CONFIRMED: Briefing Session on Draft Operational Plan and Budget
Dear all, This is to confirm that Mr Kevin Wilson, ICANN¹s Chief Financial Officer, will give a briefing session on the Draft Operational Plan and Budget for FY 08/09. Tuesday, 10 June 12:30 UTC (one hour before the start of the monthly ALAC teleconference). There will be French and Spanish interpretation for this call. Please find a list with international toll-free numbers and the conference access code on our meeting page. https://st.icann.org/alac/index.cgi?draft_operating_plan_and_budget You will also find reference material such as the ALAC Statement on the Draft Budget on this page. Further, we will soon post an agenda and a Powerpoint presentation. In order to follow the presentation during the call, please follow the link to the Adobe connect meeting room and that page. If you have never used Adobe Connect, please follow the instructions on the meeting page. We would like to thank Mr. Wilson for the time and effort he has put into this and look forward to his presentation next week. Regards, Nick Ashton-Hart, Matthias Langenegger, Frederic Teboul ICANN At-Large Staff email: staff@atlarge.icann.org
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
Dear Kevin and Doug, The budget states: "Legal costs are budgeted to be $2.7 million largely based upon existing litigation, legal support of organizational initiatives, and the continued work required supporting the new gTLD launch as well as providing all other legal support services for baseline activities. The contingency budget is intended to cover any excess litigation costs that occur. The contingency budget is listed at $4,000,000. Why do you deem it appropriate to set the contingency budget at that very high level? Are you anticipating a massive amount of litigation in response to the new gTLD launch? Thanks, Danny
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
Kevin, Thank you for your work on this topic. I have several concerns: (1) If a registry contract indicates that ICANN intends to apply fees toward special restricted funds, then rightfully we should be honoring that intent by actually having such specifically restricted funds established. (2) Rather than guessing at where the money might be going that was intended for the benefit of (for example) developing country stakeholders (i.e. fellowship program, IDNs etc.), the broader community should be involved in the process of determining how such considerable monies should be spent -- Two and a half million dollars could pay for a number of regional gatherings in the developing world. Here is where we have the conflux of strategic and financial considerations and where community input would be of value. regards, Danny --- On Tue, 6/10/08, Kevin Wilson <kevin.wilson@icann.org> wrote:
From: Kevin Wilson <kevin.wilson@icann.org> Subject: RE: [NA-Discuss] CONFIRMED: Briefing Session on Draft Operational Plan and Budget To: "dannyyounger@yahoo.com" <dannyyounger@yahoo.com> Cc: "Denise Michel" <denise.michel@icann.org>, "na-discuss@atlarge-lists.icann.org" <na-discuss@atlarge-lists.icann.org>, "At-Large Staff" <staff@atlarge.icann.org>, "Kevin@yahoo.com" <Kevin@yahoo.com>, "Doug Brent" <doug.brent@icann.org> Date: Tuesday, June 10, 2008, 6:06 PM 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
participants (3)
-
At-Large Staff -
Danny Younger -
Kevin Wilson