Original URL: https://www.theregister.com/2002/07/18/internet_monopoly_alert/

Internet monopoly alert!

Verisign up to its old tricks again

By Kieren McCarthy

Posted in Legal, 18th July 2002 06:53 GMT

VeriSign is attempting to push through a proposal which will effectively see one company control .com and .net Internet domain names, despite huge opposition from everyone else in the market.

Under its proposals, a new domain "wait listing service" (WLS) will be set up that supersedes all other domain renewal services and run by one company, SnapNames, with which Verisign has a close relationship.

Under the plan, anyone will be able to pay SnapNames $35 to "reserve" a particular .com or .net domain name were it not to be renewed. VeriSign claims this will put an end to the race for domain names once they become available.

While the idea appears reasonable at first glance, such a system immediately creates a monopoly in which the opportunities for abuse are enormous. Any domain not re-registered will fall under the control of SnapNames. It seems almost certain to favour domain registrars that it has close ties with.

It can also charge whatever it likes for the service, since there will be no other route to getting hold of an expired domain. How VeriSign arrived at the figure of $35 is anyone's guess, especially since other companies have offered to run the system for $6 per domain. SnapNames has also told investors its revenues could increase by 700 per cent as a result of the deal.

The fact that the $35 is non-refundable, even if the domain is re-registered, has led some critics to brand it a nothing but a tax. How the service would end up being marketed is anyone's guess.

It may be helpful here to remind you it took years to wrestle the .com and .net domains out of VeriSign's hands - a move that resulted in the price of new domains plummeting as competition entered the market. And, that VeriSign is still under investigation for using underhand scare tactics to force people to renew domains with itself over competitors.

However, it you still have any doubt about the company intentions, you need only look at its behaviour in attempting to force approval of WLS through Internet overseeing body ICANN. VeriSign stands to gain not only a huge amount of money but also significant control of the domain market if the deal goes through. That is the reason why the proposal still has life in it, despite being slammed by every body that has reviewed it.

A brief history of the WLS, below, is also as fine an indicator as you will find that ICANN simply cannot continue to function as it does.

That report is due next Friday (26 July) and the Board "may act shortly thereafter". All previous criticisms will be deemed to have already been considered and introduced into the report. However, as keen as ever to listen to other people's views before ignoring them, ICANN has set up a forum for discussion on the issue. There are several hundreds entries at the moment, of which we have so far found only two in support.

RyanMF writes: "I see WLS as a place where you can be guaranteed a domain that is going to be deleted assuming you have reserved it before someone else. If this reserving method is a set price (nothing to high, $35USD sounds nice, a lot better then SnapNames $69USD) and not a bidding war, then I think WLS might be a good idea. So many times I've missed out on domains because of these buy domains, ult search, type guys. Maybe if WLS goes through, and I reserve a name, then I'll actually get it. Do I see what I think I see?"

Meanwhile, the rest of the world looks on as ICANN and VeriSign attempt to stitch up the Internet for their own purposes yet again. ®

Related Links

A rundown of the history of WLS, with links to all the relevant documentation Incidentally, why do you think VeriSign always insists on releasing its information in a pdf format?
The ICANN public forum
SnapNames competitor Dotster is singularly unimpressed

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