.TEL Application
Registry Operator’s Proposal
October 2, 2000
Table of Contents
D2 Registry’s Name &
Headquarters Address
D9 Full names and positions of
Board, Officers and Management:
D10 Contacts regarding this
proposal
D13.1.2 Current Business
Operations
D13.1.3 Business History &
Intellectual Property
D13.1.4 Database and Internet
Related Experience
D13.1.8 General Liability Insurance
D13.2.1 Services to be Provided
D13.2.5. Estimated demand for
registry services for .tel.
D13.2.6. Resources required to
meet demand for .tel.
Staffing requirements: 90%
confidence scenario 2001 – 2004
Staffing requirements: 50%
confidence scenario 2001 – 2004
Staffing requirements: 10%
confidence scenario 2001 – 2004
Hardware and technology based
resources.
D13.2.7 Plans for acquiring
necessary systems and facilities
D13.2.8 Staff size/expansion capability
D13.2.9 Availability of
Additional Management Personnel
D13.2.10 Term of Registry
Agreement
D13.2.11 Expected Costs
Associated With Operation Of Registry:
D13.2.12 Expected Revenue
Associated With Proposed Registry:
D13.2.15 Registry Failure
Provisions
D13.3 PRO-FORMA FINANCIAL PROJECTIONS
D13.3.1 90% Confidence Level
Plan
D13.3.2 50% Confidence Level
Plan
D13.4 SUPPORTING DOCUMENTATION
D13.4.1 Registry Operator’s
Articles of Incorporation
D13.4.2 References (Industry and Trade)
D14
TECHNICAL CAPABILITIES AND PLAN
D15. The Technical Capabilities and Plan
D15.1 Detailed description of
Registry operator's technical capabilities
D15.2. Technical plan for the proposed registry operations.
D15.2.1. General description of
proposed facilities and systems.
D15.2.2. Registry-registrar model
and protocol.
D15.2.3. Database capabilities.
D15.2.4. Zone file generation.
D15.2.5. Zone file distribution and
publication.
D15.2.6. Billing and collection
systems.
D15.2.7. Data escrow and backup.
D15.2.8. Publicly accessible look
up/Whois service.
D15.2.12. System outage prevention.
D15.2.13. System recovery
procedures.
D15.2.14. Technical and other
support.
D1 GENERAL INFORMATION
D2 Registry’s Name & Headquarters Address
NetNumber.com, Inc ("NetNumberä")
650 Suffolk St., Suite 307
Lowell, MA 01854
D3 Other Locations
Network Facility #1:
EMC Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748
Network
Facility #2:
Exodus Communications, Inc.
175 Wyman St.
Waltham, MA 02451
D4 Type of Business Entity
NetNumber.com,
Inc. ("NetNumber") is a United States corporation organized under Delaware
Law and incorporated in August 1998.
D5 URL of Registry Operator
D6 Dun & Bradstreet Number
D-U-N-S Number: 14 - 348 - 8661
D7 Number of Employees
3 General & Administration
15 Development and 2nd
Line Operations (1st line
operations outsourced)
2 Business
Development
1 Intellectual
Property
D8 Revenue
NetNumber launched its Global Internet
Telephony Directory service in July 2000.
The NetNumber financing plan and GITDä
pricing structure call for free GITD registration through the end of 2001. Billing will begin for GITD service in
January 2002.
D9 Full names and positions of Board, Officers and Management:
Board
of Directors
Manny
Fernandez Chairman Gartner
Group.
John
Davis Former CTO of
AT&T and of Allied-Riser Communications.
John
White Former CIO Compaq
and Texas Instruments.
Roger
Nelson Former Chairman Ernst
& Young Consulting.
Joseph
Farrelly CIO of Seagram
& Co (recently acquired by Vivendi)
William
Turner Co-founder
Signature Capital.
Paul Finnigan President Emeritus, International Association For
Enhanced Voice Services (VMA). Founder VMI.
CEO of FinniganUSA.
Officers
Glenn
Marschel CEO and President
Robert H. Walter CTO, Development & Operations
Douglas J. Ranalli Founder, Chief Strategy Officer
Managers
Steve Darrington VP Finance & Administration
David P. Peek Director, Technology Strategy
Rick Turmel Director, Quality Assurance & Test
Scott Weaver Manager, Graphical User Interfaces
Chuck Santos Manager, Software Development
Alan Beaulieu Manager, Database Systems
Entities
owning five percent or more of registry operator.
Signature Capital,
LLC (www.signaturecapital.com)
Glenn Marschel, CEO and
President, NetNumber
Douglas Ranalli, Founder and Chief
Strategy Officer, NetNumber
D10 Contacts regarding this proposal
Douglas Ranalli
Founder & Strategy Officer
NetNumber
Telephone: 1.978.454.4210 ext 22
Facsimile: 1.978.454.5044
Email: dranalli@netnumber.com
Contact for: General
Application Inquiries
Robert H. Walter
CTO, VP Development and Operations
NetNumber
Telephone: 1.978.454.4210 x 24
Facsimile: 1.978.454.5044
Email: rwalter@netnumber.com
Contact for: Technical and operational
questions
Steve Darrington
VP Finance & Administration
NetNumber
Telephone: 1.978.454.4210 ext 35
Facsimile:
1.978.454.5044
Email: sdarrington@netnumber.com
Contact
for: Business plan and financial
questions
D11 Subcontractors Identified
EMC
Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748
Contact:
Brian Harnett
Senior Account Representative
617.618.3400
harnett_brian@emc.com
D13.1 BUSINESS CAPABILITIES
D13.1.1 Company Information
Corporate Structure: NetNumber.com, Inc. ("NetNumber™" or the "Company"), a Delaware corporation founded in August 1998 with headquarters located in Lowell, MA, USA is engaged in the business of providing global Internet directory services.
Capital Structure: NetNumber is a privately held venture capital backed corporation that has raised $9 million of equity financing and operates with the following high-level fully diluted ownership structure:
Founders 30%
Other Staff 18%
Venture Investors 42%
Strategic Alliances: NetNumber utilizes the services of several key outsourcing vendors to provide asset financing, asset hosting, Internet access/private peering, and 1st line 24x7 operations support. The Company's key strategic relationships include:
EMC Corporation (Back office, DNS & LDAP master site)
- Asset financing, hosting and on-demand data storage services.
- 24 x 7 1st line DBA and operations support staff.
- Initial assets originally deployed February 2000.
Exodus Communications (Back-up DNS & LDAP master site)
- Asset hosting and 24x7 1st line operations support.
- Private peering with multiple Tier-1 Internet backbone providers.
- Initial assets being deployed November 2000.
Level3 Communications (End-point DNS access nodes)
- Asset hosting and private peering with multiple Tier-1 Internet. backbone providers.
- 24x7 on-site operations support staff.
- Initial assets being deployed December 2000.
WorldCom Communications (End-point DNS access nodes)
- Asset hosting and private peering with multiple Tier-1 Carriers
- 24x7 on-site operations staff
- Initial assets being deployed Q1 2001.
SUN Microsystems (Network assets)
- Development and production hardware
- Architecture consulting
- Member of the SUN Start-up Essentials Program.
LSI Logic (Network assets)
- Enterprise storage systems
- Architecture consulting
For industry references please see section 13.4.2 "References" later in this document.
D13.1.2 Current Business Operations
NetNumber
currently provides two Internet directory services:
Global Internet-Telephony Directory (GITD™):
The GITD is a combination DNS and LDAP directory service that translates
telephone numbers into Internet addresses in support of all forms of
Internet-Telephony applications. The GITD is the outgrowth of a three
year technology development, intellectual property and standards body effort
launched by the NetNumber team in early 1997.
The GITD utilizes a two-tier logical control model to translate a telephone number ("e164 number") into any number of associated Internet addresses – (IP-phone, fax, e-mail, voicemail, PDA, etc.) The top-tier of the GITD was designed to operate like a top-level domain (TLD) of the Internet Domain Name System (DNS). As such, the top-tier of the GITD is a DNS-service that translates an e164 telephone number into the location or address of an appropriate second-tier directory that contains authoritative Internet address information for a given number. Just two months after the launch of service, the GITD, currently deployed under the domain "e164.com", has already begun to gain significant momentum with key Internet-Telephony technology vendors and service providers. If the ".tel" application is approved by ICANN, the GITD will become the first application to leverage the ".tel" TLD and the existing top-tier of the GITD currently operating under the domain "e164.com" will be migrated to the ".tel" TLD.
Virtual Private LDAP
Directory (VPD™): As a compliment to the GITD, NetNumber also
provides a fully
outsourced LDAP directory infrastructure that application vendors can utilize
to share directory information across distributed applications. The VPD
is a highly efficient mechanism for enterprise customers and service providers
to gain access to a secure, high-performance LDAP infrastructure without
having to build and deploy their own solution.
D13.1.3 Business History & Intellectual Property
The NetNumber team began working on Internet related directory service
opportunities in early 1997 under a technology development and intellectual
property effort launched by the team while working at Unifi Communications
("Unifi"). Unifi was an early
entrant into the fax-over-IP marketplace that began offering international fax
delivery services in 1992.
The directory services program at Unifi picked up momentum in mid-1997
when the team was asked to provide services in support of a joint industry
initiative between the Voice Mail Association (VMA) www.ivma.ch and the Electronic Messaging
Association (EMA) www.ema.org. The goal of the joint initiative was to
demonstrate that voicemail messages could be sent over the Internet between
disparate voicemail platforms using the VPIM protocol. The role of the directory service was to
translate a telephone number into the Internet address information necessary to
support the VPIM voice messaging protocol.
VPIM (Voice Profile for Internet Mail) is an IETF standard for voice
messaging on the Internet.
A key member of the NetNumber team, David Peek, was elected to the
position of Chairman of the Technical Working Group (TWG) of the joint EMA/VMA
initiative in December 1998. As
Chairman of the TWG, David coordinate the efforts of seven industry
participants including Lucent, Nortel, Comverse, Unisys, Glenayre, Alcatel and
Tecnomen in completing a series of VPIM trials, the last of which was performed
at the Telecom 99 event in Geneva.
These early industry support activities in 1997 and 1998 provided the
NetNumber team with direct experience in delivering the Internet-Telephony
directory services that represent the baseline application for the
".tel" TLD. This early work
also provided the foundation for the filing of multiple directory related
patents.
Intellectual Property : The NetNumber team has filed three comprehensive
patent applications, the first of which, dated June 1998, incorporates the
team's initial directory services work that began in early-1997. Outlined below
is a brief summary of the three applications that make up the core of the
NetNumber intellectual property position as it relates to the ".tel"
TLD. In total the three patents include
156 claims covering process concepts, application specific concepts and
implementation specific concepts relating to the use of a shared directory in
Internet-Telephony services.
METHOD AND APPARATUS FOR
CORRELATING A UNIQUE IDENTIFIER, SUCH AS A PSTN TELEPHONE NUMBER, TO AN
INTERNET ADDRESS TO ENABLE COMMUNICATIONS OVER THE INTERNET.
This patent describes the use of a shared "Directory Service" (DS) as
a mechanism for converting PSTN telephone numbers into the IP address
information necessary to establish a communications link over the Internet
between two unrelated communications platforms using standard telephone numbers
for addressing. The patent outlines over 50 claims relating to the use of a
shared directory in setting up real-time voice, voice messaging, remote
printing, and unified-messaging applications over the Internet using standard
telephone numbers for addressing. Specific attention is focused in this patent
on the implementation concepts incorporated into the directory service provided
by NetNumber including billing based on active usage rather than on
registration, and on the assignment of multiple IP-device addresses to a single
telephone number.
IDENTIFYING AND
REPLYING TO A CALLER
This patent application deals with the use of a shared directory service to
expand the role of the Internet in global voice messaging. The patent describes
the use of a shared Internet directory in enabling end-users to "reply for
free" to voicemail messages over an IP network using a shared directory to
convert a return telephone number into a reply address for an Internet enabled
voicemail, e-mail or unified-messaging system. The application includes over 50
claims covering various aspects of Internet voice messaging and directory
services.
REMOTE PRINTING OF A
DOCUMENT
This patent application deals with utilizing a shared Internet directory to
convert a telephone number into the IP address of an network enabled printer as
a mechanism for enabling a remote printing capability over the Internet.
D13.1.4 Database and Internet Related Experience
While at Unifi, the NetNumber team built a
global, secure Internet backbone infrastructure for carrying International fax
traffic for corporate customers located in the US, Japan, Hong Kong, China,
South Korea, Taiwan, Singapore, Australia, the UK, France and Germany. Unifi employed 675 people located in 10
wholly owned or majority owned country units and the Unifi IP-Fax distribution
network included 28 IP/PSTN gateway network nodes located in 16 countries.
Unifi experienced enormous revenue growth during the period 1992 – 1997
achieving a ranking of #20 on the INC 500 list of fastest growing private
companies in the US in 1997. At its
peak, Unifi was providing Fax-over-IP service on a 24x7 basis to 15,000
corporate customers located in nine countries, speaking seven different
languages.
While at Unifi, the NetNumber team gained invaluable insight into the
challenges of integrating the Internet and the PSTN at both the technical
interface level and at the addressing and customer service level. Specific experiences gained by the team
while at Unifi that will be relevant to the ".tel" TLD are as
follows:
·
Operational experience running a complex global database infrastructure
supporting multiple applications in a multi-lingual, 24x7 mission critical
environment.
·
Customer support experience running a 24x7, global, multi-lingual
customer support team providing services to 15,000 corporate clients.
The Global Internet-Telephony Directory and the ".tel" TLD
application are a direct outgrowth of the technical and operational skills
gained by the NetNumber team during the process of building the Unifi network
and service.
Deregulation of international
telecommunications brought an end to the underlying core business model for
Unifi Communications 1998. As a result,
the NetNumber team purchased a substantial base of intellectual property and
underlying technology from Unifi and launched NetNumber as a stand-alone
business with venture capital equity financing.
D13.1.5 Mission
"Turning telephone numbers into
Internet Numbers"
NetNumber's mission is
to provide secure, reliable, independent, network-based directory services to
facilitate the smooth convergence of global communications services between the
Public Switched Telephone Network (PSTN) and the emerging Internet-Telephony
industry.
D13.1.6 Management
The executive team and Board of Directors of NetNumber includes
individuals with direct experience in every aspect of the technology,
operations, customer segments, and standards bodies, associated with the
business of Internet directory services. Outlined below is background
information on the executive team and Board of Directors at NetNumber:
Manuel À Fernandez -
Director of the company
Mr. Fernandez (Manny) is presently Chairman of the GartnerGroup and a Managing
Partner of SI Ventures. GartnerGroup (www.gartner.com) is the world's largest
and most renowned IT research, advisory, measurement and consultative services
company. Manny has been Chairman of the Board of
GartnerGroup since April 1995, and director since January 1991. He also held the title of Chief Executive
Officer for GartnerGroup from April 1991 to December 1998. In fiscal 1998,
GartnerGroup revenues were approximately $650 million. Prior to GartnerGroup, Manny was President
and CEO of Dataquest, Inc., a leading IT market research and consulting firm
for suppliers of information technology and for the financial and investment
communities.
Mr. Fernandez holds a bachelor's degree in electrical engineering from
University of Florida, and completed post-graduate work in solid state
engineering at University of Florida and in business administration at the
Florida Institute of Technology.
John H. Davis -
Director of the Company:
Mr. Davis (John) is presently Chief Technology Officer and a Director of Allied
Riser Communications, Inc., Dallas, TX.
Prior to joining Allied Riser Communications John held several key
positions with Bell Labs and AT&T.
At AT&T, John was the Chief Architect and Technology Officer for
AT&T Local Services, responsible for strategic technical planning,
implementation of the network and the operations infrastructure. While at
AT&T, John also filled key roles for management of AT&T's technical
resources including Group Technical Officer for Bell Labs and AT&T
Communications Services. During the dawn of the cellular era in the early 1980's,
John was responsible for the commercialization of AT&T's cellular product
line, including the installation of the first ten commercial cellular systems
in the United States. Prior to the cellular assignment, John conceived the
architecture and managed the development of what became the No. 5 Electronic
Switching System (5ESS), presently Lucent Technologies' flagship product line.
Mr. Davis received his BS from the Georgia Institute of Technology, a Masters
degree from the Massachusetts Institute of Technology (MIT), and a Ph.D. from
the University of Pennsylvania, all in the field of electrical engineering.
Roger R. Nelson -
Director of the Company:
Mr. Nelson (Roger) recently retired as Deputy Chairman of Ernst & Young
LLP. He was responsible for the E&Y
Consulting Practice, the world's third largest management consulting practice,
with $10.9 billion in revenues in fiscal 1998, offices in 31 countries, and
more than 15,500 consultants around the world.
Roger has over 30 years of experience managing Ernst & Young's
consulting practice. Roger was a member of the Ernst & Young U.S.
Management Committee, Chairman of the U.S. Consulting Services Executive
Committee, Chairman of the U.S. Consulting Services Network, Chairman of the
Ernst & Young Global Services Council, a member of the Ernst & Young
International Executive Committee, as well as the International Council. His
expertise lies in financial planning and control, information systems,
performance measurement and general management projects for major
multinationals.
Mr. Nelson is a graduate of Northern Illinois University with a B.S. Degree in
Accounting.
John W. White -
Non-executive Chairman:
Mr. White (John) recently retired as Vice President and Chief Information
Officer for Compaq Computer Corporation. In this role, John served as a member
of the executive management team for Compaq and managed Compaq's worldwide
management information systems activities. Prior to Compaq, John had a 28-year
career with Texas Instruments where he served in various management and
technical roles, including 13 years as vice president and Chief Information
Officer and 5 years as President of the Information Technology Group. At Texas
Instruments he was responsible for the deployment of worldwide standardized management
information systems, implementation of a global voice and data network, and for
developing the Information Technology business, including the IEF CASE tool.
John also spent 4 years with Electronic Data Systems developing the EDS on-line
transaction processing system for the health care, life insurance, and banking
industries. John is currently serving on the board, advisory board, and as an
advisor for several companies including CITRIX Systems (board member), TIBCO
Software (chairman of the advisory board), ECOM Worldwide (board member),
MetaSolv Software (chairman of the board), Encentris (board member), and
eTopware (chairman of the board).
Mr. White has a B.S. in mathematics and physics from Central Missouri State
University and a M.S. in mathematics from the University of Kansas.
Paul Finnigan -
Director and industry consultant to the Company:
Mr. Finnigan is CEO of FINNIGAN USA (FUSA), a voice messaging consulting
firm. FUSA clients include major
network providers, technology vendors and companies worldwide. Paul was the Founder (1980) and former
Chairman of Voicemail International (VMI), a pioneer of the voice services
industry. VMI introduced the first voice mail and interactive voice response
services in the U.S., Europe and the Pacific Rim (1980 - 1985). VMI customers
included telephone companies, airlines, movie and television producers,
financial institutions, medical information services and many others.
Paul is the President Emeritus of the International Association for
Enhanced Voice Services (VMA) and is recognized worldwide as a visionary and
innovator of voice products and services.
