Report, GNSO Committee Meeting, Brussels May 11-13

[Mawaki Chango]

You're welcome. No the WB was not represented at the meeting. It was Olof (ICANN
staff) who mentioned the WB report for reference while we were discussion regulation
and competition issues, for documentation and possible comparison if I well remember
(broadcast, mobile, ISP industries, etc.). Then someone, probably Bruce, retrieved
the abstract from the web to share it. Just as one checked out the "market power"
from the EU web-based lexicon to clarify the discussion about Jon Nevett reference
to "pricing or market power."

Mawaki

--- Milton Mueller <mueller at syr.edu> wrote:

> Thanks, Mawaki, for your rapid and thorough reporting. Can I ask, what is the
> status of the "World Bank" comments/report? Was the World Bank there, or was the
> report just introduced into the record by one of the constituencies or ICANN
> staff? If the former, which constituency?
>
> >>> Mawaki Chango <ki_chango at YAHOO.COM> 5/13/2006 8:29:01 AM >>>
> Dear all,
>
> We had mainly three activities during the Brussels meeting:
> I) tutorial on the ICANN registry contracts and agreements by Dan Holloran, ICANN
> Deputy General Councel;
> II) review of the constituencies' comments on the registry contractual conditions;
> III) development of guidelines for the registry terms of reference.
>
> Enjoy the reading,
>
> Mawaki
>
> ***********************
>
> II - Constituency views
>
>
> Business constituency
>
> -	transparency plus public comment processes for contractual negotiations
> -	consistency amongst contracts
>
> -	fair treatment amongst registries, equal obligations, and proportional to the
> ICANN resource requirements for that particular TLD
>
> -	not allowed to extend their sole source provider position into areas where there
> is already a competitive marketplace (e.g traffic data)
>
> -	don't support a presumptive right of renewal (except may be special
> considerations
> e.g for sponsored), but agree that the existing licensee may be re-awarded the TLD
> through a competitive process
>
> Registries constituency
>
> -	the base contract should be provided before the start of the process, and may be
> customized at the time of award.
> -	Policies to guide contractual criteria should not compromise
> o	"Private sector" (ie non-Government entities) participation
> o	Investment with greater certainty
> o	Optimal opportunity for innovation and competition
> o	E.g presumptive right of renewal encourages the above
> -	Policies to guide contractual criteria should relate to Consensus Policy matters
> -	(1) issues for which uniform or coordinated resolution is reasonably necessary
> to
> facilitate interoperability, Security and/or Stability of the Internet or DNS;
>
> -	(2) functional and performance specifications for the provision of Registry
> Services (as defined in Section 3.1(d)(iii) below);
>
> -	(3) Security and Stability of the registry database for the TLD;
>
> -	(4) registry policies reasonably necessary to implement Consensus Policies
> relating to registry operations or registrars;
>
> -	or (5) resolution of disputes regarding the registration of domain names (as
> opposed to the use of such domain names).
>
> -	Believe the new consensus policy for the introduction of new Registry Services
> provides the necessary protections for security and stability
>
> -	Does not believe there needs to be a Consensus Policy on contractual compliance
> programs for registry services, although the staff could work with registries to
> develop a compliance program that is equally applied to new gTLDs (both sponsored
> and unsponsored)
>
>
> ISP constituency
>
> -	contract for .jobs OK for new sponsored TLDs
> -	still undecided over presumptive right of renewal * might depend on type of TLD
> -	concerned over requirement to use ICANN accredited registrars exclusively
> -	may need additional contractual conditions for a non-ASCII TLD
> -	security and stability covered adequately in the .jobs example
>
>
> Non-commercial
>
> -	need to have a renewal expectancy
> -	non-renewal only if breach of contract, criminal activity etc
> -	presumptive renewal provides long term view, encourages investment, and value
> creation, stability
> -	support principle of competition but at the registrar level
> -	registry should policy making authority
> -	registry comply with ICANN consensus policies
> -	ICANN should rely on relevant national bodies that are responsible for
> competition/anti-trust in the market * taking into account the difference between
> the end-user interest and the intermediary interest
