Hello,

Excellent posts, Joseph and Harold.

I'm glad that folks are finally seeing that Verisign has not proven to
us that there is a technical problem at the current time with the
operation of the deletion process. Months ago these same technical
fixes were proposed to reduce the "check" load on Verisign. Since
they've not been implemented, or even COMMENTED UPON by Verisign my
conclusion is that there never was a problem in the first place.
Verisign simply created the myth that there was a problem to further
their business interests.

If there truly is a problem, why have they refused to implement the
simple technical fixes that so many have proposed? Rate-limiting
connections, pushing out lists of candidate drop names, and returning
richer error codes (e.g. new expiration date) so folks don't hammer the
registry to attempt to catch names that were already caught are MUCH
simpler to implement than the creation of a Waiting List Service, and
would solve any fictional problem that Verisign thinks it is
experiencing.

If the registry source code was Open Source, I bet folks here would be
able to patch up the code to implement the above in a matter of DAYS,
literally. All of the above technologies are so simple, yet Verisign
hasn't even commented on them. I think they have an obligation to
comment on them, and explain why they refuse to implement them.

My background is in economics and finance. It is far easier to explain
Verisign's behaviour in the context of an abusive monopolist seeking to
crowd out competitors, exert further control over the registry, and
maximize its own profits. As Occam's Razor tells us, the simplest
explanation is most likely to be the truth. Forcing everyone to
subscribe to a "waiting list" using the SnapNames business model is the
behaviour of a monopolist seeking to earn more money per registration.
Verisign says that the "SnapNames" business model is a proven and
accepted one. I beg to differ. There are currently numerous competing
firms and registrars attempting to register expired domains now, using
the existing fair and transparent system. Let me name just a few:

1) NameWinner (by Dotster) -- they use an auction methodology, and the
name is only billed if the name is caught. One can register a name for
as low as $25, HALF the SnapNames fee. Dotster has been catching a
similar quantity of names as Snap, thus is a big competitor that will
be shut out should Verisign monopolize dropped names. Dotster uses at
least 2 registrar connections.

2) NicGenie.com (by Parava) -- similar to Dotster above, but with an
even lower price of $20, which is 60% below SnapNames. While not as
successful as NameWinner, they still catch some good names, using only
a single registrar connection.

3) eNom "Drop Club" -- using at least 2 registrar connections, they
rent out fractional usage for a set monthly fee, for unlimited usage.
So, names can be caught for essentially the $6 wholesale fee. eNOM is a
serious challenger to SnapNames and NameWinner, catching a high
quantity of names monthly.

4) IARegistry -- not sure of the precise details, but from what I can
tell it's a drop club similar to eNom, but with a single license.

5) AWRegistry -- similar to IARegistry and eNOM from what I can tell,
although most of the names seem to go to one major client.

6) Signature Domains -- uses entire registry for its own portfolio,
from what I can tell.

7) INWW, OnlineNic.com, AddressCreation, AllDomains.com, Eastcom.com,
PayCenter.com -- all successfully using "drop club" style systems, from
what I can tell.

8) ExpireFish.com (new, don't know too much about them; looks like a
SnapNames clone).

SnapNames hasn't been in business even a year, if I'm not mistaken.
None of their "SnapBacks" has ever expired worthless, as they've not
gone to maturity. I would not want to be them (or a registrar under the
Waiting List System) when a registrant is told at the end of the year
that they paid $49 or $89 or whatever for nothing, as the name got
renewed. If we want a true "test bed", let us wait until SnapNames has
been in business for more than a year, to see how they handle to
customer support issue of thousands of customers seeking out refunds,
for not having received the name they were going for. That would be a
learning experience everyone would benefit from, before making such a
drastic change to a functioning system. By the way, in any "Waiting
List System", existing SnapBack holders should not be grandfathered or
given priority -- there should be a landrush period (this goes without
saying, but some folks have suggested this will sneak through, as few
people have noticed this situation). I'd also like to see
Verisign/SnapNames explain how the Waiting List System itself won't be
hammered, as people try to catch names while holders are switching
their slots.