Joseph Farrelly -
Director of the Company:
Mr. Farrelly (Joe) is presently Senior Vice President and Chief Information
Officer (CIO) of Joseph E. Seagram & Sons, Inc., a $20+ billion
entertainment and liquor manufacturer and marketer. From 1992 to 1998, Joe was
Executive Vice President and Chief Information Officer of Nabisco, an $8.4
billion food manufacturer. From 1988 to 1992, he was Corporate Vice President
of Information Systems Development for Automatic Data Processing (ADP), a $2.5
billion computer services company. Between 1980 and 1988, he was Vice President
of Research and Development at Applied Data Research (ADR), a software company,
where he directed the development and support services of ADR's mainframe and
personal computer software products. Joe is currently a member of the Research
Board in New York City (a leading information technology analysis company) and
participates in Gartner Group's Information Technology Executive Program.
Mr. Farrelly has a B.A. in Mathematics from Providence College, and an M.B.A.
from the University of Connecticut.
William J. Turner -
Director of the Company:
Mr. Turner
(Bill) is manager and co-founder of Signature Capital, a venture capital firm,
which raised $9 million of equity for NetNumber™ in early 2000. From 1983 to
1989, Bill served in multiple capacities, including President and COO of
Automatic Data Processing ("ADP"), a computer services firm with over
$2 billion in revenues at the time. In 1989, Bill formed Turner and Partners, a
management services firm, and had multiple leveraged buyout firms as clients,
including Forstmann Little, where he had responsibility as Executive Chairman
and/or CEO for over 30 separate business units with combined sales of over $3
billion. From 1979 to 1983 Bill was employed at the Texas Instruments Consumer
Products Division where he held several senior positions including V.P. of
Sales and Marketing as well as President. He has served on the Board of
Directors of the Federal Home Loan Mortgage Corporation (Freddie Mac-NYSE)
since 1990 and since 1996 on the board of Faroudja, Inc. (FDJA-NASDAQ). He also
serves on the Boards of several private venture capital stage companies
including Hand Technologies, Inc., McCabe & Associates, Inc., Acoustic
Technologies, Inc., VIRxSYS, Inc., and Additech, Inc.
Mr. Turner has a Business Administration Degree in mathematics from the
University of Maine and a Master of Business Administration Degree from
Northeastern University.
Glenn Marschel – CEO
and Board Member:
Glenn
brings both world-class management skills to the NetNumber team as well as
specific experience in the global communications space. Prior to joining NetNumber as CEO, Mr.
Marschel (Glenn) was Chief Executive Officer, President, and Co-Chairman of
Faroudja, Inc. (FDJA-NASDAQ), a public video processing technology
company. Prior to Faroudja, Glenn was
CEO of Paging Network Inc. (PageNet), a provider of wireless messaging services
with 9 million subscribers. Prior to
PageNet, Glenn served as Vice Chairman of First Financial Management
Corporation, a leading worldwide provider of credit card transaction
processing, healthcare claims processing and document management/imaging
services with revenues exceeding $3.0 billion. He began his business career at
CSI Computer Systems in 1970, and joined Automated Data Processing (ADP) in
1972, a $5 billion company in the information processing industry. Mr. Marschel
was employed by ADP from 1972 to 1994, and served as President of several of
ADP's largest businesses, including the Automotive and Employer Services
divisions, after holding other senior positions in sales, client services,
strategy, and marketing.
Mr. Marschel received a BS degree from the University of Missouri, and attended
the Stanford University Executive Development Program. He serves on the board
of SABRE Holdings, Inc., Travelocity and Additech, Inc.
Douglas J. Ranalli,
Founder, Chief Strategy Officer and Board Member:
NetNumber.com
is Mr. Ranalli's (Doug's) third start-up business. Doug is a seasoned leader
and entrepreneur who started his first business as an undergraduate student
while earning an Engineering degree at Cornell University. This first business
was a magazine for college students called "Student Life" that grew
to a controlled circulation of 1.2 million copies reaching a total audience of
over 4 million college students before being sold to Time, Inc. in 1987. After
selling Student Life, Doug enrolled in the Harvard MBA program where he
researched eight different business ideas before starting his second business,
Fax International (later named Unifi Communications), in the spring of 1991.
Fax International/Unifi was an international IP-Fax business that hit #20 on
the INC 500 list of fastest growing private companies in the US in 1997 before
deregulation of international telecommunications brought an end to the
company's underlying business model. Doug is the subject of multiple case studies
developed by the Harvard Business School. The HBS case study "Fax
International Japan" is currently being utilized by a variety of MBA
programs around the world and is available through HBS Publishing.
Mr. Ranalli holds degrees in Industrial Engineering (BS) from Cornell
University and an MBA from the Harvard Business School. Mr. Ranalli is also the
holder of multiple communications related patents.
Bob Walter, age 37,
CTO and Vice President, Development and Operations:
Prior to
joining NetNumber™ in November 1999, Mr. Walter (Bob) was a consultant at Cisco
Systems. Prior to consulting at Cisco, Bob was VP of Architecture and
Technology at Unifi Communications. In this capacity, Bob was responsible for
UNIFI's messaging services architecture and technology. Previously, he was the
chief architect of UNIFI's Enterprise Network Interface (ENI); a reusable
framework of Java/CORBA distributed services capturing the domain of reliable
message delivery with support for rendering, real-time status and on-line
customer registration. Prior to joining UNIFI in August of 1997, Bob was lead
architect on Pratt & Whitney Aircraft's Virtual Jet Engine program, a large
scale, object-oriented distributed system involving the simulation and optimization
of multi-dimensional jet engine propulsion systems.
Mr. Walter holds degrees in Mechanical Engineering (BSME) from the University
of Massachusetts Dartmouth, a Masters Degree in Computer Science (MCS -
Software Engineering Option) from Florida Atlantic University and a Certificate
of Graduate Studies in Software Engineering from Software Engineering Institute
of Carnegie Mellon University.
Steve Darrington, age
26, VP Finance & Administration:
Steve has thirteen years
of international finance experience including five years as corporate
controller of the Economist Newspaper in London. For the last six years Steve has held senior finance positions in
venture organizations, most recently UCT International, a biotechnology
clinical trials company, which he sold on behalf of DLJ Phoenix Venture
Partners in January 2000.
Steve attended Leicester
and Manchester Business schools gaining Bachelors and Masters degrees in
Business Administration. Steve is a
Fellow of The Association of Chartered Certified Accountants.
Dave Peek, age 36,
Director of Technology Strategy:
Mr. Peek
(David) represents NetNumber™ on multiple Internet and Telecommunications
standards bodies. David is currently representing NetNumber™ as a participant
in the Electronic Messaging Association's VPIM initiative and as Chairman of
the Voice Mail Association's (VMA) technical working group on directory
services. Prior to joining NetNumber.com, David filled the same role at Unifi
Communications. While at Unifi, David was invited to speak on multiple
occasions at voice industry conferences held by both the EMA and by CTExpo.
During the period 1993 - 1996 he was a development manager at Lernout &
Hauspie Speech Products.
Mr. Peek holds degrees a BS degree in Computer Science with a minor in Business
Administration from the University of Lowell.
Thomas Sosnowski
Ph.D., Consultant, Intellectual Property:
Prior to
joining NetNumber.com in a consulting capacity, Dr. Sosnowski (Tom) was
Executive Director at Unifi Communications responsible for Research and
Intellectual Property from 1994 - 1998. Prior to that time, Tom was the Vice
President and Director of Engineering of Unifi. Tom was the creative force
behind the design, development, and worldwide homologation of the FaxLink intelligent
routing device. Tom began his career with Bell Laboratories where he was
engaged in applied research in laser physics, optical wave-guide technology,
and telecommunications terminal and switching systems. He then held management
positions at GTE Laboratories and Eikonix before founding Sosnowski Associates
in 1986.
Dr. Sosnowski holds a BS in Engineering Science from Pennsylvania State
University, and a Ph.D. in Engineering from Case-Western Reserve University. He
is a senior member of IEEE, the author of more than 20 technical publications
and a holder of 10 patents.
D13.1.7 Staff/Employees
Current staff: The
current staff of NetNumber includes 21 people, the majority of whom are
dedicated to technology development and 2nd line technical operations
activities. In addition to the full
time staff, NetNumber leverages a large base of contract staff through its key
vendor relationships. NetNumber has
chosen to embrace the emerging model of leveraging outsourced services to
compliment a base of core full-time staff.
Outsourced services and staff are being utilized by NetNumber in the
following areas of activity:
-
Asset hosting
-
First line operations support
-
Accounting
-
Billing
-
Legal & contractual
-
Facilities management
See Section D15 "Technical Capabilities and Plan" for a
discussion of end-to-end quality control mechanisms incorporated into the
Registry plan. The current level of
full-time staff and contract staff is consistent with the operational demands
of the business at this time. However,
the ".tel" Registry business plan calls for a steady addition of
staff in 2001. Key areas of staff
expansion will be as follows:
-
Business development and marketing support
-
Customer support
Expansion capabilities:
NetNumber's headquarters facility is fully configured to support the
addition of 16 new full-time staff with no incremental asset costs or
operational costs. Additional expansion
space is available on demand in the existing physical facility and in surrounding
office buildings.
NetNumber is located in the Boston metropolitan area which is one of the
world's predominant locations for the development of Internet-Telephony
technology. Related companies operating
in the immediate area include 3Com, PingTel, Cisco, CMGI, EMC, iBasis, iperia
and Sonus networks. In addition, the
NetNumber team has direct experience with, and access to, a pool of over 350
experienced technology development and customer service staff in the Boston
area that worked at Unifi Communications.
Employee Training & Hiring Policies: NetNumber is an equal opportunity
employer. Every employee owns stock or
has stock options in the business and every employee goes through a training
program run by the top management of the business. NetNumber intends to continue the policies of 100% stock
participation and top-management lead training for the foreseeable future.
D13.1.8 General Liability Insurance
NetNumber has a current
$2 million general liability policy with the Massachusetts Bay Insurance
Company.
Massachusetts
Bay Insurance Company
100
North Parkway
Worcester,
MA 01605
NetNumber has engaged William Gallagher Associates,
the leading high-technology insurance broker in the United States to complete a
detailed insurance audit and RFP process.
Additional insurance coverage tied to the creation of the
".tel" TLD will be incorporated into the audit and RFP.
William
T. Frain, III
Vice
President
William
Gallagher Associates
200
State Street
Boston,
MA 02109
617-261-6700
D13.2 REGISTRY BUSINESS PLAN
D13.2.1 Services to be Provided
".tel" TLD: NetNumber's primary service will be the operation of the ".tel" TLD as the Registry operator. Registry services will be provided to all accredited Registrars on a non-discriminatory basis. Services included under the ".tel" Registry umbrella are as follows:
Whois Services: NetNumber will provided a common Whois database service for all ".tel" Registrars as a built-in component of the Registry service.
Update Services: NetNumber will provide a shared Registry update system and associated "Registry Update Protocol" specification for use by all ".tel" Registrars. Update services will be included in the Registry fee structure.
Conflict Resolution Tool: NetNumber will provide a shared "Conflict Resolution Tool" (CRT) for use by all ".tel" Registrars as part of the Registry service. The CRT will provide a common mechanism for identifying and resolving registration conflicts between different Registrars. The CRT service will be provided as part of the Registry function.
Conflict Resolution Center: NetNumber will provide a staff of conflict resolution service personnel to assist Registrars in resolving conflicts that are not automatically resolved via the use of the CRT. CRC staff services will be billed on an hourly basis to the Registrars involved in the conflict as per the ".tel" Conflict Resolution Policy.
Initial Registrar Services: NetNumber will operate the first accredited Registrar service for the ".tel" TLD as a tool for advancing momentum for the ".tel" TLD. However, the Company's Registrar service is not expected to be an important aspect of the NetNumber business plan so no revenue projections are being made for Registrar services at this time. NetNumber's objective is to recruit Registrars on a global basis and place primary focus on providing Registry services.
D13.2.2 Revenue Model
The NetNumber revenue model for inclusion of entries in the ".tel" TLD is a flat fee of US$6.0 or Euro 7.0 per year.
Registrars will be billed one twelfth (1/12) of the yearly fee on a monthly basis for each entry in the Registry.
D13.2.3
Market
The market for the GITD is defined by any current
e164 telephone number subscriber (individual, corporation or service provider)
who wants to register a telephone number and associated Internet addresses on
the Internet. Initial market experience
with the GITD has shown that early adopters will be individuals and
corporations investing in voice over IP technology.
Market projections
call for more than 60 million IP-voice end points by the end of 2005.
Market size data
references :
2001 2002 2003 2004 2005
Infotechtrends 1999
forecast
IP voice enterprise platform ports (000’s)* 3,700 10,800 23,300 37,308 54,862
3 Com forecast for
IP PBX Port
sales of NBX100 product (000’s)A 2,000
Probe research industry projections 1999
IP voice end users (000’s) 3,700 10,800 23,300 39,300 66,024
* Years 2004 and 2005 extrapolated from
previous years trends.
A : Internet week Jun 19, 2000 / Phillips group research) 3Com market leader in IP PBX sales.
D13.2.4. Marketing Plan
NetNumber has
defined a multi-stage marketing plan for the ".tel" TLD that is
designed to make ".tel" a piece of core infrastructure for the
emerging Internet-Telephony industry:
Stage 1: Vendor
Integration Agreements: The first
step in tying the ".tel" TLD to the growth of the industry involves
gaining agreement from technology vendors to integrate a global directory
service based on the ".tel" TLD into their IP-communications products. NetNumber started discussions with multiple
equipment vendors in the July timeframe and has already launched GITD
integration work with several key vendors.
For references regarding vendor integration activities please contact
the following:
Tom Gentles
Service Provider Group
3Com Corporation
Karim Faris
Level3 Communications
Stage 2: Industry
Education: NetNumber is actively
engaged in working with all of the key Internet-Telephony industry groups that
will be affected by the ".tel" TLD.
NetNumber is a member of the following organizations:
International Association for Enhanced Voice
Services (VMA) www.ivma.ch
Telemessaging Industry Association (TMIA) www.tmia.org
Electronic Messaging Association (EMA) www.ema.org
Softswitch Consortium www.softswitch.org
Telemanagement Forum www.tmforum.org
Stage 3: Registrar Recruitment:
The final stage of linking the ".tel" TLD to the growth of the
Internet-Telephony industry is based on bringing a large number of Registrars
into the process. The Registrar process
fits perfectly into the role played by Internet-Telephony service
providers. Examples of potential
Registrars include CLEC's (Competitive Local Exchange Carriers), Communications
ASP's (Application Service Providers) and Broadband Service Providers (DSL and
Packet-Cable).
NetNumber has engaged in
early discussions with potential Registrars from all of the customers segments
outlined above. Detailed discussions
will begin as soon as a decision is reached regarding the creation of the
".tel" TLD.
D13.2.5. Estimated demand for registry services for .tel.
NetNumber has created three demand scenarios as follows:
A. Slow
“early adopter” penetration into closed business community user groups (90%
confidence level).
B. Moderate penetration into wider
corporate community. (50% confidence level).
C. Widespread
uptake in corporate user base with initial penetration into domestic market.
(10% confidence level).
The graph below
illustrates the market projections for growth of IP-telephony end-points, (See Info-tech and Probe research trend
lines below) and three market penetration scenarios for end-point registrations
in the ".tel" Registry.
The table below
outlines NetNumber's three market penetration scenarios:
2001 2002 2003 2004
Scenario A – 90%
confidence 10% 12.5%
15% 17.5%
Scenario B – 50%
confidence 12.5% 15%
20% 25%
Scenario C – 10% confidence 15% 17.5%
25% 35%
D13.2.6. Resources required to meet demand for .tel.
The resources required to meet demand for .tel are divided into two
categories :
1.
Staff
2.
Hardware and
technology based resources
Staff resources:
The following
tables outline the planned staffing requirements under the 90%, 50% and 10%
confidence plans.
The current
NetNumber facility in Lowell, MA has capacity for 16 additional full-time staff
with no increase in asset or housing costs. The pro forma plan makes allowances
for the cost elements of additional office space when headcount grows beyond
the current space.
Staffing requirements: 90% confidence
scenario 2001 – 2004
|
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
|
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
|
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
|
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
|
|
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
|
Service delivery |
|
|
|
4 |
4 |
4 |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
|
Selling and Business Development |
|
7 |
7 |
7 |
8 |
|||
|
Finance & Administration |
|
|
4 |
4 |
4 |
4 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
33 |
37 |
|
|
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
5 |
5 |
6 |
6 |
|
|
Service delivery |
|
|
|
6 |
7 |
8 |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
|
Selling and Business Development |
|
8 |
8 |
8 |
8 |
|||
|
Finance & Administration |
|
|
4 |
5 |
6 |
6 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
39 |
41 |
46 |
47 |
|
|
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
7 |
7 |
8 |
8 |
|
|
Service delivery |
|
|
|
12 |
14 |
16 |
18 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
|
Selling and Business Development |
|
8 |
9 |
9 |
9 |
|||
|
Finance & Administration |
|
|
6 |
7 |
7 |
8 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
4 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
52 |
56 |
59 |
63 |
|
Staffing requirements: 50% confidence scenario 2001 – 2004
|
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
|
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
|
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
|
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
|
|
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
|
Service delivery |
|
|
|
4 |
4 |
4 |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
|
Selling and Business Development |
|
7 |
7 |
7 |
8 |
|||
|
Finance & Administration |
|
|
4 |
4 |
4 |
4 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
33 |
37 |
|
|
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
5 |
6 |
6 |
7 |
|
|
Service delivery |
|
|
|
7 |
8 |
9 |
10 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
|
Selling and Business Development |
|
8 |
8 |
9 |
9 |
|||
|
Finance & Administration |
|
|
5 |
6 |
7 |
8 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
41 |
44 |
49 |
52 |
|
|
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
8 |
9 |
10 |
11 |
|
|
Service delivery |
|
|
|
12 |
14 |
18 |
20 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
|
Selling and Business Development |
|
9 |
10 |
11 |
12 |
|||
|
Finance & Administration |
|
|
8 |
9 |
10 |
10 |
||
|
Executive Management |
|
|
4 |
4 |
5 |
5 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
57 |
62 |
70 |
74 |
|
Staffing requirements: 10% confidence scenario 2001 – 2004
|
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
|
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
|
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
|
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
|
|
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
|
Service delivery |
|
|
|
4 |
4 |
5 |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
|
Selling and Business Development |
|
7 |
7 |
8 |
8 |
|||
|
Finance & Administration |
|
|
4 |
4 |
5 |
5 |
||
|
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
36 |
40 |
|
|
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
6 |
6 |
7 |
8 |
|
|
Service delivery |
|
|
|
8 |
9 |
10 |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
|
Selling and Business Development |
|
8 |
8 |
9 |
10 |
|||
|
Finance & Administration |
|
|
5 |
6 |
8 |
8 |
||
|
Executive Management |
|
|
3 |
3 |
4 |
4 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
43 |
45 |
53 |
57 |
|
|
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
|
Operations |
|
|
|
9 |
10 |
12 |
13 |
|
|
Service delivery |
|
|
|
14 |
16 |
20 |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
|
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
|
Selling and Business Development |
|
11 |
12 |
13 |
14 |
|||
|
Finance & Administration |
|
|
8 |
9 |
9 |
10 |
||
|
Executive Management |
|
|
4 |
5 |
5 |
6 |
||
|
|
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
62 |
68 |
75 |
81 |
|
Hardware and technology based resources.
