Columbia Business School Center on Global Band Leadership. ICANN Background and Goals of the New gTLD Program. New TLD costs.
Speaker Paul Twomey.
I think first and foremost we should see this whole new gTLD process in terms of an evolution of the Internet. We have seen many changes over time and I think that is going to continue.
New TLD costs:
Evaluation fee US $185,000 paid to ICANN.
US $5,000 which is due upon TAS (TLD Application System) registration
Other fees may apply -- might not be paid by ICANN
On-going Registry Fees
US $25,000 annual Registry fee to ICANN
Transaction fee US $0.25 per registered domain name to ICANN
These are evaluation and Registry fees only. Consider carefully the costs for running a Registry.
The first round of competition was introduced in 2000 with 6 or 7 new TLDs (e.g., .info, .biz, .coop) introduced and a similar group in 2003.
A registry is the person who actually operates the rules and procedures around the string.
A string is basically, what is to the right of the dot.
That is a top level domain like dot org.
A registry is the person who runs that and often has a registry services provider who provides the hardware behind that, runs the databases and the infrastructure behind that.
A registrar is someone who runs a business that is basically selling especially the second level onto the retail market.
Thus, for the URL www.icann.org the work icann is a second level domain name and is the part sold by registrars to the market.
Do you see a lot of brands moving through these kinds of considerations, talking about exploring these opportunities?
I hear a lot of companies considering it. I think there is a lot more activity taking place than is becoming public. I think people are staying somewhat quiet because there is this opportunity for objections and for competition on particular strings. So there is a lot of silent activity going on.
Trying to keep that first mover advantage.
Well the CEO of ICANN recently said the expectation is anywhere between 1,500 and 3,000 applications in this round.
A key thing to understand about this round is that there is not likely to be another round for quite some time. I would suspect 5, 6 or 7 years because it is going to take a long time for this to be worked through. So there is an element about getting in now, about this.
What is the new gTLD program.
An initiative that will enable the introduction of unlimited generic top level domain names or extensions (both ASCII and IDN) into the domain name space.
Managed by the Internet Corporation for Assigned Names and Numbers (ICANN).
Impact for businesses:
Opportunity for investment.
Brand management and online marketing practices.
I was just talking about the new TLD cost because the application process is not like getting a domain name. It's not like paying six dollars or eight dollars or ten dollars to get a domain name. This is setting up a real business.
There is an evaluation fee of one hundred eighty five thousand dollars payable to ICANN.
This is not about making money for ICANN. This is a not for profit initiative
Then there is an ongoing registry fee.
On top of that there is going to be the cost of actually running the registry itself and then there is going to be ongoing administrative cost.
It is quite different than simply administering, so to speak, a given web domain.
Yes, that's right.
It is taking on the role of a registry. You are managing the back end of a piece of the Internet, not just a website.
That's right.
So new TLD costs are really potentially somewhere between three hundred to five hundred thousand dollars depending upon the specific design of the company depending upon what they want. This is not going to be a cheap process but it is an investment. I think of it in terms of, how much does that get you in TV airplay on prime time TV? If you think of it in those terms then...
Thank you to the Columbia Business School Center on Global Band Leadership and Paul Twomey for this informative video about new TLD costs and other gTLD information.
More details about new TLD costs and the new TLD process can be found on the ICANN website or by contacting an expert new TLD registry services provider such as Afilias.
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