flow positive from the earliest stages. They have rapidly evolved to a position
of financial strength. TotalNIC.com reflects the extent to which a small but
highly competent firm can rapidly succeed by bringing to internet stakeholders
the ability to meet demand by innovative and competitively priced offerings. Rathbawn is a small but highly
competent firm with unparalleled specialist skills in registry functionality
and management. Its managers have proved their capacity to profitably create
and operate registry functions whilst at the same time achieving pricing levels
which set industry trends. Rathbawn is confident that it will achieve world’s
lowest costs for the operation of its gTLD registries and will stimulate demand
by passing on its low costs to its registrar customers. D13.1.3. Past business
operations/entity history. History, date of formation, legal status/type of
entity, initial services, duration of provision of services and products. Rathbawn has not conducted business before. It was
acquired for the purposes of making this application to ICANN and establishing
and operating the gTLDs the subject of this application or such of them as
ICANN approves. Its directors have established and developed domain name
registrar and registry businesses since 1996. Edward Sweeney designed and
established the .hm (Heard and McDonald Islands) registry in 1997. At the time this fully automated web based
registry was revolutionary. The .hm domain provided an alternative registration
location for customers who were unable to obtain the name of their choice in
one of the bigger gtlds or tlds such as .com, .net or .com.au. Upon the introduction of
competition into the .com gtld, TotalNIC became one of the first active
registrars and immediately positioned itself as the world’s first half price
registrar. It did not wait for the market to move down before doing so, but led
the market by its its pricing initiative. D13.1.4.
Registry/database/Internet related experience and activities. Experience with
database operation, Internet service provision. Rathbawn’s managers have
extensive experience in providing Internet services as well as customised
software development. Having pioneered the design and construction of a fully
automated web based ccTLD Registry, Rathbawn’s managers have the required skill
sets to implement the aims outlined in this plan. D13.1.5. Mission. The registry
operator's mission and how it relates to expansion into the registry operation
field. The goal of Rathbawn is to
introduce a new level of price competition and mutual obligation into domain
name registry service provision. We recognise that a registry service provider
is granted a monopoly business over a public trust good. This good is an
essential part of the operation of the Internet which in turn is relied on by
sectors within Government, Industry, Commerce and Education. Rathbawn recognises that such
privilege should carry concomitant responsibility. The appointment of a firm as
a monopoly Registry provides the firm with huge financial opportunity.
Consequently, a large number of firms will seek to be appointed as Registries.
ICANN will select only a small number of firms from this large number of
applicants and we believe that one of the key selection criteria should be
based upon confidence in the applicant to justify the public trust. This
confidence should be founded on structural guarantees rather than platitudes. Rathbawn’s philosophy of
registration pricing is one which its founders have already implemented and for
which they have an established reputation and track record, namely that domain
names should be priced as commodities. The inference is that registrars should
be required to compete vigorously on price and service. However for the
competitive benefits of such a system to filter through to consumers, the
Registry should also be subjected to stringent competitive pressures. Rathbawn is seeking from ICANN the opportunity to take competition in DNS
pricing and service composition to new pricing and structural levels. The
vision which Rathbawn will implement involves a number of principal features,
each of them unique in DNS history. Rathbawn’s registries will be specialist registries which will offer
only a dedicated registry function.
They will not compete with registrars. Rather Rathbawn will offer itself as a
supplier of services to registrars. An integral aspect of that strategic
positioning is to provide registrars with structural non competition covenants which
ensure that they view Rathbawn solely as a business partner which depends upon
the custom of registrars for the entirety of its revenue stream. In addition,
Rathbawn will be structured to guarantee to registrars that the only profit
maximisation strategy available to it will be from the maximisation of volume,
not price. By these means, Rathbawn’s potential registrar customers will be aware
that Rathbawn’s incentives align with the incentive for registrars to be
supported by the lowest cost registry. Rathbawn’s profits will be maximised
when it attracts the largest possible volume of domain name registrations. They
will therefore be maximised by the new gtld enjoying the greatest possible
price advantage over other gTLDs. In order to achieve these objectives, Rathbawn pledges that: · the registry function will be priced at the
estimated long run incremental (economic) cost of $3 per name per year, the
lowest cost consistent with registry viability; this price level will be
revisited bi-annually and marked back to the then determined long run
incremental economic cost;this process will be the subject of audit
verification to ICANN; · all
structural features which are capable of inhibiting or distorting competition,
such as vertical integration of registry and registrar function, will be
removed; · the
registries will be bound to act in accordance with competition principles which
guarantee that all market power will be stripped out of the registries’
operations; · by these
means, Rathbawn will be impelled to maximise profits by focussing solely on the
performance of registry functionality at the lowest possible cost thereby
seeking its rewards from the highest possible volume. D13.1.6. Management.
Qualifications and experience of financial and business officers and other
relevant employees. Please address/include past experience, resumes,
references, biographies. Edward Sweeney. Edward is the
founder and chief architect of the business and technical models of TotalNIC
and of the .hm ccTLD registry. Edward was responsible for all
aspects of the establishment of a fully automated ccTLD registry for .hm which
was one of the earliest fully automated
cc TLD registries in the world. He was responsible for the
establishment of TotalNIC.com as the world’s first half price .com and .net
registry. Edward is well known in
internet circles as a leading innovator and also a determined proponent of
competition. Edward’s commitment to competition is long standing and resolute.
In his relentless promotion of full and free competition and against monopoly
exploitation, Edward has opposed powerful vested interests wherever
necessary. Edward’s interest is not merely academic. All the businesses with
which he has been asociated have had as their signature characteristic the
promotion of price and service competition. Edward’s business philosophy is
profit maximistion by volume and cost reduction not by price gouging. In making
this philosophy the lynchpin of the businesses with which he has been
associated, he has been a leading constraint on the conduct of other ccTLD
administrators and ICANN registrars. Vincent Hamm. Vincent has
headed the North American arm of TotalNIC.com and overseen its major price
effect on the North American markets for domain name registration services. Vincent has implemented
TotalNIC.com’s partner rather than competitor
aspirations with major wholesale buyers of domain registration services
in the United States. Vincent brings a technical background in computer services,
programming and network administration to Rathbawn. Vincent is also President
of Aim High!, Inc and has more than 25 years experience in the computer
industry. The directors are supported on
financial planning and management issues by: FINANCE COMMITTEE Tim Tyler FCA. Tim has more
than thirty years specialising in financial and management strategy, having
been a partner of BKR for many years. He
provides strategic financial and business oversight and advice. David Radford. David has high
level accountancy, management and corporate strategic experience reaching back
over 36 years. Tim and David form the Finance
Committee of Rathbawn. NETWORK
MANAGEMENT Andrew W. Reidel. Andrew is an senior systems engineer with
specialist skills in network design, product and technology training,switching,
routing, prioritisation, issues relating to convergence of voice video and
data, router configuration, technical training for new technology roll outs.
His experience includes time with Nortel and Bay Networks.
Michael J Mashman. Michael is a senior network consultant with many
years experience in the establishment and maintenance of networks.
Kate Elliot, Marketing Manager. Kate has experience in the design and
implementation of marketing strategies for via internet and more traditional
business models. .
Tania Bazzacco. Human Resources Manager.
Tania is responsible for staff training and manages the relationship
with external HR firms, in particular Morgan & Banks. Rebecca McLeod, Customer Support Manager, Rebecca
co-ordinates the delivery of customer services by her support team. D13.1.7. Staff/employees.
Current staff size, demonstrated ability to expand employee base, hiring
policy, employee training, space for additional staff. Current seconded staff number
14. Staff pyramid is directed at scalability. Rathbawn enjoys an excellent
relationship with a number of executive search and HR firms, including Morgan
& Banks. Rathbawn’s directors are
experienced in managing the demands for efficient staff scalability. Rathbawn’s management is
experienced in the establishment of greenfield start ups in registry and
registrar functionality. D13.1.8. Commercial general
liability insurance. Address/include amount of insurance policy, provider of
policy, plans for obtaining additional insurance. Rathbawn will hold $20m in
public liability insurance as well as all normal insurances before it commences
operation of any gTLD registry. D13.2. Business plan for the
proposed registry operations. This section should present a comprehensive
business plan for the proposed registry operations. In addition to providing
basic information concerning the viability of the proposed operations, this
section offers the registry operator an opportunity to demonstrate that it has
carefully analyzed the financial and operational aspects of the proposal. At a
minimum, factors that should be addressed are: D13.2.1. Services to be
provided. A full description of the registry services to be provided. Rathbawn is proposing the
allocation of a number of groups of new gTLDs, the details of which are
identifed in Schedules 1 to 6. The philosophy behind a number
of these proposed domains represents a return to the original achitecture of
the Domain Name System (“DNS”) which had specific TLD nomenclatures
representing a matching category of content. For example, .edu was designated
for educational institution. .com was intended for “Commercial purposes” but as
this category encompassed such a broad range of activities by comparison to the
other Generic Top Level Domains (“Gtlds”) the .com tld has become very crowded
and not at all content descriptive. The result of having a small
number of gTLDs, most of which are closed to mainstream registration, has been
to produce an overcrowded registration location (.com) which has provided
uneconomic financial returns for cybersquatters, Registrars and the Registry. An important element of
Rathbawn’s submission is the concept of Universal Service Obligation (“USO”).
This is our contractual commitment to both ICANN contained in the competition
rules. It is a universal obligation because it is a restrict profit
maximisation to the pursuit of profit through volume stimulated by cost based
service provision. We believe that our USO
will eventually become recognised as “best practice” for Registries around the
world. Our USO is a commitment
to: 1
Charge fees on a
competitively justifyable basis 2
Treat all Registrars
equally 3
Not participate in
downstream (eg Registrar) businesses 4
Provide safe custody for
a vital public good Rathbawn’s approach is
entirely different from that adopted by Network Solutions which provided
superior access to large volume Registrants and also participated itself in the
Registrar market. Such a model is riddled with conflicts of interests and
limits competition. D13.2.2. Revenue model. A full
description of the revenue model, including rates to be charged for various
services. The Registry will have only one
source of revenue and will be an annual registration fee for domain names. No
services other than domain name registration will be provided. Our pricing model (detailed
above) ensures that registration prices will be dependent on the average cost
per registration of the Registry. D13.2.3. Market. Market
definition, size, demand, accessibility. D13.2.5.
Estimated demand for registry services in the new TLD. Projected total demand
for registry services in the TLD, effect of projected registration fees,
competition. Please provide estimates for at least 10%, 50%, and 90% confidence
levels. TLD Market Size (m) Estimated Growth .xxx 2.87 40% .llc 19.06 40% .chinesename 1.55 90% .wap 1.46 400% .africa 0.10 100% Please see Schedule 6 for more
detailed analysis can be found in Appendix 1. D13.2.6. Resources required to
meet demand. Provide a detailed estimate of all resources (financial,
technical, staff, physical plant, customer service, etc.) required to meet the
estimated demands, using at least the 10%, 50%, and 90% confidence levels. Please see Schedule 6. D13.2.7. Plans for acquiring
necessary systems and facilities. Describe plans for acquiring all necessary
systems and facilities for providing the proposed services at each estimated
demand level. Provide details as to the scope, cost, and vendor for any
significant planned outsourcing. The systems
architecture is described elsewhere in this application. No difficulty is
expected in relation to availablity and internal funding for all acquisition
costs is held in the form of cash at bank or on deposit. Further additional
funding is also held in reserve. D13.2.8. Staff size/expansion
capability. Plans for obtaining the necessary staff resources, capacity for
expansion, hiring policy, employee training, space for additional staff,
staffing levels needed for provision of expanded technical, support, escrow,
and registry services. Sufficient space is already
held for all foreseeable expansion needs. In addition, Rathbawn will establish
an Irish branch based in the Shannon Industrial Zone to serve the European
markets and to capitalise on the availalability of price competitive technical
skills. Rathbawn’s plans in this respect reflect the antecedent ambitions of
its directors. Rathbawn has already had discussions with representatives of
Irish government. Rathbawn’s management has the
skills necessary for rapid scaling of staff resources including training and
has a dedicated HR Manager to oversee scaling. D13.2.9. Availability of additional
management personnel. How will management needs be filled? Rathbawn will
immediately commence forward planning for future management requirements,
involving a strategic partnership between itself, Ormsby Rhodes, Dublin, Morgan
& Banks, BKR and Price Waterhouse Coopers. D13.2.10. Term of registry
agreement. State assumptions regarding the term of any registry agreement with
ICANN or the sponsoring organization. Note that the .com/.net/.org registry
agreement has a basic term of four years. Rathbawn is seeking appointment
for a period of four years, with prices marked back to long run economic cost
bi-annually. D13.2.11. Expected costs
associated with the operation of the proposed registry. Please break down the
total estimated operational costs by the sources of the costs for each
estimated demand level. Be sure to consider the TLD's share of ICANN's cost
recovery needs. Please see Schedule 6. D13.2.12. Expected revenue
associated with the operation of the proposed registry. Please show how expected
revenue is computed at each estimated demand level. Please see Schedule 6. D13.2.13. Capital requirements.
Quantify capital requirements in amount and timing and describe how the capital
will be obtained. Specify in detail all sources of capital and the cost of that
capital (interest, etc.). Evidence of firm commitment of projected capital
needs will substantially increase the credibility of the registry operator's
proposal. Equipment costs of registry
establishment total $550,000. This expenditure is being funded by TotalNIC.com
from cash at bank. Staff costs for the start up period
are being met by TotalNIC.com. Rathbawn has substantial immediately available additional funds, consisting of funds commited by TotalNIC to Rathbawn. In
addition, Rathbawn holds subsisting unconditional commitments from prospective
private investors. Rathbawn thus has immediate and
unconditional access to funds considerably in excess of requirements, whilst all its initial cash
requirements for equipment, installation, commissioning, staffing will be met
by TotalNIC.com. In addition Rathbawn
expects to obtain commitment for substantial additional sums without
difficulty. Rathbawn thus has an immediately comfortable cash position of
enjoying committed funding to cover the costs of registry establishment and
having a substantial buffer against unforeseens. Rathbawn considers that all its
possible funding needs will be met without difficulty. D13.2.14. Business risks and
opportunities. Describe upside and downside contingencies you have considered
and discuss your plans for addressing them. Rathbawn’s proposed business is
the conduct of the world’s lowest price gTLD registries. Risks are dealt with
elsewhere in the application. D13.2.15. Registry failure
provisions. Please describe in detail your plans for dealing with the
possibility of registry failure. Registry technical failure
risks are dealt with in the Technical section of the application. As a long
standing ccTLD manager, we believe that registry failure, including financially
induced failure, is highly unlikely. D13.3. Pro-forma financial
projections. Please provide detailed pro-forma financial projections,
consistent with your business plan, for the demand scenarios that you estimate
under item D13.2.5. The pro-formas should show revenue and expense estimates
broken down by detailed categories and should be broken down into periods no
longer than quarterly. Please see Schedule 6 D13.4. Supporting
documentation. The following documentation should be provided in support of the
Business Capabilities and Plan section: D13.4.1. Registry operator's
organizational documents. Documents of incorporation (or similar documents). Certificate
of incorporation is attached D13.4.2. References. A list of
significant trade and credit references. Rathbawn is a start up
corporation. Its shareholder, Capital Networks LLC has a significant trading
record with Netsol and currently has ample cash resources. Banker's references for Capital Networks were supplied to ICANN as part of the process of obtaining ICANN approval. Capital has full
VISA merchant accreditation in both US dollars and Australian dollars. None of Rathbawn, its directors
or any company with which they are associated has any significant debt. TotalNIC.com has made substantial cash resources available to Rathbawn to be deployed on Rathbawn’s business. Evidence of additional investor
commitment is available on request. D13.4.3. Annual report. The
registry operator's most recent annual financial report (or similar document).
Audited financials are preferred. No accounts have been prepared
as Rathbawn is a new entity. Documentary verification of cash at bank committed
by TotalNIC is available on request. D13.4.4. Proof of capital.
Provide evidence of existing capital or firm commitments of capital.
Demonstrated access to necessary capital will be carefully scrutinized. Evidence verifying investor
commitment and other resources are available on request. D13.4.5. Proof of insurance.
Please provide proof of the insurance described in item D13.1.8. No insurance is currently held
as Rathbawn is not trading. Insurance guarantees are provided elsewhere in this
application. III. TECHNICAL CAPABILITIES AND
PLAN D14. The third section of the
Registry Operator's Proposal is a description of the registry operator's
Technical Capabilities and Plan. This section must include a comprehensive,
professional-quality technical plan that provides a detailed description of the
registry operator's current technical capabilities as well as a full
description of the operator's proposed technical solution for establishing and
operating all aspects of the registry. The technical plan will require
detailed, specific information regarding the technical capabilities of the
proposed registry. The topics listed below are representative of the type of
subjects that will be covered in the Technical Capabilities and Plan section of
the Registry Operator's Proposal. [ICANN will extensively review and analyze this section of the Registry
Operator's Proposal. The content, clarity, and professionalism of this section
will be important factors in ICANN's evaluation of applications. We strongly
recommend that those who are planning to apply secure professional assistance
from engineers and/or other technical consultants to aid in the formulation of
the technical plan and the preparation of the Technical Capabilities and Plan
section of the Registry Operator's Proposal.] D15. The Technical Capabilities
and Plan section should consist of at least the following: D15.1. Detailed description of
the registry operator's technical capabilities. This should provide a detailed
description of the registry operator's technical capabilities, including
information about key technical personnel (qualifications and experience), size
of technical workforce, and access to systems development tools. It should also
describe the registry operator's significant past achievements. This
description offers the registry operator an opportunity to demonstrate the
extent of its technical expertise in activities relevant to the operation of
the proposed registry. Rathbawn’s management has
significant technical expertise in domain name registration systems, critical
database reliant systems and tcp/ip applications with an emphasis on encrypted
transmissions. These are the essential
components of any registry – registrar communication system. HM Domain Registry – country code TLD for Heard and McDonald Islands, an Australian
Antarctic Territory. Capital Networks
developed the registry and has operated it in a stable and efficient form since
1997. TotalNIC.com CORE Registrar – as a CORE member registrar Capital Networks developed
and has operated an interface to CORE’s SRS system for the purposes of
registering .COM, .NET and .ORG domain names since the testbed of competition
in 1999. This experience also gave us
significant insight into the impact of design deficiencies in a
registry/registrar type environment. TotalNIC.com ICANN Registrar – as an ICANN approved registrar Capital Networks
developed and has operated an interface to NSI’s SRS system for the purposes of
registering .COM, .NET and .ORG domain names since early 2000. By bypassing CORE’s registration system we
were able to eliminate many service issues created by deficiencies in the
fundamental system design of CORE’s SRS. CNCVSD
– Capital Networks protocol and application suite to accept credit card transaction
processing requests, forward these to a verification interface which
communicates directly with bank EFTPOS network and returns the result to the
client. This is a high security mission
critical database design which, like RRP, establishes encrypted SSL connections
between client - server applications.
