TLD Application: Registry Operator's Proposal 15 August 2000

---

Registry Operator's Proposal

[INSTRUCTION: A Registry Operator's Proposal is to be submitted as part of every new TLD application. In case of applications for unsponsored TLDs, the registry operator will be the applicant and should prepare and submit the proposal as part of the application. In the case of applications for sponsored TLDs, the sponsoring organization (or, where the sponsoring organization has not yet been formed, organization(s) or person(s) proposing to form the sponsoring organization) will be the applicant. The sponsoring organization should select the proposed registry operator, have it prepare the Registry Operator's Proposal, and submit it as part of the application.

Please place the legend "CONFIDENTIAL" on any part of your description that you have listed in item F3.1 of your Statement of Requested Confidential Treatment of Materials Submitted.

The Registry Operator's Proposal should be separately bound (if more than one volume, please sequentially number them) and labeled: "Registry Operator's Proposal." and must cover all topics described below. This page, signed on behalf of the registry operator, should be included at the front of the Registry Operator's Proposal.]

I. GENERAL INFORMATION

D1. The first section of the Registry Operator's Proposal (after the signed copy of this page) should be a listing of the following information about the registry operator. Please key your responses to the designators (D1, D2, D3, etc.) below.

D2. The full legal name, principal address, telephone and fax numbers, and e-mail address of the registry operator.

D3. The addresses and telephone and fax numbers of all other business locations of the registry operator.

D4. The registry operator's type of business entity (e.g., corporation, partnership, etc.) and law (e.g., Denmark) under which it is organized.

D5. URL of registry operator's principal world wide web site.

D6. Dun & Bradstreet D-U-N-S Number (if any) of registry operator.

D7. Number of employees.

D8. Registry operator's total revenue (in US dollars) in the last-ended fiscal year.

D9. Full names and positions of (i) all directors, (ii) all officers, (iii) all relevant managers, and (iv) any persons or entities owning five percent or more of registry operator.

D10. Name, telephone and fax number, and e-mail address of person to contact for additional information regarding this proposal. If there are multiple people, please list all their names, telephone and fax numbers, and e-mail addresses and describe the areas as to which each should be contacted.

D11. The full legal name, principal address, telephone and fax numbers, e-mail address, and Dun & Bradstreet D-U-N-S Number (if any) of all subcontractors identified in item D15.3 below.

II. BUSINESS CAPABILITIES AND PLAN

D12. The second section of the Registry Operator's Proposal (after the "General Information" section) is a description of the registry operator's Business Capabilities and Plan. This section must include a comprehensive, professional-quality business plan that provides detailed, verified business and financial information about the registry operator. The topics listed below are representative of the type of subjects that will be covered in the Business Capabilities and Plan section of the Registry Operator's Proposal.
[INSTRUCTION: ICANN will extensively review and analyze this section of the Registry Operator's Proposal. The content, clarity, and professionalism of this section will be important factors in ICANN's evaluation of applications. We strongly recommend securing professional assistance from financial and management consultants to aid in the formulation of your business plan, in securing the necessary sources of financing, and in preparation of this section.]

D13. The Business Capabilities and Plan section should consist of at least the following:

D13.1. Detailed description of the registry operator's capabilities. This should describe general capabilities and activities. This description also offers the registry operator an opportunity to demonstrate the extent of its business and managerial expertise in activities relevant to the operation of the proposed registry. The following items should, at a bare minimum, be covered:

D13.1.1. Company information. Date of formation, legal status, primary location, size of staff, formal alliances, references, corporate or other structure, ownership structure.

D13.1.2. Current business operations. Core capabilities, services offered, products offered, duration of provision of services and products.

D13.1.3. Past business operations/entity history. History, date of formation, legal status/type of entity, initial services, duration of provision of services and products.

D13.1.4. Registry/database/Internet related experience and activities. Experience with database operation, Internet service provision.

D13.1.5. Mission. The registry operator's mission and how it relates to expansion into the registry operation field.

D13.1.6. Management. Qualifications and experience of financial and business officers and other relevant employees. Please address/include past experience, resumes, references, biographies.

D13.1.7. Staff/employees. Current staff size, demonstrated ability to expand employee base, hiring policy, employee training, space for additional staff.

D13.1.8. Commercial general liability insurance. Address/include amount of insurance policy, provider of policy, plans for obtaining additional insurance.

