Reply to post: Re: Any word who trousers the cash?

As pressure builds over .org sell-off, internet governance bodies fall back into familiar pattern: Silence

Jellied Eel Silver badge

Re: Any word who trousers the cash?

Who trousers it will be Ethos's owners. Which is where the transparency (or lack thereof) matters. So Perot & Romney's VC funding structure. And as it'll be private, a small group will share the profits from the non-profits.

Cerf misses the point-

Cerf surprised many when he responded: “Hard to imagine that $60/year would be a deal breaker for even small non-profits.”

Maybe so, but if there's 10 million+ .orgs, that's $600m a year. Under previous price caps of 10%, that'd grow $60m a year. With price caps lifted, that will obviously grow faster given the usual compounding problem that affects RPI+ style schemes.

That stinks.

Key issue to me is the cost of a .org bears little relation to the cost of running .org. That's essentially a website and a database with some APIs registrars can use to update. So tech costs are minimal and most of the R&D's done. There's not much need for sales or marketing given that's done by the registrars. There's not much need for physical infrastructure either given DNS is run by ICANN and registrar's DNS.. Which may be why ICANN's keen on the idea, ie how much they'll charge Ethos for access to the root servers. Running those doesn't cost that much either, ie cost of server + bandwidth, and bandwidth costs aren't that expensive given users shouldn't really be querying the root-servers directly.

So given .org is a public good, and a natural monopoly, it should be regulated accordingly. Price controls might be unpopular in a 'free market', but there is no free market for .org. So regulators usually handle this by LRIC (Long Run Incremental Cost) models to base price increases on actual and projected costs.. Which is where RPI+ models also fail, ie RPI's based on a notional basket of consumer goods where price increase aren't relevant to the business getting the RPI+ bung.

ICANN and ISOC will resist this vigorously given the profits at stake, and the potential for regulatory capture to take that pile of cash from them.. So either the FCC or FTC imposing price controls, or taking DNS away and putting it under the ITU. Challenge there is probably political, but ICANN and ISOC are showing they're acting against public interests & self-dealing, but who/how regulates a US based entity that's got a lot of global importance.

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