This has proved to be highly stable and successful in operation and
provides backend processing to TotalNIC’s ICANN registration systems in US
dollars and Australian dollars. It has
the capability of providing service to large numbers of merchants in multiple
currencies. Our current programming
staff numbers 6 with an ability to expand this rapidly whilst maintaining high
quality product. Our networking experience is
also significant, we have operated two geographically separated network
facilities (Colorado, USA and ACT, Australia) since 1997. Both sites currently utilise BGP4 routing
protocol in conjunction with CISCO IP routers.
All maintenance is performed by TotalNIC.com staff which includes a number
of individuals experienced and/or certified in the operation of various routing
protocols and hardware/OS combinations. D15.2. Technical plan for the
proposed registry operations. This should present a comprehensive technical
plan for the proposed registry operations. In addition to providing basic
information concerning the operator's proposed technical solution (with
appropriate diagrams), this section offers the registry operator an opportunity
to demonstrate that it has carefully analyzed the technical requirements of
registry operation. Factors that should be addressed in the technical plan
include: D15.2.1. General description of
proposed facilities and systems. Address all locations of systems. Provide
diagrams of all of the systems operating at each location. Address the specific
types of systems being used, their capacity, and their interoperability,
general availability, and level of security. Describe in detail buildings,
hardware, software systems, environmental equipment, Internet connectivity,
etc.
Registry database Sun Netra ft 1800 Mae-East - Solaris, Oracle 8iEE Failover database Sun Netra ft 1800 Mae-East - Solaris, Oracle 8iEE Remote backup db Sun Netra ft 1800 Pacific Bell - Solaris,
Oracle 8iEE Frontend
server1 Sun Enterprise Mae-East -
Solaris, CNRRPd Frontend
server2 Sun Enterprise Mae-East - Solaris CNRRPd WHOIS
/ ZF gen. 1.1GHz Athllon Mae-East FTP host 1.1GHz Athllon Mae-East (each with redundant,
hot-swap backup servers of same specification) NS1 1.1GHz Athllon Mae-East -
Linux,
BIND 9.0.0 NS2 1.1GHz Athllon Mae-West -
Linux,
BIND 9.0.0 NS3 1.1 GHz Athllon Pacific
Bell -
Linux,
BIND 9.0.0 NS4 1.1 GHz Athllon Mae-East -
Linux,
BIND 9.0.0 NS5 1.1 GHz Athllon Mae-West -
Linux,
BIND 9.0.0 NS6 1.1 GHz Athllon Pacific
Bell -
Linux,
BIND 9.0.0 (with redundant hot-swap,
same spec machines at each location) WHOIS1 1.1GHz Athllon Mae-East -
Linux,
Postgresql, Cnwhoisd -
Linux, Postgresql, Cnwhoisd WHOIS3 1.1GHz Athllon Pacific Bell -
Linux, Postgresql, Cnwhoisd WHOIS4 1.1GHz Athllon Mae-East -
Linux, Postgresql, Cnwhoisd -
Linux, Postgresql, Cnwhoisd WHOIS6 1.1GHz Athllon Pacific Bell -
Linux,
Postgresql, Cnwhoisd (with redundant hot-swap,
same spec machines at each location) D15.2.2. Registry-registrar
model and protocol. Please describe in detail. Capital Networks has, by
virtue of its operation of an ICANN approved registrar, extensive experience
with NSI’s RRP Version 1.1.0 as described in RFC 2832 (authored by S.
Hollenbeck and M. Srivastava of Network Solutions, Inc. Registry). Our view is that whilst
there are several alternatives to NSI’s RRP there are a number of advantages in
operating an RRP compliant system: ·
Compatibility
with existing ICANN registrars means registrars do not need to develop new
systems to cope with the addition of any TLD which Rathbawn may operate. This is an important factor, particularly if
more than a very small number of registry operators are to co-exist. ·
Simplifies
enforcement of ICANN rulings and policies by replicating current registrar
abilities to perform transfers, apply locks etc. ICANN can issue universally applicable rulings. ·
Complying
with an existing proven specification means that we are unlikely to encounter a
large variety of unforeseen operational issues. The disadvantage of NSI’s current implementation when
viewed in relation to “fat registry” models is, in our opinion, the risk of
registrar database loss or corruption.
As portions of the database are distributed (eg contact information,
portions of domain related information and host maintainer information) the
protocol intrinsically requires that all registrars operate in a manner which
ensures data integrity. If one
registrar were to corrupt their database or lose some amount of information
this would mean that the entire system, whilst portions of it would remain
functional, could not be considered to be entirely without corruption. In our view the benefits of
utilising the existing protocol cannot be overlooked however so we propose the
use of an RRP compliant system with the addition of data escrow requirements
(refer to 15.2.7 for further information) to ensure integrity of the overall
system. D15.2.3. Database capabilities.
Database size, throughput, scalability, procedures for object creation,
editing, and deletion, change notifications, registrar transfer procedures,
grace period implementation, reporting capabilities, etc. Rathbawn Computers’
implementation of RRP relies upon an Oracle database backend. Our proposal is that this will be housed on
a Sun Netra ft 1800 fault tolerant server with a hot-backup database provided
on a similar machine. This combination provides the following advantages: ·
SCALABILITY
– The Oracle parallel processing feature allows a cluster of machines to
operate transparently as one back-end processing unit, allowing the addition of
multiple database backends. In addition
the Sun ft 1800 allows for up to 4 Ultra-Sparc 300 MHz CPUs with 4 GB of memory
which, even in a single server implementation, provides processing capability
on the database backend far beyond our predicted requirements. ·
RELIABILITY
– Oracle’s hot standby feature allows the provision of a second database
backend always available to assume processing in the event of any major failure
of the primary database server.
Additionally Oracle allows for the performance of database dumps for
backup purposes without impacting on
the continuing processing of database operations. ·
DATABASE
SPECIFICATIONS – Oracle allows for database sizes exceeding terrabytes of
storage. Obviously even an unfathomably
large registry database does not exceed such limitations. ·
INDUSTRY
STANDARD – Due to Oracle’s position as industry leader in database solutions
highly trained Oracle administrators and programmers are relatively easy to
obtain which is an important consideration in system provisioning. As far as the mechanicals of
our RRP implementation impact upon database object creation, editing and
deletion and other operations we intend to follow as closely as possible NSI’s
current RRP specification with a commitment to consultation and co-operation
between registry operators with respect to continuing refinements and
enhancements of this protocol. D15.2.4. Zone file generation.
Procedures for changes, editing by registrars, updates. Address frequency,
security, process, interface, user authentication, logging, data back-up. Zone file generation occurs
twice daily. This is performed by a
dedicated server, not by an application layered on the front-end or database
servers. The result of this is an
ability to generate zone files far more frequently. There is however
insufficient requirement to update zone files more than twice per day, in our
opinion. The excess capacity is however
important since it allows for recovery from a variety of fault conditions
within a reduced timeframe. Access to zone files via
named user FTP is subject to entering into a contract governing acceptable
usage. At this time we would propose
that no charge will be required for accessing the zone files however we do
reserve the right to charge on a cost recovery basis into the future. The primary object in ensuring limited
authenticated FTP access to the zone files is to prevent use of this data for
retrieval of information for the purpose of sending unsolicited email and,
importantly, to prevent abuse of the zone file contents in order to register
names which have been deleted from the registry database. D15.2.5. Zone file distribution
and publication. Locations of nameservers, procedures for and means of
distributing zone files to them. Nameservers will be located
at network access points (NAPs), allowing high bandwidth connections from the
majority of medium and large transit providers on an equal basis. The NAPs which we have identified for this purpose are: ·
MAE-EAST
(Washington, DC) ·
MAE-WEST
(San Jose, CA) ·
PACIFIC
BELL (San Francisco, CA) Not only do these NAPs form
the basis of the majority of Internet traffic exchange, they provide a highly
security climatically suitable environment with UPS and backup power sources. By allowing any interested
providers (we anticipate this will be the majority of participants at these
NAPs) to peer with us without financial settlement for traffic exchange we can
provide high quality fair and equal access to registry facilities. The NAPs also allow us to
obtain access to scale our available network bandwidth rapidly by adding
multiple connections of OC12 (622 Mbps) at very short notice. Zone files are distributed
directly from the server responsible for compiling WHOIS and zone file contents
from the registry backend. Zone files
can be distributed via BIND’s named-xfer or via scp (secure copy). In the event of distribution
failure (ie disruption of transmission) the old zone files remain current
ensuring no partial load of zone files.
The nameservers will continue to retry obtaining the zone data at intervals
whilst maintaining normal operation using the previous zone file contents. Additionally the server
responsible for the generation of zone files has an explicit conclusion to the
zone file generation process – if for some reason an error occurs during the
generation of zone files the process terminates with an abnormal error alert
provided to NOC staff and nameservers are unable to retrieve a new zone file
under these conditions. D15.2.6. Billing and collection
systems. Technical characteristics, system security, accessibility. Registrars are required to
debit from available funds when requesting transactions associated with funds
debit (eg transfer domain, create domain). Registrars may inquire
current balance via an https serviced user authenticated website. Payment may be made to
Capital Networks’ USA billing department on behalf of Rathbawn or via telegraphic transfer to the
registry’s account. Upon receipt of
payment a registrar’s available balance is updated. D15.2.7. Data escrow and
backup. Frequency and procedures for backup of data. Describe hardware and
systems used, data format, identity of escrow agents, procedures for retrieval
of data/rebuild of database, etc. Registry backup: -
DAT/DLT
Tape libraries at Mae-East facility (registry location) and at Colorado network
centre contain mirrored dump of registry database. -
Incremental
backups are performed every 6 hours, complete backups once per day. -
Backups
are tested every two days to ensure disaster recovery capabilities in the event
of unrecoverable registry database failure. -
NB Due to the existence of hot-backup and
remote-backup database servers the use of tape restoration facilities in an
actual service restoration environment would be highly irregular. Registrar backup: Registrars are
required to make available to registry an ASCII text file containing the
registrant and contact details of every domain registered
and a list of maintainers of all hosts. -
This
information is retrieved via FTP daily by the registry (session is initiated by
the registry) and checked against contents of registry database to identify any
missing data. The information is
retained for backup purposes. -
Any
discrepancies between the domains currently held in the registry and the
domains included in the registrar’s escrow (excepting domains registered in the
last 48 hours) generate an alert condition and notify both the registrar and
the registry's NOC staff. -
Failure
to successfully escrow results in: -
Generation
of initial alert condition -
Registrar
has up to 3 hours to resolve the matter to the satisfaction of the registry -
Failure
to resolve to the registry’s satisfaction results in denial of the ability to
create new domains. -
Inability
to resolve within 24hr results in further action including possible resumption
of the registrar’s database operation by the registry. It is envisaged that this rare situation
could be resolved by negotiation between registry and registrar and the
registry is committed to notifying ICANN of such a situation. -
The
intention of this policy is to guarantee the ongoing stability of the DNS and
the ability of registrants to modify their existing domains. D15.2.8. Publicly accessible
look up/Whois service. Address software and hardware, connection speed, search
capabilities, coordination with other Whois systems, etc. WHOIS servers load balanced
via round-robin DNS records. Servers
are located at NAPs (with DNS servers) and are driven by Postgresql database
servers loaded with contents of registry database dump compiled daily by the
dedicated zone file / WHOIS generation server. The data is distributed via
compressed scp initiated by the WHOIS generation server upon conclusion of a
successfully verified daily database dump. As with DNS
server location the distribution of these machines at NAPs not only enhances
reliability but also promotes equal accessibility at high bandwidths by the
majority of transit providers. The NAP location also allows
for scaling of bandwidth requirements in a far more rapid fashion than
conventional equipment location. D15.2.9. System security.
Technical and physical capabilities and procedures to prevent system hacks,
break-ins, data tampering, and other disruptions to operations. Physical
security. All servers accessible only
from Rathbawn NOC locations in Colorado and ACT via ssh. Five tiers: Tier 1: Backend database, hot backup, remote
backup Tier 2: Frontend servers Tier 3: WHOIS / ZF generation Tier 4: NS1, NS2, NS3, NS4 Tier 5: WHOIS1, WHOIS2, WHOIS3, WHOIS4 All machines (apart from
tier 1) can be restored from standard disk images, enhancing the ability to
recover from a security breach. The implications of a breach
in security of servers (apart from tier 1) is considered serious but
non-critical. The most serious
possibility being that unauthorized system access could result in the
termination of normal service or the modification of system data. Termination of normal service would result
in generation of alarm conditions at both NOCs and the identification of this
condition to senior network staff. The
modification of system data would only affect a small number of parties and
could be rectified by redistributing the zone file data. The implications of a breach
in security of tier 1 servers is considered critical. The most serious possibility of such a breach would be that a
tape restoration would be forced. This
is a very serious condition since the recovery time would be significantly
greater even than a condition as serious as primary facility annihilation. For this reason
the tier 1 servers would not be Internet accessible. They would not be allocated routable IP addresses and the only
way in which access could be obtained would be via a gateway machine (ie
frontend server). The frontend servers
themselves are highly secure (with access only via RRP from a limited number of
hosts and via SSH from Rathbawn’s NOC). Each tier of servers would
carry a separate password file to prevent escalation of any breaches. No public access other than DNS and WHOIS
access to servers (except to FTP host which has no access to other machines and
carries different password files) is permitted. Continual monitoring of
system logs from Rathbawn’s NOC and the generation of alarms under important
conditions at support centres and NOC locations is considered to be essential
to the maintainance of the security environment. Physical access to NAP
locations requires prior personnel identification and phone back verification
from Colorado NOC. Obviously the NAPs
represent a highly secure environment with 24 hour security staffing. Our proposal is that each
NAP location will also be fitted with alarm equipment to identify access
violations and web cams which provide visual confirmation to NOC staff. (See 15.2.13 for recovery
procedures) D15.2.10. Peak capacities.
Technical capability for handling a larger-than-projected demand for
registration or load. Effects on load on servers, databases, back-up systems,
support systems, escrow systems, maintenance, personnel. Peak capacity is defined
by: -
Ability
of DNS servers to handle query load -
Ability
of WHOIS servers to handle query load -
Ability
of frontend servers to handle load -
Ability
of database servers to handle load By
locating DNS and WHOIS servers in NAPs we are able to rapidly increase the
number of these machines and their available bandwidth. Additional servers can quickly be generated
off disk images and installed at NAP locations to cope with additional
loadings. Additionally, since our
proposal specifies the location of redundant hardware at each NAP to provide
hot-swappable assumption of the role of DNS / WHOIS servers these machines can,
in the short term be utilised to increase the round-robin pool of DNS / WHOIS
servers as may be required. Obviously
this solution is intended only for short periods whilst additional hardware can
be provisioned. The
frontend servers perform SSL negotiation and client interaction with
registrar’s machines. These are the
machines most likely to suffer heavy loads as a result of the significant
processing which goes into connection establishment. It is important that each registrar establish and maintain a
connection rather than repeatedly reconnecting for this reason. The frontend
servers however are based on highly scalable Sun Enterprise architecture capable
of supporting tremendous loads. The
servers are expandable in that we can rapidly add additional CPU and memory to
these machines. Also and of primary
importance to our proposal is that each frontend server can be replicated. The limitation to the number of frontend
machines is purely practical – the database servers have the ability to support
hundreds of frontend servers without significantly degrading their ability to
process queries. The fact that the frontend
servers operate in parallel allows for sequential hardware upgrades to take place whilst registry functionality
is not affected. The
backend servers (database servers) are based on Sun Netra architecture and are
capable of supporting a volume of database processing far in excess of that which
we predict will be required. However
these machines, by utilising Oracle’s parallel processing feature, can be
replicated so that a cluster of servers can have their processing power
combined, producing a highly scalable result. By
taking advantage of these features we are confident that our specification
could account for transaction loads and database sizes in the order of many
thousands of times that of the current .COM registry. D15.2.11. System reliability.
Define, analyze, and quantify quality of service. Reliability is a function of
two issues: network connection and server reliability. The reliability of network
connections is maximised by the location of servers at NAPs serviced by the
majority of transit providers and the provision of redundant links between
NAPs. Server reliability is
assured by the fact that the majority of servers operate in a parallel
processing environment. This means that
reliability is largely reliant upon the registry database itself. The registry database’s reliability
is protected by the server hardware (Netra ft 1800 fault tolerant server
designed to withstand environmental extremes and earthquake up to level
4). The Oracle database software allows
a hot-backup database server which, in combination to the server hardware,
guarantees uptime far better than 99.999% (each server is designed to deliver
better than 99.999% uptime). Operational reliability is
further assured by the availability of UPS power and alternative power sources
(eg diesel generators) and the design of NAPs to resist the effects of
environmental disasters such as earthquake. D15.2.12. System outage
prevention. Procedures for problem detection, redundancy of all systems, back
up power supply, facility security, technical security, availability of back up
software, operating system, and hardware, system monitoring, technical
maintenance staff, server locations. All sites are UPS protected
with APC Symmetra Power Arrays or better.
