Dear Christian,
On 12/07/2018 11:40, Christian de
Larrinaga wrote:
Worth pointing out this note is proposing a tax basis for DNS not a cost
recovery mechanism. Who gets this tax revenue? Who gets to set it? ICANN
does not have the credentials.
IMHO the "cost recovery basis" is a red herring for the simple
reason that it is impossible to calculate what a TLD will really
cost ICANN in the long run. Is it just the cost of processing the
application, or is it the cost of fixing problems related to that
TLD such as the need to have more ICANN compliance staff for more
TLDs with a higher than normal amount of misuse of domains under
that TLD?
The ICANN model is already a tax revenue model where ICANN taxes
every domain sold and Registries, Registrars and their agenda
collect that money on behalf of ICANN pretty much like VAT.
It need not be called a tax revenue model, but by a term such as "DNS fees" payable for every domain, required to maintain the DNS as global, stable, secure and fair. It seems uniformly subsidized at present level for the benefit of the global Internet user at 18 cents per domain through the Registrar after 25 cents per domain indirectly collected from gTLD registries, but not from all Registries.
This could be more, much more, after providing for even zero fees or/and lower fees (10 cents or so) for the first 10,000 names by a new Registry / Registrar, some exceptionally limited Community TLDs, to actually become a dollar as total direct and indirect Registrant fee to ICANN.
Also, what happens when someone pays US $ 13 million or an unknown sum in an unspoken of transaction? A dollar to ICANN? Could be a million as premium fee. Quite a moot point, could be voluntary for Registries.
The rationale arises from considering, in concept, not as much by legal assertion, all names as "owned" by All Users with ICANN as the Trustee, and the Registries / Registrars as lessors of the name for a year, two, ten or more, with fair and routine consideration by ICANN in accordance with business conventions for routine extensions to continue operations in their respective space, and for the Registrant similar considerations to extend the registrations.
ICANN's revenues are disproportionately low which constrains it's mission unacknowledged.
Sivasubramanian M
What about setting higher application fees for brand TLDs?