<html><body><span style="font-family:Verdana; color:#000; font-size:10pt;"><div><span style="font-size: 10pt; ">I think that if you are gauging the effects of new competition on pricing, you have to look at aftermarket prices. </span><span style="font-size: 10pt; ">The prices of most domain names that are generally available are price controlled. The existence of price controls generally defeats attempts at supply and demand type analysis. Verisign and major gTLDs have contracts with ICANN that controls the price. Similarly, the prices of many ccTLD registries are fixed.</span></div><div><br></div><div>If you want to gauge the effect of new domain names on pricing, one has to base the exercise on market pricing and not fixed, price-controlled prices.</div><div><br></div><div><div style="">Although pricing might be a valuable data point, I am not sure it is germane to calculating the value of the new gTLD program.</div><div style=""><br style=""></div></div><div>Generally, the prices are far below market value. <span style="font-size: 10pt; ">This fact means that relative value of new competition cannot be calculated by price change. The value of the new gTLD program cannot be measured by the change in price from a current .com name to that of a new gTLD. Few, if any, would deem it a tangible benefit whether they pay 20% less than the already extraordinarily low price for their domain name. (The exception to this might be domainers.)</span></div><div><span style="font-size: 10pt; "><br></span></div><div><span style="font-size: 10pt; ">The value of competition is defined by new options, services, innovation and uptake.</span></div><div><span style="font-size: 10pt; "><br></span></div><div>Kurt</div>
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-------- Original Message --------<br>
Subject: Re: [discuss] [iag-cct] Draft letter on interim recommendations<br>
From: "Shatan, Gregory S." <<a href="mailto:GShatan@ReedSmith.com">GShatan@ReedSmith.com</a>><br>
Date: Tue, March 04, 2014 8:25 am<br>
To: 'Marilyn Cade' <<a href="mailto:marilynscade@hotmail.com">marilynscade@hotmail.com</a>>, nathalie coupet<br>
<<a href="mailto:nathaliecoupet@yahoo.com">nathaliecoupet@yahoo.com</a>>, Ray Fassett <<a href="mailto:ray@goto.jobs">ray@goto.jobs</a>><br>
Cc: 1 Net List <<a href="mailto:discuss@1net.org">discuss@1net.org</a>><br>
<br>
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</style> <div class="93b5a155-0e5a-4951-b82e-e4e57c15e417"></div> <div class="WordSection1"> <div class="MsoNormal" style="font-size:12pt;"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">When I saw this addition and the question, my first reaction was that it was referring to the domain name resale market (i.e., Sedo, domain name auctions, domain name trafficking, etc., etc.). Also a market with limited oversight….<o:p></o:p></span></div> <div class="MsoNormal" style="font-size:12pt;"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></div> <div> <div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in"> <div class="MsoNormal" style="font-size:12pt;"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> <a href="mailto:discuss-bounces@1net.org">discuss-bounces@1net.org</a> [<a href="mailto:discuss-bounces@1net.org">mailto:discuss-bounces@1net.org</a>] <b>On Behalf Of </b>Marilyn Cade<br> <b>Sent:</b> Tuesday, March 04, 2014 6:15 AM<br> <b>To:</b> nathalie coupet; Ray Fassett<br> <b>Cc:</b> 1 Net List<br> <b>Subject:</b> Re: [discuss] [iag-cct] Draft letter on interim recommendations<o:p></o:p></span></div> </div> </div> <div class="MsoNormal" style="font-size:12pt;"><o:p> </o:p></div> <div> <div class="MsoNormal" style="font-size:12pt;"><span style="font-family:"Calibri","sans-serif"">I will leave it to Ray to respond, but one concern that has long been of interest to business users, is the secondary market, including allowing contracted parties to themselves register and then resell names. The secondary market has limited oversight, as you might imagine. <o:p></o:p></span></div> <div> <div class="MsoNormal" style="font-size:12pt;margin-bottom:12.0pt"><span style="font-family:"Calibri","sans-serif""><o:p> </o:p></span></div> <div> <div class="MsoNormal" align="center" style="font-size:12pt;text-align:center"><span style="font-family:"Calibri","sans-serif""> <hr size="2" width="100%" align="center" id="stopSpelling"> </span></div> <div class="MsoNormal" style="font-size:12pt;margin-bottom:12.0pt"><span style="font-family:"Calibri","sans-serif"">Date: Mon, 3 Mar 2014 19:03:29 -0800<br> From: <a target="_blank" href="mailto:nathaliecoupet@yahoo.com">nathaliecoupet@yahoo.com</a><br> To: <a target="_blank" href="mailto:ray@goto.jobs">ray@goto.jobs</a><br> CC: <a target="_blank" href="mailto:discuss@1net.org">discuss@1net.org</a><br> Subject: Re: [discuss] [iag-cct] Draft letter on interim recommendations<o:p></o:p></span></div> <div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black">Hi Ray,<o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;"><span style="color:black"><o:p> </o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;"><span style="color:black">Could you explain to me the nuance you introduced with "including aftermarket prices" ? Could you explain to me the situation you are trying to clarify?<o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"> <o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black">Nathalie <o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"><o:p> </o:p></span></div> </div> <div> <div> <div> <div class="MsoNormal" align="center" style="font-size:12pt;text-align:center;background:white"> <span style="color:black"> <hr size="1" width="100%" align="center"> </span></div> <div class="MsoNormal" style="font-size:12pt;background:white"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">From:</span></b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black"> Ray Fassett <<a target="_blank" href="mailto:ray@goto.jobs">ray@goto.jobs</a>><br> <b>To:</b> 'Karen Lentz' <<a target="_blank" href="mailto:karen.lentz@icann.org">karen.lentz@icann.org</a>>; <a target="_blank" href="mailto:iag-cct@icann.org">iag-cct@icann.org</a> <br> <b>Sent:</b> Monday, March 3, 2014 8:41 PM<br> <b>Subject:</b> Re: [iag-cct] Draft letter on interim recommendations</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"><o:p> </o:p></span></div> <div id="ecxyiv8091716217"> <div> <div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black">Thanks Karen, I’ve offered the following edit to the second interim recommendation (what is in parens i.e. “including aftermarket prices”) for consideration:<o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"> <o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span lang="X-NONE" style="color:black">2.