This includes NOCs and support centres). Each site is also equipped
with alternate power sources including diesel backup generators to ensure
outage survival of over 10 hours from any outage. By geographically
distributing servers at multiple facilities any outage is limited to a partial
outage rather than complete disruption of operations. Backend database
serviced by fault tolerant hardware (Netra ft 1800) and supported by
hot-failover-backup ensuring database integrity as far as possible including
during earthquake or environmental disruption.
The provision of a remote backup server provides strong assurance that
recovery can be achieved without resorting to tape restoration. All other systems are
completely redundant and additionally can be re-imaged from stock disk images. Incremental tape backups at
6 hour intervals (in two geographically distinct locations) in conjunction with
daily complete backups assures near complete tape replication of database
contents even in the event of major equipment loss occassioned by natural
disaster. All NAPs and other locations
of critical machines are resistant to such occurances however. The testing of
backups every two days ensures that the backups accurately and completely
mirror current database contents and allows staff to practise tape restoration
procedures D15.2.13. System recovery
procedures. Procedures for restoring the system to operation in the event of a
system outage, both expected and unexpected. Identify redundant/diverse systems
for providing service in the event of an outage and describe the process for
recovery from various types of failures, the training of technical staff who
will perform these tasks, the availability and backup of software and operating
systems needed to restore the system to operation, the availability of the
hardware needed to restore and run the system, backup electrical power systems,
the projected time for restoring the system, the procedures for testing the
process of restoring the system to operation in the event of an outage, the
documentation kept on system outages and on potential system problems that
could result in outages. Possible scenarios requiring system recovery: Downtimes are classified as
follows: NEGLIGIBLE: zero to
five minutes MINIMAL: five to
fifteen minutes SIGNIFICANT: in excess of fifteen minutes Hardware failure on NS /
WHOIS server -
redundant
hardware at each location – IP address can be switched so that redundant
machine comes into operation either automatically or
manually via ssh or by use of “remote hands” facilities at NAP. IMPACT: MINIMAL DOWNTIME: NEGLIGIBLE Hardware failure on frontend RRP server -
other
frontend servers keep functioning whilst hardware failure is resolved. IMPACT: MINIMAL DOWNTIME: NEGLIGIBLE Hardware failure on backend
database server -
Netra
ft 1800 designed to cope with hardware failure. -
In
the event of total system failure automatically switches to failover backup
server. IMPACT: MINIMAL DOWNTIME: NEGLIGIBLE Hardware failure on hotswap
failover backup server -
Provided
system not operating off hotswap backup at the time this is a non-critical
event. -
If
system is operating off hotswap backup at the time then this is relatively
serious and requires a manual switch to remote backup server. [The reason this switch is manual is to
ensure that the problem is regarded as critical rather than minor]. IMPACT: MODERATE DOWNTIME: MINIMAL Hardware failure on remote
backup server -
Provided
system not operating off remote backup at the time this is a non-cricical
event. -
If
system is operating off remote backup at the time then this is extremely
serious and requires tape restoration or system maintenance. IMPACT: HIGH DOWNTIME: SIGNIFICANT Tape backup failure at
Mae-East location -
This
is a non-critical event provided other systems are fine. -
If
other systems are not fine then this requires use of tape backup at Colorado
NOC. IMPACT: MINIMAL DOWNTIME: NEGLIGIBLE Tape backup failure at remote
location -
This
is a non-critical event provided other systems are fine. -
If
a number of other systems are not fine then this requires use of tape backup at
Mae-East location. -
If
Mae-East tape backup is not available then this is a critical condition and
would require either restoration from older backup and log supplementation or
hardware maintenance. IMPACT: CRITICAL DOWNTIME: SIGNIFICANT Database corruption on backend database server -
This
is a serious condition but is easily rectified by switching to failover backup. IMPACT: NEGLIGIBLE DOWNTIME: NEGLIGIBLE Database corruption on
hotswap failover backup server -
This
is a serious condition and may be critical if the primary database server is
unavailable. It can be rectified by
switching to remote backup server. IMPACT: MODERATE DOWNTIME: MINIMAL Database corruption on remote
backup server -
This
is a serious condition and may be critical if the primary and failover database
servers are unavailable. It can be
rectified only by tape restoration in this event. IMPACT: CRITICAL DOWNTIME: SIGNIFICANT Facility destruction at any
location. -
This
is a critical condition but is not irrecoverable and, in actual fact, is likely
to have minimal effect since BGP routing will divert traffic to other NAPs and
since redundant hardware is located at different facilities with manual
intervention it would be possible to replace the DNS and WHOIS servers as well
as to switch to remote backup database if need be. IMPACT: CRITICAL DOWNTIME: SIGNIFICANT Network link failure at any location -
This
is a serious condition but will result in no downtime since traffic will route
between locations via backup links. IMPACT: MINIMAL DOWNTIME: NEGLIGIBLE System security compromise at
any location -
This
is a critical condition which requires manual intervention. The presence of redundant hardware at each
location enables work-arounds to be rapidly enabled whilst system maintenance
is conducted. IMPACT: MODERATE DOWNTIME: SIGNIFICANT D15.2.14. Technical and other
support. Support for registrars and for Internet users and registrants.
Describe technical help systems, personnel accessibility, web-based, telephone
and other support, support services to be offered, time availability of
support, and language-availability of support. Support to registrants
primarily to be provided by registrars.
Support to Internet users largely restricted to referring potential
registrants to a listing of operational registrars. Obviously some capacity to
cope with enquires from the general public must be factored in and this is
allowed for. Support for registrars is
available via phone or email on a 24 hour basis, 7 days a week. There exists also the ability for registrars
to place enquires or receive response via facsimile. Support is provided by
dedicated registry support staff at distributed locations. Distributed call centres in USA, Australia
and Ireland ensure sufficient accessibility and availability of staff. Each site is networked for voice and data to
other support centres allowing enquires to be handled end to end in a
consistent and efficient manner. Phone support is currently
limited to English and Spanish with a commitment to adding support in Japanese,
Chinese and German before going live. D15.3 Subcontractors. If you
intend to subcontract any the following: all of
the registry operation function; any
portion of the registry function accounting for 10% or more of overall costs of
the registry function; or any
portion of any of the following parts of the registry function accounting for
25% or more of overall costs of the part: database operation, zone file
generation, zone file distribution and publication, billing and collection,
data escrow and backup, and Whois service please (a) identify the subcontractor;
(b) state the scope and terms
of the subcontract; and (c) attach a comprehensive
technical proposal from the subcontractor that describes its technical plans
and capabilities in a manner similar to that of the Technical Capabilities and
Plan section of the Registry Operator's Proposal. In addition, subcontractor
proposals should include full information on the subcontractor's technical,
financial, and management capabilities and resources. 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 Edward Sweeney, Vincent Hamm
(respectively)__ Name (please print) _______________________________ Title Rathbawn Computers Limited______ Name of Registry Operator 02 October 2000_________________ Date SCHEDULE 1 The incorporated and registered business TLDs: LLC, LLP, PLC, LTD, GMBC, AG, SocA, RBN (registered business name)
and all other suffixes denoting incorporation or business registrations. These include: LLC LLP LTD PLC AG GMBH SocA And all other legally
recognised suffixes for non-natural legal persons. RBN (registered business
name) Each of the suffixes will be
administered as a separate gTLDs., in order to reflect legal position.
(BP plc is not the same legal person as BP AG or BP LLC). The incorporated and registered
businesses gTLDs will be restricted. Only registered companies and businesses
would be able to register in this tld and their choice of name would be
restricted to a name identical to or substantially the same as (including the
TLD suffix) the name under which they are incorporated or registered. This restriction will deliver
the highest standards of registration integrity, that is the ability of a
viewer to know from the dmoan name along, that the legal entitly with which they
are dealing bears the same name. In addition there willl be a
requirement that the registered number of the company, partnership or business
be displayed on their Whois record. In addition, because domain
name speculation cannot occur except to a very limimted extent represented by a
speculative incorporation, even late
domain registrants will be able to obtain a domain which reflects their
corporate name. Users will also benefit from reduced search costs as company's web
sites will be intuitively discernable. We expect initially a large
number of registrations to come from companies who have already registered
domains in other tlds but would like to migrate to either a more appropriate
tld or a more appropriate domain string. Rathbawn will set up automatic searches over
company registries around the world and the applicants registration details
would be checked immediately on-line. Where a jurisdiction is not currently
able to provide this type of registry access, an applicant would be able to provide
our registration partners with their corporate registration details. ·
The Wireless Application
Protocol gTLD: The proposed gTLD envisages
that .wap will identify in an optimally efficient manner websites which are WAP
enabled and will enable seekers of web locations who know the domain name of a
business or provider to derive the
comparable WAP enabled site intuitively. The process proposed to
capture these benefits is a restricted
gTLD, limited to use as the location of web pages which are WAP enabled
and configured into sub domains which
mirror all other gTLDs and ccTLDs. Thus there will be a sub domain for
each gTLD and ccTLD and sub sub domains which mirror each sub domain of each
TLD. This would be of great value to
both users generally and registrants, as the tld signals the suitability of
content simply and quickly. This will allow search engines to limit searches to
WAP suitable content and enable content providers to advertise their WAP
capability very cheaply. Rathbawn will work appropriate
industry bodies responsible for producing whtml and WAP standards/protocols and
the combination will help foster the consistency and development of WAP
content. The strucure of the sub
domains in .wap will reflect all other sub domains in gTLDs and ccTLDs. Thus a
business which has a website at will be inferred by
customers to have a WAP enabled site at www.travel.co.uk.wap This reduces the
transactional search costs effectively to zero. Further, because Rathbawn
will not be competing with the registrar with which each existing and future
domain name owner has its relationship, but rather will be offering to supply
services to it at cost, the incentive of the registrar currently owning the
customer will be to ensure that the customer obtains the optimal name for its
WAP enabled site, ie a .wap domain name rather than a name in another gTLD,
which would fail to capture the informational efficiencies of .wap. Detailed Structure of the gTLD sub domains. It is proposed that the TLD
will be divided into the following sub domains: .com, .co, .net, .org, .edu,
ac. Each of these sub domains
will be restricted. A registrant may register a domain name only if it is
already the registered owner of an identical domain name in the gTLD of the
same name. It is proposed that the TLD
will have further sub domains which mirror each of the ccTLDs, eg .uk, .ie.
Each of these sub domains will have sub sub domains which reflect the sub domains
of the relevant cc TLD, eg .co.uk, .com.au. A registrant may register in
each of sub sub domains or the sub domains only if it is the registered owner
of an identical domain name in the comparable sub domain of the relevant cc TLD
or, in the case of registrants for domain names in the sub domain, if it is the
registered owner of a domain name in the ccTLD. At a later stage the
registry may open registrations directly in the second level, eg
wirelessenabledwebsite.wap, but possibly restrict second level domian names to
firms which provide specialist products and services for WAP. This decision will be made in consultation
with ICANN and after experience of use of the TLD has been gained. Proposed special conditions: 1.
It
is a condition of registration that only websites which are specifically
adapted to WAP shall be addressed by a domain name within the TLD. 2.
Where
the Registry has cause to believe that websites which are not specifically
adapted to WAP are being hosted on a domain name within the TLD, Registry has a
right to issue a notice requiring registrant to demonstrate WAP capability
within 30 days to the registrant of any domain within .WAP 3.
Failure
to demonstrate WAP capabilities within the 30 days may, in the discretion of the Registry, result in the
suspension/deletion of the domain name concerned. 4.
Websites
promoted via unsolicited email may be suspended/revoked. It is proposed that the TLD
will be divided into the following sub domains: .com, .co, .net, .org, .edu,
ac. Each of these sub domains
will be restricted. A registrant may register a domain name only if it is
already the registered owner of an identical domain name in the gTLD of the
same name. It is proposed that the TLD
will have further sub domains which mirror each of the ccTLDs, eg .uk, .ie.
Each of these sub domains will have sub sub domains which reflect the sub
domains of the relevant cc TLD, eg .co.uk, .com.au. A registrant may register in
each of sub sub domains or the sub domains only if it is the registered owner
of an identical domain name in the comparable sub domain of the relevant cc TLD
or, in the case of registrants for domain names in the sub domain, if it is the
registered owner of a domain name in the ccTLD. At a later stage the
registry may open registrations directly in the second level, eg
wirelessenabledwebsite.wap. This decision will be made in consultation with
ICANN and after experience of use of the TLD has been gained. Registration will be
restricted to domain names which reflect a registered domain name in another
gTLD or a ccTLD and will be required to be the same except for the suffix .wap.
The Registry’s application form will make provision for this information and
the Registry’s verification will be automated. SCHEDULE 3 ·
Chinese meanings TLDs. The English words and
characters set out below: .SanSanSan (meaning 333) and
three33 (as one gTLD) .BaBaBa (meaning 888) and
eight88 (as one gTLD) Shuang Xi (Double Happiness) Fu (Good Fortune) Hao Yuen (Good Luck) Hao (Good) Xing Yun (Fortune, riches) At a later stage Rathbawn
will seek ICANN approval to add to the existing gTLDs as an alternative form of
expression the Chinese characters both simplified and traditional for each of
these expression. These characters are shown in Annexure 1 to this Schedule.
Rathbawn will also seek allocation (as a form of the same gTLDs) of .SanSanSan
and .BaBaBa. These proposed gTLDs are
intended to address the fact that the DNS does not presently respect the needs
of foreign language speakers to have gTLDs which have significance in their own
language. The proposed gTLDS are a staging point.
It is intended as soon as ICANN is satisfied that it is feasible to do so
(which Rathbawn believes will be the case very shortly), to seek the addition
within each of the separate gTLDs of Chinese characters to designate the TLD.
By these means, Chinese speakers would be able to have both an English language
and Chinese domain name which was one and the same. These proposals are the first time a proposal has been advanced
which would make the building blocks of
the Internet cross-culturally friendly.
By way of illustration of
how the gTLDs may eventually be expected to serve registrants, one TLD will
consist of .BaBaBa and .[chinese characters for 888], so that the registrant of
a domain name may represent their name as either chinesename.BaBaBa or
chinesename.[Chinese characters for 888] as the particular location, audience
or occasion suggests. A domain name registrant could thus have its name in
Chinese characters with the Chinese characters for the gTLD on one side of a
business card and the Anglicised name and Anglicised gTLD name on the other. The applicant appreciates
that software will need to be developed to enable to root servers to recognise
the Chinese characters as identifying the relevant TLDs. This process is not
unduly complex and is already in hand. Domain names will be
delegated at the second level directly to end-user registrants. It is
anticipated that the majority of registrations will be of words or names in
Chinese characters. The proposed Chinese names will
provide a completely new and untapped market for domain name registrations. We
expect a large number of registrations initially to come from Chinese internet
users who have already registered in other tlds but prefer to migrate. Over time, China will have the largest population
of Internet users in the world and this domain would help the growth of the
internet in the region. SCHEDULE 4 ADULT CONTENT TLDS xxx and .sex (separate gTLDs) We believe that that there
will be a significant rush for the allocation of certain “desirable” domain
names. We would anticipate that this
period will last up to 3 months. For the initial period of three months all
registrations will be held in escrow. All domain names shall be released from
escrow at the expiration of three months, except domain names the subject of a
complaint as described below. If before the period of three months has expired
the Registry receives verified evidence that a person (“the claimant”) other
than the registrant was on 30 September 2000 the owner of an identical domain
name in .com or .net which carried at that date an active webpage from which
the person was carrying on business, then following notice to the registrant
and the auditor, the Registry shall, if the auditor so recommends, cancel the
registration and refund the price to the registrar. The Registry shall then
allot the domain name to the claimant. If the auditor does not recommend
cancellation, the domain name shall be released from escrow. There are several objectives
for this proposal. It is intended to faciliate established operators of
sexually explicit sites to register the domain names which are identical to the
names they already hold in other gTLDs. This in turn is calculated to
facilitate the tasks of governments which wish to mandate a migration of
sexually explicit sites to the new gTLDs. It is not expected that this will
happen immediately. It will not happen at all in many places. But it is a real
prospect in some countries that legislation would be enacted which provided
that only those sexually explicit sites which were in the new gTLDs should be
lawfully capable of being viewed in the country enacting the law. The public
policy behind such a law might be that collecting all sexually explicit sites
under dedicated gTLDs would render the task of screening much easier, both at
the state and family levels. The applicants consider
that, given the opportunities which the proposed gTLDs offer for more effective
regulation, fairness considerations suggest that existing operators should be
afforded the opportunity to register existing domain names in the new TLDs so
as to avoid any risk of loss in the event that migration were to be mandated in
any jurisdiction. We estimate that up to 1.2
million applications will be received during the first month. This falls well within the proposed registry
specification. We feel that the
introduction of this TLD will have the effect of serving the needs of all
Internet users. Whilst adult site
operators will be the largest group of registrants the benefit provided by the
registry’s service is far broader. To
the extent that this TLD fulfills both the needs of adult website operators and
Internet users (particularly sensitive groups such as children or
religiously/morally opposed persons) we feel that this proposal offers a
service unique to that provided by existing gTLD / ccTLD delegations. Our proposal offers
advantages to all key stakeholders: -
Adult
website operators are able to disseminate information in an effective manner to
their target audience -
Appropriately
verified adult website viewers are able to easily locate content which falls
into this category -
Children
and other sensitive persons are adequately protected from accidental or
unintended exposure to such materials -
Law
enforcement bodies and other authorities are able to take effective action
against breaches of local law -
Governments
may enact legislation appropriate to their cultural heritage and social climate
which defines a balance between the rights of citizens and the need to observe
appropriate viewing practices The delegation of .xxx and .sex and their management under the
terms of this proposal would make additional functionality available to search
engines, browser software, content filtering utilities and the like. This functionality serves dual purposes and
has the effect of benefiting the community at large as well as Internet users
interested in accessing materials within the TLDs or operating websites within
the TLDs. SCHEDULE 5 .afr and .africa (to be administered as separate TLDs) These proposed gTLDs do not
comply with ICANN’s current policy of confining TLDs which have geographic
significance to ccTLDs. However, Rathbawn believes
that the ccTLDs have poorly served the African continent for a variety of
reasons. Rathbawn considers that, whilst the proposed TLDs would be the least
profitable, they would serve a public interest objective of promoting the
concept of an African continent internet market. Rathbawn considers that the
current ICANN policy in its application to Africa in particular is, on balance,
difficult to support. Rathbawn believes that the
optimal outcome would be for the proposed TLDs to be granted along with more
commercially atttractive TLDs, thus enabling the provision of extremely low
cost names in the proposed TLDs. The proposed TLDs are not viable as stand
alone registries. As an indicative guide, Rathbawn expects that it would be
able to offer registration services for the proposed TLDs at $2.50 if their
administration were combined with a more commercially viable TLD group. Domain names will be
delegated at the second level (malawicrops.africa) directly to end-user
registrants, with the exception of the following: a.
