What is the real justification of 7% "raw material pricing" increase? Does it make sense in this context? On 7/8/07, Roberto Gaetano <roberto@icann.org> wrote:
No, what I find odd is the inqualifiable justification of a further $1.58 increase in pure profit blamed on an ICANN Board decision.
I do not find odd that commercial companies do their business, I find odd that a self appointed champion of the user interests justifies an unjustifiable 31% increase in end user prices based on a 7% raw material prices.
Anyway, I find it odd, but I wonder why I am not surprised.
Regards Roberto
-----Original Message----- From: Danny Younger [mailto:dannyyounger@yahoo.com] Sent: 09 July 2007 01:33 To: Roberto Gaetano; 'Michael Maranda'; 'At-Large Worldwide'; na-discuss@atlarge-lists.icann.org Subject: RE: [At-Large] [NA-Discuss] Budget provisions relating to DomainTasting
Re: "It is again odd that a raise of full $2.00 can be justified in this way."
Sorry, but why do you think that this is odd?
Board members know the Redemption Grace Period Fee charged by Registries is set at $40, and that many registrars will charge well in excess of 4X markup -- eNom is at $160, while some hosting companies charge as much as $260.
Registrar markup of the 42 cent fee increase is to be expected. A 4X markup would raise a registrar price by $1.68, and higher markups could easily raise it over $2.00.
Was the Board so blinded to reality that they thought that registrars would either eat or simply pass along the 42 cents? Markup is part of normal business. You shouldn't find it odd.
What you should find odd is the miserable justifications that were given by Board members for screwing the public with an unjustified price increase.
--- Roberto Gaetano <roberto@icann.org> wrote:
First of all, I am sure that Alan knows about the details of Domain Tasting, since in the ALAC mailing lists this problem has
been rased
since months, an issue report has been requested by ALAC, and Alan is in the GNSO team who is in charge for further fact finding.
This said, the fact that domain tasting bring an increase in "regular" registrations is exactly the evidence brought by domainers and domain tasters/kiters to justify the practice. It is at least odd that the same phenomenon is brought up in this discussion. Being paranoiac by nature, I tend to pay attention to coincidences.
Last but not least, the price increase is orthogonal to this issue, as it comes from the 7% increase that registries (not ICANN!) will apply. This increase accounts for a grand total of .42 USD, "autrement dit" 42 cents of US$. It is again odd that a raise of full $2.00 can be justified in this way, and it is at least suspicious that a long time militant omits to remark that the issues are separated and that a raise of such extent is not justified.
Incidentally, relevant ICANN staff in copy to craft appropriate follow up to AIT Domains, thanks Danny for pointing out media clip.
Regards, Roberto
-----Original Message----- From: alac-bounces@atlarge-lists.icann.org [mailto:alac-bounces@atlarge-lists.icann.org] On Behalf Of Danny Younger Sent: 08 July 2007 21:27 To: Michael Maranda; At-Large Worldwide; na-discuss@atlarge-lists.icann.org Subject: Re: [At-Large] [NA-Discuss] Budget provisions relating to DomainTasting
Re: The small increase may seem trivial, but the principle is more important.
The price increase (which won't go into effect until October 15) is not trivial -- registrars are already raising their prices in anticipation of the price increase:
"AIT Domains says that under the promotion all domain names will cost $6.49 until July 6. However, due to recently announced price increases from ICANN, AIT Domains says it's being forced to raise its prices. Rates are currently scheduled to go up to $8.49 per registration year on July 9."
http://www.thewhir.com/marketwatch/070307_AIT_Holds_Fourth_of_
July_Special.cfm
What's more important than all of this is the
issue of bad
decision-making on the part of the unaccountable ICANN Board. The Internet community has no way of "throwing the bums out" because ICANN remains accountable to no one.
Until this problem is solved it really doesn't much matter what the community consensus is on the AGP or anything else... ICANN remains free to ignore the voice of the people.
Presently, ICANN profits from the consequences of domain tasting... the more names that are tasted, the more names that will eventually be registered as some of these names can successfully be monetized. Profits for the registries, profits for the registrars, profits for ICANN... there were about 16 million new registrations last year (a good chunk of them the direct result of tasting activities).
Don't expect to prevail on this issue without putting up a spectacular fight and screaming for action at every opportunity -- convincing a corporation to kill a lucrative cash cow can only be an uphill battle.
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