D13.2. Business plan for the proposed registry operations. This section should present a comprehensive business plan for the proposed registry operations. In addition to providing basic information concerning the viability of the proposed operations, this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the financial and operational aspects of the proposal. At a minimum, factors that should be addressed are:

D13.2.1. Services to be provided. A full description of the registry services to be provided.

D13.2.2. Revenue model. A full description of the revenue model, including rates to be charged for various services.

D13.2.3. Market. Market definition, size, demand, accessibility.

D13.2.4. Marketing plan. Advertising, publicity, promotion strategy, advertisement development strategy, relationship with advertising firm. Use of registrars and other marketing channels.

D13.2.5. Estimated demand for registry services in the new TLD. Projected total demand for registry services in the TLD, effect of projected registration fees, competition. Please provide estimates for at least 10%, 50%, and 90% confidence levels.

D13.2.6. Resources required to meet demand. Provide a detailed estimate of all resources (financial, technical, staff, physical plant, customer service, etc.) required to meet the estimated demands, using at least the 10%, 50%, and 90% confidence levels.

D13.2.7. Plans for acquiring necessary systems and facilities. Describe plans for acquiring all necessary systems and facilities for providing the proposed services at each estimated demand level. Provide details as to the scope, cost, and vendor for any significant planned outsourcing.

D13.2.8. Staff size/expansion capability. Plans for obtaining the necessary staff resources, capacity for expansion, hiring policy, employee training, space for additional staff, staffing levels needed for provision of expanded technical, support, escrow, and registry services.

D13.2.9. Availability of additional management personnel. How will management needs be filled?

D13.2.10. Term of registry agreement. State assumptions regarding the term of any registry agreement with ICANN or the sponsoring organization. Note that the .com/.net/.org registry agreement has a basic term of four years.

D13.2.11. Expected costs associated with the operation of the proposed registry. Please break down the total estimated operational costs by the sources of the costs for each estimated demand level. Be sure to consider the TLD's share of ICANN's cost recovery needs. (See <http://www.icann.org/financials/budget-fy00-01-06jun00.htm#IIIB>.)

D13.2.12. Expected revenue associated with the operation of the proposed registry. Please show how expected revenue is computed at each estimated demand level.

D13.2.13. Capital requirements. Quantify capital requirements in amount and timing and describe how the capital will be obtained. Specify in detail all sources of capital and the cost of that capital (interest, etc.). Evidence of firm commitment of projected capital needs will substantially increase the credibility of the registry operator's proposal.

D13.2.14. Business risks and opportunities. Describe upside and downside contingencies you have considered and discuss your plans for addressing them.

D13.2.15. Registry failure provisions. Please describe in detail your plans for dealing with the possibility of registry failure.

D13.3. Pro-forma financial projections. Please provide detailed pro-forma financial projections, consistent with your business plan, for the demand scenarios that you estimate under item D13.2.5. The pro-formas should show revenue and expense estimates broken down by detailed categories and should be broken down into periods no longer than quarterly.

D13.4. Supporting documentation. The following documentation should be provided in support of the Business Capabilities and Plan section:

D13.4.1. Registry operator's organizational documents. Documents of incorporation (or similar documents).

D13.4.2. References. A list of significant trade and credit references.

D13.4.3. Annual report. The registry operator's most recent annual financial report (or similar document). Audited financials are preferred.

D13.4.4. Proof of capital. Provide evidence of existing capital or firm commitments of capital. Demonstrated access to necessary capital will be carefully scrutinized.

D13.4.5. Proof of insurance. Please provide proof of the insurance described in item D13.1.8.

III. TECHNICAL CAPABILITIES AND PLAN

D14. The third section of the Registry Operator's Proposal is a description of the registry operator's Technical Capabilities and Plan. This section must include a comprehensive, professional-quality technical plan that provides a detailed description of the registry operator's current technical capabilities as well as a full description of the operator's proposed technical solution for establishing and operating all aspects of the registry. The technical plan will require detailed, specific information regarding the technical capabilities of the proposed registry. The topics listed below are representative of the type of subjects that will be covered in the Technical Capabilities and Plan section of the Registry Operator's Proposal.
[INSTRUCTION: ICANN will extensively review and analyze this section of the Registry Operator's Proposal. The content, clarity, and professionalism of this section will be important factors in ICANN's evaluation of applications. We strongly recommend that those who are planning to apply secure professional assistance from engineers and/or other technical consultants to aid in the formulation of the technical plan and the preparation of the Technical Capabilities and Plan section of the Registry Operator's Proposal.]

