Local cost related to running a TLD

[Milton L Mueller]

Avri,
In terms of cost, it is easy to prove that running a small TLD is not that expensive. It all depends on what standards you require of a TLD. The ICANN standards are based on the assumption that everyone wants to be .com, and that the authority cannot allow any person in the world to make their own quality/cost tradeoff, they must make it for you. 

The cost has little to do with the developing/developed world distinction. Obviously, labor costs in many LDCs might be cheaper, but bandwidth might be more expensive. Karl Auerbach runs his own little TLD, .ewe, and has good data on what it costs. But it is perfectly feasible to start small, with a cheap, not so reliable infrastructure, build revenues by adding customers, and improve your infrastructure as needed. That is how ALL the world's TLD registries started, prior to 1998. 

Milton Mueller
Professor, Syracuse University School of Information Studies
XS4All Professor, Delft University of Technology
------------------------------
Internet Governance Project:
http://internetgovernance.org
 

> -----Original Message-----
> From: Non-Commercial User Constituency 
> [mailto:NCUC-DISCUSS at LISTSERV.SYR.EDU] On Behalf Of Avri Doria
> Sent: Wednesday, March 17, 2010 11:31 PM
> To: NCUC-DISCUSS at LISTSERV.SYR.EDU
> Subject: Re: [NCUC-DISCUSS] Local cost related to running a TLD
> 
> Hi,
> 
> The issue is that when one complains about this cost, the 
> reply is that the 185,000 fee is nothing when compared to the 
> cost of running a registry. So when one responds that in 
> developing areas, the cost of running a new registry, 
> especially a small  one with a slow ramp up will be much 
> lower, we are asked to prove it.  And to date have not had 
> the figures to do so.  
> 
> I..e when I make the argument that it cost less to do a 
> proper regisrty in Cambodia or Kenya, I am just handwaving, 
> because I do not have the financial facts.
> 
> a.
> 
> On 17 Mar 2010, at 22:20, Norbert Klein wrote:
> 
> > Thanks, Rafik,
> > 
> > to take up the question of running a TLD, and the fact that 
> these costs
> > might be quite different depending on the location. (I created and
> > administered a ccTLD for some years).
> > 
> > Most of the discussions I see related to new TLDs are 
> dealing with the
> > "$185,000" - and though I know this is to be "cost 
> recovery" I am not
> > aware how this is  being calculated in detail (any lead/URL 
> is appreciated).
> > 
> > Is this "cost recovery" calculation also related to the 
> location where
> > it is done? Surely. Is this necessarily so?
> > 
> > 
> > Norbert Klein
> > 
> > = 
> > 
> > 
> > Rafik Dammak wrote:
> >> Hello Jorge,
> >> 
> >> during questions to the board members, one argument that 
> we used was
> >> that cost for running ccTLD in developing countries isn't 
> so high, is
> >> there any study about that?
> >> there will be working group about possible funding approach for
> >> applicants (at least I heard that there is attempts to 
> contact world
> >> bank and so on to fund applicants from developing countries)
> >> the board resolution :
> >> "the Board requests stakeholders to work through their SOs and ACs,
> >> and form a Working Group to develop a sustainable approach to
> >> providing support to applicants requiring assistance in 
> applying for
> >> and operating new gTLDs ."
> >> 
> >> Regards
> >> 
> >> Rafik 
> >> 
> >> 2010/3/18 Jorge Amodio <jmamodio at gmail.com 
> <mailto:jmamodio at gmail.com>>
> >> 
> >>    Well, if that is your understanding good luck going through the
> >>    technical evaluation, be aware that once you pay the 
> evaluation fee
> >>    depending on what phase of the evaluation your application goes
> >>    through if you withdraw or become not eligible not all 
> the monies are
> >>    refundable.
> >> 
> >>    BTW, I ran a ccTLD for many years, TLDs are not hard to 
> create they
> >>    are hard to maintain.
> >> 
> >>    Regards
> >>    Jorge
> >> 
> >>    On Wed, Mar 17, 2010 at 2:23 PM, Marc Perkel
> >>    <marc at churchofreality.org 
> <mailto:marc at churchofreality.org>> wrote:
> >>> Actually I don't think you're right. I haven't done it but TLDs
> >>    are not hard
> >>> to create. Just a few lines in a BIND file. All you need to make
> >>    it official
> >>> is having the root servers hand it off to my private TLD
> >>    servers. As to
> >>> capacity, if the TLD is small then you don't need much of a
> >>    server to handle
> >>> it. I could add it to my current name servers.
> >>> 
> >>> Jorge Amodio wrote:
> >>>> 
> >>>> Actually as other said $185K is just for starters, it really
> >>    depends
> >>>> on what do you intend to do with the new gTLD.
> >>>> 
> >>>> To run or outsource a full fledged registry you have to think
> >>    in the
> >>>> order of a $500K-$1M initial investment, and that does not
> >>    include the
> >>>> costs of a legal battle with others such as ReMax that may
> >>    intend to
> >>>> apply for the same string.
> >>>> 
> >>>> If you don't have that money on the bank or investors willing
> >>    to foot
> >>>> the bill you are out of the game.
> >>>> 
> >>>> My .02
> >>>> Jorge
> >>>> 
> >>>> 
> >>>> On Wed, Mar 17, 2010 at 12:15 PM, Marc Perkel
> >>    <marc at churchofreality.org <mailto:marc at churchofreality.org>>
> >>>> wrote:
> >>>> 
> >>>>> 
> >>>>> Avri Doria wrote:
> >>>>> 
> >>>>> On 17 Mar 2010, at 13:11, Marc Perkel wrote:
> >>>>> 
> >>>>> 
> >>>>> 
> >>>>> BTW - how do I apply for the .reality TLD?
> >>>>> 
> >>>>> 
> >>>>> once the final applicant guidebook is released sometime
> >>    between now and
> >>>>> 2012
> >>>>> (draft details can be found at
> >>>>> http://www.icann.org/en/topics/new-gtld-program.htm), follow its
> >>>>> instructions, pay the big bucks (185,000 USD at the moment)
> >>    and then go
> >>>>> through the process and hang on through the challenges.
> >>>>> 
> >>>>> better have some deep pocket for the ride.
> >>>>> 
> >>>>> a.
> >>>>> 
> >>>>> $185,000 - so only the rich can get TLDs. Why is that?
> >>>>> 
> >>>>> 
> >>>>> 
> >>> 
> >> 
> >> 
> > 
> > 
> > -- 
> > If you want to know what is going on in Cambodia, please visit
> > The Mirror, a regular review of the Cambodian language 
> press in English.
> > 
> > This is the latest weekly editorial of the Mirror:
> > 
> > 
> > The Passing of the Anti-Corruption Law, and Planned Changes 
> in Telecommunications
> > Sunday, 14.3.2010
> > 
> > http://tinyurl.com/yavafd3
> > (to read it, click on the line above.)
> > 
> > And here is something new every day:
> > http://cambodiamirror.wordpress.com
>