.gov/.govt.country
name.africa b.
.edu/.ac.country
name.africa which will be reserved for
governments and academic institutions of the country concerned and: c.
.gov/govt.africa;
and d.
edu/ac.africa which will be reserved for
pan African governmental and academic institutions respectively; and e.
countryname.africa f.
.com.africa
and .co.africa g.
.net.africa h.
.org.africa which will be reserved as
sub-domains The Registry will have the
right to refuse, and within thirty days of registration, cancel the
registration of any domain name which the Registry reasonably considers to
convey a false representation of association with a government, establishment
or business. E12. How do you propose to
address the potential rush for registration at the initial opening of the TLD?
How many requested registrations do you project will be received by the
registry operator within the first day, week, month, and quarter? What period
do you believe should be considered the TLD's "start‑up
period," during which special procedures should apply? We do not consider that
there will be an exceptional initial rush, although the registry will be
prepared for one. We estimate that the demand for the TLD will grow as
stakeholders learn of its superior price/quality mix. We estimate that up to
1.0 million applications will be received during the first year. This falls well within the proposed registry
specification. The registry will be comfortably able to handle registrations at
many times this level. The TLD will designate a
connection with the African continent, rather than with a particular country.
It will: a.
overcome existing barriers to acquisition of an
African domain name; b.
support
the emergence of the concept of a single African electronic commercial zone; c.
access
economies of scale not available to African ccTLDs; d.
bring
world’s lowest cost and best practice to African domain names.. Our proposal offers
advantages to all key stakeholders. It will overcome existing barriers to
acquisition of an African domain name, support the emergence of the concept of
a single African electronic commercial zone, access economies of scale not
available to African ccTLDs and bring world’s lowest cost and best practice to
African domain names. Our proposal will promote the emergence of pan African
electronic commerce and be a source of pressure for minimisation of the
complications represented by having a large number of extremely poor countries
most of which are unable individually to make significant progress towards
economic progress by recourse to internet assisted commerce and information
exchange. The proposal will bring the
world’s cheapest and best practice registry functionality to the continent
which needs it most. SCHEDULE 6 ACCOMPANYING DOCUMENT (withdrawn by applicant) SCHEDULE 7 FINANCIALS .xxx It appears that at least 10% of all web sites contain
pornographic material[1].
There are currently around 28.7m registered domains[2]
and this market is growing at 10% per quarter. We expect registrations at a rate comparable to 15% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 20% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 50% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2 per annum in 2003. .ltd Overall market size 66.4% of domain registrations are by businesses rather
than consumers[3]. We expect registrations at a rate comparable to 15% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 20% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 50% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2 per annum in 2003. .chinese name overall market
size China currently has 18m people online, which
represents 5.4% of the world internet population[4].
This population is expected to grow to 125m by 2003[5].
We assume therefore that the current market size is
5.4% of 28.7m which is 1.55m. This market should grow at the same rate of
internet useage which is approximately 90% per annum. We expect registrations at a rate comparable to 15% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 20% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 50% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2 per annum in 2003. .wap overall market size there are currently 24,000 WML enabled web sites in the
world. This is growing at a rate of 100% every quarter. We also expect that
around 5% of the current business registrants of domain names would also
register a .wap domain. We expect registrations at a rate comparable to 15% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 20% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2.50 per annum in 2003. We expect registrations at a rate comparable to 50% of the
total current market within 12 months. Price per domain decreases from $3 per
annum to $2 per annum in 2003. .africa overall market size Current Internet users in Africa are 1.2m[6].
This represents 0.36% of the online population world wide. This market is
growing at approximately 100% per annum[7].
We expect registrations at a rate comparable to 15% of the
total current market within 12 months. We expect registrations at a rate comparable to 20% of the
total current market within 12 months. We expect registrations at a rate comparable to 50% of the
total current market within 12 months. Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .africa @ 10 % confidence REGISTRATION VOLUME 51,660.00 154,980.00 464,940.00 1,394,820.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $154,980.00 $464,940.00 $1,162,350.00 $3,487,050.00 LESS EXPENSES Accountancy $812.07 $2,436.21 $6,090.54 $18,271.61 Advertising & Marketing $25,830.00 $77,490.00 $232,470.00 $697,410.00 Bank Charges $451.82 $1,355.45 $3,388.62 $10,165.87 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $30,000.00 $90,000.00 $270,000.00 Computer Supplies $15,000.00 $45,000.00 $112,500.00 $337,500.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $388.29 $1,164.86 $2,912.14 $8,736.42 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $167.30 $501.90 $1,254.76 $3,764.27 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $15,000.00 $45,000.00 $135,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,730.25 $81,777.94 $143,111.39 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,494,604.79 $2,132,262.12 $3,239,874.16 $5,414,044.79 TAXATION $- $(333,464.42) $(415,504.83) $(635,908.28) NPAT $(1,339,624.79) $(1,333,857.70) $(1,662,019.32) $(1,291,086.51) Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,375,449.60 $2,250,899.20 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $124,550.40 $124,550.40 $124,550.40 Net Cash In (non-investment) $(50,000.00) $(124,550.40) $(124,550.40) $(124,550.40) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,375,449.60 $2,250,899.20 $2,126,348.80 February March April May Starting Bank $2,126,348.80 $2,014,713.40 $1,903,078.01 $1,791,442.61 Cash In (non-investment) $12,915.00 $12,915.00 $12,915.00 $12,915.00 Cash Out $124,550.40 $124,550.40 $124,550.40 $124,550.40 Net Cash In (non-investment) $(111,635.40) $(111,635.40) $(111,635.40) $(111,635.40) Investment $- Finishing Bank $2,014,713.40 $1,903,078.01 $1,791,442.61 $1,679,807.21 June July August September Starting Bank $1,679,807.21 $1,568,171.81 $1,456,536.41 $1,344,901.01 Cash In (non-investment) $12,915.00 $12,915.00 $12,915.00 $12,915.00 Cash Out $124,550.40 $124,550.40 $124,550.40 $124,550.40 Net Cash In (non-investment) $(111,635.40) $(111,635.40) $(111,635.40) $(111,635.40) Investment $- Finishing Bank $1,568,171.81 $1,456,536.41 $1,344,901.01 $1,233,265.61 October November December January Starting Bank $1,233,265.61 $1,121,630.21 $1,009,994.82 $898,359.42 Cash In (non-investment) $12,915.00 $12,915.00 $12,915.00 $12,915.00 Cash Out $124,550.40 $124,550.40 $124,550.40 $124,550.40 Net Cash In (non-investment) $(111,635.40) $(111,635.40) $(111,635.40) $(111,635.40) Investment $- $- $- $- Finishing Bank $1,121,630.21 $1,009,994.82 $898,359.42 $786,724.02 February March April May Starting Bank $786,724.02 $647,780.51 $508,837.00 $369,893.49 Cash In (non-investment) $38,745.00 $38,745.00 $38,745.00 $38,745.00 Cash Out $177,688.51 $177,688.51 $177,688.51 $177,688.51 Net Cash In (non-investment) $(138,943.51) $(138,943.51) $(138,943.51) $(138,943.51) Investment $- $- $- $- Finishing Bank $647,780.51 $508,837.00 $369,893.49 $230,949.98 June July August September Starting Bank $230,949.98 $92,006.47 $(46,937.04) $(185,880.55) Cash In (non-investment) $38,745.00 $38,745.00 $38,745.00 $38,745.00 Cash Out $177,688.51 $177,688.51 $177,688.51 $177,688.51 Net Cash In (non-investment) $(138,943.51) $(138,943.51) $(138,943.51) $(138,943.51) Investment $- $- $- $- Finishing Bank $92,006.47 $(46,937.04) $(185,880.55) $(324,824.07) October November December January Starting Bank $(324,824.07) $(463,767.58) $(602,711.09) $(741,654.60) Cash In (non-investment) $38,745.00 $38,745.00 $38,745.00 $38,745.00 Cash Out $177,688.51 $177,688.51 $177,688.51 $177,688.51 Net Cash In (non-investment) $(138,943.51) $(138,943.51) $(138,943.51) $(138,943.51) Investment $- $- $- $- Finishing Bank $(463,767.58) $(602,711.09) $(741,654.60) $(880,598.11) February March April May Starting Bank $(880,598.11) $(1,053,725.12) $(1,226,852.13) $(1,399,979.15) Cash In (non-investment) $96,862.50 $96,862.50 $96,862.50 $96,862.50 Cash Out $269,989.51 $269,989.51 $269,989.51 $269,989.51 Net Cash In (non-investment) $(173,127.01) $(173,127.01) $(173,127.01) $(173,127.01) Investment $- $- $- $- Finishing Bank $(1,053,725.12) $(1,226,852.13) $(1,399,979.15) $(1,573,106.16) Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .africa @ 75 % confidence REGISTRATION VOLUME 20,664.00 61,992.00 185,976.00 557,928.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $61,992.00 $185,976.00 $464,940.00 $1,394,820.00 LESS EXPENSES Accountancy $324.83 $974.49 $2,436.21 $7,308.64 Advertising & Marketing $10,332.00 $30,996.00 $92,988.00 $278,964.00 Bank Charges $180.73 $542.18 $1,355.45 $4,066.35 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $30,000.00 $90,000.00 $270,000.00 Computer Supplies $15,000.00 $45,000.00 $112,500.00 $337,500.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $155.31 $465.94 $1,164.86 $3,494.57 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $66.92 $200.76 $501.90 $1,505.71 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $15,000.00 $45,000.00 $135,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,730.25 $81,777.94 $143,111.39 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,478,015.10 $2,082,493.07 $3,092,204.52 $4,971,035.88 TAXATION $- $(379,303.41) $(525,452.90) $(1,180,151.24) NPAT $(1,416,023.10) $(1,517,213.66) $(2,101,811.62) $(2,396,064.64) Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,376,832.07 $2,253,664.15 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $123,167.93 $123,167.93 $123,167.93 Net Cash In (non-investment) $(50,000.00) $(123,167.93) $(123,167.93) $(123,167.93) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,376,832.07 $2,253,664.15 $2,130,496.22 February March April May Starting Bank $2,130,496.22 $2,012,494.30 $1,894,492.37 $1,776,490.45 Cash In (non-investment) $5,166.00 $5,166.00 $5,166.00 $5,166.00 Cash Out $123,167.93 $123,167.93 $123,167.93 $123,167.93 Net Cash In (non-investment) $(118,001.93) $(118,001.93) $(118,001.93) $(118,001.93) Investment $- Finishing Bank $2,012,494.30 $1,894,492.37 $1,776,490.45 $1,658,488.52 June July August September Starting Bank $1,658,488.52 $1,540,486.60 $1,422,484.67 $1,304,482.75 Cash In (non-investment) $5,166.00 $5,166.00 $5,166.00 $5,166.00 Cash Out $123,167.93 $123,167.93 $123,167.93 $123,167.93 Net Cash In (non-investment) $(118,001.93) $(118,001.93) $(118,001.93) $(118,001.93) Investment $- Finishing Bank $1,540,486.60 $1,422,484.67 $1,304,482.75 $1,186,480.82 October November December January Starting Bank $1,186,480.82 $1,068,478.90 $950,476.97 $832,475.05 Cash In (non-investment) $5,166.00 $5,166.00 $5,166.00 $5,166.00 Cash Out $123,167.93 $123,167.93 $123,167.93 $123,167.93 Net Cash In (non-investment) $(118,001.93) $(118,001.93) $(118,001.93) $(118,001.93) Investment $- $- $- $- Finishing Bank $1,068,478.90 $950,476.97 $832,475.05 $714,473.12 February March April May Starting Bank $714,473.12 $556,430.03 $398,386.95 $240,343.86 Cash In (non-investment) $15,498.00 $15,498.00 $15,498.00 $15,498.00 Cash Out $173,541.09 $173,541.09 $173,541.09 $173,541.09 Net Cash In (non-investment) $(158,043.09) $(158,043.09) $(158,043.09) $(158,043.09) Investment $- $- $- $- Finishing Bank $556,430.03 $398,386.95 $240,343.86 $82,300.77 June July August September Starting Bank $82,300.77 $(75,742.32) $(233,785.41) $(391,828.50) Cash In (non-investment) $15,498.00 $15,498.00 $15,498.00 $15,498.00 Cash Out $173,541.09 $173,541.09 $173,541.09 $173,541.09 Net Cash In (non-investment) $(158,043.09) $(158,043.09) $(158,043.09) $(158,043.09) Investment $- $- $- $- Finishing Bank $(75,742.32) $(233,785.41) $(391,828.50) $(549,871.59) October November December January Starting Bank $(549,871.59) $(707,914.68) $(865,957.77) $(1,024,000.86) Cash In (non-investment) $15,498.00 $15,498.00 $15,498.00 $15,498.00 Cash Out $173,541.09 $173,541.09 $173,541.09 $173,541.09 Net Cash In (non-investment) $(158,043.09) $(158,043.09) $(158,043.09) $(158,043.09) Investment $- $- $- $- Finishing Bank $(707,914.68) $(865,957.77) $(1,024,000.86) $(1,182,043.95) February March April May Starting Bank $(1,182,043.95) $(1,400,982.66) $(1,619,921.37) $(1,838,860.08) Cash In (non-investment) $38,745.00 $38,745.00 $38,745.00 $38,745.00 Cash Out $257,683.71 $257,683.71 $257,683.71 $257,683.71 Net Cash In (non-investment) $(218,938.71) $(218,938.71) $(218,938.71) $(218,938.71) Investment $- $- $- $- Finishing Bank $(1,400,982.66) $(1,619,921.37) $(1,838,860.08) $(2,057,798.79) Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .africa @ 90 % confidence REGISTRATION VOLUME 15,498.00 46,494.00 139,482.00 418,446.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $46,494.00 $139,482.00 $348,705.00 $1,046,115.00 LESS EXPENSES Accountancy $243.62 $730.86 $1,827.16 $5,481.48 Advertising & Marketing $7,749.00 $23,247.00 $69,741.00 $209,223.00 Bank Charges $135.54 $406.63 $1,016.59 $3,049.76 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $30,000.00 $90,000.00 $270,000.00 Computer Supplies $15,000.00 $45,000.00 $112,500.00 $337,500.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $116.49 $349.46 $873.64 $2,620.93 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $50.19 $150.57 $376.43 $1,129.28 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $15,000.00 $45,000.00 $135,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,730.25 $81,777.94 $143,111.39 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,475,250.15 $2,074,198.23 $3,067,592.91 $4,897,201.07 TAXATION $- $(386,943.25) $(543,777.58) $(1,270,858.40) NPAT $(1,428,756.15) $(1,547,772.98) $(2,175,110.33) $(2,580,227.66) Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,377,062.49 $2,254,124.97 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $122,937.51 $122,937.51 $122,937.51 Net Cash In (non-investment) $(50,000.00) $(122,937.51) $(122,937.51) $(122,937.51) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,377,062.49 $2,254,124.97 $2,131,187.46 February March April May Starting Bank $2,131,187.46 $2,012,124.45 $1,893,061.44 $1,773,998.42 Cash In (non-investment) $3,874.50 $3,874.50 $3,874.50 $3,874.50 Cash Out $122,937.51 $122,937.51 $122,937.51 $122,937.51 Net Cash In (non-investment) $(119,063.01) $(119,063.01) $(119,063.01) $(119,063.01) Investment $- Finishing Bank $2,012,124.45 $1,893,061.44 $1,773,998.42 $1,654,935.41 June July August September Starting Bank $1,654,935.41 $1,535,872.40 $1,416,809.38 $1,297,746.37 Cash In (non-investment) $3,874.50 $3,874.50 $3,874.50 $3,874.50 Cash Out $122,937.51 $122,937.51 $122,937.51 $122,937.51 Net Cash In (non-investment) $(119,063.01) $(119,063.01) $(119,063.01) $(119,063.01) Investment $- Finishing Bank $1,535,872.40 $1,416,809.38 $1,297,746.37 $1,178,683.36 October November December January Starting Bank $1,178,683.36 $1,059,620.35 $940,557.33 $821,494.32 Cash In (non-investment) $3,874.50 $3,874.50 $3,874.50 $3,874.50 Cash Out $122,937.51 $122,937.51 $122,937.51 $122,937.51 Net Cash In (non-investment) $(119,063.01) $(119,063.01) $(119,063.01) $(119,063.01) Investment $- $- $- $- Finishing Bank $1,059,620.35 $940,557.33 $821,494.32 $702,431.31 February March April May Starting Bank $702,431.31 $541,204.96 $379,978.60 $218,752.25 Cash In (non-investment) $11,623.50 $11,623.50 $11,623.50 $11,623.50 Cash Out $172,849.85 $172,849.85 $172,849.85 $172,849.85 Net Cash In (non-investment) $(161,226.35) $(161,226.35) $(161,226.35) $(161,226.35) Investment $- $- $- $- Finishing Bank $541,204.96 $379,978.60 $218,752.25 $57,525.90 June July August September Starting Bank $57,525.90 $(103,700.45) $(264,926.81) $(426,153.16) Cash In (non-investment) $11,623.50 $11,623.50 $11,623.50 $11,623.50 Cash Out $172,849.85 $172,849.85 $172,849.85 $172,849.85 Net Cash In (non-investment) $(161,226.35) $(161,226.35) $(161,226.35) $(161,226.35) Investment $- $- $- $- Finishing Bank $(103,700.45) $(264,926.81) $(426,153.16) $(587,379.51) October November December January Starting Bank $(587,379.51) $(748,605.86) $(909,832.22) $(1,071,058.57) Cash In (non-investment) $11,623.50 $11,623.50 $11,623.50 $11,623.50 Cash Out $172,849.85 $172,849.85 $172,849.85 $172,849.85 Net Cash In (non-investment) $(161,226.35) $(161,226.35) $(161,226.35) $(161,226.35) Investment $- $- $- $- Finishing Bank $(748,605.86) $(909,832.22) $(1,071,058.57) $(1,232,284.92) February March April May Starting Bank $(1,232,284.92) $(1,458,858.91) $(1,685,432.91) $(1,912,006.90) Cash In (non-investment) $29,058.75 $29,058.75 $29,058.75 $29,058.75 Cash Out $255,632.74 $255,632.74 $255,632.74 $255,632.74 Net Cash In (non-investment) $(226,573.99) $(226,573.99) $(226,573.99) $(226,573.99) Investment $- $- $- $- Finishing Bank $(1,458,858.91) $(1,685,432.91) $(1,912,006.90) $(2,138,580.89) Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .chinesename @ 10 %