D15. The Technical Capabilities and Plan section should consist of at least the following:

D15.1. Detailed description of the registry operator's technical capabilities. This should provide a detailed description of the registry operator's technical capabilities, including information about key technical personnel (qualifications and experience), size of technical workforce, and access to systems development tools. It should also describe the registry operator's significant past achievements. This description offers the registry operator an opportunity to demonstrate the extent of its technical expertise in activities relevant to the operation of the proposed registry.

D15.2. Technical plan for the proposed registry operations. This should present a comprehensive technical plan for the proposed registry operations. In addition to providing basic information concerning the operator's proposed technical solution (with appropriate diagrams), this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the technical requirements of registry operation. Factors that should be addressed in the technical plan include:

D15.2.1. General description of proposed facilities and systems. Address all locations of systems. Provide diagrams of all of the systems operating at each location. Address the specific types of systems being used, their capacity, and their interoperability, general availability, and level of security. Describe in detail buildings, hardware, software systems, environmental equipment, Internet connectivity, etc.

D15.2.2. Registry-registrar model and protocol. Please describe in detail.

D15.2.3. Database capabilities. Database size, throughput, scalability, procedures for object creation, editing, and deletion, change notifications, registrar transfer procedures, grace period implementation, reporting capabilities, etc.

D15.2.4. Zone file generation. Procedures for changes, editing by registrars, updates. Address frequency, security, process, interface, user authentication, logging, data back-up.

D15.2.5. Zone file distribution and publication. Locations of nameservers, procedures for and means of distributing zone files to them.

D15.2.6. Billing and collection systems. Technical characteristics, system security, accessibility.

D15.2.7. Data escrow and backup. Frequency and procedures for backup of data. Describe hardware and systems used, data format, identity of escrow agents, procedures for retrieval of data/rebuild of database, etc.

D15.2.8. Publicly accessible look up/Whois service. Address software and hardware, connection speed, search capabilities, coordination with other Whois systems, etc.

D15.2.9. System security. Technical and physical capabilities and procedures to prevent system hacks, break-ins, data tampering, and other disruptions to operations. Physical security.

D15.2.10. Peak capacities. Technical capability for handling a larger-than-projected demand for registration or load. Effects on load on servers, databases, back-up systems, support systems, escrow systems, maintenance, personnel.

D15.2.11. System reliability. Define, analyze, and quantify quality of service.

D15.2.12. System outage prevention. Procedures for problem detection, redundancy of all systems, back up power supply, facility security, technical security, availability of back up software, operating system, and hardware, system monitoring, technical maintenance staff, server locations.

D15.2.13. System recovery procedures. Procedures for restoring the system to operation in the event of a system outage, both expected and unexpected. Identify redundant/diverse systems for providing service in the event of an outage and describe the process for recovery from various types of failures, the training of technical staff who will perform these tasks, the availability and backup of software and operating systems needed to restore the system to operation, the availability of the hardware needed to restore and run the system, backup electrical power systems, the projected time for restoring the system, the procedures for testing the process of restoring the system to operation in the event of an outage, the documentation kept on system outages and on potential system problems that could result in outages.

D15.2.14. Technical and other support. Support for registrars and for Internet users and registrants. Describe technical help systems, personnel accessibility, web-based, telephone and other support, support services to be offered, time availability of support, and language-availability of support.

D15.3 Subcontractors. If you intend to subcontract any the following:

• all of the registry operation function;
• any portion of the registry function accounting for 10% or more of overall costs of the registry function; or
• any portion of any of the following parts of the registry function accounting for 25% or more of overall costs of the part: database operation, zone file generation, zone file distribution and publication, billing and collection, data escrow and backup, and Whois service

please (a) identify the subcontractor; (b) state the scope and terms of the subcontract; and (c) attach a comprehensive technical proposal from the subcontractor that describes its technical plans and capabilities in a manner similar to that of the Technical Capabilities and Plan section of the Registry Operator's Proposal. In addition, subcontractor proposals should include full information on the subcontractor's technical, financial, and management capabilities and resources.

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

_______________________________
Signature

_______________________________
Name (please print)

_______________________________
Title

_______________________________
Name of Registry Operator

_______________________________
Date