The following tables illustrate the two main component parts (and
associated costs) of the
".tel" Registry – Master sites and Edge sites. The initial deployment of the
".tel" Registry represents the deployment of two Master sites
and four Edge sites.
As of the date of
this document, NetNumber has already deployed one fully redundant Master site
and one fully redundant Edge site. In
addition, assets for the deployment of the next Master site and the next two
Edge sites have been purchased and are currently in pre-deployment testing in
NetNumber's office. The full deployment
of two complete Master sites and four Edge sites will be finished during Q4
2000 and Q1 2001.
The physical
hardware component requirements and costs associated with the initial
".tel" Registry deployment is outlined below in detailed spreadsheet
format. Performance testing on the
currently deployed production assets indicate that the initial ".tel"
Registry asset deployment will deliver the following results using the
operating assumptions outlined below:
Queries per second: 15,840 (at
60% system utilization)
Average query size 250
bytes
Number of times
each number is queried per day 50 (positive and negative queries)
Percentage of daily
queries during peak hour 25%
Maximum system
utilization 60%
Using the above assumptions this “baseline” GITD deployment is scaled to
manage up to 2.4 million directory entries, each being queried an average of 50
times per day.
Index
of tables
A.
Consolidated
Master site cost summary
B.
Master site –
DNS Master
C.
Master site –
Back office (NNBO)
D.
Master site –
Web Systems (WEB)
E.
Master site –
Whois Systems (WHO)
F.
Master site –
Registry Update Protocol Systems (RUP)
G.
Master site –
Cost summary
H.
Slave site –
DNS Slave
I.
Slave site –
LDAP Slave
Table
A : Consolidated Master Site cost summary
|
Description |
Quantity |
Non Recurring
Unit Cost |
Annual Recurring
Unit Cost |
Non Recuring
Cost |
Recurring
Monthly Cost |
Monthly
Recurring Costs (24M) |
|
DNS Master |
1 |
|
|
$68,074 |
$186 |
$3,022 |
|
NNBO |
1 |
|
|
$204,188 |
$3,936 |
$12,443 |
|
WEB |
1 |
|
|
$121,778 |
$185 |
$5,259 |
|
WHO |
1 |
|
|
$118,778 |
$185 |
$5,134 |
|
RRP |
1 |
|
|
$118,778 |
$185 |
$5,134 |
|
Installation Fees |
1 |
$20,000 |
$0 |
$20,000 |
$0 |
$833 |
|
Storage Array |
1 |
$191,299 |
$10,175 |
$191,299 |
$10,175 |
$18,146 |
|
SAN Switches |
2 |
$5,795 |
$0 |
$11,590 |
$0 |
$483 |
|
Network Switches |
4 |
$1,500 |
$0 |
$6,000 |
$0 |
$250 |
|
Backup |
1 |
$1,995 |
$2,000 |
$1,995 |
$2,000 |
$2,083 |
|
Firewall |
2 |
$16,000 |
$7,000 |
$32,000 |
$14,000 |
$15,333 |
|
Load Balancing |
2 |
$20,995 |
|
$41,990 |
$0 |
$1,750 |
|
Monitoring Service |
1 |
$995 |
|
$995 |
$0 |
$41 |
|
Rack Space |
2 |
$1,210 |
$1,100 |
$2,420 |
$2,200 |
$2,301 |
|
Bandwidth |
2 |
$3,850 |
$8,880 |
$7,700 |
$17,760 |
$18,081 |
|
|
|
|
|
$947,585 |
$50,812 |
$90,295 |
Table
B : Master site – DNS Master
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware (see hardware detail) |
1 |
$61,444 |
$0 |
$61,444 |
$0 |
$2,560 |
|
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
|
Veritas HA VCS |
1 |
$6,630 |
$2,229 |
$6,630 |
$186 |
$462 |
|
BIND 9 |
2 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
|
$68,074 |
$186 |
$3,022 |
|
DLS Hardware
Detail |
|
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
2 |
$1,077 |
$2,154 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
2 |
$1,995 |
$3,990 |
|
|
|
|
Fibre Cables |
2 |
$150 |
$300 |
|
|
|
|
|
|
|
$61,444 |
|
|
|
Table C : Master site – Back office (NNBO)
|
|
||||||
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware |
2 |
$61,444 |
$0 |
$122,888 |
$0 |
$5,120 |
|
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
|
Veritas HA VCS |
2 |
$6,630 |
$2,229 |
$13,260 |
$372 |
$924 |
|
Oracle Enterprise Edition - 180 units |
1 |
$68,040 |
$42,768 |
$68,040 |
$3,564 |
$6,399 |
|
|
|
|
|
$204,188 |
$3,936 |
$12,443 |
|
Hardware Detail |
|
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
2 |
$1,077 |
$2,154 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
2 |
$1,995 |
$3,990 |
|
|
|
|
Fibre Cables |
2 |
$150 |
$300 |
|
|
|
|
|
|
|
$61,444 |
|
|
|
|
|
|
|
|
|
|
|
Table D : Master site – Web Systems (WEB)
|
|
||||||
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
|
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
|
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
Stronghold 3 |
2 |
$1,000 |
$0 |
$2,000 |
$0 |
$83 |
|
Jrun 3 |
2 |
$500 |
$0 |
$1,000 |
$0 |
$42 |
|
|
|
|
|
$121,778 |
$185 |
$5,259 |
|
Hardware Detail |
|
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
|
Table E : Master site – Whois Systems (WHO)
|
|
||||||
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
|
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
|
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
|
Table F : Master site – Registry Registrar Protocol
Systems (RRP)
|
|
||||||
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
|
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
|
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
|
Table G : Consolidated Edge site – Cost summary.
|
Description |
Quantity |
Non Recurring
Unit Cost |
Recurring Unit
Cost |
Non Recuring
Cost |
Recurring
Monthly Cost |
Monthly
Recurring Costs (24M) |
|
DNS Edge |
1 |
|
|
$118,778 |
$185 |
$5,134 |
|
Network Switches |
4 |
$1,500 |
$0 |
$6,000 |
$0 |
$250 |
|
Firewall |
2 |
$16,000 |
$7,000 |
$32,000 |
$14,000 |
$15,333 |
|
Load Balancing |
2 |
$20,995 |
$0 |
$41,990 |
$0 |
$1,750 |
|
Monitoring Service |
1 |
$995 |
|
$995 |
$0 |
$41 |
|
Rack Space |
1 |
$1,210 |
$1,100 |
$1,210 |
$1,100 |
$1,150 |
|
Bandwidth |
2 |
$3,850 |
$8,880 |
$7,700 |
$17,760 |
$18,081 |
|
|
|
|
|
$208,673 |
$33,045 |
$41,740 |
Table H : Edge site – DNS Edge Server
|
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recurring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
|
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
|
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
BIND 9 |
2 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
|
$56,077 |
|
|
|
D13.2.7 Plans for acquiring
necessary systems and facilities
Over the past year, NetNumber has established the following
systems & facilities.
- Headquarters facility for 40 people.
- $9 million equity financing
- Hired executive team: CEO, CTO, CSO, VP Finance, VP Sales
- Hired 15 person development and operations team
- Acquired $1 million enterprise class network operations equipment
- Executed operating lease on additional $1 million hardware and software
- Deployed first production release of Global Internet-Telephony Directory.
- Established strong strategic relationships with key vendors
The projected
systems and facility investments necessary to execute the ".tel"
Registry business plan fall well within the resources, skills, and experience
of the team.
D13.2.8 Staff size/expansion
capability
Despite
operating in a tight technical labor market in the Boston area, the NetNumber
team has already demonstrated its ability to hire technical and operations
staff as required. In this regard the
NetNumber team is benefiting greatly from having built a large development and
operations staff in the exact same geographic area while at Unifi
Communications. Access to necessary
staff will not be a limiting factor in the operation of the ".tel"
Registry.
D13.2.9
Availability of Additional Management Personnel
NetNumber is well down the path of completing its executive team. Outlined below is a summary of filled and outstanding positions. Access to management will not be a limiting factor in the operation of the ".tel" Registry.
- Chief Executive Officer Filled
- Strategy Officer Filled
- Chief Technology Officer Filled
- VP Finance & Administration Filled
- VP Sales & Marketing Filled (accepted 9/25/00)
- VP Operations & Service Identified – scheduled Q1 2001
D13.2.10
Term of Registry Agreement
Initial Term: 6-years
NetNumber
believes that a six-year initial term is justified considering the long lead
time that may be required to cause a new TLD to gain momentum in the market.
Performance Extension: 4 - years
The Registry contract will automatically extended for a 4-year period if the event the Registry operator achieves one of two key performance targets during the initial term:
(a) The Registry operator and its marketing partners make investments of at least $20 million in ".tel" related sales, business development, public relations, advertising and marketing expenses during the initial term. (Incentive for making the up-front investments necessary to build momentum for the Registry during the first term.)
(b) The Registry operator achieves at least 4 million registered entries in the ".tel" TLD by the end of the initial term. (Reward for finding a way to cause the Registry to achieve a baseline critical mass of entries during the first term.)
Intellectual Property Extension: 4 – years
The Registry operator will be granted an additional 4-year extension in the event that the Registry operator is awarded one or more patents containing claims that apply to the operation of the ".tel" domain. Such patents must be awarded before the expiration of the initial term or performance extension.
D13.2.11 Expected Costs Associated With Operation Of Registry:
See Section 13.2.6 for a detailed breakdown of staff requirements and physical asset requirements at various demand levels. See Section 13.3 for a detailed break-down of expenses on a quarterly basis across three different demand scenarios.
D13.2.12 Expected Revenue Associated With Proposed Registry:
Registry revenue projections are based on multiplying a flat monthly fee per registered entry by the number of entries defined in each demand scenario. The revenue model for the ".tel" TLD is as follows:
2001 – All Registry services provided at no charge to stimulate initial registrations. 2002 - $0.50/month ($6/year) flat rate billing for Registry services.
D13.2.13 Capital Requirements
The NetNumber conservative case operational model (90% confidence model) calls for $20 million of incremental equity financing and $3 million of incremental asset financing beyond the current cash reserves on-hand.
The Company's proven ability to raise equity and hardware financing indicates that this level of incremental financing is well within the capabilities of the NetNumber management team and Board of Directors.
See Section D13.4.4 "Proof of Capital" for a copy of a letter from NetNumber's lead venture capital firm attesting to their willingness to raise additional equity capital as appropriate.
D13.2.15
Registry Failure Provisions
Registry Failure
Provisions:
(a) (a)
The iTAB-NetNumber Registry
Agreement provides for Data Escrow of all Registry data that is under the
control of iTAB.
(b) (b)
The iTAB-NetNumber Registry
Agreement provides for the pre-funding of $200,000/year of iTAB fees by the
Registry to ensure continued operation of baseline iTAB activities even in the
event of financial failure of the Registry.
(c) (c)
NetNumber will negotiate in
good faith with iTAB to incorporate an additional clause into the Registry Agreement
that will give iTAB control over at least one Master node location (and all
associated physical assets) and at least one Edge node location (and associated
physical assets) in the event of financial failure of the Registry.
(d) (d)
NetNumber will negotiate in
good faith with iTAB to provide iTAB with the ability to seize control of the
assets described in (c) above and the ability to terminate the Registry
Agreement in the event that NetNumber is judged to be insolvent or bankrupt.
D13.3 PRO-FORMA FINANCIAL PROJECTIONS
D13.3.1 90% Confidence Level Plan
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Income Statement annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
0 |
5,209,394 |
14,613,311 |
30,713,913 |
|
|
|
|
|
|
|
Cost
of Service |
5,627,886 |
5,938,793 |
7,309,118 |
10,622,513 |
|
|
|
|
|
|
|
Gross
Margin |
(5,627,886) |
(729,400) |
7,304,193 |
20,091,400 |
|
Gross
Margin % |
N/A |
-14.0% |
50.0% |
65.4% |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Research
& Development |
1,759,654 |
2,087,077 |
2,796,769 |
3,199,154 |
|
Selling
and Business Dev |
1,329,087 |
1,694,518 |
2,705,473 |
3,682,282 |
|
Marketing
and Promotion |
1,500,000 |
2,500,000 |
3,000,000 |
4,607,087 |
|
Finance
& Administration |
1,409,077 |
1,789,538 |
2,210,093 |
2,644,077 |
|
Executive
Management |
672,038 |
734,269 |
771,192 |
822,788 |
|
Depreciation |
144,958 |
172,875 |
211,625 |
251,417 |
|
Total
operating expenses |
6,814,814 |
8,978,278 |
11,695,153 |
15,206,805 |
|
|
|
|
|
|
|
Operating
Profit |
(12,297,742) |
(9,534,802) |
(4,179,335) |
5,136,012 |
|
|
|
|
|
|
|
Taxes
(@ 42%) |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
Net
profit |
(12,297,742) |
(9,534,802) |
(4,179,335) |
5,136,012 |
|
Net
Profit % |
N/A |
-183.0% |
-28.6% |
16.7% |
|
|
|
|
|
|
|
Number
of Directory entries |
370,000 |
1,350,000 |
3,495,000 |
6,703,200 |
|
Market
penetration |
10.0% |
12.5% |
15.0% |
17.5% |
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Balance Sheet annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
Assets |
|
|
|
|
|
Cash and Cash equivalents |
11,162,676 |
2,576,940 |
854,291 |
2,395,608 |
|
Accounts receivable |
0 |
623,683 |
1,630,443 |
3,172,422 |
|
|
|
|
|
|
|
Total
Current Assets |
11,162,676 |
3,200,624 |
2,484,734 |
5,568,030 |
|
|
|
|
|
|
|
Intangible
assets |
40,000 |
40,000 |
40,000 |
40,000 |
|
|
|
|
|
|
|
Tangible
assets at cost |
|
|
|
|
|
GITD Network equipment |
3,300,000 |
3,350,000 |
4,689,532 |
7,964,640 |
|
Leasehold Improvements |
176,000 |
176,000 |
176,000 |
176,000 |
|
Other computer Hardware / Software |
142,000 |
224,500 |
299,500 |
419,500 |
|
Furniture, Fixtures & Fittings |
150,000 |
150,000 |
200,000 |
200,000 |
|
|
|
|
|
|
|
Less
accumulated Depreciation |
1,529,131 |
3,239,833 |
5,211,165 |
8,523,817 |
|
|
|
|
|
|
|
Net
Tangible assets |
2,238,869 |
660,667 |
153,866 |
236,323 |
|
|
|
|
|
|
|
Total
Net Assets |
13,441,545 |
3,901,291 |
2,678,601 |
5,844,353 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Accounts payable |
282,451 |
378,121 |
474,275 |
634,936 |
|
Hardware financing |
0 |
0 |
3,000,000 |
1,000,000 |
|
Accrued expenses |
211,838 |
283,591 |
355,707 |
476,202 |
|
Total
current liabilities |
494,289 |
661,712 |
3,829,982 |
2,111,139 |
|
|
|
|
|
|
|
Shareholders
equity |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
|
Additional
paid in capital |
20,000,000 |
20,000,000 |
20,000,000 |
20,000,000 |
|
Accumulated
profit / (Deficit) |
(16,552,744) |
(26,260,421) |
(30,651,381) |
(25,766,786) |
|
Total
Stockholders equity |
12,947,256 |
3,239,579 |
(1,151,381) |
3,733,214 |
|
|
|
|
|
|
|
Total
Net Liabilities |
13,441,545 |
3,901,291 |
2,678,601 |
5,844,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
: |
|
|
|
|
|
1. No adjustment made for
deferred stock based compensation. |
|
|||
|
2. Assumes funding of $20
million at end of Q1 2001. |
|
|
||
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2001 |
|
|
||
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2001 |
|
|
|
|
|
|
|
|
Revenue |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,348,940 |
1,426,315 |
1,426,315 |
1,426,315 |
5,627,886 |
|
|
|
|
|
|
|
|
Gross
Margin |
(1,348,940) |
(1,426,315) |
(1,426,315) |
(1,426,315) |
(5,627,886) |
|
Gross
Margin % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
439,913 |
439,913 |
439,913 |
439,913 |
1,759,654 |
|
Selling
and Business Dev |
297,115 |
343,990 |
343,990 |
343,990 |
1,329,087 |
|
Marketing
and Promotion |
250,000 |
500,000 |
250,000 |
500,000 |
1,500,000 |
|
Finance
& Administration |
352,269 |
352,269 |
352,269 |
352,269 |
1,409,077 |
|
Executive
Management |
154,760 |
154,760 |
181,260 |
181,260 |
672,038 |
|
Depreciation |
32,750 |
35,875 |
37,333 |
39,000 |
144,958 |
|
Total
operating expenses |
1,494,058 |
1,790,933 |
1,567,433 |
1,817,433 |
6,669,856 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,842,998) |
(3,217,248) |
(2,993,748) |
(3,243,748) |
(12,297,742) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,842,998) |
(3,217,248) |
(2,993,748) |
(3,243,748) |
(12,297,742) |
|
Net
Profit % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Number
of Directory entries |
108,182 |
195,455 |
282,727 |
370,000 |
|
|
Market
penetration |
10.0% |
10.0% |
10.0% |
10.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2002 |
|
|
||
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2002 |
|
|
|
|
|
|
|
|
Revenue |
764,931 |
1,101,798 |
1,471,614 |
1,871,050 |
5,209,394 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,479,969 |
1,479,969 |
1,479,969 |
1,498,886 |
5,938,793 |
|
|
|
|
|
|
|
|
Gross
Margin |
(715,038) |
(378,171) |
(8,355) |
372,164 |
(729,400) |
|
Gross
Margin % |
-93.5% |
-34.3% |
-0.6% |
19.9% |
-14.0% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
490,644 |
532,144 |
532,144 |
532,144 |
2,087,077 |
|
Selling
and Business Dev |
396,058 |
396,058 |
396,058 |
506,345 |
1,694,518 |
|
Marketing
and Promotion |
500,000 |
750,000 |
250,000 |
1,000,000 |
2,500,000 |
|
Finance
& Administration |
447,385 |
447,385 |
447,385 |
447,385 |
1,789,538 |
|
Executive
Management |