</span><span lang="X-NONE" style="font-size:7.0pt;color:black"> </span><span style="color:black">An economic study to take into account the impact of new gTLDs on competition in the DNS ecosystem, including consideration of relevant pricing data. Again, while not dispositive of the Program’s effects on competition, this will be an important element for consideration by the Review Team, and the group believes that data may be difficult to obtain retroactively. The economic study would take into account the wholesale and retail prices </span><span style="color:red">(including aftermarket prices)</span><span style="color:black"> for domain names now and at a later point, and include an analysis of the findings in light of the competitive conditions of the domain name sector. Accordingly, the group recommends that the Board authorize funding up to [$_________] to generate and conduct an economic study in the short term, and direct staff to secure qualified providers for design and execution of this study.<o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"> <o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black">Ray<o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div id="ecxyiv8091716217yqt90759"> <div> <div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in"> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><b><span style="font-size:10.0pt;color:black">From:</span></b><span style="font-size:10.0pt;color:black"> <a target="_blank" href="mailto:iag-cct-bounces@icann.org">iag-cct-bounces@icann.org</a> [<a target="_blank" href="mailto:iag-cct-bounces@icann.org">mailto:iag-cct-bounces@icann.org</a>] <b>On Behalf Of </b>Karen Lentz<br> <b>Sent:</b> Monday, March 3, 2014 1:12 AM<br> <b>To:</b> <a target="_blank" href="mailto:iag-cct@icann.org">iag-cct@icann.org</a><br> <b>Subject:</b> [iag-cct] Draft letter on interim recommendations</span><span style="color:black"><o:p></o:p></span></div> </div> </div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"> <o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">Dear IAG-CCT members,</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">Please see attached a draft letter to the Board containing the interim recommendations proposed by the group for the Board’s meeting in Singapore. For those who volunteered last week to review these materials, we would appreciate a quick turnaround on any comments.</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">The letter points to recommendations in 2 areas:</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">1 – a consumer survey to provide baseline metrics in the areas of consumer trust and consumer choice, and </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">2 – an economic study to provide some baseline data in the area of competition, including pricing data.</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">On the first point, this is intended to support a way forward on all the survey-related recommendations.</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">On the second point, this is meant to address metrics 3.9 and 3.10 on wholesale and retail pricing data. As we have continued to examine how to best collect and analyze this type of data, we are also working to provide some additional context around the intended use. Framing the request as part of an economic study may help increase participation (i.e., the registry agreement has a provision indicating that the registry will cooperate and provide data for economic studies), as well as helping to address the legal concerns around compilations of pricing data. Establishing the broader context for the exercise should also help make the case for this investment. </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">Please let us know of any feedback or suggestions to this document. As noted on last week’s call, we are aiming to meet the Board materials deadline of 4 March. </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">Best regards,</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">Karen Lentz</span><span style="color:black"><o:p></o:p></span></div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black">ICANN</span><span style="color:black"><o:p></o:p></span></div> </div> </div> <div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="font-size:11.0pt;color:black"> </span><span style="color:black"><o:p></o:p></span></div> </div> </div> </div> </div> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black"><o:p> </o:p></span></div> <div id="ecxyqt60393"> <div class="MsoNormal" style="font-size:12pt;background:white"><span style="color:black">_______________________________________________<br> iag-cct mailing list<br> <a target="_blank" href="mailto:iag-cct@icann.org">iag-cct@icann.org</a><br> <a href="https://mm.icann.org/mailman/listinfo/iag-cct" target="_blank">https://mm.icann.org/mailman/listinfo/iag-cct</a><o:p></o:p></span></div> </div> <div class="MsoNormal" style="font-size:12pt;margin-bottom:12.0pt;background:white"><span style="color:black"><o:p> </o:p></span></div> </div> </div> </div> </div> <div class="MsoNormal" style="font-size:12pt;"><span style="font-family:"Calibri","sans-serif""><br> _______________________________________________ discuss mailing list <a target="_blank" href="mailto:discuss@1net.org"> discuss@1net.org</a> <a target="_blank" href="http://1net-mail.1net.org/mailman/listinfo/discuss"> http://1net-mail.1net.org/mailman/listinfo/discuss</a><o:p></o:p></span></div> </div> </div> </div> </div> <div></div> <div class="93b5a155-0e5a-4951-b82e-e4e57c15e417"> </div> <div class="93b5a155-0e5a-4951-b82e-e4e57c15e417" align="center"><font size="1"><font size="3" face="Arial"><font size="2" face="Arial">* * *</font></font></font></div> <div class="93b5a155-0e5a-4951-b82e-e4e57c15e417"><font size="1"><font size="3" face="Arial"><font size="2" face="Arial">This E-mail, along with any attachments, is considered confidential and may well be legally privileged. 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