confidence REGISTRATION VOLUME 774,900.00 2,247,210.00 6,516,909.00 18,899,036.10 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $2,324,700.00 $6,741,630.00 $16,292,272.50 $47,247,590.25 LESS EXPENSES Accountancy $12,181.07 $35,325.11 $85,369.02 $247,570.15 Advertising & Marketing $387,450.00 $1,123,605.00 $3,258,454.50 $9,449,518.05 Bank Charges $6,777.25 $19,654.02 $47,497.21 $137,741.90 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $29,000.00 $84,100.00 $243,890.00 Computer Supplies $15,000.00 $43,500.00 $105,125.00 $304,862.50 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $5,824.28 $16,890.42 $40,818.52 $118,373.70 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $2,509.51 $7,277.59 $17,587.51 $51,003.77 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $14,500.00 $42,050.00 $121,945.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,062.68 $79,458.11 $137,065.25 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,881,697.43 $3,248,398.26 $6,424,940.02 $14,602,055.54 TAXATION $- $698,646.35 $1,973,466.50 $10,773,026.45 NPAT $443,002.57 $2,794,585.39 $7,893,865.98 $21,872,508.25 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,343,191.88 $2,186,383.76 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $156,808.12 $156,808.12 $156,808.12 Net Cash In (non-investment) $(50,000.00) $(156,808.12) $(156,808.12) $(156,808.12) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,343,191.88 $2,186,383.76 $2,029,575.64 February March April May Starting Bank $2,029,575.64 $2,066,492.52 $2,103,409.41 $2,140,326.29 Cash In (non-investment) $193,725.00 $193,725.00 $193,725.00 $193,725.00 Cash Out $156,808.12 $156,808.12 $156,808.12 $156,808.12 Net Cash In (non-investment) $36,916.88 $36,916.88 $36,916.88 $36,916.88 Investment $- Finishing Bank $2,066,492.52 $2,103,409.41 $2,140,326.29 $2,177,243.17 June July August September Starting Bank $2,177,243.17 $2,214,160.05 $2,251,076.93 $2,287,993.81 Cash In (non-investment) $193,725.00 $193,725.00 $193,725.00 $193,725.00 Cash Out $156,808.12 $156,808.12 $156,808.12 $156,808.12 Net Cash In (non-investment) $36,916.88 $36,916.88 $36,916.88 $36,916.88 Investment $- Finishing Bank $2,214,160.05 $2,251,076.93 $2,287,993.81 $2,324,910.69 October November December January Starting Bank $2,324,910.69 $2,361,827.57 $2,398,744.45 $2,435,661.33 Cash In (non-investment) $193,725.00 $193,725.00 $193,725.00 $193,725.00 Cash Out $156,808.12 $156,808.12 $156,808.12 $156,808.12 Net Cash In (non-investment) $36,916.88 $36,916.88 $36,916.88 $36,916.88 Investment $- $- $- $- Finishing Bank $2,361,827.57 $2,398,744.45 $2,435,661.33 $2,472,578.22 February March April May Starting Bank $2,472,578.22 $2,763,680.86 $3,054,783.50 $3,345,886.15 Cash In (non-investment) $561,802.50 $561,802.50 $561,802.50 $561,802.50 Cash Out $270,699.86 $270,699.86 $270,699.86 $270,699.86 Net Cash In (non-investment) $291,102.64 $291,102.64 $291,102.64 $291,102.64 Investment $- $- $- $- Finishing Bank $2,763,680.86 $3,054,783.50 $3,345,886.15 $3,636,988.79 June July August September Starting Bank $3,636,988.79 $3,928,091.44 $4,219,194.08 $4,510,296.73 Cash In (non-investment) $561,802.50 $561,802.50 $561,802.50 $561,802.50 Cash Out $270,699.86 $270,699.86 $270,699.86 $270,699.86 Net Cash In (non-investment) $291,102.64 $291,102.64 $291,102.64 $291,102.64 Investment $- $- $- $- Finishing Bank $3,928,091.44 $4,219,194.08 $4,510,296.73 $4,801,399.37 October November December January Starting Bank $4,801,399.37 $5,092,502.02 $5,383,604.66 $5,674,707.31 Cash In (non-investment) $561,802.50 $561,802.50 $561,802.50 $561,802.50 Cash Out $270,699.86 $270,699.86 $270,699.86 $270,699.86 Net Cash In (non-investment) $291,102.64 $291,102.64 $291,102.64 $291,102.64 Investment $- $- $- $- Finishing Bank $5,092,502.02 $5,383,604.66 $5,674,707.31 $5,965,809.95 February March April May Starting Bank $5,965,809.95 $6,788,087.66 $7,610,365.36 $8,432,643.07 Cash In (non-investment) $1,357,689.38 $1,357,689.38 $1,357,689.38 $1,357,689.38 Cash Out $535,411.67 $535,411.67 $535,411.67 $535,411.67 Net Cash In (non-investment) $822,277.71 $822,277.71 $822,277.71 $822,277.71 Investment $- $- $- $- Finishing Bank $6,788,087.66 $7,610,365.36 $8,432,643.07 $9,254,920.78 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .chinesename @ 75 %
confidence REGISTRATION VOLUME 309,960.00 898,884.00 2,606,763.60 7,559,614.44 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $929,880.00 $2,696,652.00 $6,516,909.00 $18,899,036.10 LESS EXPENSES Accountancy $4,872.43 $14,130.04 $34,147.61 $99,028.06 Advertising & Marketing $154,980.00 $449,442.00 $1,303,381.80 $3,779,807.22 Bank Charges $2,710.90 $7,861.61 $18,998.88 $55,096.76 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $29,000.00 $84,100.00 $243,890.00 Computer Supplies $15,000.00 $43,500.00 $105,125.00 $304,862.50 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $2,329.71 $6,756.17 $16,327.41 $47,349.48 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $1,003.81 $2,911.04 $7,035.00 $20,401.51 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $14,500.00 $42,050.00 $121,945.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,062.68 $79,458.11 $137,065.25 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,632,852.16 $2,526,746.98 $4,355,103.97 $8,599,531.00 TAXATION $- $33,981.00 $432,361.01 $3,398,836.68 NPAT $(702,972.16) $135,924.02 $1,729,444.02 $6,900,668.42 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,363,928.99 $2,227,857.97 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $136,071.01 $136,071.01 $136,071.01 Net Cash In (non-investment) $(50,000.00) $(136,071.01) $(136,071.01) $(136,071.01) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,363,928.99 $2,227,857.97 $2,091,786.96 February March April May Starting Bank $2,091,786.96 $2,033,205.95 $1,974,624.93 $1,916,043.92 Cash In (non-investment) $77,490.00 $77,490.00 $77,490.00 $77,490.00 Cash Out $136,071.01 $136,071.01 $136,071.01 $136,071.01 Net Cash In (non-investment) $(58,581.01) $(58,581.01) $(58,581.01) $(58,581.01) Investment $- Finishing Bank $2,033,205.95 $1,974,624.93 $1,916,043.92 $1,857,462.91 June July August September Starting Bank $1,857,462.91 $1,798,881.89 $1,740,300.88 $1,681,719.87 Cash In (non-investment) $77,490.00 $77,490.00 $77,490.00 $77,490.00 Cash Out $136,071.01 $136,071.01 $136,071.01 $136,071.01 Net Cash In (non-investment) $(58,581.01) $(58,581.01) $(58,581.01) $(58,581.01) Investment $- Finishing Bank $1,798,881.89 $1,740,300.88 $1,681,719.87 $1,623,138.86 October November December January Starting Bank $1,623,138.86 $1,564,557.84 $1,505,976.83 $1,447,395.82 Cash In (non-investment) $77,490.00 $77,490.00 $77,490.00 $77,490.00 Cash Out $136,071.01 $136,071.01 $136,071.01 $136,071.01 Net Cash In (non-investment) $(58,581.01) $(58,581.01) $(58,581.01) $(58,581.01) Investment $- $- $- $- Finishing Bank $1,564,557.84 $1,505,976.83 $1,447,395.82 $1,388,814.80 February March April May Starting Bank $1,388,814.80 $1,402,973.55 $1,417,132.31 $1,431,291.06 Cash In (non-investment) $224,721.00 $224,721.00 $224,721.00 $224,721.00 Cash Out $210,562.25 $210,562.25 $210,562.25 $210,562.25 Net Cash In (non-investment) $14,158.75 $14,158.75 $14,158.75 $14,158.75 Investment $- $- $- $- Finishing Bank $1,402,973.55 $1,417,132.31 $1,431,291.06 $1,445,449.81 June July August September Starting Bank $1,445,449.81 $1,459,608.56 $1,473,767.31 $1,487,926.06 Cash In (non-investment) $224,721.00 $224,721.00 $224,721.00 $224,721.00 Cash Out $210,562.25 $210,562.25 $210,562.25 $210,562.25 Net Cash In (non-investment) $14,158.75 $14,158.75 $14,158.75 $14,158.75 Investment $- $- $- $- Finishing Bank $1,459,608.56 $1,473,767.31 $1,487,926.06 $1,502,084.82 October November December January Starting Bank $1,502,084.82 $1,516,243.57 $1,530,402.32 $1,544,561.07 Cash In (non-investment) $224,721.00 $224,721.00 $224,721.00 $224,721.00 Cash Out $210,562.25 $210,562.25 $210,562.25 $210,562.25 Net Cash In (non-investment) $14,158.75 $14,158.75 $14,158.75 $14,158.75 Investment $- $- $- $- Finishing Bank $1,516,243.57 $1,530,402.32 $1,544,561.07 $1,558,719.82 February March April May Starting Bank $1,558,719.82 $1,738,870.24 $1,919,020.66 $2,099,171.08 Cash In (non-investment) $543,075.75 $543,075.75 $543,075.75 $543,075.75 Cash Out $362,925.33 $362,925.33 $362,925.33 $362,925.33 Net Cash In (non-investment) $180,150.42 $180,150.42 $180,150.42 $180,150.42 Investment $- $- $- $- Finishing Bank $1,738,870.24 $1,919,020.66 $2,099,171.08 $2,279,321.50 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .chinesename @ 90 %
confidence REGISTRATION VOLUME 232,470.00 674,163.00 1,955,072.70 5,669,710.83 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $697,410.00 $2,022,489.00 $4,887,681.75 $14,174,277.08 LESS EXPENSES Accountancy $3,654.32 $10,597.53 $25,610.70 $74,271.04 Advertising & Marketing $116,235.00 $337,081.50 $977,536.35 $2,834,855.42 Bank Charges $2,033.17 $5,896.20 $14,249.16 $41,322.57 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $29,000.00 $84,100.00 $243,890.00 Computer Supplies $15,000.00 $43,500.00 $105,125.00 $304,862.50 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $1,747.28 $5,067.13 $12,245.56 $35,512.11 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $752.85 $2,183.28 $5,276.25 $15,301.13 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $14,500.00 $42,050.00 $121,945.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $46,062.68 $79,458.11 $137,065.25 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,591,377.95 $2,406,471.77 $4,010,131.30 $7,599,110.24 TAXATION $- $(76,796.55) $175,510.09 $2,169,805.05 NPAT $(893,967.95) $(307,186.21) $702,040.36 $4,405,361.78 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,367,385.17 $2,234,770.34 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $132,614.83 $132,614.83 $132,614.83 Net Cash In (non-investment) $(50,000.00) $(132,614.83) $(132,614.83) $(132,614.83) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,367,385.17 $2,234,770.34 $2,102,155.51 February March April May Starting Bank $2,102,155.51 $2,027,658.18 $1,953,160.86 $1,878,663.53 Cash In (non-investment) $58,117.50 $58,117.50 $58,117.50 $58,117.50 Cash Out $132,614.83 $132,614.83 $132,614.83 $132,614.83 Net Cash In (non-investment) $(74,497.33) $(74,497.33) $(74,497.33) $(74,497.33) Investment $- Finishing Bank $2,027,658.18 $1,953,160.86 $1,878,663.53 $1,804,166.20 June July August September Starting Bank $1,804,166.20 $1,729,668.87 $1,655,171.54 $1,580,674.21 Cash In (non-investment) $58,117.50 $58,117.50 $58,117.50 $58,117.50 Cash Out $132,614.83 $132,614.83 $132,614.83 $132,614.83 Net Cash In (non-investment) $(74,497.33) $(74,497.33) $(74,497.33) $(74,497.33) Investment $- Finishing Bank $1,729,668.87 $1,655,171.54 $1,580,674.21 $1,506,176.88 October November December January Starting Bank $1,506,176.88 $1,431,679.55 $1,357,182.22 $1,282,684.90 Cash In (non-investment) $58,117.50 $58,117.50 $58,117.50 $58,117.50 Cash Out $132,614.83 $132,614.83 $132,614.83 $132,614.83 Net Cash In (non-investment) $(74,497.33) $(74,497.33) $(74,497.33) $(74,497.33) Investment $- $- $- $- Finishing Bank $1,431,679.55 $1,357,182.22 $1,282,684.90 $1,208,187.57 February March April May Starting Bank $1,208,187.57 $1,176,189.00 $1,144,190.44 $1,112,191.88 Cash In (non-investment) $168,540.75 $168,540.75 $168,540.75 $168,540.75 Cash Out $200,539.31 $200,539.31 $200,539.31 $200,539.31 Net Cash In (non-investment) $(31,998.56) $(31,998.56) $(31,998.56) $(31,998.56) Investment $- $- $- $- Finishing Bank $1,176,189.00 $1,144,190.44 $1,112,191.88 $1,080,193.31 June July August September Starting Bank $1,080,193.31 $1,048,194.75 $1,016,196.18 $984,197.62 Cash In (non-investment) $168,540.75 $168,540.75 $168,540.75 $168,540.75 Cash Out $200,539.31 $200,539.31 $200,539.31 $200,539.31 Net Cash In (non-investment) $(31,998.56) $(31,998.56) $(31,998.56) $(31,998.56) Investment $- $- $- $- Finishing Bank $1,048,194.75 $1,016,196.18 $984,197.62 $952,199.06 October November December January Starting Bank $952,199.06 $920,200.49 $888,201.93 $856,203.36 Cash In (non-investment) $168,540.75 $168,540.75 $168,540.75 $168,540.75 Cash Out $200,539.31 $200,539.31 $200,539.31 $200,539.31 Net Cash In (non-investment) $(31,998.56) $(31,998.56) $(31,998.56) $(31,998.56) Investment $- $- $- $- Finishing Bank $920,200.49 $888,201.93 $856,203.36 $824,204.80 February March April May Starting Bank $824,204.80 $897,334.00 $970,463.21 $1,043,592.41 Cash In (non-investment) $407,306.81 $407,306.81 $407,306.81 $407,306.81 Cash Out $334,177.61 $334,177.61 $334,177.61 $334,177.61 Net Cash In (non-investment) $73,129.20 $73,129.20 $73,129.20 $73,129.20 Investment $- $- $- $- Finishing Bank $897,334.00 $970,463.21 $1,043,592.41 $1,116,721.62 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .llc @ 10 % confidence REGISTRATION VOLUME 9,528,400.00 22,868,160.00 54,883,584.00 131,720,601.60 REVENUE PER REGISTRATION $3.00 $3.00 $2.00 $2.00 TOTAL REVENUE $28,585,200.00 $68,604,480.00 $109,767,168.00 $263,441,203.20 LESS EXPENSES Accountancy $149,782.08 $359,476.98 $575,163.17 $1,380,391.62 Advertising & Marketing $4,764,200.00 $11,434,080.00 $27,441,792.00 $65,860,300.80 Bank Charges $83,335.04 $200,004.09 $320,006.54 $768,015.70 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $57,600.00 $138,240.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $71,617.11 $171,881.07 $275,009.71 $660,023.32 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $30,857.72 $74,058.54 $118,493.66 $284,384.78 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $6,566,747.26 $14,266,808.93 $31,607,304.93 $73,198,176.93 TAXATION $- $10,867,534.21 $15,631,972.61 $62,780,198.67 NPAT $22,018,452.74 $43,470,136.85 $62,527,890.46 $127,462,827.60 Cash Flows October November December January Starting Bank $- $2,500,000.00 $1,952,771.06 $1,405,542.12 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $547,228.94 $547,228.94 $547,228.94 Net Cash In (non-investment) $(50,000.00) $(547,228.94) $(547,228.94) $(547,228.94) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $1,952,771.06 $1,405,542.12 $858,313.18 February March April May Starting Bank $858,313.18 $2,693,184.25 $4,528,055.31 $6,362,926.37 Cash In (non-investment) $2,382,100.00 $2,382,100.00 $2,382,100.00 $2,382,100.00 Cash Out $547,228.94 $547,228.94 $547,228.94 $547,228.94 Net Cash In (non-investment) $1,834,871.06 $1,834,871.06 $1,834,871.06 $1,834,871.06 Investment $- Finishing Bank $2,693,184.25 $4,528,055.31 $6,362,926.37 $8,197,797.43 June July August September Starting Bank $8,197,797.43 $10,032,668.49 $11,867,539.55 $13,702,410.62 Cash In (non-investment) $2,382,100.00 $2,382,100.00 $2,382,100.00 $2,382,100.00 Cash Out $547,228.94 $547,228.94 $547,228.94 $547,228.94 Net Cash In (non-investment) $1,834,871.06 $1,834,871.06 $1,834,871.06 $1,834,871.06 Investment $- Finishing Bank $10,032,668.49
$11,867,539.55
$13,702,410.62
$15,537,281.68
October November December January Starting Bank $15,537,281.68 $17,372,152.74 $19,207,023.80 $21,041,894.86 Cash In (non-investment) $2,382,100.00 $2,382,100.00 $2,382,100.00 $2,382,100.00 Cash Out $547,228.94 $547,228.94 $547,228.94 $547,228.94 Net Cash In (non-investment) $1,834,871.06 $1,834,871.06 $1,834,871.06 $1,834,871.06 Investment $- $- $- $- Finishing Bank $17,372,152.74
$19,207,023.80
$21,041,894.86
$22,876,765.92
February March April May Starting Bank $22,876,765.92 $27,404,905.18 $31,933,044.43 $36,461,183.69 Cash In (non-investment) $5,717,040.00 $5,717,040.00 $5,717,040.00 $5,717,040.00 Cash Out $1,188,900.74 $1,188,900.74 $1,188,900.74 $1,188,900.74 Net Cash In (non-investment) $4,528,139.26 $4,528,139.26 $4,528,139.26 $4,528,139.26 Investment $- $- $- $- Finishing Bank $27,404,905.18
$31,933,044.43
$36,461,183.69
$40,989,322.95
Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .llc @ 75 % confidence REGISTRATION VOLUME 3,811,360.00 9,147,264.00 21,953,433.60 52,688,240.64 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $11,434,080.00 $27,441,792.00 $54,883,584.00 $131,720,601.60 LESS EXPENSES Accountancy $59,912.83 $143,790.79 $287,581.59 $690,195.81 Advertising & Marketing $1,905,680.00 $4,573,632.00 $10,976,716.80 $26,344,120.32 Bank Charges $33,334.01 $80,001.64 $160,003.27 $384,007.85 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $72,000.00 $172,800.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $28,646.85 $68,752.43 $137,504.86 $330,011.66 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $12,343.09 $29,623.41 $59,246.83 $142,192.39 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $3,506,872.09 $6,923,108.52 $14,512,293.18 $32,170,148.74 TAXATION $- $4,103,736.70 $8,074,258.16 $32,851,649.44 NPAT $7,927,207.91 $16,414,946.78 $32,297,032.65 $66,698,803.42 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,207,760.66 $1,915,521.32 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $292,239.34 $292,239.34 $292,239.34 Net Cash In (non-investment) $(50,000.00) $(292,239.34) $(292,239.34) $(292,239.34) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,207,760.66 $1,915,521.32 $1,623,281.98 February March April May Starting Bank $1,623,281.98 $2,283,882.64 $2,944,483.30 $3,605,083.95 Cash In (non-investment) $952,840.00 $952,840.00 $952,840.00 $952,840.00 Cash Out $292,239.34 $292,239.34 $292,239.34 $292,239.34 Net Cash In (non-investment) $660,600.66 $660,600.66 $660,600.66 $660,600.66 Investment $- Finishing Bank $2,283,882.64 $2,944,483.30 $3,605,083.95 $4,265,684.61 June July August September Starting Bank $4,265,684.61 $4,926,285.27 $5,586,885.93 $6,247,486.59 Cash In (non-investment) $952,840.00 $952,840.00 $952,840.00 $952,840.00 Cash Out $292,239.34 $292,239.34 $292,239.34 $292,239.34 Net Cash In (non-investment) $660,600.66 $660,600.66 $660,600.66 $660,600.66 Investment $- Finishing Bank $4,926,285.27 $5,586,885.93 $6,247,486.59 $6,908,087.25 October November December January Starting Bank $6,908,087.25 $7,568,687.91 $8,229,288.57 $8,889,889.23 Cash In (non-investment) $952,840.00 $952,840.00 $952,840.00 $952,840.00 Cash Out $292,239.34 $292,239.34 $292,239.34 $292,239.34 Net Cash In (non-investment) $660,600.66 $660,600.66 $660,600.66 $660,600.66 Investment $- $- $- $- Finishing Bank $7,568,687.91 $8,229,288.57 $8,889,889.23 $9,550,489.89 February March April May Starting Bank $9,550,489.89 $11,260,380.18 $12,970,270.46 $14,680,160.75 Cash In (non-investment) $2,286,816.00 $2,286,816.00 $2,286,816.00 $2,286,816.00 Cash Out $576,925.71 $576,925.71 $576,925.71 $576,925.71 Net Cash In (non-investment) $1,709,890.29 $1,709,890.29 $1,709,890.29 $1,709,890.29 Investment $- $- $- $- Finishing Bank $11,260,380.18
$12,970,270.46
$14,680,160.75
$16,390,051.04
Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .llc @ 90 % confidence REGISTRATION VOLUME 2,858,520.00 6,860,448.00 16,465,075.20 39,516,180.48 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $8,575,560.00 $20,581,344.00 $41,162,688.00 $98,790,451.20 LESS EXPENSES Accountancy $44,934.62 $107,843.10 $215,686.19 $517,646.86 Advertising & Marketing $1,429,260.00 $3,430,224.00 $8,232,537.60 $19,758,090.24 Bank Charges $25,000.51 $60,001.23 $120,002.45 $288,005.89 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $72,000.00 $172,800.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $21,485.13 $51,564.32 $103,128.64 $247,508.74 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $9,257.32 $22,217.56 $44,435.12 $106,644.29 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $2,996,892.90 $5,699,158.46 $11,607,029.85 $25,197,516.73 TAXATION $- $2,976,437.11 $5,911,131.63 $24,285,668.37 NPAT $5,578,667.10 $11,905,748.44 $23,644,526.52 $49,307,266.09 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,250,258.93 $2,000,517.85 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $249,741.07 $249,741.07 $249,741.07 Net Cash In (non-investment) $(50,000.00) $(249,741.07) $(249,741.07) $(249,741.07) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,250,258.93 $2,000,517.85 $1,750,776.78 February March April May Starting Bank $1,750,776.78 $2,215,665.70 $2,680,554.63 $3,145,443.55 Cash In (non-investment) $714,630.00 $714,630.00 $714,630.00 $714,630.00 Cash Out $249,741.07 $249,741.07 $249,741.07 $249,741.07 Net Cash In (non-investment) $464,888.93 $464,888.93 $464,888.93 $464,888.93 Investment $- Finishing Bank $2,215,665.70 $2,680,554.63 $3,145,443.55 $3,610,332.48 June July August September Starting Bank $3,610,332.48 $4,075,221.40 $4,540,110.33 $5,004,999.25 Cash In (non-investment) $714,630.00 $714,630.00 $714,630.00 $714,630.00 Cash Out $249,741.07 $249,741.07 $249,741.07 $249,741.07 Net Cash In (non-investment) $464,888.93 $464,888.93 $464,888.93 $464,888.93 Investment $- Finishing Bank $4,075,221.40 $4,540,110.33 $5,004,999.25 $5,469,888.18 October November December January Starting Bank $5,469,888.18 $5,934,777.10 $6,399,666.03 $6,864,554.95 Cash In (non-investment) $714,630.00 $714,630.00 $714,630.00 $714,630.00 Cash Out $249,741.07 $249,741.07 $249,741.07 $249,741.07 Net Cash In (non-investment) $464,888.93 $464,888.93 $464,888.93 $464,888.93 Investment $- $- $- $- Finishing Bank $5,934,777.10 $6,399,666.03 $6,864,554.95 $7,329,443.88 February March April May Starting Bank $7,329,443.88 $8,569,626.01 $9,809,808.14 $11,049,990.27 Cash In (non-investment) $1,715,112.00 $1,715,112.00 $1,715,112.00 $1,715,112.00 Cash Out $474,929.87 $474,929.87 $474,929.87 $474,929.87 Net Cash In (non-investment) $1,240,182.13 $1,240,182.13 $1,240,182.13 $1,240,182.13 Investment $- $- $- $- Finishing Bank $8,569,626.01 $9,809,808.14 $11,049,990.27
$12,290,172.39
Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .wap @ 10 % confidence REGISTRATION VOLUME 729,500.00 3,647,500.00 8,754,000.00 21,009,600.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.00 $2.00 TOTAL REVENUE $2,188,500.00 $10,942,500.00 $17,508,000.00 $42,019,200.00 LESS EXPENSES Accountancy $11,467.41 $57,337.03 $91,739.24 $220,174.18 Advertising & Marketing $364,750.00 $1,823,750.00 $4,377,000.00 $10,504,800.00 Bank Charges $6,380.18 $31,900.90 $51,041.44 $122,499.46 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $50,000.00 $120,000.00 $288,000.00 Computer Supplies $15,000.00 $75,000.00 $120,000.00 $288,000.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $5,483.05 $27,415.24 $43,864.39 $105,274.54 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $2,362.49 $11,812.43 $18,899.89 $45,359.73 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $25,000.00 $60,000.00 $144,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $60,081.75 $96,130.80 $153,809.28 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,857,398.43 $4,074,880.80 $7,643,155.92 $15,662,002.41 TAXATION $- $1,373,523.84 $1,972,968.82 $8,697,875.20 NPAT $331,101.57 $5,494,095.36 $7,891,875.26 $17,659,322.38 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,345,216.80 $2,190,433.59 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $154,783.20 $154,783.20 $154,783.20 Net Cash In (non-investment) $(50,000.00) $(154,783.20) $(154,783.20) $(154,783.20) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,345,216.80 $2,190,433.59 $2,035,650.39 February March April May Starting Bank $2,035,650.39 $2,063,242.19 $2,090,833.99 $2,118,425.78 Cash In (non-investment) $182,375.00 $182,375.00 $182,375.00 $182,375.00 Cash Out $154,783.20 $154,783.20 $154,783.20 $154,783.20 Net Cash In (non-investment) $27,591.80 $27,591.80 $27,591.80 $27,591.80 Investment $- Finishing Bank $2,063,242.19 $2,090,833.99 $2,118,425.78 $2,146,017.58 June July August September Starting Bank $2,146,017.58 $2,173,609.38 $2,201,201.18 $2,228,792.97 Cash In (non-investment) $182,375.00 $182,375.00 $182,375.00 $182,375.00 Cash Out $154,783.20 $154,783.20 $154,783.20 $154,783.20 Net Cash In (non-investment) $27,591.80 $27,591.80 $27,591.80 $27,591.80 Investment $- Finishing Bank $2,173,609.38 $2,201,201.18 $2,228,792.97 $2,256,384.77 October November December January Starting Bank $2,256,384.77 $2,283,976.57 $2,311,568.37 $2,339,160.16 Cash In (non-investment) $182,375.00 $182,375.00 $182,375.00 $182,375.00 Cash Out $154,783.20 $154,783.20 $154,783.20 $154,783.20 Net Cash In (non-investment) $27,591.80 $27,591.80 $27,591.80 $27,591.80 Investment $- $- $- $- Finishing Bank $2,283,976.57 $2,311,568.37 $2,339,160.16 $2,366,751.96 February March April May Starting Bank $2,366,751.96 $2,939,053.56 $3,511,355.16 $4,083,656.76 Cash In (non-investment) $911,875.00 $911,875.00 $911,875.00 $911,875.00 Cash Out $339,573.40 $339,573.40 $339,573.40 $339,573.40 Net Cash In (non-investment) $572,301.60 $572,301.60 $572,301.60 $572,301.60 Investment $- $- $- $- Finishing Bank $2,939,053.56 $3,511,355.16 $4,083,656.76 $4,655,958.36 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .wap @ 75 % confidence REGISTRATION VOLUME 291,800.00 1,459,000.00 3,501,600.00 8,403,840.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $875,400.00 $4,377,000.00 $8,754,000.00 $21,009,600.00 LESS EXPENSES Accountancy $4,586.96 $22,934.81 $45,869.62 $110,087.09 Advertising & Marketing $145,900.00 $729,500.00 $1,750,800.00 $4,201,920.00 Bank Charges $2,552.07 $12,760.36 $25,520.72 $61,249.73 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $50,000.00 $120,000.00 $288,000.00 Computer Supplies $15,000.00 $75,000.00 $150,000.00 $360,000.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $2,193.22 $10,966.10 $21,932.20 $52,637.27 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $944.99 $4,724.97 $9,449.94 $22,679.86 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $25,000.00 $60,000.00 $144,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $60,081.75 $96,130.80 $153,809.28 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,623,132.56 $2,903,551.44 $4,944,183.44 $9,184,468.46 TAXATION $- $294,689.71 $761,963.31 $3,902,293.41 NPAT $(747,732.56) $1,178,758.85 $3,047,853.25 $7,922,838.13 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,364,738.95 $2,229,477.91 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $135,261.05 $135,261.05 $135,261.05 Net Cash In (non-investment) $(50,000.00) $(135,261.05) $(135,261.05) $(135,261.05) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,364,738.95 $2,229,477.91 $2,094,216.86 February March April May Starting Bank $2,094,216.86 $2,031,905.81 $1,969,594.77 $1,907,283.72 Cash In (non-investment) $72,950.00 $72,950.00 $72,950.00 $72,950.00 Cash Out $135,261.05 $135,261.05 $135,261.05 $135,261.05 Net Cash In (non-investment) $(62,311.05) $(62,311.05) $(62,311.05) $(62,311.05) Investment $- Finishing Bank $2,031,905.81 $1,969,594.77 $1,907,283.72 $1,844,972.67 June July August September Starting Bank $1,844,972.67 $1,782,661.63 $1,720,350.58 $1,658,039.53 Cash In (non-investment) $72,950.00 $72,950.00 $72,950.00 $72,950.00 Cash Out $135,261.05 $135,261.05 $135,261.05 $135,261.05 Net Cash In (non-investment) $(62,311.05) $(62,311.05) $(62,311.05) $(62,311.05) Investment $- Finishing Bank $1,782,661.63 $1,720,350.58 $1,658,039.53 $1,595,728.49 October November December January Starting Bank $1,595,728.49 $1,533,417.44 $1,471,106.39 $1,408,795.35 Cash In (non-investment) $72,950.00 $72,950.00 $72,950.00 $72,950.00 Cash Out $135,261.05 $135,261.05 $135,261.05 $135,261.05 Net Cash In (non-investment) $(62,311.05) $(62,311.05) $(62,311.05) $(62,311.05) Investment $- $- $- $- Finishing Bank $1,533,417.44 $1,471,106.39 $1,408,795.35 $1,346,484.30 February March April May Starting Bank $1,346,484.30 $1,469,271.68 $1,592,059.06 $1,714,846.44 Cash In (non-investment) $364,750.00 $364,750.00 $364,750.00 $364,750.00 Cash Out $241,962.62 $241,962.62 $241,962.62 $241,962.62 Net Cash In (non-investment) $122,787.38 $122,787.38 $122,787.38 $122,787.38 Investment $- $- $- $- Finishing Bank $1,469,271.68 $1,592,059.06 $1,714,846.44 $1,837,633.82 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .wap @ 90 % confidence REGISTRATION VOLUME 218,850.00 1,094,250.00 2,626,200.00 6,302,880.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $656,550.00 $3,282,750.00 $6,565,500.00 $15,757,200.00 LESS EXPENSES Accountancy $3,440.22 $17,201.11 $34,402.22 $82,565.32 Advertising & Marketing $109,425.00 $547,125.00 $1,313,100.00 $3,151,440.00 Bank Charges $1,914.05 $9,570.27 $19,140.54 $45,937.30 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $50,000.00 $120,000.00 $288,000.00 Computer Supplies $15,000.00 $75,000.00 $150,000.00 $360,000.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $1,644.91 $8,224.57 $16,449.15 $39,477.95 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $708.75 $3,543.73 $7,087.46 $17,009.90 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $25,000.00 $60,000.00 $144,000.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $60,081.75 $96,130.80 $153,809.28 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,584,088.25 $2,708,329.88 $4,480,790.32 $8,072,324.97 TAXATION $- $114,884.02 $416,941.94 $2,536,008.76 NPAT $(927,538.25) $459,536.09 $1,667,767.74 $5,148,866.27 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,367,992.65 $2,235,985.29 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $132,007.35 $132,007.35 $132,007.35 Net Cash In (non-investment) $(50,000.00) $(132,007.35) $(132,007.35) $(132,007.35) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,367,992.65 $2,235,985.29 $2,103,977.94 February March April May Starting Bank $2,103,977.94 $2,026,683.08 $1,949,388.23 $1,872,093.38 Cash In (non-investment) $54,712.50 $54,712.50 $54,712.50 $54,712.50 Cash Out $132,007.35 $132,007.35 $132,007.35 $132,007.35 Net Cash In (non-investment) $(77,294.85) $(77,294.85) $(77,294.85) $(77,294.85) Investment $- Finishing Bank $2,026,683.08 $1,949,388.23 $1,872,093.38 $1,794,798.52 June July August September Starting Bank $1,794,798.52 $1,717,503.67 $1,640,208.81 $1,562,913.96 Cash In (non-investment) $54,712.50 $54,712.50 $54,712.50 $54,712.50 Cash Out $132,007.35 $132,007.35 $132,007.35 $132,007.35 Net Cash In (non-investment) $(77,294.85) $(77,294.85) $(77,294.85) $(77,294.85) Investment $- Finishing Bank $1,717,503.67 $1,640,208.81 $1,562,913.96 $1,485,619.11 October November December January Starting Bank $1,485,619.11 $1,408,324.25 $1,331,029.40 $1,253,734.54 Cash In (non-investment) $54,712.50 $54,712.50 $54,712.50 $54,712.50 Cash Out $132,007.35 $132,007.35 $132,007.35 $132,007.35 Net Cash In (non-investment) $(77,294.85) $(77,294.85) $(77,294.85) $(77,294.85) Investment $- $- $- $- Finishing Bank $1,408,324.25 $1,331,029.40 $1,253,734.54 $1,176,439.69 February March April May Starting Bank $1,176,439.69 $1,224,308.03 $1,272,176.38 $1,320,044.72 Cash In (non-investment) $273,562.50 $273,562.50 $273,562.50 $273,562.50 Cash Out $225,694.16 $225,694.16 $225,694.16 $225,694.16 Net Cash In (non-investment) $47,868.34 $47,868.34 $47,868.34 $47,868.34 Investment $- $- $- $- Finishing Bank $1,224,308.03 $1,272,176.38 $1,320,044.72 $1,367,913.06 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .xxx @ 10 % confidence REGISTRATION VOLUME 1,435,000.00 3,444,000.00 8,265,600.00 19,837,440.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.00 $2.00 TOTAL REVENUE $4,305,000.00 $10,332,000.00 $16,531,200.00 $39,674,880.00 LESS EXPENSES Accountancy $22,557.54 $54,138.10 $86,620.96 $207,890.30 Advertising & Marketing $717,500.00 $1,722,000.00 $4,132,800.00 $9,918,720.00 Bank Charges $12,550.46 $30,121.10 $48,193.76 $115,665.02 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $57,600.00 $138,240.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $10,785.71 $25,885.70 $41,417.13 $99,401.10 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $4,647.25 $11,153.39 $17,845.43 $42,829.03 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $2,234,996.27 $3,870,606.55 $7,203,717.11 $14,629,566.17 TAXATION $- $1,292,278.69 $1,865,496.58 $8,264,953.57 NPAT $2,070,003.73 $5,169,114.76 $7,461,986.31 $16,780,360.27 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,313,750.31 $2,127,500.62 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $186,249.69 $186,249.69 $186,249.69 Net Cash In (non-investment) $(50,000.00) $(186,249.69) $(186,249.69) $(186,249.69) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,313,750.31 $2,127,500.62 $1,941,250.93 February March April May Starting Bank $1,941,250.93 $2,113,751.24 $2,286,251.56 $2,458,751.87 Cash In (non-investment) $358,750.00 $358,750.00 $358,750.00 $358,750.00 Cash Out $186,249.69 $186,249.69 $186,249.69 $186,249.69 Net Cash In (non-investment) $172,500.31 $172,500.31 $172,500.31 $172,500.31 Investment $- Finishing Bank $2,113,751.24 $2,286,251.56 $2,458,751.87 $2,631,252.18 June July August September Starting Bank $2,631,252.18 $2,803,752.49 $2,976,252.80 $3,148,753.11 Cash In (non-investment) $358,750.00 $358,750.00 $358,750.00 $358,750.00 Cash Out $186,249.69 $186,249.69 $186,249.69 $186,249.69 Net Cash In (non-investment) $172,500.31 $172,500.31 $172,500.31 $172,500.31 Investment $- Finishing Bank $2,803,752.49 $2,976,252.80 $3,148,753.11 $3,321,253.42 October November December January Starting Bank $3,321,253.42 $3,493,753.73 $3,666,254.04 $3,838,754.35 Cash In (non-investment) $358,750.00 $358,750.00 $358,750.00 $358,750.00 Cash Out $186,249.69 $186,249.69 $186,249.69 $186,249.69 Net Cash In (non-investment) $172,500.31 $172,500.31 $172,500.31 $172,500.31 Investment $- $- $- $- Finishing Bank $3,493,753.73 $3,666,254.04 $3,838,754.35 $4,011,254.67 February March April May Starting Bank $4,011,254.67 $4,549,704.12 $5,088,153.57 $5,626,603.03 Cash In (non-investment) $861,000.00 $861,000.00 $861,000.00 $861,000.00 Cash Out $322,550.55 $322,550.55 $322,550.55 $322,550.55 Net Cash In (non-investment) $538,449.45 $538,449.45 $538,449.45 $538,449.45 Investment $- $- $- $- Finishing Bank $4,549,704.12 $5,088,153.57 $5,626,603.03 $6,165,052.48 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .xxx @ 75 % confidence REGISTRATION VOLUME 574,000.00 1,377,600.00 3,306,240.00 7,934,976.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $1,722,000.00 $4,132,800.00 $8,265,600.00 $19,837,440.00 LESS EXPENSES Accountancy $9,023.02 $21,655.24 $43,310.48 $103,945.15 Advertising & Marketing $287,000.00 $688,800.00 $1,653,120.00 $3,967,488.00 Bank Charges $5,020.18 $12,048.44 $24,096.88 $57,832.51 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $72,000.00 $172,800.