183,567 |
183,567 |
183,567 |
183,567 |
734,269 |
|
Depreciation |
40,875 |
42,750 |
43,375 |
45,875 |
172,875 |
|
Total
operating expenses |
2,058,529 |
2,351,904 |
1,852,529 |
2,715,316 |
8,805,403 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,773,567) |
(2,730,075) |
(1,860,884) |
(2,343,152) |
(9,534,802) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,773,567) |
(2,730,075) |
(1,860,884) |
(2,343,152) |
(9,534,802) |
|
Net
Profit % |
-362.6% |
-247.8% |
-126.5% |
-125.2% |
-183.0% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
587,434 |
821,676 |
1,078,106 |
1,350,000 |
|
|
Market
penetration |
10.6% |
11.3% |
11.9% |
12.5% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2003 |
|
|
||
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2003 |
|
|
|
|
|
|
|
|
Revenue |
2,473,333 |
3,221,324 |
4,027,323 |
4,891,330 |
14,613,311 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,691,360 |
1,738,881 |
1,860,715 |
2,018,162 |
7,309,118 |
|
|
|
|
|
|
|
|
Gross
Margin |
781,973 |
1,482,443 |
2,166,608 |
2,873,168 |
7,304,193 |
|
Gross
Margin % |
31.6% |
46.0% |
53.8% |
58.7% |
50.0% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
655,817 |
655,817 |
742,567 |
742,567 |
2,796,769 |
|
Selling
and Business Dev |
617,369 |
654,768 |
695,068 |
738,268 |
2,705,473 |
|
Marketing
and Promotion |
750,000 |
1,000,000 |
250,000 |
1,000,000 |
3,000,000 |
|
Finance
& Administration |
525,846 |
550,471 |
558,679 |
575,096 |
2,210,093 |
|
Executive
Management |
192,798 |
192,798 |
192,798 |
192,798 |
771,192 |
|
Depreciation |
48,375 |
51,292 |
55,667 |
56,292 |
211,625 |
|
Total
operating expenses |
2,790,205 |
3,105,146 |
2,494,780 |
3,305,022 |
11,483,528 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,008,232) |
(1,622,703) |
(328,171) |
(431,854) |
(4,179,335) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,008,232) |
(1,622,703) |
(328,171) |
(431,854) |
(4,179,335) |
|
Net
Profit % |
-81.2% |
-50.4% |
-8.1% |
-8.8% |
-28.6% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
1,827,656 |
2,344,375 |
2,900,156 |
3,495,000 |
|
|
Market
penetration |
13.1% |
13.8% |
14.4% |
15.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2004 |
|
|
||
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2004 |
|
|
|
|
|
|
|
|
Revenue |
5,909,319 |
7,042,340 |
8,244,989 |
9,517,266 |
30,713,913 |
|
|
|
|
|
|
|
|
Cost
of Service |
2,246,285 |
2,481,462 |
2,787,511 |
3,107,255 |
10,622,513 |
|
|
|
|
|
|
|
|
Gross
Margin |
3,663,034 |
4,560,878 |
5,457,478 |
6,410,010 |
20,091,400 |
|
Gross
Margin % |
62.0% |
64.8% |
66.2% |
67.4% |
65.4% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
799,788 |
799,788 |
799,788 |
799,788 |
3,199,154 |
|
Selling
and Business Dev |
796,956 |
900,482 |
960,615 |
1,024,229 |
3,682,282 |
|
Marketing
and Promotion |
886,398 |
1,056,351 |
1,236,748 |
1,427,590 |
4,607,087 |
|
Finance
& Administration |
642,019 |
661,019 |
661,019 |
680,019 |
2,644,077 |
|
Executive
Management |
196,260 |
196,260 |
196,260 |
234,010 |
822,788 |
|
Depreciation |
59,417 |
61,917 |
63,792 |
66,292 |
251,417 |
|
Total
operating expenses |
3,380,838 |
3,675,817 |
3,918,222 |
4,231,927 |
14,955,388 |
|
|
|
|
|
|
|
|
Operating
Profit |
282,196 |
885,060 |
1,539,256 |
2,178,083 |
5,136,012 |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
282,196 |
885,060 |
1,539,256 |
2,178,083 |
5,136,012 |
|
Net
Profit % |
4.8% |
12.6% |
18.7% |
22.9% |
16.7% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
4,226,719 |
5,005,325 |
5,830,819 |
6,703,200 |
|
|
Market
penetration |
15.6% |
16.3% |
16.9% |
17.5% |
|
D13.3.2
50% Confidence Level Plan
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Income Statement annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
0 |
6,337,272 |
18,789,547 |
42,760,090 |
|
|
|
|
|
|
|
Cost
of Service |
5,602,762 |
5,945,919 |
7,968,468 |
13,045,735 |
|
|
|
|
|
|
|
Gross
Margin |
(5,602,762) |
391,352 |
10,821,079 |
29,714,355 |
|
Gross
Margin % |
N/A |
6.2% |
57.6% |
69.5% |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Research
& Development |
1,732,855 |
2,054,323 |
2,740,194 |
3,133,645 |
|
Selling
and Business Dev |
1,366,270 |
1,823,522 |
3,086,534 |
4,703,609 |
|
Marketing
and Promotion |
1,500,000 |
2,500,000 |
3,000,000 |
6,414,013 |
|
Finance
& Administration |
1,413,097 |
1,794,452 |
2,344,163 |
2,872,403 |
|
Executive
Management |
656,629 |
715,435 |
738,661 |
973,871 |
|
Depreciation |
143,292 |
169,958 |
228,917 |
298,042 |
|
Total
operating expenses |
6,812,142 |
9,057,690 |
12,138,468 |
18,395,584 |
|
|
|
|
|
|
|
Operating
Profit |
(12,271,613) |
(8,496,380) |
(1,088,472) |
11,616,813 |
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
Net
profit |
(12,271,613) |
(8,496,380) |
(1,088,472) |
11,616,813 |
|
Net
Profit % |
N/A |
-134.1% |
-5.8% |
27.2% |
|
|
|
|
|
|
|
Number
of Directory entries |
462,500 |
1,620,000 |
4,660,000 |
9,576,000 |
|
Market
penetration |
12.5% |
15.0% |
20.0% |
25.0% |
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Balance sheet Annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
Assets |
|
|
|
|
|
Cash and Cash equivalents |
11,183,775 |
3,544,491 |
679,217 |
8,767,951 |
|
Accounts receivable |
0 |
750,455 |
2,159,099 |
4,510,687 |
|
|
|
|
|
|
|
Total
Current Assets |
11,183,775 |
4,294,946 |
2,838,316 |
13,278,638 |
|
|
|
|
|
|
|
Intangible
assets |
40,000 |
40,000 |
40,000 |
40,000 |
|
|
|
|
|
|
|
Tangible
assets at cost |
|
|
|
|
|
GITD Network equipment |
3,300,000 |
3,330,000 |
6,287,524 |
11,342,206 |
|
Leasehold Improvements |
113,000 |
113,000 |
113,000 |
113,000 |
|
Other computer Hardware / Software |
200,000 |
267,500 |
380,000 |
545,000 |
|
Furniture, Fixtures & Fittings |
150,000 |
150,000 |
235,000 |
235,000 |
|
|
|
|
|
|
|
Less
accumulated Depreciation |
1,526,631 |
3,231,499 |
5,525,192 |
9,945,082 |
|
|
|
|
|
|
|
Net
Tangible assets |
2,236,369 |
629,001 |
1,490,332 |
2,353,125 |
|
|
|
|
|
|
|
Total
Net Assets |
13,460,145 |
4,963,946 |
4,368,648 |
15,671,763 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Accounts payable |
281,881 |
379,104 |
506,012 |
782,781 |
|
Hardware financing |
0 |
0 |
500,000 |
0 |
|
Accrued expenses |
211,411 |
284,328 |
379,509 |
587,085 |
|
Total
current liabilities |
493,292 |
663,432 |
1,385,522 |
1,369,866 |
|
|
|
|
|
|
|
Shareholders
equity |
125,000 |
125,000 |
125,000 |
125,000 |
|
Additional
paid in capital |
29,375,000 |
29,375,000 |
29,375,000 |
29,375,000 |
|
Accumulated
profit / (Deficit) |
(16,533,147) |
(25,199,485) |
(26,516,874) |
(15,198,103) |
|
Total
Stockholders equity |
12,966,853 |
4,300,515 |
2,983,126 |
14,301,897 |
|
|
|
|
|
|
|
Total
Net Liabilities |
13,460,145 |
4,963,946 |
4,368,648 |
15,671,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
: |
|
|
|
|
|
1. No adjustment made for
deferred stock based compensation. |
|
|||
|
2. Assumes funding of $20
million at end of Q1 2001. |
|
|
||
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2001 |
|
|
||
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2001 |
|
|
|
|
|
|
|
|
Revenue |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,342,659 |
1,420,034 |
1,420,034 |
1,420,034 |
5,602,762 |
|
|
|
|
|
|
|
|
Gross
Margin |
(1,342,659) |
(1,420,034) |
(1,420,034) |
(1,420,034) |
(5,602,762) |
|
Gross
Margin % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
433,214 |
433,214 |
433,214 |
433,214 |
1,732,855 |
|
Selling
and Business Dev |
306,411 |
353,286 |
353,286 |
353,286 |
1,366,270 |
|
Marketing
and Promotion |
250,000 |
500,000 |
250,000 |
500,000 |
1,500,000 |
|
Finance
& Administration |
353,274 |
353,274 |
353,274 |
353,274 |
1,413,097 |
|
Executive
Management |
150,907 |
150,907 |
177,407 |
177,407 |
656,629 |
|
Depreciation |
32,333 |
35,458 |
36,917 |
38,583 |
143,292 |
|
Total
operating expenses |
1,493,806 |
1,790,681 |
1,567,181 |
1,817,181 |
6,668,851 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,836,466) |
(3,210,716) |
(2,987,216) |
(3,237,216) |
(12,271,613) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,836,466) |
(3,210,716) |
(2,987,216) |
(3,237,216) |
(12,271,613) |
|
Net
Profit % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Number
of Directory entries |
113,099 |
217,665 |
334,132 |
462,500 |
|
|
Market
penetration |
10.5% |
11.1% |
11.8% |
12.5% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2002 |
|
|
||
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2002 |
|
|
|
|
|
|
|
|
Revenue |
948,222 |
1,350,986 |
1,786,698 |
2,251,366 |
6,337,272 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,472,292 |
1,472,292 |
1,500,667 |
1,500,667 |
5,945,919 |
|
|
|
|
|
|
|
|
Gross
Margin |
(524,070) |
(121,306) |
286,031 |
750,698 |
391,352 |
|
Gross
Margin % |
-55.3% |
-9.0% |
16.0% |
33.3% |
6.2% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
482,456 |
523,956 |
523,956 |
523,956 |
2,054,323 |
|
Selling
and Business Dev |
407,419 |
407,419 |
484,294 |
524,389 |
1,823,522 |
|
Marketing
and Promotion |
500,000 |
750,000 |
250,000 |
1,000,000 |
2,500,000 |
|
Finance
& Administration |
448,613 |
448,613 |
448,613 |
448,613 |
1,794,452 |
|
Executive
Management |
178,859 |
178,859 |
178,859 |
178,859 |
715,435 |
|
Depreciation |
40,458 |
42,333 |
42,958 |
44,208 |
169,958 |
|
Total
operating expenses |
2,057,805 |
2,351,180 |
1,928,680 |
2,720,025 |
8,887,732 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,581,876) |
(2,472,487) |
(1,642,649) |
(1,969,327) |
(8,496,380) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,581,876) |
(2,472,487) |
(1,642,649) |
(1,969,327) |
(8,496,380) |
|
Net
Profit % |
-272.3% |
-183.0% |
-91.9% |
-87.5% |
-134.1% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
725,653 |
1,004,271 |
1,305,076 |
1,620,000 |
|
|
Market
penetration |
13.1% |
13.8% |
14.4% |
15.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2003 |
|
|
||
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2003 |
|
|
|
|
|
|
|
|
Revenue |
3,033,491 |
4,065,411 |
5,213,347 |
6,477,298 |
18,789,547 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,711,709 |
1,880,880 |
2,077,865 |
2,298,014 |
7,968,468 |
|
|
|
|
|
|
|
|
Gross
Margin |
1,321,782 |
2,184,531 |
3,135,482 |
4,179,285 |
10,821,079 |
|
Gross
Margin % |
43.6% |
53.7% |
60.1% |
64.5% |
57.6% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
641,673 |
641,673 |
728,423 |
728,423 |
2,740,194 |
|
Selling
and Business Dev |
665,001 |
716,597 |
820,869 |
884,067 |
3,086,534 |
|
Marketing
and Promotion |
750,000 |
1,000,000 |
250,000 |
1,000,000 |
3,000,000 |
|
Finance
& Administration |
552,593 |
577,218 |
587,384 |
626,968 |
2,344,163 |
|
Executive
Management |
184,665 |
184,665 |
184,665 |
184,665 |
738,661 |
|
Depreciation |
53,792 |
55,667 |
58,792 |
60,667 |
228,917 |
|
Total
operating expenses |
2,847,724 |
3,175,820 |
2,630,134 |
3,484,790 |
11,909,551 |
|
|
|
|
|
|
|
|
Operating
Profit |
(1,525,943) |
(991,290) |
505,348 |
694,495 |
(1,088,472) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(1,525,943) |
(991,290) |
505,348 |
694,495 |
(1,088,472) |
|
Net
Profit % |
-50.3% |
-24.4% |
9.7% |
10.7% |
-5.8% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
2,262,813 |
2,983,750 |
3,782,813 |
4,660,000 |
|
|
Market
penetration |
16.3% |
17.5% |
18.8% |
20.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2004 |
|
|
||
|
|
|
|
|
|
|
|
Scenario B - 50%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2004 |
|
|
|
|
|
|
|
|
Revenue |
7,987,239 |
9,696,257 |
11,544,532 |
13,532,062 |
42,760,090 |
|
|
|
|
|
|
|
|
Cost
of Service |
2,600,270 |
3,045,211 |
3,493,957 |
3,906,298 |
13,045,735 |
|
|
|
|
|
|
|
|
Gross
Margin |
5,386,969 |
6,651,046 |
8,050,575 |
9,625,764 |
29,714,355 |
|
Gross
Margin % |
67.4% |
68.6% |
69.7% |
71.1% |
69.5% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
783,411 |
783,411 |
783,411 |
783,411 |
3,133,645 |
|
Selling
and Business Dev |
970,451 |
1,102,777 |
1,242,065 |
1,388,317 |
4,703,609 |
|
Marketing
and Promotion |
1,198,086 |
1,454,439 |
1,731,680 |
2,029,809 |
6,414,013 |
|
Finance
& Administration |
694,226 |
713,226 |
732,476 |
732,476 |
2,872,403 |
|
Executive
Management |
224,593 |
224,593 |
262,343 |
262,343 |
973,871 |
|
Depreciation |
69,042 |
72,167 |
77,167 |
79,667 |
298,042 |
|
Total
operating expenses |
3,939,808 |
4,350,612 |
4,829,142 |
5,276,023 |
18,097,542 |
|
|
|
|
|
|
|
|
Operating
Profit |
1,447,161 |
2,300,435 |
3,221,433 |
4,349,742 |
11,616,813 |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
1,447,161 |
2,300,435 |
3,221,433 |
4,349,742 |
11,616,813 |
|
Net
Profit % |
18.1% |
23.7% |
27.9% |
32.1% |
27.2% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
5,748,338 |
6,930,450 |
8,206,337 |
9,576,000 |
|
|
Market
penetration |
21.3% |
22.5% |
23.8% |
25.0% |
|
D13.3.3 10% Confidence Level Plan
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Income Statement annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario C - 10% Confidence
Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
0 |
7,465,150 |
22,965,783 |
57,518,574 |
|
|
|
|
|
|
|
Cost
of Service |
5,602,762 |
5,985,544 |
8,727,840 |
15,505,873 |
|
|
|
|
|
|
|
Gross
Margin |
(5,602,762) |
1,479,606 |
14,237,943 |
42,012,701 |
|
Gross
Margin % |
N/A |
19.8% |
62.0% |
73.0% |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Research
& Development |
1,732,855 |
2,054,323 |
2,740,194 |
3,133,645 |
|
Selling
and Business Dev |
1,366,270 |
1,830,205 |
3,342,221 |
5,816,534 |
|
Marketing
and Promotion |
1,500,000 |
2,500,000 |
3,000,000 |
8,627,786 |
|
Finance
& Administration |
1,413,097 |
1,843,702 |
2,333,829 |
2,852,903 |
|
Executive
Management |
656,629 |
715,435 |
814,161 |
1,049,371 |
|
Depreciation |
143,292 |
171,208 |
233,917 |
309,917 |
|
Total
operating expenses |
6,812,142 |
9,114,873 |
12,464,321 |
21,790,156 |
|
|
|
|
|
|
|
Operating
Profit |
(12,271,613) |
(7,464,059) |
2,007,538 |
20,532,462 |
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
3,311,882 |
|
|
|
|
|
|
|
Net
profit |
(12,271,613) |
(7,464,059) |
2,007,538 |
17,220,580 |
|
Net
Profit % |
N/A |
-100.0% |
8.7% |
29.9% |
|
|
|
|
|
|
|
Number
of Directory entries |
555,000 |
1,890,000 |
5,825,000 |
13,406,400 |
|
Market
penetration |
15.0% |
17.5% |
25.0% |
35.0% |
|
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
|
|
Balance Sheet annual
summary |
|
|
|
|
|
|
|
|
|
|
|
Scenario C - 10%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
Assets |
|
|
|
|
|
Cash and Cash equivalents |
11,183,775 |
4,428,484 |
2,339,460 |
14,245,676 |
|
Accounts receivable |
0 |
877,227 |
2,687,755 |
6,270,140 |
|
|
|
|
|
|
|
Total
Current Assets |
11,183,775 |
5,305,711 |
5,027,216 |
20,515,816 |
|
|
|
|
|
|
|
Intangible
assets |
40,000 |
40,000 |
40,000 |
40,000 |
|
|
|
|
|
|
|
Tangible
assets at cost |
|
|
|
|
|
GITD Network equipment |
3,300,000 |
3,350,000 |
8,091,081 |
15,652,221 |
|
Leasehold Improvements |
113,000 |
113,000 |
113,000 |
113,000 |
|
Other computer Hardware / Software |
200,000 |
282,500 |
410,000 |
590,000 |
|
Furniture, Fixtures & Fittings |
150,000 |
150,000 |
235,000 |
235,000 |
|
|
|
|
|
|
|
Less
accumulated Depreciation |
1,526,631 |
3,233,999 |
5,865,062 |
11,550,998 |
|
|
|
|
|
|
|
Net
Tangible assets |
2,236,369 |
661,501 |
2,984,019 |
5,102,223 |
|
|
|
|
|
|
|
Total
Net Assets |
13,460,145 |
6,007,211 |
8,051,234 |
25,658,038 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Accounts payable |
281,881 |
386,072 |
540,587 |
938,382 |
|
Hardware financing |
0 |
0 |
0 |
0 |
|
Accrued expenses |
211,411 |
289,554 |
405,441 |
703,786 |
|
Total
current liabilities |
493,292 |
675,626 |
946,028 |
1,642,168 |
|
|
|
|
|
|
|
Shareholders
equity |
125,000 |
125,000 |
125,000 |
125,000 |
|
Additional
paid in capital |
29,375,000 |
29,375,000 |
29,375,000 |
29,375,000 |
|
Accumulated
profit / (Deficit) |
(16,533,147) |
(24,168,415) |
(22,394,793) |
(5,484,130) |
|
Total
Stockholders equity |
12,966,853 |
5,331,585 |
7,105,207 |
24,015,870 |
|
|
|
|
|
|
|
Total
Net Liabilities |
13,460,145 |
6,007,211 |
8,051,234 |
25,658,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
: |
|
|
|
|
|
1. No adjustment made for deferred stock based
compensation. |
|
|||
|
2. Assumes funding of $20
million at end of Q1 2001. |
|
|
||
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2001 |
|
|
||
|
|
|
|
|
|
|
|
Scenario C - 10%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2001 |
|
|
|
|
|
|
|
|
Revenue |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,342,659 |
1,420,034 |
1,420,034 |
1,420,034 |
5,602,762 |
|
|
|
|
|
|
|
|
Gross
Margin |
(1,342,659) |
(1,420,034) |
(1,420,034) |
(1,420,034) |
(5,602,762) |
|
Gross
Margin % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
433,214 |
433,214 |
433,214 |
433,214 |
1,732,855 |
|
Selling
and Business Dev |
306,411 |
353,286 |
353,286 |
353,286 |
1,366,270 |
|
Marketing
and Promotion |
250,000 |
500,000 |
250,000 |
500,000 |
1,500,000 |
|
Finance
& Administration |
353,274 |
353,274 |
353,274 |
353,274 |
1,413,097 |
|
Executive
Management |
150,907 |
150,907 |
177,407 |
177,407 |
656,629 |
|
Depreciation |
32,333 |
35,458 |
36,917 |
38,583 |
143,292 |
|
Total
operating expenses |
1,493,806 |
1,790,681 |
1,567,181 |
1,817,181 |
6,668,851 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,836,466) |