> -	Not assume ICANN contract are the proper mechanism for price control
> -	ICANN registry fees should be a uniform approach * taking into account
> differences
> in regional, economic and business models
> -	Removing price caps on existing TLDs may allow new TLDs to be more competitive
> -	Oppose access by third parties to personally identifiable registry data
> -	Should not dictate the investment level but focus on the performance
> specification
>
> WORLD BANK
> Abstract
>
> A major challenge facing regulators in developed and developing countries alike is
> the need to strike the right balance between ensuring certainty for market players
> and preserving flexibility of the regulatory process to accommodate the rapidly
> changing market, technological and policy conditions.
>
> As much as possible, policy makers and regulators should strive to promote
> investors' confidence and give incentives for long-term investment.
>
> They can do this by favoring the principle of 'renewal expectancy', but also by
> promoting regulatory certainty and predictability through a fair, transparent and
> participatory renewal process.
>
> For example, by providing details for license renewal or reissue, clearly
> establishing what is the discretion offered to the licensing body, or ensuring
> sufficient lead-times and transitional arrangements in the event of non-renewal
> or changes in licensing conditions.
>
> Public consultation procedures and guaranteeing the right to appeal regulatory
> decisions maximizes the prospects for a successful renewal process.
>
> As technological changes and convergence and technologically neutral
> approaches gain importance, regulators and policy makers need to be ready to adapt
> and evolve licensing procedures and practices to the new environment.
>
> Ensure regulatory certainty and ease investors' concerns
>
> * Codify a clear regime of license renewal in the telecommunication legislation,
> including renewal procedures, reasons for refusal to renew and appeals to
> regulatory
> decisions
> * Provide further details in the license itself where the legislative framework is
> not comprehensive
> * Adopt some varying degree of the principle of renewal expectancy
> * Strike the right balance between certainty in the renewal process and regulatory
> flexibility, and engage in forward thinking and planning
> * Subject regulatory discretion to clear parameters of license renewal with
> appropriate checks and balances
>
> Procedures for license renewal
> * Initiate renewal process well in advance of expiry
> * Perform periodic forward review of market and needs
> * Disclose and publish reasons for non renewal
> * Adopt public consultation process
> * Guarantee a right to appeal
>
> In the event of non-renewal
> * Provide a minimum notice period
> * Delay vacancy of spectrum to give enough time for operators to adapt strategies
> * Ensure exit strategies for operators
> * Ensure continuity of service to consumers
>
> License renewal fees
>
>  * Beware that heavy license fee burdens reduce possibilities of making further
> investment
> * Establish models for licensing and spectrum pricing, ensure openness,
> transparency
> and the right to appeal from the methods applied
>
> Change in license conditions and obligations
>
> * Renewal process is a good occasion to review license conditions (e.g. those
> related to the moving target of universal service.)
> * Ineffective mandatory service obligations can have anti-competitive impacts if
> the
> burden is not kept at a manageable level for the license holders
>
> Spectrum implications of license renewal
>
> * Strike a balance between protecting ongoing investment and optimal exploitation
> of
> the spectrum resources
> * Leveling the playing field at license renewal between operators entering the
> market under different regimes (e.g., auction vs. beauty contest) to avoid
> windfall
> gains
>
> Migration to technology neutral licensing
>
> * Continuity of the service for the consumers as a leading principle for
> transition
> * Leveling the playing field at license renewal between operators entering the
> market having followed different technology migrating paths to avoid windfall
> gains
>
>
> Intellectual Property Constituency
>
> -	framework needed for compliance program and system of graduated sanctions be
> available
> -	any deviation from consensus policies should be explicitly stated and justified
> in
> the agreement
> -	flexibility will often be needed
> -	conditional (e.g based on appropriate performance) and rebuttable (violation of
>
=== message truncated ===