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $4,314.28 $10,354.28 $20,708.56 $49,700.55 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $1,858.90 $4,461.36 $8,922.72 $21,414.52 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,774,171.69 $2,764,627.57 $4,641,398.48 $8,480,001.44 TAXATION $- $273,634.49 $724,840.30 $3,747,954.73 NPAT $(52,171.69) $1,094,537.94 $2,899,361.22 $7,609,483.84 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,352,152.36 $2,204,304.72 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $147,847.64 $147,847.64 $147,847.64 Net Cash In (non-investment) $(50,000.00) $(147,847.64) $(147,847.64) $(147,847.64) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,352,152.36 $2,204,304.72 $2,056,457.08 February March April May Starting Bank $2,056,457.08 $2,052,109.44 $2,047,761.79 $2,043,414.15 Cash In (non-investment) $143,500.00 $143,500.00 $143,500.00 $143,500.00 Cash Out $147,847.64 $147,847.64 $147,847.64 $147,847.64 Net Cash In (non-investment) $(4,347.64) $(4,347.64) $(4,347.64) $(4,347.64) Investment $- Finishing Bank $2,052,109.44 $2,047,761.79 $2,043,414.15 $2,039,066.51 June July August September Starting Bank $2,039,066.51 $2,034,718.87 $2,030,371.23 $2,026,023.59 Cash In (non-investment) $143,500.00 $143,500.00 $143,500.00 $143,500.00 Cash Out $147,847.64 $147,847.64 $147,847.64 $147,847.64 Net Cash In (non-investment) $(4,347.64) $(4,347.64) $(4,347.64) $(4,347.64) Investment $- Finishing Bank $2,034,718.87 $2,030,371.23 $2,026,023.59 $2,021,675.95 October November December January Starting Bank $2,021,675.95 $2,017,328.31 $2,012,980.66 $2,008,633.02 Cash In (non-investment) $143,500.00 $143,500.00 $143,500.00 $143,500.00 Cash Out $147,847.64 $147,847.64 $147,847.64 $147,847.64 Net Cash In (non-investment) $(4,347.64) $(4,347.64) $(4,347.64) $(4,347.64) Investment $- $- $- $- Finishing Bank $2,017,328.31 $2,012,980.66 $2,008,633.02 $2,004,285.38 February March April May Starting Bank $2,004,285.38 $2,118,299.75 $2,232,314.12 $2,346,328.49 Cash In (non-investment) $344,400.00 $344,400.00 $344,400.00 $344,400.00 Cash Out $230,385.63 $230,385.63 $230,385.63 $230,385.63 Net Cash In (non-investment) $114,014.37 $114,014.37 $114,014.37 $114,014.37 Investment $- $- $- $- Finishing Bank $2,118,299.75 $2,232,314.12 $2,346,328.49 $2,460,342.86 Newco Year ending 30/6/01 30/6/02 30/6/03 30/6/04 (USD) .xxx @ 90 % confidence REGISTRATION VOLUME 430,500.00 1,033,200.00 2,479,680.00 5,951,232.00 REVENUE PER REGISTRATION $3.00 $3.00 $2.50 $2.50 TOTAL REVENUE $1,291,500.00 $3,099,600.00 $6,199,200.00 $14,878,080.00 LESS EXPENSES Accountancy $6,767.26 $16,241.43 $32,482.86 $77,958.86 Advertising & Marketing $215,250.00 $516,600.00 $1,239,840.00 $2,975,616.00 Bank Charges $3,765.14 $9,036.33 $18,072.66 $43,374.38 Cleaning $11,292.89 $11,292.89 $11,292.89 $11,292.89 Connectivity + space $241,440.00 $241,440.00 $241,440.00 $241,440.00 Consultancy Fees $10,000.00 $24,000.00 $57,600.00 $138,240.00 Computer Supplies $15,000.00 $36,000.00 $72,000.00 $172,800.00 Depreciation $42,857.14 $42,857.14 $42,857.14 $42,857.14 Electricity $3,235.71 $7,765.71 $15,531.42 $37,275.41 Employees Amenities $16,258.26 $24,387.39 $36,581.09 $54,871.64 General Expenses $1,394.17 $3,346.02 $6,692.04 $16,060.89 Insurance $28,000.00 $28,000.00 $28,000.00 $28,000.00 Legal Costs $40,000.00 $56,000.00 $78,400.00 $109,760.00 Printing & Stationery $5,000.00 $12,000.00 $28,800.00 $69,120.00 Rent $50,000.00 $50,000.00 $50,000.00 $50,000.00 Salaries $920,000.00 $1,380,000.00 $2,070,000.00 $3,105,000.00 Superannuation $36,404.02 $54,606.02 $81,909.04 $122,863.55 Telephone Fax $26,703.00 $42,724.80 $68,359.68 $109,375.49 Trademarks $4,000.00 $4,000.00 $4,000.00 $4,000.00 Travel & Accomodation $20,000.00 $20,000.00 $20,000.00 $20,000.00 TOTAL EXPENSES $1,697,367.60 $2,580,297.74 $4,203,858.82 $7,429,906.26 TAXATION $- $103,860.45 $399,068.24 $2,457,897.34 NPAT $(405,867.60) $415,441.81 $1,596,272.95 $4,990,276.41 Cash Flows October November December January Starting Bank $- $2,500,000.00 $2,358,552.70 $2,217,105.40 Cash In (non-investment) $- $- $- $- Cash Out $50,000.00 $141,447.30 $141,447.30 $141,447.30 Net Cash In (non-investment) $(50,000.00) $(141,447.30) $(141,447.30) $(141,447.30) Investment $2,550,000.00 Finishing Bank $2,500,000.00 $2,358,552.70 $2,217,105.40 $2,075,658.10 February March April May Starting Bank $2,075,658.10 $2,041,835.80 $2,008,013.50 $1,974,191.20 Cash In (non-investment) $107,625.00 $107,625.00 $107,625.00 $107,625.00 Cash Out $141,447.30 $141,447.30 $141,447.30 $141,447.30 Net Cash In (non-investment) $(33,822.30) $(33,822.30) $(33,822.30) $(33,822.30) Investment $- Finishing Bank $2,041,835.80 $2,008,013.50 $1,974,191.20 $1,940,368.90 June July August September Starting Bank $1,940,368.90 $1,906,546.60 $1,872,724.30 $1,838,902.00 Cash In (non-investment) $107,625.00 $107,625.00 $107,625.00 $107,625.00 Cash Out $141,447.30 $141,447.30 $141,447.30 $141,447.30 Net Cash In (non-investment) $(33,822.30) $(33,822.30) $(33,822.30) $(33,822.30) Investment $- Finishing Bank $1,906,546.60 $1,872,724.30 $1,838,902.00 $1,805,079.70 October November December January Starting Bank $1,805,079.70 $1,771,257.40 $1,737,435.10 $1,703,612.80 Cash In (non-investment) $107,625.00 $107,625.00 $107,625.00 $107,625.00 Cash Out $141,447.30 $141,447.30 $141,447.30 $141,447.30 Net Cash In (non-investment) $(33,822.30) $(33,822.30) $(33,822.30) $(33,822.30) Investment $- $- $- $- Finishing Bank $1,771,257.40 $1,737,435.10 $1,703,612.80 $1,669,790.50 February March April May Starting Bank $1,669,790.50 $1,713,065.69 $1,756,340.88 $1,799,616.07 Cash In (non-investment) $258,300.00 $258,300.00 $258,300.00 $258,300.00 Cash Out $215,024.81 $215,024.81 $215,024.81 $215,024.81 Net Cash In (non-investment) $43,275.19 $43,275.19 $43,275.19 $43,275.19 Investment $- $- $- $- Finishing Bank $1,713,065.69 $1,756,340.88 $1,799,616.07 $1,842,891.26 SCHEDULE 8 APPLICATION,
BUSINESS PLAN AND REGISTRY OPERATOR’S
PROPOSAL FOR NEW GENERIC TOP LEVEL DOMAINS (gTLDs) TO BE ISSUED BY THE INTERNET
CORPORATION FOR ASSIGNED NAMES AND NUMBERS (“ICANN”) prepared
by Edward Sweeney and Vincent Hamm on behalf of: RATHBAWN
COMPUTERS LIMITED The application, business
plan and supporting documents have been prepared by Edward Sweeney and Vincent
Hamm, acting on behalf of Rathbawn Computers Limited (“Rathbawn”). Rathbawn is
a newly incorporated Irish corporation, acquired to make application to The Internet Corporation for
Assigned Names and Numbers (“ICANN”)
for the allocation to it of new generic Top Level Domains (gTLDs). If
successful, it intends to build and operate a registry function for as many of
the new gTLDs as are allocated to it. Rathbawn intends to restrict
itself to operating a registry (the maintenance of the registration and the
performance of registrations and changes) and will not conduct business as a
registrar (soliciting and accepting orders for registrations from aspiring
registrants). Rathbawn will offer all
existing and future qualified ICANN approved registrars appointment as
registrars in the new gTLDs. This Application and
Business plan follows the format of the ICANN Tender Requirements. The financial projections
have been prepared separately for each gTLD group proposed and are stand-alone
projections. If more than one group is approved by ICANN for allocation to
Rathbawn, the financials improve dramatically over those which have been
prepared. Essentially, the costs would remain almost constant except for minor
scale increases and the revenue projections would be aggregated. Registrations within the
TLDs will be made available through all qualified ICANN approved registrars
which demonstrate technical competence. The Registry will be bound
not to discriminate between Registrars. ICANN announced in mid
August that it was inviting application for new gTLDs. Applications close on 2
October 2000. For more details, see www.icann.org/tlds/tld-application-process.htm. In the operation of
efficient registry services, there are no particular advantages in the operator
being a large or diversified corporation.
Limited funding is necessary. What is critical is possession of the technical
skills and experience in registry establishment and operation. Very few firms
have all such skills and Rathbawn’s managers are amongst the world’s most
experienced in these specialist areas. It is a key strategy of
Rathbawn’s business plan to position
itself so that existing ICANN approved registrars are its clients rather
than its competitors. TotalNIC.com, a creation of
Edward Sweeney and Vincent Hamm, brought to the Domain Name System (“DNS”) the
business plan of profit maximising by price competition. It has proved an
outstanding success, not only for TotalNIC.com but also for its effect on
market prices. The TotalNIC.com model, although not identical to the Rathbawn
business plan (TotalNIC.com necessarily acted only as a registry as Network
Solutions still retains a monopoly of registry function for the existing
gTLDs), provides powerful support for
the concept that a highly price competitive approach to the provision of domain
name registration services will be supported by the market. Rathbawn plans to deploy the gTLDs if allocated to it
as vehicles to take competition in DNS pricing and service composition to new
pricing and structural levels. Rathbawn’s vision involves a number of innovative
features, each of them unique in DNS history. Potential investors should
appreciate that the provision of these guarantees will limit Rathbawn’s pricing
discretion and it will be essentially required to price domain name registry
services at long run incremental cost, striping away the prospects of monopoly
profits. On the other hand, given the expected volumes, Rathbawn’s business is
expected to be highly successful and both profitable and cash flow positive
from a very early stage. Rathbawn’s potential
registrar customers will be aware that Rathbawn’s incentives align with the
incentive for registrars to be supported by the lowest cost registry. Although the
proposed strategy will forgo an initial period of higher profits, the markets
for domain name registrations have been characterised by rapid commoditisation
following the introduction of competition. Rathbawn’s strategy, like that of
TotalNIC, is that it is preferable to position the business to anticipate
inevitable market moves and establish a reputation as the leading price
competitive registry. COMPETITION PRINCIPLES Rathbawn’s proposal is
designed to ensure that registrars view
the registry not as another competitor but as an essential supplier of
services. Once the gTLDs are operating
and have achieved more than insubstantial scale, Rathbawn considers that
registrars will consider that they cannot competitively resist offering domain
names in the proposed gTLDs to their customers. There will be no competitive
incentive for them not to do so, as they will not risk losing the customer to a
competitor. On the contrary, that risk only arises if the registrar elects not
to offer registrations in the new gTLD spaces. Rathbawn therefore expects
nearly universal registrar acceptance acceptance of the new offerings. The history of the pricing
of domain name registrations has been characterised by the exploitation of
monopoly power characterised by high prices and inefficient registries. The
leading example is Network Solutions’s charging regime before the prospect of
the appointment of ICANN approved registrars emerged. It is by no means the
only example. A current example is Australia, where Melbourne IT currently
holds a de facto monopoly over registrations in .au arising from the failure of
the cc TLD administrator to appoint other registrars. Melbourne IT is also an
ICANN approved registrar. In the competitive market for .com and .net
registrations, its prices go as low as AUD 17 (USD 9.18) or perhaps even lower,
whereas in .au, it never discounts from its published retail prices of AUD 125
for two years and reseller prices of AUD 100 for two years. These rates equate
to USD 33 and USD 27 per year. Thus, Melbourne IT’s prices for its monopoly
product are three times the price it charges for its competitive product, even
though its costs are presumably much higher for the competitve product, given
the $6 charge of Network Solutions. In the absence of specific
legislation controlling prices, antitrust laws do not prohibit the charging of
monopoly prices per se. In critical areas such as telecommunications, where
incumbent advantage acts contrary to the interests of consumers, legislation to
prohibit the extraction of monopoly rents is invariably necessary to protect
the interests of consumers. Partly because development
of the internet has outstripped the ability of legislators to act to protect
consumers, and partly because no one legislature can effectively mandate
conduct for more than one cc TLD, the pricing conduct of cc TLD registries has
been unconstrained except by the limits of their monopoly. Hence pricing has
been high and will remain high (in comparison to cost) unless and until
effective competition is introduced. The applicants have an established track record
in bringing effective price competition to domain name pricing. Capital
Networks was a founding member of CORE and an early ICANN approved registrar. Through its TOTALNIC.com Division, Capital Networks LLC pioneered price competition in .com and .net
immediately upon commencement of business. Its pricing offers forced the
breakdown of what until then appeared to be emerging oligopoly pricing which
shadowed Network Solutions’ high prices. TotalNIC.com, of which the applicants
are the directors, was the world’s first firm to offer half price .com and .net
registrations and it has been a price leader ever since. TotalNIC sells domain
names without ties of any description and does not impose any costs to protect
itself from churn. Rathbawn will operate the
new TLD registries on the same principles, which means that the registries will
be the world leaders in pricing in absolute dollar terms and in the
establishment of the principle that consumers have the right to purchase domain
names for the lowest possible price consistent with the continued viability of
the service. We expect that the pricing of the registries will become the
industry benchmark. Once the new TLDs are
operating and have achieved more than insubstantial scale, the availability of
their prices will lead to a recognition by consumers (and other stakeholders)
that the real per unit of registration costs of operating TLD registries are
very low. This will lead to public pressure on other TLD registries to lower
their prices. It may also lead to the threat of legislation if public pressure
is insufficient. A non discriminating
registry has only the incentive of maximising sales through all registrars
without discrimination. TotalNIC has committed sufficient
funds to enable the registry to be built from internal funding. Edward Sweeney has been
involved in domain name registration since 1996. He has been responsible for the establishment and operation of
all types of domain name registry activities, including one of the earliest
fully automated ccTLDs, CORE based registration interface and direct registry
interfaces for .com, .net and .org. Edward has also had responsibility for
directing the marketing of TotalNIC. Edward has a long established reputation
as one of the leading innovators in domain name registration on both technical
and marketing solutions. Vincent Hamm currently heads
the US operations of TotalNIC and has extensive experience in synthesising
innovative technical and marketing solutions to meet marketing strategies
necessary to deliver competitive advantage. Vincent has been involved in domain
name registration business since 1997 and in the computer industry for many
years. Edward and Vincent are
supported by an established and dedicated team of marketing, business
development, network operations and customer support executives who have worked
together in developing and operating domain name registrar and registry
businesses. Rathbawn is seeking from
ICANN the allocation of the following five groups of gTLDs: ·
The
incorporated and registered business TLDs: (Schedule 1) LLC ·
The
wireless application protocol TLD: ·
(Schedule
2) .wap WAP is the acronym for
wireless application protocol, the protocol which governs wireless based
internet access, such as from mobile telephones. Later it will be extended to
many other devices connected to the internet, such as stoves, airconditionig
units, etc. ·
Chinese
expression TLDs (Schedule 3) Currently this application
is restricted in that manner by ICANN restrictions. The Chinese characters, in
both traditional and simplified Chinese for the following expressions: .SanSanSan (meaning 333);
and three33 (as one gTLD) ·
The
adult content gTLDs .xxx and .sex ·
The
African continent TLD .Africa The applications identify
an existing need not presently being served by the DNS by means of a gTLD which of itself immediately capitalises
on established community definitional understandings so
that the identification of the TLD by itself communicates certain, useful and
reliable information at the intuitive level. Competition Once obtained the gTLD will
face competition from: ·
the
other gTLDs, ie .com, .net, .org and any other new gTLDs commissioned by ICANN.