(3,210,716) |
(2,987,216) |
(3,237,216) |
(12,271,613) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,836,466) |
(3,210,716) |
(2,987,216) |
(3,237,216) |
(12,271,613) |
|
Net
Profit % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
|
|
Number
of Directory entries |
118,017 |
239,876 |
385,537 |
555,000 |
|
|
Market
penetration |
10.9% |
12.3% |
13.6% |
15.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2002 |
|
|
||
|
|
|
|
|
|
|
|
Scenario C - 10%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2002 |
|
|
|
|
|
|
|
|
Revenue |
1,131,513 |
1,600,173 |
2,101,783 |
2,631,681 |
7,465,150 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,472,292 |
1,472,292 |
1,500,667 |
1,540,292 |
5,985,544 |
|
|
|
|
|
|
|
|
Gross
Margin |
(340,780) |
127,881 |
601,115 |
1,091,389 |
1,479,606 |
|
Gross
Margin % |
-30.1% |
8.0% |
28.6% |
41.5% |
19.8% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
482,456 |
523,956 |
523,956 |
523,956 |
2,054,323 |
|
Selling
and Business Dev |
407,419 |
407,419 |
484,294 |
531,072 |
1,830,205 |
|
Marketing
and Promotion |
500,000 |
750,000 |
250,000 |
1,000,000 |
2,500,000 |
|
Finance
& Administration |
448,613 |
448,613 |
473,238 |
473,238 |
1,843,702 |
|
Executive
Management |
178,859 |
178,859 |
178,859 |
178,859 |
715,435 |
|
Depreciation |
40,458 |
42,333 |
42,958 |
45,458 |
171,208 |
|
Total
operating expenses |
2,057,805 |
2,351,180 |
1,953,305 |
2,752,583 |
8,943,665 |
|
|
|
|
|
|
|
|
Operating
Profit |
(2,398,585) |
(2,223,299) |
(1,352,190) |
(1,661,194) |
(7,464,059) |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(2,398,585) |
(2,223,299) |
(1,352,190) |
(1,661,194) |
(7,464,059) |
|
Net
Profit % |
-212.0% |
-138.9% |
-64.3% |
-63.1% |
-100.0% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
863,873 |
1,186,866 |
1,532,045 |
1,890,000 |
|
|
Market
penetration |
15.6% |
16.3% |
16.9% |
17.5% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2003 |
|
|
||
|
|
|
|
|
|
|
|
Scenario C - 10%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2003 |
|
|
|
|
|
|
|
|
Revenue |
3,593,648 |
4,909,498 |
6,399,370 |
8,063,266 |
22,965,783 |
|
|
|
|
|
|
|
|
Cost
of Service |
1,813,620 |
2,024,942 |
2,273,190 |
2,616,088 |
8,727,840 |
|
|
|
|
|
|
|
|
Gross
Margin |
1,780,029 |
2,884,556 |
4,126,180 |
5,447,178 |
14,237,943 |
|
Gross
Margin % |
49.5% |
58.8% |
64.5% |
67.6% |
62.0% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
641,673 |
641,673 |
728,423 |
728,423 |
2,740,194 |
|
Selling
and Business Dev |
693,009 |
758,801 |
880,170 |
1,010,240 |
3,342,221 |
|
Marketing
and Promotion |
750,000 |
1,000,000 |
250,000 |
1,000,000 |
3,000,000 |
|
Finance
& Administration |
552,593 |
560,801 |
593,718 |
626,718 |
2,333,829 |
|
Executive
Management |
184,665 |
184,665 |
222,415 |
222,415 |
814,161 |
|
Depreciation |
54,417 |
55,667 |
60,667 |
63,167 |
233,917 |
|
Total
operating expenses |
2,876,357 |
3,201,608 |
2,735,393 |
3,650,963 |
12,230,405 |
|
|
|
|
|
|
|
|
Operating
Profit |
(1,096,328) |
(317,052) |
1,390,787 |
1,796,215 |
2,007,538 |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
|
Net
profit |
(1,096,328) |
(317,052) |
1,390,787 |
1,796,215 |
2,007,538 |
|
Net
Profit % |
-30.5% |
-6.5% |
21.7% |
22.3% |
8.7% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
2,697,969 |
3,623,125 |
4,665,469 |
5,825,000 |
|
|
Market
penetration |
19.4% |
21.3% |
23.1% |
25.0% |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
|
|
Income Statement
Quarterly summary |
2004 |
|
|
||
|
|
|
|
|
|
|
|
Scenario C - 10%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2004 |
|
|
|
|
|
|
|
|
Revenue |
10,227,379 |
12,809,881 |
15,670,894 |
18,810,419 |
57,518,574 |
|
|
|
|
|
|
|
|
Cost
of Service |
3,081,183 |
3,558,163 |
4,143,333 |
4,723,194 |
15,505,873 |
|
|
|
|
|
|
|
|
Gross
Margin |
7,146,197 |
9,251,718 |
11,527,561 |
14,087,225 |
42,012,701 |
|
Gross
Margin % |
69.9% |
72.2% |
73.6% |
74.9% |
73.0% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
& Development |
783,411 |
783,411 |
783,411 |
783,411 |
3,133,645 |
|
Selling
and Business Dev |
1,176,208 |
1,352,208 |
1,542,133 |
1,745,985 |
5,816,534 |
|
Marketing
and Promotion |
1,534,107 |
1,921,482 |
2,350,634 |
2,821,563 |
8,627,786 |
|
Finance
& Administration |
693,976 |
713,226 |
713,226 |
732,476 |
2,852,903 |
|
Executive
Management |
224,593 |
262,343 |
262,343 |
300,093 |
1,049,371 |
|
Depreciation |
71,542 |
75,292 |
79,667 |
83,417 |
309,917 |
|
Total
operating expenses |
4,483,836 |
5,107,961 |
5,731,414 |
6,466,944 |
21,480,239 |
|
|
|
|
|
|
|
|
Operating
Profit |
2,662,361 |
4,143,757 |
5,796,147 |
7,620,281 |
20,532,462 |
|
|
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
111,364 |
3,200,518 |
3,311,882 |
|
|
|
|
|
|
|
|
Net
profit |
2,662,361 |
4,143,757 |
5,684,783 |
4,419,763 |
17,220,580 |
|
Net
Profit % |
26.0% |
32.3% |
36.3% |
23.5% |
29.9% |
|
|
|
|
|
|
|
|
Number
of Directory entries |
7,439,025 |
9,240,600 |
11,229,725 |
13,406,400 |
|
|
Market
penetration |
27.5% |
30.0% |
32.5% |
35.0% |
|
D13.4
SUPPORTING DOCUMENTATION
D13.4.1 Registry Operator’s Articles of Incorporation
See attached Appendix A for copy of
NetNumber's Bylaws
D13.4.2 References (Industry and Trade)
Following the first production release of the GITD in July of this year, NetNumber began holding integration discussions with a large number of Internet-Telephony technology vendors and network service providers. After just a few months of focused interaction, NetNumber has already begun to establish relationships with many of the large players in the industry. Outlined below is a list of industry references that can be contacted to better understand the role that a global directory under the ".tel" TLD will play within the Internet-Telephony industry. All of the strategic contacts outlined below are still in the early stage of discussions with NetNumber and most of the interactions are taking place under Non-Disclosure Agreements. However, each of these individuals has agreed to act as a contact for ICANN to discuss the role of the GITD within the industry and to discuss their expectations for the growth of registrations in the ".tel" TLD as the Internet-Telephony industry matures.
3Com Corporation
United States
-
- [Redacted]
3Com
Corp. is a broad-based supplier of local area network (LAN) and wide area
network (WAN) systems. IP-Telephony
systems include the large-scale CommWorks IP-Telephony Platform for service
provider environments and the enterprise class NBX-100 and NBX-25 IP-PBX
platforms.
Klaus Dietre-Liedtke
Chairman
of the International Enhanced Voice Services Association (VMA)
T-Mobile Communications, (Deutsche
Telecom Mobil Communications Subsidiary)
Germany
-
T-Mobile Communications is a wholly owned subsidiary of Deutsche Telecom and the dominant wireless service provider in Germany.
Orly Rappaport
Director of Advanced Technologies
Comverse Network Systems
Israel
-
- [Redacted]
Comverse Network Systems (CNS) offers the industry's most advanced and comprehensive solution for enhanced services. The CNS complete suite of integrated services gives mobile service providers the ability to attract new subscribers, create new revenue sources and stay ahead of the competition.
David Kerr
Messaging Product Manager
Value Added Services
Unisys Corporation
United States
- [Redacted]
- [Redacted]
Unisys Corporation is a worldwide information
services and technology company with offices in over 100 countries. The Company
provides services, systems and solutions, and its Unisys e-@ction Solutions,
that help customers apply information technology to seize the opportunities and
overcome the challenges of the internet economy.
Tom Guthrie
Senior Vice President, Technical Services
Allied-Riser Corporation
United States
- [Redacted]
- [Redacted]
Allied Riser Communications Corporation (ARC) is a provider of broadband data, video and voice communications services to businesses of all sizes inside office buildings in 49 major metropolitan areas in the United States. ARC delivers its services over fiber optic networks that it owns and operates inside large and medium-sized office buildings.
Karim Faris
Director, New Ventures
Level3 Communications
United States
- [Redacted]
- [Redacted]
Level3 is the world's first communications company to
build an international communications network using Internet Protocol (IP)
technology end-to-end. To date over
20,000 miles of the Level3 fiber network have been completed in the United
States and Europe.
Les Mezaros
Vice President, Business Development, Voice Services
Intel Corporation
United States
- [Redacted]
- [Redacted]
Stefan Marti
Swisscom AG
Business Development
Mobile IT, Value Added Services
CH-3072 Ostermundigen
- [Redacted]
- [Redacted]
George Krucik
President & CEO
EleTel, Inc.
United States
- [Redacted]
- [Redacted]
David Noone
Head of Strategic Initiative
Intervoice-Brite
United Kingdom
- [Redacted]
-
[Redacted]
Bill Ehlinger
Director of Business Development
CES Computer Solutions, Inc.
United States
-
[Redacted]
-
[Redacted]
Bertrand Gatellier
President
VMA (International Association of Enhanced Voice Services)
United Kingdom
-
[Redacted]
-
[Redacted]
Dr. Herman R. Silbiger
ITU, World Telecommunication Standardization Assembly member
APPLICOM
United Kingdom
-
[Redacted]
Trade References: Outlined below is a list of key trade references that are all
actively engaged in providing services to NetNumber.
Ms. Jacky Gottesman,
Internet Program Manager
EMC Corporation
117 South Street
Hopkinton, MA 01748-9103
[Redacted]
[Redacted]
Mr. Jack Rummel,
Account
Representative
Office
Environments of New England
280 Summer Street
Boston, MA
02210-1169
[Redacted]
[Redacted]
Mr.
Brian Hunt,
Director of
Operations
CB Richard
Ellis-Whittier Partners
660 Suffolk Street
Lowell, MA
01854-3636
[Redacted]
[Redacted]
(phone)
D13.4.3 Annual Report
Outlined below are un-audited financial statements for NetNumber from 1/1/99 through 6/1/00. NetNumber has appointed Ernst & Young as auditors and has initiated an audit review through 6/00. See Appendix F for a copy of a recent letter from Ernst & Young regarding the status of this audit.
|
NetNumber.com Inc. |
|
|
|
|
Income statement for periods 1/1/99 - 12/31/1999 and 1/1/2000 - 1/6/2000 |
|||
|
|
|
|
|
|
|
Period 1/1/1999
- |
|
Period 1/1/2000
- |
|
|
12/31/1999 |
|
6/30/2000 |
|
|
$ US |
|
$ US |
|
|
|
|
|
|
Revenue |
0 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Total operating expenses |
289,566 |
|
2,160,483 |
|
|
|
|
|
|
Operating Loss |
(303,155) |
|
(2,567,167) |
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
(301,863) |
|
(2,473,466) |
|
|
|
|
|
|
|
|
|
|
|
NetNumber.com Inc. |
|
|
|
|
|
|
|
|
|
Balance Sheet as at 12/31/1999
and 1/6/2000 |
|
|
|
|
|
|
|
|
|
|
Period Ending |
|
Period Ending |
|
|
December 31st 1999 |
|
June 30th 2000 |
|
|
$ US |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Total
Net Assets |
728,709 |
|
7,028,114 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Total
Net Liabilities |
728,709 |
|
7,028,114 |
|
|
|
|
|
|
|
|
|
|
D13.4.4 Proof of Capital
Proof Of Existing Capital:
-
See NetNumber balance sheet
presented in section 13.4.3 above.
- See Appendix B for copy of NetNumber's most recent short-term note maturity statement from Fleet Bank showing a short-term deposit balance of $5,400,000 cash.
Source Of Future Capital:
- See Appendix C for a letter from William Sick, the Managing Partner of the venture capital firm Signature Capital regarding their expectations for raising additional funds as required.
D13.4.5 Proof of Insurance
Existing Insurance Policy:
- See Appendix D for a copy of NetNumber's $2 million general liability insurance policy.
Access To Additional Insurance:
- See Appendix E for copy of letter from NetNumber to William Gallagher regarding engagement of services to negotiate additional insurance as required.
D14 TECHNICAL CAPABILITIES AND PLAN
D15. The Technical Capabilities and Plan
D15.1 Detailed description of Registry operator's technical capabilities
The NetNumber technical staff
and culture was born from UNIFI Communications, Inc. UNIFI was an
early entrant in the Fax-over IP market that wholly owned and operated a global
IP-based communications network which offered value added messaging services
such as store-and-forward fax, broadcast fax, and PC-based desktop messaging.
UNIFI Communications operated a 24x7 worldwide network that
included sites in the United States located in California, New Jersey, and
Massachusetts. In Asia-Pacific it
operated sites in Tokyo, Osaka and Nagoya - Japan, one site within Singapore,
as well as Korea, Hong Kong/China, Taiwan, and Australia. In Europe, sites were located in the United
Kingdom, France, and Germany. All sites
were operated and monitored from UNIFI's headquarters in Lowell, Massachusetts.
All sites were co-located in major telecommunications facilities
and data-centers, which provided uninterrupted power, air conditioning,
humidity control, fire suppression equipment, multiple/backup WAN connections
and personnel to assist in hardware replacement. Each of UNIFI's site consisted
of Cisco routers, several Unix-based platforms, multiple WAN data connections
and a plentitude of PSTN connections as well as backup hardware in case of any
failure.
All of the software that ran UNIFI Communication’s network was
developed in-house to provide value-added reliable messaging, internalization
and optimized network utilization. The software was optimized to meet the
requirements of individual PSTN operations in each country.
From this heritage NetNumber has carried forth the following key technical staff:
Walter, Robert -
V.P. Development and Network Operations:
Mr. Walter currently provides managerial and technical leadership to NetNumber’s Development and Network Operations organizations. Prior to joining NetNumber™ in November 1999, Mr. Walter (Bob) was a consultant at Cisco Systems working on the Cisco Network Registrar (CNR) product. Prior to consulting at Cisco, Bob was VP of Architecture and Technology at UNIFI Communications. In this capacity, Bob was responsible for UNIFI's messaging services architecture and technology. Previously, he was the chief architect of UNIFI's Enterprise Network Interface (ENI); a reusable framework of Java/CORBA distributed services capturing the domain of reliable message delivery with support for rendering, real-time status and on-line customer registration. Prior to joining UNIFI in August of 1997, Bob was lead architect on Pratt & Whitney Aircraft's Virtual Jet Engine program, a large scale, distributed object-oriented system involving the simulation and optimization of multi-dimensional jet engine propulsion systems. Mr. Walter holds degrees in Mechanical Engineering (BSME) from the University of Massachusetts Dartmouth, a Masters Degree in Computer Science (MCS - Software Engineering Option) from Florida Atlantic University and a Certificate of Graduate Studies in Software Engineering from Software Engineering Institute of Carnegie Mellon University.
Santos, Charles – Principal Engineer, DNS
and Network Services:
Mr. Santos is responsible for
leading the design, development and operations of NetNumber’s DNS and RRP
systems. Prior to joining NetNumber™ in November 1999, Mr. Santos (Chuck) was a
consultant at Cisco Systems working on the Cisco Network Registrar (CNR)
product. Prior to consulting at Cisco, Mr. Santos was employed at UNIFI
Communications from March 1995 to March 2000.
At UNIFI, Mr. Santos obtained the position of Director for the Network
Transport group, responsible for all software application composing an
intelligent message delivery network including Real-time Status, and an expert
system for auto-retry of failed delivery messages. Prior to UNIFI, Mr. Santos spent 9 years at Digital Equipment
Corporation (DEC). Responsibilities at
DEC included software development for the Fault-Tolerant Computing Group, and
the Transactional Processing Products Group.
Prior to join DEC, Mr. Santos was employed at General Electric, Turbine
and Compressor Division, developing an automated product proposal and design
software system. Mr. Santos holds a
degree in Computer Science from Fitchburg State College.
Beaulieu, Alan – Principal
Engineer, Database/Directory Services:
Mr. Beaulieu is currently responsible for leading the design, development and operations of NetNumber’s Oracle database and LDAP directory products. Prior to joining NetNumber™ in January 2000, Mr. Beaulieu ran his own consulting practice, specializing in the design, construction, and implementation of large, mission-critical data warehouses for major financial services companies in the Boston area. Prior to running his consulting practice, Alan was a Principal Engineer at UNIFI Communications, where he was charged with designing and building databases and data-access layers in support of UNIFI's next-generation messaging product. Prior to his work at UNIFI, Alan consulted to various companies in the Boston and New York area, specializing in the design and development of mission-critical Oracle database applications. Mr. Beaulieu holds a degree in Operations Research Engineering from Cornell University.
