Hello Danny, As we discussed in the At Large budget briefing today, here is my response to your questions about the $0.75 fees. See section 7.2 below: Section 7.2 Fees to be Paid to ICANN. Registry-Level Transaction Fee. Commencing on 1 July 2005, Registry Operator shall pay ICANN a Registry-Level Transaction Fee in an amount equal to US$0.75 for each annual increment of an initial or renewal domain name registration and for transferring a domain name registration from one ICANN-accredited registrar to another during the calendar quarter to which the Registry-Level Transaction Fee pertains. ICANN intends to apply this fee to purposes including: (a) a special restricted fund for developing country Internet communities to enable further participation in the ICANN mission by developing country stakeholders, (b) a special restricted fund to enhance and facilitate the security and stability of the DNS, and (c) general operating funds to support ICANN's mission to ensure the stable and secure operation of the DNS. Here is how the transaction fees for .NET add up in FYE2007. FY 2006/07 Revenue for .NET Registry # of transactions Jul-Sep 2006 2,188,601 Oct-Dec 2006 2,378,039 Jan-Mar 2007 2,741,716 Apr-Jun 2007 2,738,499 10,046,855 Fees per transaction $ 0.75 Transaction Revenue 7,535,141 Using the language from Section 7.2 of the .NET contract, the transaction revenue can be allocated as follows: enable developing countries to participate in the ICANN mission 2,511,714 0.25 enhance and facilitate the security and stability of the DNS 2,511,714 0.25 ensure the stable and secure operation of the DNS 2,511,714 0.25 7,535,141 ICANN did not set up specifically restricted funds for the three intended purposes. However, ICANN certainly has spent and continues to spend considerable amounts for these purposes. The following table shows how the FY08 budget might be allocated to these three intended purposes: .NET Purposes Amounts Allocations FY08 Budget enable developing countries to participate in the ICANN mission 2,511,714 Fellows, 1/3 of int'l meetings, RL's, IDN 3,804,492 enhance and facilitate the security and stability of the DNS 2,511,714 Relevant costs of IANA, Part of policy development, compliance 2,569,238 ensure the stable and secure operation of the DNS 2,511,714 Relevant costs of IANA, Lroot 2,642,965 7,535,141 9,016,695 Let me know if you would like to discuss this further. Best regards and I look forward to seeing you in Paris. Kevin Wilson Chief Financial Officer ICANN kevin.wilson@icann.org<mailto:kevin.wilson@icann.org> +1.323.868.0514 -----Original Message----- From: Danny Younger [mailto:dannyyounger@yahoo.com] Sent: Thursday, June 05, 2008 9:54 AM To: na-discuss@atlarge-lists.icann.org; At-Large Staff Cc: Denise Michel; Kevin Wilson; Kevin@yahoo.com; Doug Brent Subject: Re: [NA-Discuss] CONFIRMED: Briefing Session on Draft Operational Plan and Budget This question is posed in advance of the briefing to Kevin and Doug: The .net registry contract states: Section 7.2 Fees to be Paid to ICANN a) Registry-Level Transaction Fee. Commencing on 1 July 2005, Registry Operator shall pay ICANN a Registry-Level Transaction Fee in an amount equal to US$0.75 for each annual increment of an initial or renewal domain name registration and for transferring a domain name registration from one ICANN-accredited registrar to another during the calendar quarter to which the Registry-Level Transaction Fee pertains. ICANN intends to apply this fee to purposes including: (a) a special restricted fund for developing country Internet communities to enable further participation in the ICANN mission by developing country stakeholders, (b) a special restricted fund to enhance and facilitate the security and stability of the DNS, and (c) general operating funds to support ICANN's mission to ensure the stable and secure operation of the DNS. Could you please advise: (1) The total amount of fees obtained by way of this portion of the .net contract (2) The amount allocated to the special restricted fund for developing country communities (and by what means it will be dispersed) (3) The amount allocated to the security and stability restricted fund (and how such funds are spent) (4) The amount allocated to the general operating fund. Thank you, Danny Younger