It should be assumed that there will be a number of them. ·
ccTLDs Conclusion Registry Operator's Proposal This portion of the Business
Plan follows the format of the pro formas stipulated by ICANN for use in the
application. [A
Registry Operator's Proposal is to be submitted as part of every new TLD
application. In case of applications for unsponsored TLDs, the registry
operator will be the applicant and should prepare and submit the proposal as
part of the application. In the case of applications for sponsored TLDs, the
sponsoring organization (or, where the sponsoring organization has not yet been
formed, organization(s) or person(s) proposing to form the sponsoring
organization) will be the applicant. The sponsoring organization should select
the proposed registry operator, have it prepare the Registry Operator's
Proposal, and submit it as part of the application. Please
place the legend "CONFIDENTIAL" on any part of your description that
you have listed in item F3.1 of your Statement of Requested Confidential
Treatment of Materials Submitted. The
Registry Operator's Proposal should be separately bound (if more than one
volume, please sequentially number them) and labeled: "Registry Operator's
Proposal." and must cover all topics described below. This page, signed on
behalf of the registry operator, should be included at the front of the
Registry Operator's Proposal.] I. GENERAL INFORMATION D1. The first section of the
Registry Operator's Proposal (after the signed copy of this page) should be a
listing of the following information about the registry operator. Please key
your responses to the designators (D1, D2, D3, etc.) below. D2. The full legal name, principal
address, telephone and fax numbers, and e-mail address of the registry
operator. The Registry operator will be Rathbawn Computers Limited c/- Price Waterhouse Limerick City Co Limerick Eire The registry will be constructed
for Rathbawn (and owned by it) by the TotalNIC.com Division of its shareholder: Capital Networks LLC 7826 Lone Pine Drive Golden Co 80402 2301 Ford Street Golden Co 8042 5 Badham St Level 1 Dickson ACT 2602 Australia 30 Lonsdale St Suites 3&4 Braddon ACT 2601 Australia Telephone contacts for both
firms: Edward Sweeney +61 2 6257 6758 Fax +61 2 6257 6759 +61 2 6262 8511 fax +61 2 6262 8522 Vincent Hamm +1 303 271 1288 fax +1 303 279 8667 D3. The addresses and telephone
and fax numbers of all other business locations of the registry operator. The Registry operator will carry
on business initially from the offices of TotalNIC.com set out above. D4. The registry operator's type
of business entity (e.g., corporation, partnership, etc.) and law (e.g.,
Denmark) under which it is organized. Rathbawn Computers Limited is a
corporation incorporated under the laws of the Republic of Ireland. D5. URL of registry operator's
principal world wide web site. Registry operator does not
currently have a web site, but one will be established immediately following
the lodging of this application. It will be notified to ICANN. The web site of Capital Networks
LLC is www.totalnic.com D6. Dun & Bradstreet D-U-N-S
Number (if any) of registry operator. N/A D7. Number of employees. D8. Registry operator's total
revenue (in US dollars) in the last-ended fiscal year. D9. Full names and positions of
(i) all directors, (ii) all officers, (iii) all relevant managers, and (iv) any
persons or entities owning five percent or more of registry operator. Directors: Vincent Hamm Edward Sweeney Shareholder: Capital Networks LLC D10. Name, telephone and fax
number, and e-mail address of person to contact for additional information
regarding this proposal. If there are multiple people, please list all their
names, telephone and fax numbers, and e-mail addresses and describe the areas
as to which each should be contacted. Vincent Hamm Telephone +1 303 271 1288 Fax +1 303 279 8667 Email: vince@totalnic.com Edward Sweeney Telephone +61 2 6257 6758 Fax +61 2 6257 6759 Email: ed@totalnic.com D11. The full legal name,
principal address, telephone and fax numbers, e-mail address, and Dun &
Bradstreet D-U-N-S Number (if any) of all subcontractors identified in item
D15.3 below. Capital Networks LLC 7826 Lone Pine Drive Golden Co 80402 Telephone: +1 303 271 1288 Fax: +1 303 279 8667 II. BUSINESS CAPABILITIES AND
PLAN D12. The second section of the
Registry Operator's Proposal (after the "General Information"
section) is a description of the registry operator's Business Capabilities and
Plan. This section must include a comprehensive, professional-quality business
plan that provides detailed, verified business and financial information about
the registry operator. The topics listed below are representative of the type
of subjects that will be covered in the Business Capabilities and Plan section
of the Registry Operator's Proposal. [
ICANN will extensively review and analyze this section of the Registry
Operator's Proposal. The content, clarity, and professionalism of this section
will be important factors in ICANN's evaluation of applications. We strongly
recommend securing professional assistance from financial and management
consultants to aid in the formulation of your business plan, in securing the
necessary sources of financing, and in preparation of this section.] D13. The Business Capabilities
and Plan section should consist of at least the following: D13.1. Detailed description of
the registry operator's capabilities. This should describe general capabilities
and activities. This description also offers the registry operator an
opportunity to demonstrate the extent of its business and managerial expertise
in activities relevant to the operation of the proposed registry. The following
items should, at a bare minimum, be covered: D13.1.1. Company information.
Date of formation, legal status, primary location, size of staff, formal
alliances, references, corporate or other structure, ownership structure. Rathbawn
Computers Limited C/-
Price Waterhouse Coopers Limerick
City Co.
Limerick Eire D13.1.2. Current business
operations. Core capabilities, services offered, products offered, duration of
provision of services and products. Rathbawn is a recently incorporated Irish company,
acquired for the purpose of making this application to ICANN. Rathbawn’s
initial funding and staff requirements are being met by TotalNIC.com, a
Division of Capital Networks LLC. Rathbawn's management have
extensive experience is the domain name industry. They have been responsible
for the establishment from a green-fields start up of an ICANN approved
registrar of domain names in .com,
.net. As a start up registrar, TotalNIC enjoyed rapid success as a result of
its discounted pricing policy. Upon the opening of the .com
registry to ICANN approved registrars, Capital introduced its Totalnic.com
business unit. Totalnic immediately became the price leader in the gtld market
by charging prices of half the level of Networks Solutions. This has fostered
keen competition in the domain name registration market and has been the
catalyst for dramatic reductions in average prices. Totalnic continues to
compete vigorously on price and service with other registrars. TotalNIC has
always provided its domain name registration services without ties of any kind
and has never imposed penalties for churning. TotalNIC.com and Capital
Networks LLC have been very successful business models, which have been developed
without any public funding and which
have been profitable and cash flow positive from the earliest stages. They have
rapidly evolved to a position of financial strength. TotalNIC.com reflects the
extent to which a small but highly competent firm can rapidly succeed by
bringing to internet stakeholders the ability to meet demand by innovative and
competitively priced offerings. Rathbawn is a small but highly
competent firm with unparalleled specialist skills in registry functionality
and management. Its managers have proved their capacity to profitably create
and operate registry functions whilst at the same time achieving pricing levels
which set industry trends. D13.1.3. Past business
operations/entity history. History, date of formation, legal status/type of
entity, initial services, duration of provision of services and products. Rathbawn has not conducted
business before. It was acquired for the purposes of making this application to
ICANN and establishing and operating the gTLDs the subject of this application
or such of them as ICANN approves. Its directors have established and developed
domain name registrar and registry businesses since 1996. Upon the introduction of
competition into the .com gtld, TotalNIC became one of the first active registrars
and immediately positioned itself as the world’s first half price registrar. It
did not wait for the market to move down before doing so, but led the market by
its pricing initiative. D13.1.4.
Registry/database/Internet related experience and activities. Experience with
database operation, Internet service provision. Rathbawn’s managers have
extensive experience in providing internet services as well as customised
software development. Rathbawn’s managers
have the required skill sets to implement the aims outlined in this
plan. D13.1.5. Mission. The registry
operator's mission and how it relates to expansion into the registry operation
field. The goal
of Rathbawn is to introduce a new level of price competition and mutual
obligation into domain name registry service provision. We recognise that a
registry service provider is granted a monopoly business over a public trust
good. This good is an essential part of the operation of the Internet which in
turn is relied on by sectors within Government, Industry, Commerce and
Education. D13.1.6. Management.
Qualifications and experience of financial and business officers and other
relevant employees. Please address/include past experience, resumes,
references, biographies. Edward Sweeney He was responsible for the
establishment of TotalNIC.com as the world’s first half price .com and .net
registry. Edward is well known in
internet circles as a leading innovator and also a determined proponent of
competition. Edward’s commitment to competition is long standing and resolute.
In his relentless promotion of full and free competition and against monopoly
exploitation, Edward has opposed powerful vested interests wherever
necessary. Edward’s interest is not merely academic. Vincent Hamm has headed the
North American arm of TotalNIC.com and overseen its major price effect on the
North American markets for domian name registration services. Vincent has implemented TotalNIC.com’s partner rather than
competitor aspirations with major
wholesale buyers of domain registration services in the United States. Vincent
brings a technical background in computer services, prgramming and network
administration to Rathbawn. Vincent is also President of Aim High!, Inc and has
more than 25 years experience in the computer industry. The directors are supported on
financial and management issues by: Tim Tyler FCA. Tim has more
than thirty years experience in financial and management advice, having been a
partner of BKR for many years. Tim provides strategic finanncial and business
oversight and advice to Rathbawn. David Radford. David has high
level accountancy and management experience reaching back over 36 years. David and Tim form the Finance
Committee of Rathbawn. ANDREW W. RIEDEL. Andrew is an senior systems engineer with specialist
skills in network design, product and technology training, switching, routing, prioritisation, issues
relating to convergence of voice video and data, router configuration,
technical training for new technology roll outs NORTEL AND BAY NETWORKS Michael J Mashman. Michael is a senior network
consultant with many years expeience in the establishment and maintenance of
networks. Tania Bazzacco. Human Resources Manager for
Rathbawn, Tania is responsible for staff
training and manages the relationship with external HR firms, in
particular Morgan & Banks. Kate Elliot, Marketing Manager. Kate
has experience in the design and implementation of marketing strategies for via
internet and more traditional business models. Rebecca McLeod,
Customer Support Manager, Rebecca co-ordinates the delivery of customer
services by her support team. D13.1.7. Staff/employees.
Current staff size, demonstrated ability to expand employee base, hiring
policy, employee training, space for additional staff. Rathbawn enjoys an excellent
relationship with a number of executive search and HR firms Rathbawn’s directors are
experienced in managing the demands for efficient staff scalability. Rathbawn’s management is
experienced in the establishment of greenfield start ups in registry and
registrar functionality. D13.1.8. Commercial general
liability insurance. Address/include amount of insurance policy, provider of
policy, plans for obtaining additional insurance. D13.2. Business plan for the proposed
registry operations. This section should present a comprehensive business plan
for the proposed registry operations. In addition to providing basic
information concerning the viability of the proposed operations, this section
offers the registry operator an opportunity to demonstrate that it has
carefully analyzed the financial and operational aspects of the proposal. At a
minimum, factors that should be addressed are: D13.2.1. Services to be
provided. A full description of the registry services to be provided. Rathbawn is proposing the
allocation of a number of groups of new gTLDs, the details of which are
identifed in Schedules 1 to 6. The result of having a small number of
gTLDs, most of which are “closed” to mainstream registration, has been to
produce an overcrowded registration location (.com) which has provided
uneconomic financial returns for cybersquatters, Registrars and the Registry. D13.2.2. Revenue model. A full
description of the revenue model, including rates to be charged for various
services. D13.2.3. Market. Market
definition, size, demand, accessibility. D13.2.5.
Estimated demand for registry services in the new TLD. Projected total demand
for registry services in the TLD, effect of projected registration fees,
competition. Please provide estimates for at least 10%, 50%, and 90% confidence
levels. D13.2.6. Resources required to
meet demand. Provide a detailed estimate of all resources (financial,
technical, staff, physical plant, customer service, etc.) required to meet the
estimated demands, using at least the 10%, 50%, and 90% confidence levels. D13.2.7. Plans for acquiring
necessary systems and facilities. Describe plans for acquiring all necessary
systems and facilities for providing the proposed services at each estimated
demand level. Provide details as to the scope, cost, and vendor for any
significant planned outsourcing. No difficulty is expected in relation
to availablity and internal funding for all acquisition costs is held in the
form of cash at bank or on deposit. Further additional funding is also held in
reserve. D13.2.8. Staff size/expansion
capability. Plans for obtaining the necessary staff resources, capacity for
expansion, hiring policy, employee training, space for additional staff,
staffing levels needed for provision of expanded technical, support, escrow,
and registry services. Sufficient space is already
held for all foreseeable expansion needs. D13.2.9. Availability of
additional management personnel. How will management needs be filled? D13.2.10. Term of registry
agreement. State assumptions regarding the term of any registry agreement with
ICANN or the sponsoring organization. Note that the .com/.net/.org registry
agreement has a basic term of four years. D13.2.11. Expected costs
associated with the operation of the proposed registry. Please break down the
total estimated operational costs by the sources of the costs for each
estimated demand level. Be sure to consider the TLD's share of ICANN's cost
recovery needs. D13.2.12. Expected revenue
associated with the operation of the proposed registry. Please show how
expected revenue is computed at each estimated demand level. D13.2.13. Capital requirements.
Quantify capital requirements in amount and timing and describe how the capital
will be obtained. Specify in detail all sources of capital and the cost of that
capital (interest, etc.). Evidence of firm commitment of projected capital
needs will substantially increase the credibility of the registry operator's
proposal. Rathbawn thus has an
immediately comfortable cash position of enjoying committed funding to cover
the costs of registry establishment and having a buffer against unforeseens.
Rathbawn considers that all its possible funding needs will be met without difficulty. RISK FACTORS
THE PEOPLE
THE gTLDS
DEFINITIONAL ADVANTAGE – HARNESSING ESTABLISHED MEANING
FINANCIALS
MARKET SIZES AND TRENDS
COMPETITION
Conclusion
REGISTRY OPERATOR’S
PROPOSAL
Initial price is the estimated long run incremental cost of
providing registry services. It is conservatively estimated and is likely to be
reduced on review in two years when actual figures will form the basis of
re-assessment.
WHOIS2 1.1GHz
Athllon Mae-West
WHOIS5 1.1GHz Athllon Mae-West
SCHEDULE
2
WAP
Appendix 1 – Financial statements
Overall market size
Demand estimated at 90%
Demand estimated at 75%
Demand estimated at 10%
Demand estimated at 90%
Demand estimated at 75%
Demand estimated at 10%
Demand estimated at 90%
Demand estimated at 75%
Demand estimated at 10%
Demand estimated at 90%
Demand estimated at 75%
Demand estimated at 10%
Demand estimated at 90%
Demand estimated at 75%
Demand estimated at 10%
Executive Summary
Leading edge DNS experience moves to meet emerging demand.
Competitive Advantage -Aligning
With Customers’ Incentives
Strategic Positioning-The Competition Policy
BACKGROUND
Investment needs of new TLD
registry
The People
THE
gTLDS
Definitional Advantage-Harnessing Established
Meaning