Weaver, Scott – Principal
Engineer, Web Services:
Mr. Weaver is currently responsible for leading the design, development and operations of NetNumber’s production network operations web sites. Before joining NetNumber™ in November 1999, he consulted in the Network and Service Management business unit of Cisco Systems where he was responsible for converting Cisco's Next Generation IP Address Management Platform Web UI from a proprietary-based architecture (Netscape Application Server) to an open standard (Java Server Pages). Previously, he was responsible for the strategic development and architecture of web-based user interfaces for UNIFI Corporation's national and international service offerings. He has also served as a senior consultant developing graphical, object oriented components for Gensym Corporation's real-time expert system offering. He has developed systems for United Technologies Advanced Computing Technologies group. Projects included the development of a peer-to-peer, distributed finite scheduling system; a graphical process control environment; and jet engine performance enhancements via digital electronic control. Additional experience includes user interface consulting at GTE's Telecommunication Laboratories. Mr. Weaver holds a Masters Degree in Computer Science (MSCS) from Rensselaer Polytechnic Institute and a Mechanical Engineering Degree (BSME) from the University of Massachusetts Dartmouth.
Khirallah, Lynette - Principal Engineer, Security Services:
Ms. Khirallah is responsible for all aspects of security in NetNumber production network environment, including distributed applications security and the definition of a public key infrastructure (PKI). Prior to joining NetNumber in April 2000, Ms. Khirallah held the position of Software Architect in the Security Product Development Group at Concept Five Technologies. As project lead, Ms. Khirallah was responsible for the completion of a Java version of a CORBA compliant, certificate-based, security system, which is currently being sold as part of Hitachi America’s CORBA product and Iona Technologies OTM product. Prior to joining Concept5, Ms. Khirallah was responsible for distributed systems security and public key infrastructure at UNIFI Communications, Inc. where she was a Principal Security Engineer. Ms. Khirallah worked at Hewlett Packard for 10 years prior to working for UNIFI. At HP, she worked in various capacities, the most recent of which included work for the Internet Technology Lab in the Enterprise Security Group and as a senior member of the HP team that designed the CORBA/ORB architecture that was standardized by the OMG (Object Management Group) in 1990. Ms. Khirallah holds a degree in Computer Science (BTCS) from Rochester Institute of Technology, NY.
Chan, Douglas – Principal Engineer, DNS and
Network Services:
Mr. Chan is responsible for the design, development and implementation of a NetNumber’s Whois Service and Back-Office Application Programming Interface. In a previous incarnation, Mr. Chan worked as a senior software engineer at UNIFI Communications in Lowell, Massachusetts. His area of specialty is in data communications and telecommunications. At UNIFI Communications, Doug was responsible for designing a CORBA based interface for allowing external and internal customers to integrate with UNIFI’s messaging network. He was responsible for creating components of UNIFI’s inbound fax-to-email (eFax) service. He was also responsible for platform homologation/integration efforts with numerous international telecommunications carriers. Mr. Chan holds a Bachelor of Science degree in Computer Engineering from Boston University.
John, Christopher – Principal Engineer,
Integration Services:
Mr. John is responsible for leading the
NetNumber integration services team.
Prior to joining NetNumber™ in June of 2000, Mr. John (Chris) was Director of
Testing Solutions for Gresham Computing, Inc, deploying automated
test systems for Fortune 500 companies. Prior to Gresham, Chris
was one of the founders of Automated Solutions, Inc., a software-testing consulting
company that was later purchased by Gresham in February 1999. While with
Automated Solutions, Chris helped develop and market Autoscriptor Inferno, a
hardware-based, non-intrusive automated test system. Autoscriptor Inferno
is currently used to automate the testing process for many Fortune 500
companies. Prior to starting Automated Solutions, Chris completed GE's
prestigious Information Systems Management Program (ISMP) where he worked
primarily for GE's Global Telecommunications Organization. Mr. John holds a degree in Operations Management
(BS) from Penn State University.
Abbanat, Paul – Principal Engineer, Release
and Deployment Services:
Mr. Abbanat is responsible for all aspects of on-line distribution and
release of software into NetNumber’s production network. Prior to
joining NetNumber™ in May 1999, Mr. Abbanat (Paul) was a consultant for The
Eliassen Group bringing 14 years of Release Engineering experience to client
companies in the Boston area (such as John Hancock and the Gale Group). Prior
to consulting for Eliassen, Paul was Senior Manager of Release Engineering at
UNIFI Communications. In this capacity, Paul built and managed a diverse
engineering team and was responsible for defining and implementing all phases
of UNIFI's Release Engineering process. This included source code control,
software packaging, installation and roll-back procedures, release scheduling
and project management. Before joining UNIFI in May of 1996, Paul worked at
Prime Computer (formerly Computervision) for eight years in the CAD/CAM
Continuing Engineering Department. Paul held several roles at Computervision,
starting as a QA Engineer he quickly moved into Release Engineering before
being promoted to manager of the Release Engineering team. This team
successfully managed all phases of the release process for a worldwide customer
base of over 80,000 installed seats. Mr. Abbanat holds degrees in Mechanical
Engineering (BSME) from the University of Massachusetts at Amherst and a
Masters Degree in Business Administration (MBA) from Northeastern University in
Boston, Massachusetts.
Turmel, Richard – Director of Quality
Assurance:
Mr. Turmel joined NetNumber.com in January 2000 as the Director of Quality Assurance. In this capacity, he is responsible for the overall quality of NetNumber’s production products and services. Prior to joining NetNumber, Mr. Turmel worked at UNIFI Communications in as Senior Manager of Test System Development. At UNIFI, Mr. Turmel built a 25-person organization to meet all quality assurance, testing, and lab services needs for the Research and Development organization. Mr. Turmel’s key strengths are building successful teams, architecting automated test systems and solutions, and developing test strategies. Prior to UNIFI, Mr. Turmel worked at Digital Equipment Corporation/BEA Systems as a manager of Test Engineering in the ObjectBroker product groups. Throughout his career, Mr. Turmel has authored and presented various papers on automated testing and building behavioral simulation libraries. Prior to Digital/BEA, Mr. Turmel held several software engineering positions at Digital and Sanders Lockheed working in the middleware space (Transaction Processing and Object Request Brokers) and CAD/CAE space. Mr. Turmel holds a Bachelor of Science degree in Mathematics and Computer Science from Merrimack College in North Andover, Massachusetts.
Fotino, Richard – Network Operations
Manager:
Mr. Fotino (Rick) joined NetNumber in November of 1999 and took responsibility for the internal corporate network systems, development and integration systems as well as managing the production network systems. Prior to coming to NetNumber, Rick worked for Comverse Network Systems in Andover, MA as Customer Support Manager; directly responsible for the engineering support of Comverse systems deployed to SBC and BellSouth. Prior to Comverse, Rick was the QA and Development Lab Manager at UNIFI Communications. His responsibilities there included the creation and operation of the pre-production, test and development labs, the deployment and support of new UNIFI releases to both the test environment and to the UNIFI production systems as well as the direct support of the production systems. Prior to joining UNIFI, Rick was employed by Hewlett-Packard Co. (formerly Apollo Computer), in Chelmsford, MA where he held a number of engineering and management positions over his 14-year tenure. As a Technical Consultant, Rick developed and delivered many software engineering and programming courses for both the Domain/OS and HP-UX operating systems, most notably courses of instruction in Distributed Programming and Posix Thread Programming. Mr. Fotino also served in a capacity as the Chelmsford System Software Lab Liaison where his responsibilities included the management and resolution of all HP customer escalations involving CSSL systems and software. Finally, in 1998 Rick took on the role of Engineering Support Manager where his responsibilities included developing a team of support personnel responsible for the maintenance and support of all engineering systems and software.
D15.2. Technical plan for the proposed registry operations.
D15.2.1.
General description of proposed facilities and systems.
NetNumber will operate a multi-site registry consisting of two (2) master and four (4) edge sites. The network sites are located at Internet Data Center’s (IDC) in North America, Europe and Asia Pacific. Figure 1 illustrates the registry’s high-level site architecture.
Figure 1 - Registry Global Site Diagram
Each IDC is located at strategic Internet IP peering intersections and carefully selected to provide an exceptional operating environment. The master sites provide centralized services, such as, registration, administration, Whois, conflict resolution and billing. They are redundant replicas of each other and are configured in an active-passive (N+1) formation. The active-master replicates in real-time to the passive-master. In the event of that the active-master fails, the passive-master takes over. The edge sites provide DNS resolution services and are configured as slaves to the DNS master. Incremental zone transfers (IXFR) are performed from the master to the slaves on a periodic basis. The architecture of the registry is based on the following principles:
Standards The registry is implemented with Internet standard technologies including, DNS, RRP, WHOIS, HTTP, SSL and X.509 digital certificates.
Availability The registry is a fault resilient system that leverages clustering and replication technologies to ensure availability. Geographically dispersed, clustered architectures are uniquely suited for the deployment of highly available services featuring redundant paths between all systems, between all disk subsystems, and to all external networks. No single point of failure — hardware, software, or network — can bring a cluster down. Fully integrated fault management software in the cluster detects failures and manages the recovery process automatically.
Scalability The registry is designed to scale by leveraging multi-site clustered Symmetric Multiprocessing (SMP) systems. Each node in a cluster may be scaled by adding additional processors, memory and disk storage (vertical scaling). Clustering of multiple SMP systems provides for greater throughput than SMP systems due to additional system bus, I/O bandwidth and operating system capacity (horizontal scaling).
Security Physical security is provided through sophisticated smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, as well as video camera surveillance and security breach alarms. Network security is provided through state-of-the-art firewall, Virtual Private Network (VPN) and load balancing equipment. Application security is provided through the use of X.509 digital certificate authentication and Secure Socket Layer (SSL).
Dedication Dedication of the software processes on a given platform promotes reliability and security. Each additional service introduces unwanted crossover effects and system resource contention. It is consider best that a host does a few things well rather than many things poorly.
Simplicity Keep It Simple Stupid (KISS) -- Providing useful telecommunications information in a standard, secure, efficient and reliable manner is a primary objective.
D15.2.1.1 Master-Site Facilities and Architecture
The master registry sites are housed in fully redundant, premium grade Internet data centers at Exodus Communications in Waltham, Massachusetts and EMC Internet Services Group in Hopkinton, Massachusetts.
Exodus Communications is a leading provider of complex Internet hosting facilities for enterprises with mission-critical Internet operations. The company offers sophisticated system and network management solutions through a worldwide network of Internet Data Centers.
Exodus
Internet Data Centers provide the physical environment to keep the
Master-registry sites up and running 24 hours a day, 7 days a week. These
world-class facilities are custom designed with raised floors, HVAC temperature
control systems with separate cooling zones, and seismically braced racks. They
offer the widest range of physical security features, including
state-of-the-art smoke detection and fire suppression systems, motion sensors,
and 24x7 secured access, as well as video camera surveillance and security
breach alarms. Exodus is able to deliver the highest levels of reliability
through a number of redundant subsystems, such as multiple fiber trunks coming
into each IDC from multiple sources, fully redundant power on the premises, and
multiple backup generators.
The Exodus
Network one of the largest IP networks in the world—with a peak Internet
exchange rate of over 10.3 gigabits per second. Comprising the Exodus Network
is a global backbone, high performance network architecture and
industry-leading public and private interconnect arrangements. The master sites leverage the Exodus
“MultiLine LAN Connection” services with 100 Mbps burstability to/from the
Internet.
All registry equipment is housed in cabinets with secure locking front doors and ventilation fans. Exodus Internet Data Centers combine around-the-clock systems management with onsite personnel trained in the areas of networking, Internet, and systems management. The result is a physical and technical environment affording NetNumber the reliability and flexibility necessary to operate its mission-critical Internet master registry sites.
The NetNumber master registry sites are deployed on highly scalable clusters of Sun enterprise servers, fiber channel storage arrays, hardware load balancers, hardware firewalls/VPN and Cisco networking equipment. The architecture of a master registry site is secure, reliable, fully redundant and may be scaled without practical limitation through the addition of new server platforms into the clustered environment.
D15.2.1.2 Master-Site Architecture Details
Figure 2 illustrates the master registry sites physical architecture.
Figure 2 – Master-site Physical Architecture Diagram
IP
Networking Equipment Details: Redundant Nokia IP440 firewall appliances
running Checkpoint Firewall-1 guard the entrance to the master site. The firewalls are cross-connected in an
active-passive configuration. Two
network paths may be followed from the firewalls into the master site. Redundant public networks expose the Alteon
load balancers, Web and RRP servers via a DMZ to the Internet. Redundant private networks may only be
accessed via the VPN and provide a resource for updates, replication, backup,
maintenance and monitoring. All layer 2
switching equipment is fully redundant and manufactured by Cisco Systems. The following network equipment is used.
- MxFW1 & MxFW2 - two (2) Nokia IP440
firewalls running Checkpoint FW-1
- MxLB1 & MxLB2 - two (2) Alteon
ACEDirector 4 load balancing switches
- MxSW2 &
MxSW2 - two (2) Cisco 2924XL Catalyst 10/100 switches
Storage Area Networking (SAN) Equipment Details: The DNS master and NetNumber Back-Office databases are stored on a LSI Logic MetaStor E4400 full fibre channel storage system. The E4400 provides a maximum capacity of 16.06 TB and a peak throughput of 400 MB/sec. The Sun server platforms are connected to redundant 8 port Gadzoox Capellix 2000 SAN switches that in turn connect to redundant hardware array controllers on the E4400. The following equipment is used:
- MxSN1 & MxSN2 - two (2) Gadzoox
Capellix 2000 SAN switches
- MxAR1 – One fully redundant LSI Logic
MetaStor E4400 storage array.
Master DNS System Details: Protected from the Internet by the firewalls the DNS master systems (MxNS1 & MxNS2) respond to DDNS update requests from registry RRP servers from within the site and zone transfer requests from well-known registry DNS slave systems across the Virtual Private Network at the edge sites. All BIND configuration and zone files are stored on the LSI MetaStor E4400 Fibre Channel Array on mirrored (RAID 0,1) disk storage. The master DNS systems are implemented as a highly available cluster (N+1) of two (2) Sun Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processors
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- Two (2) Quad-Fast Ethernet Adapters
- Two (2) Fibre Channel I/O Host Bus
Adapters
- Two (2) 380
watt Power Supplies
Additionally, each
node in the cluster runs the following software components:
- Solaris 8 Operating System
- Veritas Cluster Server
- Veritas Replication Manager
- Veritas File System
- Veritas Volume Manager
- Veritas NetBackup
- BIND 9.0.0
The performance characteristics of the master DNS
servers are dominated by edge system zone transfer requests. Each master DNS server is designed to
support 20 million entries at maximum (100%) utilization, where each entry is
approximately 100 bytes. This enables
the system to operate at peak (50%) utilization and perform a full zone
transfer of 10 million entries without system degradation due to swapping. BIND 9.0.0 provides for incremental zone
transfers (IXFR), thus the peak utilization may actually be much larger. Greater operational experience with BIND
9.0.0 is required to determine the actual maximum number of entries when using
IXFR.
NetNumber Back-Office (NBO) System Details: Protected from the Internet by the site firewalls the NetNumber Back-Office systems (MxNBO1 & MxNBO2) provide registry database services by responding to SQL requests from the registration, RRP, Whois and Billing systems. All Oracle redo log, indices, table space and data are stored on the LSI MetaStor E4400 Fibre Channel Array on mirrored (RAID 0,1) disk storage. The NBO systems are implemented as a highly available Oracle Parallel Server (OPS) cluster (N+N) of two (2) Sun Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processors
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- Two (2) Quad-Fast Ethernet Adapters
- Two (2) Fibre Channel I/O Host Bus
Adapters
- Two (2) 380
watt Power Supplies
Each node in the OPS cluster runs the following software components:
- Solaris 8 Operating System
- Veritas Cluster Server
- Veritas Replication Manager
- Veritas File System
- Veritas Volume Manager
- Veritas NetBackup
- Oracle 8i –
Oracle Parallel Server
The performance characteristics of the NBO servers are dominated by the
amount of customer registration/administration, RRP transactions and WHOIS
queries. The amount of storage required
for each registered E.164 number is 500 bytes on average, including data and
indexes. Thus, every 100 million
registered numbers will require approximately 50 GB of storage. To allow for high throughput and fast,
efficient backups, the data will be divided into multiple partitions and stored
across many disks.
NetNumber Whois System Details: The NetNumber Whois systems (MxWHO1 & MxWHO2) have limited exposure to the Internet TCP on port 43 via a DMZ. They provide registry Whois services by responding standard Whois protocol requests from anywhere. The Whois server daemons directly query the NBO via NET*8 on the private network. The Whois systems are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processor
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- One (1) Quad-Fast Ethernet Adapters
- Two (2) 380
watt Power Supplies
Each node in the cluster runs the following software components:
- Solaris 8 Operating System
- Veritas File System
- NetNumber
Whois Server Software
The number of concurrent connections serviced
dominates the performance characteristics of the Whois servers. The Whois protocol is extremely simple and
lightweight. The Alteon switches
provide ISO layer-4 load balancing to distribute the load amongst the
platforms. Additional servers may be easily added to support increased demand.
NetNumber RRP System Details: The NetNumber Registry-Registrar Protocol systems (MxRRP1 & MxRRP2) have limited exposure to the Internet on TCP port 648 via a DMZ. They provide registry RRP services to authenticated (SSL) registrars by responding to extended RRP requests from anywhere. The RRP systems directly manipulate the NBO via NET*8 on the private network and are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processor
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- One (1) Quad-Fast Ethernet Adapters
- Two (2) 380
watt Power Supplies
Each node in the cluster runs the following software components:
- Solaris 8 Operating System
- Veritas File System
- NetNumber
RRP Server Software
The number of concurrent connections serviced dominates the performance
characteristics of the RRP servers. The
Alteon switches provide ISO layer-4 load balancing to distribute the load
amongst the platforms. Additional servers may be easily added to support
increased demand.
NetNumber Web System Details: The NetNumber web systems (MxWEB1 & MxWEB2) have limited exposure to the Internet on TCP port 80 and 443 via a DMZ. They provide registrar account management and information services to authenticated (SSL) registrars. The web systems directly manipulate the NBO via NET*8 on the private network and are implemented as a shared nothing cluster of two (2) Sun Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processor
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- One (1) Quad-Fast Ethernet Adapters
- Two (2) 380
watt Power Supplies
Each node in the cluster runs the following software components:
- Solaris 8 Operating System
- Veritas File System
- Stronghold 3 (Commercial Apache) Web
Server
- JRun 3
JSP/Servlet Engine
The number of
concurrent connections serviced dominates the performance characteristics of
the web servers. The Alteon switches
provide ISO layer-4 load balancing to distribute the load amongst the
platforms. Additional servers may be easily added to support increased demand.
D15.2.1.3 Edge-Site Facilities and Architecture
The NetNumber
edge sites will be housed in fully redundant, premium grade Internet data
centers at Level(3) - Chicago, UUNet - NY, UUNet – London and UUNet – Hong
Kong.
UUNet and Level(3) are leading providers of communications and information services in support of international advanced Internet Protocol (IP) technology-based networks. Both offer exceptional collocation services providing hosting facilities for enterprises with mission-critical Internet operations. The company offers sophisticated system and network management solutions via an international network of Internet Data Centers. UUNet and Level(3) offer world-class facilities with raised floors, HVAC temperature control systems with separate cooling zones, state-of-the-art smoke detection and fire suppression systems, motion sensors, 24x7 secured access, as well as closed-circuit video surveillance. In addition, they offer the highest levels of reliability through a number of redundant subsystems, such as multiple fiber trunks coming into each IDC from multiple sources, fully redundant power on the premises, and multiple backup generators. Each provider offers international IP networks with guaranteed service level agreements. Each edge site leverages the multi-path Internet connections services with 100 Mbps burstability.
All equipment is housed in cabinets with secure locking front doors and ventilation fans. UUNet and Level(3) provide around-the-clock systems management with onsite personnel trained in the areas of networking, Internet, and systems management. The result is a physical and technical environment affording NetNumber the reliability and flexibility necessary to operate its mission-critical Internet edge registry sites.
The NetNumber edge sites are deployed on highly scalable clusters of Sun Microsystems enterprise servers, hardware load balancers, firewalls/VPN and Cisco networking equipment. The architecture of an edge registry site is secure, reliable, fully redundant and may be scaled without practical limitation through the addition of new server platforms into the clustered environment.
D15.2.1.4 Edge-Site Architecture Details
Figure 3 illustrates the physical architecture of a registry edge site.
Figure 3
– Edge-site Physical Architecture Diagram
IP Networking Equipment: Redundant Nokia IP440 firewall
appliances running Checkpoint Firewall-1 guard the entrance to the master
site. The firewalls are cross-connected
in an active-passive configuration. Two
network paths may be followed from the firewalls into the master site. Redundant public networks expose the Alteon
load balancers and DNS servers via a DMZ to the Internet. Redundant private networks may only be
accessed via the VPN and provide a resource for updates, replication, backup,
maintenance and monitoring. All layer 2
switching equipment is fully redundant and manufactured by Cisco Systems. The following network equipment is used.
- ExFW1 & ExFW2 - two (2) Nokia IP440
firewalls running Checkpoint FW-1
- ExLB1 & ExLB2 - two (2) Alteon
ACEDirector 4 load balancing switches
- ExSW2 &
ExSW2 - two (2) Cisco 2924XL Catalyst 10/100 switches
DNS System Details: The DNS slave systems (ExNS1 & ExNS2)
have limited exposure to the Internet on port 53 via a DMZ defined in the site
firewalls. The DNS slave systems are load balanced via the Alteon switches and
respond to DNS queries from anywhere.
Zone transfer notify requests from the well-known DNS master are
performed across the VPN from the active master site. All BIND configuration and zone files are stored on internally
mirrored (RAID 0,1) disk storage. The
slave DNS systems are implemented as a shared nothing cluster of two (2) Sun
Enterprise 420R servers with the following equipment in each node:
- Four (4) 450 Mhz UltraSPARC II
processors
- Four (4) GB of main memory
- Two (2) 18.2 GB - 10K RPM Internal Drives
- Two (2) Quad-Fast Ethernet Adapters
- Two (2) 380
watt Power Supplies
Additionally, each
node in the cluster runs the following software components:
- Solaris 8 Operating System
- Veritas File System
- Veritas Volume Manager
- BIND 9.0.0
The performance characteristics of the slave DNS servers are dominated by the DNS queries made from the Internet. Each slave DNS server running BIND 9.0.0 can support an average of 3300 queries per second at 100% utilization. It is NetNumber’s policy to operate at a peak throughput of 60% utilization, hence a pair of slave DNS servers can field upward 4000 queries per second under normal peak operating conditions.
D15.2.2.
Registry-registrar model and protocol.
NetNumber operates a shared registration system where multiple accredited registrars may directly manipulate the information in the registry. Network Solutions Inc. developed Registry-Registrar Protocol (RRP) as specified in RFC2832 under the auspices of the Shared Registration System program. This protocol permits multiple registrars to provide limited second level Internet domain name registration services in the top-level domains (TLDs) administered by a TLD registry.
NetNumber proposes to provide full second level Internet name registration services in the registry by extending RRP 1.1.0 to support registrant information. This will enable NetNumber to operate a fully functional or complete registry Whois service that results a more technically sound and consistent Whois service, while promoting a more competitive registrar environment by eliminating barriers to entrance. Extending RRP verses building from scratch leverages the current investment registrars have made in the existing protocol and is a faster track to production deployment.
D15.2.3. Database capabilities.
NetNumber’s
Back-Office database is implemented using Oracle 8i and provides an extremely
flexible and scaleable infrastructure for the registry. The amount or capacity
of storage required for each registered number averages 500 bytes, including
domain name, name servers, IP addresses, registrant (administrative, technical
and billing), registrar, creation date, renewal date, last modified date and
indexes. Thus, every 100 million
registered numbers will require approximately 50 GB of raw storage. To allow for high throughput and fast and
efficient backups, the data is divided into multiple partitions and spread
across many disks in a high-performance fibre channel disk array with RAID
(0,1,5) hardware controllers.
All business logic for adding, modifying, and deleting information from the registry is handled by stored logic compiled within the database engine. To allow for scalability and fault tolerance, multiple database servers will be configured in a parallel server architecture. In such a configuration, some servers will be deployed to process registration requests from registrars, while other servers can be targeted for backups, reporting, and/or replication.
The NetNumber Back-Office is capable of performing over 200 update transactions per second and can scale with the addition of server platforms to the cluster.
D15.2.4. Zone file
generation.
The registry operator prohibits direct manipulation of the master zone files. Registrars and the registry operator are encouraged to leverage the registry’s RRP servers to perform indirect administration. This insures that all manipulations are logged and auditable. Master zone file incremental backups are performed nightly and full backups are performed once a week.
The name space of the registry as it is currently operated under “E164.COM” partitioned across the ITU country codes. The country code “1” zone has been further partition across area codes. In the future, partitioning will be required and the partition scheme will be dependent on the specific country-dialing plan.
Registrars will not be permitted to directly edit zone file data. Registrars must leverage the registry’s RRP servers to perform indirect administration. This minimized editing mistakes and minimizes security issues. Registrars can verify the zone data updates via the Registry API, Whois, and/or DNS lookup.
Zone file updates are performed dynamically using the DNS Dynamic Update feature on the NetNumber private network. Updates will be done via the Registry API and applied to the master name server. The master name server will notify slave name servers when updates have occurred and the slave name servers will request an incremental zone transfer from the master name server.
All DNS servers will be protected behind firewalls and in secure buildings. All name servers have a public and private IP network interface. The public IP network interface will be used for domain name resolution while the private IP network interface is used for zone transfers and dynamic updates. The master name server is configured to prevent zone data transfers to unknown name servers by using the "allow-transfer" feature to define a list of slave name servers allowed to receive transfer zone data. Request for zone transfer from an unknown slave server will be reject. All zones are defined with the "allow-update" feature, restricting dynamic updates to a list of well-known hosts on the private IP network. Dynamic updates from an unauthorized host will be rejected.
Logging captures all registrar activity including zone data updates. Logs files are rolled over daily and preserved with the zone data backup. All zone files are backed up daily and stored off-site. Restoration can be performed from the daily backups or regenerated from the data in the NetNumber Back Office.
D15.2.5. Zone file
distribution and publication.
Zone
file information is replicated from the master DNS servers to the edge DNS
servers by DNS incremental zone transfer (IXFR) across the NetNumber Virtual
Private Network. All zone data updates
are applied to the master name server and distributed to the slave name servers
via the zone transfer feature of DNS. Complete zone file publications may be
provided upon explicit request.
D15.2.6. Billing and
collection systems.
Billing
of registrars is a reasonably simple process due to the fact that the number of
registrars is expected to be relatively low in the 10’s or 100’s and they are
billed monthly on a per entry basis.
Each month NetNumber will extract from the Back-Office database billing
information and provide a statement to each registrar itemizing the registry
entries for which they are responsible.
The itemized statement will include a summary of the current months
charges and a detailed itemized list of the billable entries.
D15.2.7. Data escrow
and backup.
All master systems undergo nightly backup cycles. A backup cycle consists of bringing a 3rd mirror set online, synching the 3rd mirror with the live mirrors, and writing the contents of the 3rd mirror to tape. The data written to tape will include configuration files, zone files, data files, indexes, and redo logs. The DataVault Service at Exodus Communications will perform data escrow. For our database files, full nightly backups of data, indexes, and redo logs will be done using Veritas NetBackup software and DLT tape drives (incremental backups are not possible with raw disk partitions). For all other data on 'cooked' file systems (OS, servers, applications), weekly full backups along with nightly incremental backups will take place. One set of tapes each week will be sent to IronMountain for secure, off-site storage.
Each master system's data files will be replicated to a standby site in a different geographic region of the U.S. In the event of a system loss at the primary site, global clustering software will initiate a site fail-over to our standby site. Therefore, a tape restore will only be necessary in the following low-probability scenarios:
- Both the master and standby sites are unavailable. This will only occur if there is a national communications disruption.
- The standby site is not viable. This would be the case if the replication infrastructure had been disabled for sufficient time for the data at the standby site to be older than the last backup tape. The replication subsystem will be regularly monitored to protect against such an occurrence.
- One or more systems within the standby site cannot be brought online. This could occur because of various hardware, software, and configuration issues, but scheduled mock fail-over drills will ensure the ongoing health of the systems.
Only in the case of a failure to activate the standby site will a tape restore be necessitated. In this event, Exodus guarantees a 15-minute delay from the time the call is logged until the restore commences. During a restore, modifications to registered data will be unavailable, but queries will continue to be fielded by our slave DNS servers.
D15.2.8. Publicly accessible look up/Whois service.
NetNumber
will provide a fully functional or complete registry Whois service in
accordance with RFC954 that supports domain name, registrant administrative
contact, registrant technical contact, registrant billing contact, responsible
registrar, name servers, IP addresses, record creation date, record expiration
date, and record last modification date.
Because of the potentially large number of entries in the registry,
NetNumber will provide load balanced Whois protocol servers fronting the
NetNumber Back Office. Since the
registry Whois service is a complete service, coordination of referrals to
registrar Whois will not be necessary.
D15.2.9. System security.
NetNumber is concerned about physical, network and application security. NetNumber’s Internet Data Center facilities offer the widest range of physical security features, including modern smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, video camera surveillance, security breach alarms and secured equipment cabinets. State-of-the-art firewall appliances, VPN equipment, load balancing switches and hardened Unix server operating systems provide network security. NetNumber employs the use of public-key cryptography along with the Secure Sockets Layer protocol, or SSL, to secure communication via TCP/IP from our customers to the registry registration services. The combination of these two mechanisms supports security in the following ways:
- Tamper detection - data in transit to/from the registry cannot be altered.
- Authentication - the identity of the sender of the data, as well as the identity of the registry operator, is assured. Impersonation is impossible.
- Encryption – encrypting data flowing over the Internet ensures privacy and prevents eavesdropping.
- Non-repudiation - the sender of the information can be identified at a later date.
The SSL protocol is widely used for authentication, tamper detection, and encryption over TCP/IP networks and the Internet. This protocol make use of public key cryptography, a set of well-established techniques and standards that provide tamper detection, authentication via certificates, encryption and decryption, and non-repudiation. To enable SSL with client authentication, each entity must have a public and private key pair and a certificate that identifies the holder. All registrars wishing to update information in the registry must obtain a certificate issued by a trusted authority. By using a certificate and SSL, the registry is assured of the registrar’s identity, providing not only authentication, but also providing authorization for registrar actions. The certificates that are used to authenticate registrars are X509 standard certificates and the cryptographic algorithms that are used to sign the certificate and encrypt the data have withstood years of extensive cryptanalysis.
D15.2.10. Peak capacities.
The registry
is designed to scale by leveraging multi-site clustered Symmetric
Multiprocessing (SMP) systems. Each
node in a cluster may be scaled by adding additional processors, memory and
disk storage (vertical scaling). All
systems are designed to run at a peak throughput that is 60% of the platforms
maximum throughput. All storage systems
are designed to operate at a peak capacity of 75% the maximum storage
requirements. Internal testing of BIND
9.0.0 on a NetNumber’s specified DNS platform loaded with 10 million entries
results in the ability to field a peak of ~3300 randomized queries per second
with a average latency of <6 milliseconds.
Figure 4 - BIND 9.0.0 Throughput Diagram
The following equation provides the aggregate throughput for all slave sites:
Number of network Sites NS = 4
Number of host Platforms NP = 2
Queries Per Second QPS = ~3300
Peak Operating Utilization POU = 60%
NS * NP * QPS * FS = 4 * 2 * 3300 *
0.60 = 15840 Peak Throughput (QPS)
By operating at a peak utilization of 60%, the system will readily handle spikes up to 100%, which results in the following throughput:
NS * NP * QPS * FS = 4 * 2 * 3300 *
1.00 = 26400 Maximum Throughput (QPS)
Additional DNS slave servers may be added to handle increased throughput requirements. To scale the system beyond 10 million entries per zone the host platforms must be outfitted with additional memory and/or the DNS zones must be further partitioned on the E.164 name space to additional host platforms running within the site. NetNumber sees no practical limitation on the number of entries the system may be scaled to service. BIND 9.0.0 is in its first production release and NetNumber fully expects follow-on releases to provide improved performance.
D15.2.11. System reliability.
The registry is designed to operate at 99.999% or better
availability. This is achieved through
the use of multiple sites that used different network backbones and power
grids. Loss of a single network site
does not compromise the reliability of the system.
Each network site is provisioned with redundant hardware clusters
configured in N+1, N+N and/or shared-nothing formations. Additionally, each site is provisioned with
redundant load balancing hardware switches that are configured to spread the
load across the sites hosts, as well as, other peer network sites. The load balancing switches
determine the best site based on server health, proximity to the client and
server response time. The switches automatically exchange this information with
all other switches. With a global view of every site's health and performance,
each switch develops a list of the best performing sites. The switches then
direct traffic to sites in proportion to the sites' performance measurements.
As a result, the best performing sites receive more traffic than others,
according to their ability to handle more traffic.
Depending on the type of service (DNS, RRP, Whois, Web, etc.) being requested, NetNumber applies a variety of load balancing algorithms including: round-robin, least-connections, and minimum misses. Maximum connection thresholds and different weightings can be assigned to avoid overloading any host system.
D15.2.12. System outage
prevention.
In order to prevent system outages, NetNumber operates a multi-site registry where great care has been taken in the selection of reliable, fault-tolerant hardware platforms, modern co-location facilities, and state-of-the-art clustering, data availability and recovery technologies. Each co-location facility selected by NetNumber has met the following requirements:
Physical Security – Access to the building and to the data center itself is strictly controlled by access lists, passwords, keycards, badging and identification systems, 24 hour access monitoring, closed-circuit audio and video surveillance, secured loading and unloading facilities, metal detection and/or X-ray systems, secured individual data enclosures prohibiting outside access to systems, cables, switches etc…
Redundant Utilities – All utilities are redundant and sufficient to support the hosting facility and the NetNumber systems in the event of a disastrous situation. The co-location facilities have been inspected for compliance to the following NetNumber requirements:
- Power - Redundant independent power feeds each sufficient to power the plant alone. Redundant back up power systems including both battery and generated backup systems. If diesel or gas generators are employed, their power output must be individually sufficient to power all essential facility services including security systems, fire suppression systems, data availability systems, lighting, and cooling systems and communications systems in and out of the facility. Fuel supplies for the power generation systems must be immediately available and in quantities sufficient to power at least one generator for the duration sufficient to ensure the procurement of additional fuel. Fuel supply contracts are to be retained in force from a minimum of two separate fuel suppliers each contracted to supply fuel in the quantities required when and as needed.
- Fire Detection and Suppression Systems - All fire detection and suppression systems employed by the co-location facility must be redundant dry systems – No “wet” type fire suppression systems are to be deployed in any area of the data center where sensitive electronic or electrical equipment is in use.
- Redundant, High Capacity Network Connectivity - Each co-location facility must be capable of providing a guaranteed minimum sustained bandwidth rate sufficient to meet NetNumber’s anticipated requirements. Additionally, those rates are to be provided via redundant feeds from the facilities network backbone. The facilities backbone/network should also employ redundant, highly available technologies to prevent against system outages dues to lost connection.
Hardware Sub-systems: NetNumber utilizes reliable, fault tolerant hardware systems wherever possible. All server platforms are configured with redundant power and cooling systems, multiple CPUs and Network Interfaces such that no single component failure may render a system unusable. Each sub-system within a network site is monitored on a continuous basis using ISO layer 2, layer 4 and layer 7 monitoring. Clustered N+1, N+N and shared nothing architectures ensure availability. Wireless event notifications to 24x7 registry systems administration staff ensure rapid response to outage events.
Network Security: Firewalls and Virtual Private Network (VPN) Technologies are employed at each NetNumber Network Node ensuring a secure, encrypted channel from the NetNumber network operations center (NOC). Firewall systems are employed to implement both the VPN connections and to provide protection against numerous forms of attack including SYN FLOOD, Ping of death etc… Additionally, Firewalls are configured such that access to NetNumber systems and Services is allowed on a port-by-port basis. No unnecessary or unused ‘holes’ are permitted. Firewall reports are generated daily and weekly and reviewed for possible indications of attack. System passwords are rotated on a monthly basis or more often as necessary.
Data Availability: Where necessary, all NetNumber systems maintain redundant data paths to reliable, fault-tolerant hardware data storage systems. All data disks are doubly mirrored (in some cases triply mirrored) and hot swappable to ensure against any one-disk failure rendering a system unusable. Spare disk drives are maintained on-site to expedite recovery in the event a disk becomes inoperable.
Operating System and Application disk drives are also
mirrored. Tape Backups are performed nightly (incremental) and weekly
(full), on-site and the tapes are stored (escrowed) off-site in an approved
data warehousing facility. Periodic
tape restoration and audits are performed to ensure validity and availability
of recoverable media and data.
Spares: A supply of ‘spares’ is maintained on-site at each of the NetNumber sites. Any component that is field replaceable by NetNumber maintenance personnel or their agents, is required to be supported by a minimum of one like, on-site, spare component, i.e. disk drive, NIC, etc.
D15.2.13. System recovery procedures.
NetNumber operates a fully redundant multi-site registry where all sub-systems are deployed as redundant N+1, N+N or shared nothing clusters. As a consequence, the primary strategy for restoring a system in the event of an outage is to perform a coordinated fail-over to a redundant site or node. At the highest level, one site may be failed to another. For example, the master sites are deployed in an active-standby (N+1) architecture. The entire active master site can be failed to the standby master site should conditions warrant the action. Recovering the failed master site involves repairing the problem that caused the outage and re-synchronizing the master systems.
Edge sites are configured as shared nothing clusters, hence, a the procedure for restoring a failed edge site is to remove it from the global load balancing rotation, repair the problem that caused the outage and return it to the global load balancing rotation. The Alteon switches provide the ability to load balance systems across network sites. This provides the registry with an automated mechanism for the removal/restoration of a failed site or sub-system in the global load balancing rotation.
Site monitoring and availability reporting is performed with a software product called “SiteScope” and a global monitoring service called “SiteSeer”. Web based reports pertaining to the relative health of the registry are continuously available via NetNumber’s “Pulse” web site. Internet users and registrars will find information on current throughput, systems experiencing outages and projected time for system restoration. In addition to current status reports, monthly reports of system availability are published for public review.
D15.2.14. Technical and other support.
The Registry On-line Technical Support Page(s) provide registrars, Internet users and registrants with the first line of support. The web site consists of online documentation, FAQ’s, real-time registry health reports “Registry Pulse”, monthly availability reports, downloadable development and operational tools and additional contact information if additional technical support is needed.
Technical support is provided by the NetNumber Operations Support Staff; a 24x7 Operations and Support organization. The support staff is comprised of several on-line and on-call support and engineering personnel with graduated levels of application and system expertise. The operations and support staff is managed by shift supervisors who in turn report directly to the VP of Operations. All operations and support personnel are trained in and knowledgeable of the NetNumber Operational Policies and Procedures.
NetNumber employs a 24x7 help desk that in turn is supported by a team of on-call operations and engineering personnel. The NetNumber help desk is accessible via: Internet Phone and/or E-mail as well as Toll-Free PSTN-based phone service. For the year ending 12/31/2001, The NetNumber Technical Support Center will be an English language support center only. International language support will be implemented starting in 2002.
D15.3 SUBCONTRACTORS
NetNumber
utilizes extensive subcontracting services in two areas of Registry operations:
(a) Asset hosting
(b) First line technical operations
The
".tel" Registry operating plan calls for establishing operational
support relationships with four key vendors:
EMC Corporation, Exodus Communications, Level3 Communications and
WorldCom Communications. Of these four
key vendors, the EMC relationship has been in operation since March 2000. Current expansion plans call for the launch
of service at Exodus in November, Level3 in December and WorldCom in Q1
2001. NetNumber utilizes the following
contract services from the EMC Internet Services Group:
-
Asset
leasing
-
Asset
hosting
-
Redundant
power systems
-
Redundant
data network systems
-
Redundant
Internet connectivity services
-
24x7
DBA services
-
24x7
Facility management services
-
24x7
First line technical support services
See
Appendix G for a copy of the EMC services contract that defines the scope and
standards of excellence under which the EMC services are provided.
APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F
APPENDIX G
Internet
Services Agreement
This Internet Services Agreement (the “Agreement”), by and between EMC Corporation (“EMC”), a Massachusetts corporation with a principal place of business at 171 South Street, Hopkinton, MA 01748, and Net Number, (the “Company”) a Massachusetts corporation with a principal place of business at 650 Suffolk Street, Suite 307, Lowell, MA 01854, is made this 14th day of 2000 (the “Effective Date”).
WHEREAS, EMC HAS PRODUCTS
AND SERVICES WHICH IT INTENDS TO EMPLOY TO SATISFY COMPANY’S REQUIREMENTS; AND,
WHEREAS, COMPANY DESIRES TO
HAVE EMC PERFORM INTERNET SERVICES FOR COMPANY; AND,
WHEREAS, COMPANY OWNS AND
OPERATES ONLINE INFORMATION SERVICES WHICH CONSIST OF CERTAIN HARDWARE,
SOFTWARE AND APPLICATION SUBSYSTEMS THAT IT WISHES EMC TO INSTALL, OPERATE AND
MAINTAIN FOR COMPANY AT EMC’S INTERNET SERVICES CENTER AS FURTHER DEFINED IN
THE STATEMENT (S) OF WORK,
NOW, THEREFORE, IN
CONSIDERATION OF THE ABOVE AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES
AGREE AS FOLLOWS:
Definitions:
“Services” shall mean the
computer hardware and all related interfaces, software, data storage and
network interface connections and other such items necessary for operation of
the internet services complex to
provide to Company storage space on, and access to, the Server, and related
materials, facilities and services, in order to host the Site and to otherwise
make the Site accessible on demand by users of the World Wide Web, and any
other requirements defined in each Statement of Work; the network
connections necessary for Company to manage Applications and deliver content as
defined in each Statement of Work; the internet services described in Section 2
below and in the Statement of Work; all other services described in the
Statement of Work.
“Application” shall be defined in each Statement of Work.
“Content” shall mean editorial content contained in
the Application(s).
1.
General Scope of Agreement.
Company is solely responsible for the Applications and the Content of the Applications as well as issuing a purchase order once agreement is signed. EMC is responsible for the equipment, facilities and services as defined herein and in each Statement of Work.
2. Services
to be Performed
EMC will perform the Services as detailed in each
Statement of Work, appended to this Agreement as defined herein, and perform
the Services according to the Functional Specifications in Section 2.1.
2.1 Functional Specification
EMC
shall supply, maintain and operate the Services including its various parts in
accordance with the functional specification (the “Functional Specification”)
set forth below:
The hardware and software and other equipment items as
specified in each Statement of Work to be attached to this Agreement.
A protected and secure computer room environment with
physical access restricted to authorized personnel and network and remote
access restricted by firewall and other electronic means to authorized users,
sufficient fire repression equipment so as to protect the computer hardware and
network hardware used by the applications, and backup power supplies to provide
uninterrupted supplies of electricity; automatic and regularly scheduled backup
of all related data and the restoration of such backups on demand by Company,
with such backups stored at a location different than that of the original
data; twenty-four hour per day, seven days per week support of the computer
room; and complete facilities management, including data backups, computer
hardware maintenance, network hardware maintenance, installation of software
updates and fixes as supplied by the manufacturers of the computer and network
hardware in place, and any such other tasks as required to operate the computer
hosting services in accordance with the requirements and obligations identified
in each Statement of Work. During the term of this Agreement, the allocation of
hardware, software and other equipment and services supplied by EMC may be
re-allocated to other projects by Company and EMC upon submission of a revised
Statement of Work, subject to both parties acceptance which will not be
unreasonably withheld or delayed.
2.2
Statement of Work
The parties will use documents (“Statements of Work”)
that define each assignment, task or project to be performed by EMC for
Company. The Statements of Work will be
as complete in details as is required to meet the function of the work. As a
minimum, each Statement of Work must contain the following items: explanation
of the project; coordinators for both EMC and Company that will be responsible
for the efforts; schedule for performance; reports and/or meetings required,
and, for a list of equipment and services with prices.
As each Statement of Work is prepared and approved by
both parties, that Statement of Work will be incorporated by reference into
this Agreement.
3. Other
Duties of EMC
3.1 Appointment of Contact
Personnel
EMC
shall appoint a single, primary contact person who shall be Company’s main
representative at EMC and whose primary responsibility will be to assure that
the obligations and responsibilities herein are performed in accordance with
the specifications and requirements herein stated.
From
time to time it may be necessary to designate a new primary contact person. EMC
will notify Company promptly in writing of the new primary contact person. Upon reasonable request from Company, EMC
will change the primary contact person.
3.2 Proprietary
Rights
EMC
is the sole owner of all right, title and interest in the Services, including
any patent, copyright or trade secret rights, provided EMC does not use the
Confidential Information of the Company.
4.
Duties of Company
4.1 Supply of Operational Data
Company
shall supply to EMC all necessary operational data and all such other data that
EMC reasonably requires in order to perform the Services. EMC shall not,
without prior written authorization from Company, alter, modify or change in
any way the operational data, Content or other data or materials provided by
Company. EMC shall use all such materials
in strict compliance with any instructions provided by the Company.
4.2 Supply of Server and Database
Software and Licenses
Company
shall supply Applications, Hardware, Software and associated licenses or
maintenance agreements as defined in each Statement of Work.
4.3 Appointment of Contact Personnel
Company
shall appoint a single, primary contact person who shall be EMC’s main
representative at Company and whose primary responsibility will be to assure
that the obligations and responsibilities herein are performed in accordance
with the specifications and requirements herein stated.
From
time to time it may be necessary to designate a new primary contact person.
Company will notify EMC promptly in writing of the new primary contact person.
4.4 Proprietary Rights
Company
represents that the Application(s) contain information gathered, selected,
coordinated and arranged by company at considerable expense by the application
of methods, editorial standards and judgment that is proprietary to Company and that that Content is a
valuable asset of Company, and
that title and ownership of the Content Application(s),
Company’s Confidential Information, operational data and other data/materials
provided by Company to EMC under this agreement remains exclusively with
company and its licensors.
EMC
shall not use the Content,
Application(s), Company’s Confidential Information, operational data and other
data/materials provided by Company to EMC for any purpose other than that of
fulfilling EMC’s obligations under this Agreement, nor will the Content, or any
part thereof, including, without limitation, any trademark or font or type
style or graphic or pictorial images or text be disclosed, transmitted, sold,
assigned, leased or otherwise disposed of to, or made available for access by,
third parties by EMC, or be commercially exploited by or on behalf of EMC, its
employees, agents, or subcontractors, except as expressly provided in this
Agreement. All of the Content and the
Site, including, without limitation, any and all copyrights, trademarks or
trade names and other proprietary rights inherent therein or appurtenant
thereto, are and shall remain the exclusive property of Company. EMC acknowledges that it is not acquiring
any proprietary or copyright interest in the Content Application(s), Company’s
Confidential Information, operational data and other data/materials provided by
Company to EMC by Company.
5. Payment
Payment
terms will be established by the parties and included in each Statement of
Work. Unless specified otherwise in an agreed Statement of Work, Company may,
upon written notice to EMC given within ten (10) days of receipt of invoice,
withhold payments for Services if it reasonably questions any item (s)
reflected on EMC’s invoice. Pending the
settlement or resolution of the issue (s), the non-payment of these items shall
not constitute a breach of this Agreement and such non-payment shall not be
cause for either party to fail to perform any and all duties as required
herein. Company shall pay all amounts
due that are not in dispute.
6.
Term and Termination
6.1 Term of the Agreement
This
Agreement is effective as of the Effective Date and shall remain in effect for
two (2) years or until terminated in accordance with the terms contained in the
following sections and elsewhere in the Agreement.
6.2 Renewal of the Agreement
This
Agreement shall automatically renew for successive one (1) year periods. Either party may elect not to renew by
giving written notice to the other party in accordance with the notice
provisions contained in Section 9 of this Agreement, not less than ninety (90)
days prior to the end of the then current term.
6.3 Termination of the Agreement
Either
party may terminate this Agreement upon written notice in the event of a
material breach by the other party; provided however, that the non-breaching
party has provided written notice of such material breach, and such material
breach was not cured to the reasonable satisfaction of the non-breaching party
within thirty (30) days after the providing of the written notice.
6.4
Effect of Termination
7. Warranties
EMC represents and warrants
that (i) all of the Services to be performed by it hereunder will be
rendered using sound, professional practices and in a competent and
professional manner by knowledgeable, trained and qualified personnel;
(ii) it has full authority to enter into this Agreement; (iii) all
obligations owned to third parties with respect to the activities contemplated
to be undertaken by EMC pursuant to this Agreement are or will be fully
satisfied by EMC, so that Company will not have any obligations with respect
thereto; (iv) EMC is the owner of or otherwise has the right to use and
distribute all materials and methodologies used in connection with providing the
Services hereunder; (v) EMC will comply with all applicable federal, state
and local laws in the performance of its obligations hereunder; (vi) EMC will make a best effort
attempt to provide a spare server available and ready to put into use in the
event a Server ceases to make the site available. EMC’s ability to provide spare servers is related to available
inventory at the time of the failure.
EMC Performance Warranties. EMC represents and warrants the following:
Except
as otherwise agreed in writing by the Parties, the Content and Application(s)
shall be accessible to Internet users twenty-four (24) hours per day, seven (7)
days per week, with the sole exception of scheduled maintenance periods, which
shall last no longer than one (1) hour per day and which shall take place each
morning between the hours of 3 a.m. and 4 a.m. Eastern Standard Time.
The
Server shall have a response time, measured at the Server, from the receipt at
the Server of a request until the commencement of the responsive transmission
from the Server, of no more than one-half (½) of one (1) second. The “Request Response Time” shall be defined
in writing and mutually agreed upon by both parties.
If the Server becomes unavailable to users, other than for scheduled maintenance, EMC shall have qualified personnel respond in the form of an on-premises service call within one (1) hour of notification of such unavailability and shall, to the extent reasonably practicable, remedy such unavailability at such time.
7.3 Company Warranties.
Company represents and warrants that: (i) it has full authority to enter into
this Agreement; (ii) Company
will comply with all applicable federal, state and local laws in the
performance of its obligations hereunder, and (iii) no Content provided by
Company infringes any intellectual property, publicity or privacy rights of any
third party.
7.4
Disclaimer of
Warranties.
EXCEPT AS EXPRESSLY STATED IN THE ABOVE WARRANTY
SECTIONS, EMC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, BY
OPERATION OF LAW OR OTHERWISE, OF ANY PRODUCTS FURNISHED UNDER OR IN CONNECTION
WITH THIS AGREEMENT. EMC DISCLAIMS ALL
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE, TITLE,
OR NON-INFRINGEMENT AND THOSE WARRANTIES ARISING BY STATUTE OR OTHERWISE IN LAW
OR FROM A COURSE OF DEALING OR USAGE OF TRADE.
8. Limitation
of Liability
8.1 EACH
PARTY’S ENTIRE LIABILITY FOR ANY CLAIM,
LOSS, DAMAGE OR EXPENSE FROM ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF THE ACTION, WHETHER IN CONTRACT,
TORT OR OTHERWISE, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, SHALL
BE LIMITED TO THE GREATER OF THE AMOUNTS PAID BY THE COMPANY TO EMC DURING THE
PREVIOUS 12 MONTH PERIOD OR $100,000.
8[E1].2 EXCEPT FOR INDEMNITY OBLIGATIONS OF EACH PARTY HEREUNDER, NEITHER PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, OR ANY OTHER INDIRECT LOSS OR DAMAGE, INCLUDING LOST PROFITS OR LOST DATA, ARISING OUT OF THIS AGREEMENT OR ANY OBLIGATION RESULTING THEREFROM, OR THE USE OR PERFORMANCE OF ANY SERVICE, WHETHER IN AN ACTION FOR OR ARISING OUT OF ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE. NO ACTION OR PROCEEDING AGAINST EITHER PARTY MAY BE COMMENCED MORE THAN EIGHTEEN (18) MONTHS AFTER THE CAUSE OF ACTION ACCRUES
8.3 EMC SHALL NOT BE LIABLE FOR ANY CONTENT PROCESSED OR STORED ON THE SYSTEM EVEN IF SUCH CONTENT WAS KNOWN BY EMC. COMPANY SHALL HOLD HARMLESS AND INDEMNIFY EMC FROM ANY LOSS OR DAMAGES (INCLUDING REASONABLE ATTORNEYS FEES) INCURRED BY EMC BECAUSE OF ANY CLAIMS, SUITS OR DEMANDS OF THIRD PARTIES ARISING OUT OF OR RESULTING FROM ANY CONTENT PROVIDED BY COMPANY TO EMC FOR PLACEMENT ON THE APPLICATION.
9. Confidentiality
9.1 “Confidential
Information” shall mean information or materials provided by one party to the
other which are identified as being confidential at the time of disclosure and shall include all user information.
9.2 Confidential Information shall not include information or materials that (1) were, on the effective date of this Agreement, generally known to the public; or (2) become generally known to the public after the effective date of this Agreement other than as the result of an act or omission of the receiving party; or (3) were rightfully known to the receiving party prior to that party receiving same from the disclosing party; (4) are or were disclosed by the disclosing party to a third party generally without that third party’s breach of agreement or obligation of trust; or (6) are independently developed by the receiving party without the use of the Confidential Information.
9.3 The receiving party shall not (1)
disclose Confidential Information to any third party, (2) make Confidential
Information available to any of its employees or consultants who do not have a
“need to know” in order to any third party; or (3) use Confidential Information
for any purpose other than contemplated by this Agreement. The receiving party shall be held to the
same standard of care it applies to its own information and materials of a
similar nature. EMC shall adhere to all privacy and data protection laws applicable to
its gathering, processing, storing and transmitting of user information. EMC shall maintain the strict
confidentiality of all user information.
EMC shall use reasonable measures and reasonable efforts to provide
protection for Confidential Information, including measures at least as strict
as those EMC uses to protect its own Confidential Information, but at least
reasonable care.
9.4 All Confidential Information disclosed under this
Agreement shall remain the property of the disclosing party.
10.
General
10.1 This Agreement, including any Statement(s) of Work
attached, is the complete and exclusive statement of the parties and supersedes
all prior written agreements with respect to the subject matter. Neither this Agreement nor any Statement of
Work may be altered or amended except in writing and executed by their
authorized representatives.
10.2
Neither party will
be liable for any failure or delay in performance, except the obligation to pay
money, due in whole or in part to the extent that such failure or delay is
caused by events beyond the control of the parties.
10.3
This Agreement shall
be governed by the laws of the Commonwealth of Massachusetts, excluding its choice
of laws provisions.
10.4
Sections 3.2, 4.4,
5, 6, 7, 8, 9 and 10 shall survive termination of this
Agreement.
10.5
All notices under
this Agreement shall be in writing and shall be given in person or by certified
or registered mail or overnight courier to the attention of the respective
General Corporate Counsel at the addresses set forth above.
10.6
All headings in this
Agreement are inserted for convenience only and are not intended to affect the
meaning or interpretation of this Agreement or any clause.
10.7
No omission or delay
on the part of either party in requiring the fulfillment by the other party of
its obligations hereunder shall constitute a waiver of its rights to require
the fulfillment of any other obligation hereunder, or a waiver of any remedy it
might have hereunder.
10.8 EMC shall not be in breach of this Agreement due to any failure to meet any Target Completion Date (as defined in the (Statement of Work) due to any cause under the reasonable control of Company or as stated in section 10.2.
Signed by authorized representatives of both parties.
|
NetNumber.com, Inc. |
EMC Corporation |
|
By: ______________________________________ ______________________________________ ______________________________________ |
By: ________________________________________ ___________________________________________ |
|
Name:
Robert H. Walter |
Name: Charles Cavallaro |
|
Title: Vice President, Development and Operations |
Title: SR VP, OPERATIONS, MARKETS & CHANNELS _____________________________________ |
|
Date: ____________________________________ ______________________________________ ______________________________________ |
Date: ______________________________________ __________________________________________ |
|
|
|
8/27/99 4:47 PM
D16 SIGNATURE PAGE
By
signing this Registry Operator's Proposal, the undersigned certifies
(a) that he or she has authority to do so on behalf of the registry
operator and, on his or her own behalf and on behalf of the registry operator,
(b) that all information contained in this proposal, and all documents
attached to this proposal, is true and accurate to the best of his/her/its
knowledge and information. The undersigned and the registry operator understand
that any material misstatement or misrepresentation will reflect negatively on
any application of which this proposal is a part and may cause cancellation of
any delegation of a top-level domain based on such an application.
_______________________________
Signature
Glenn
Marschel
Name (please print)
Chief
Executive Officer
Title
NetNumber.com,
Inc.
Name of Registry Operator
_______________________________
Date