The fact is, we have a healthy and competitive market now, much to the
dismay of SnapNames and Verisign, who would like to exert control and
dominance over the system as monopolists, and reduce consumer choice.
It's the duty of ICANN, and the registrar community to watch over the
behaviour of Verisign (a monopolist) and SnapNames (a monopolist
wanna-be). I've used SnapNames on occasion, and have nothing against
their business model. The only problem with them is that they want to
become a monopolist themselves, and shut out consumer and registrar
choice.

I'd also like to point out the "myth" of SnapNames' success. Given the
above, it's clear that there are a lot of competitors to SnapNames. The
majority of registrars are NOT SnapNames partners (when it comes to
numbers of connections being used to catch drops). Also, if you count
the number of domains that are actually caught, SnapNames doesn't have
a majority there either. The above 7 groups (and there are many that
I'm not aware of) catch quite a few names. The only area where
SnapNames dominates is in the issuance of self-serving press releases.
None of the above 7 groups can hold a candle to SnapNames in that
regard.

The typical SnapNames "mythology" about deleted names is that their
clients are pure and noble, and everyone else is an "abusive
speculator" that must be stopped. SnapNames publishes a list of names
they've caught, at:

http://www.snapnames.com/hot100.html

In case they decide to remove that list, I've saved a copy at:

http://www.loffs.com/images/hot100.txt

Let us analyze this list, and see who some of SnapNames's "pure and
noble" clients are:

a) UltSearch.com owns 19 of the 100 names (participates on many other
drop systems too). 
b) BuyDomains.com - 16 of the 100 names (all for sale, too!)
c) DirectSeek/PTI Networks/Frank and Michelle Schilling -- 6 names
(participants on other drop systems too).
d) 5 other names were explicitly for sale in the WHOIS info, or were
pointed at Afternic, a domain auction site.
e) Michele Dinoia -- 2 names (a high volume domain registrant via
AWRegistry, among others)
f) 7 names seem to raise some trademark issues:
i) advil.net (and the domain is for sale!)
ii) xeroxprinters.com 
iii) wall-mart.com (redirecting to Amazon.com for now, using the
"hotdealsweb-20" affiliate tag)
iv) NokiaTunes.com
v) HondaAccord.com
vi) VolkswagonParts.com -- redirects to an "abortion is murder" site,
with a picture of a headless fetus (gruesome)
vii) UnitedAir.com (nice use of Flash in the WHOIS; see the WHOIS at
www.netsol.com for this one)

I'm not saying that any of the above are "abusive speculators" (well, I
think I'm safe on the volkswagonparts.com one!), but I personally would
like to have SnapNames provde a precise definition of "abusive
speculator". Does it have to do with a high volume of registrations?
Does it involve trademark violations? Does it have to do with offering
the name up immediately for sale? Does it mean using a non-SnapNames
system (many of SnapNames' biggest customers use alternatives too).
Personally, I think any registrant is innocent, until proven guilty via
the UDRP process. But, I want to know Verisign and SnapNames' precise
definition of abusive registrants, as they routinely trash the clients
of competing drop systems, and are the ones saying that there is a
current problem that needs to be "solved". Once we have a clear
definition, we can see how many of SnapNames' own clients fit that
profile.

What makes any registrar think they'll get a share of the above big
customers should Verisign be given a monopoly is beyond me. Registrars
would be shooting themselves in the foot, since they no longer have the
ability to compete in the open process we have now (and many registrars
are clearly kicking Snapnames' butt in this open competition; no wonder
SnapNames' would want to no longer compete, as they're worried that
their model isn't working). Any registrar such as Tucows/Register.com,
eNom, Dotster, Parava, the Asian registries, itsy-bitsy register, etc.
should ask themselves "Will the UltSearches and BuyDomains of this
world be buying from me, if this goes through, or will they seek out
the lowest cost reseller, with no margin for me?" Will Verisign be
making all the profit based on its $40 monopolist charge? 

What's in it for registrants, who are the consumers in all this? ICANN
needs to be watching out for the end user (since many of the registrars
can't be trusted, when they openly talk about picking a price to
maximize profits). When there's a monopoly (and Verisign is clearly
seeking to create a new and highly lucrative one for itself here), it's
the consumers that suffer most through higher prices and reduced
choice. Competitors who are fairly competing now will also suffer.

In conclusion, I think I speak for many who want:

1) Clear and proven definitions of what constitutes "abusive
behaviour".
Prove to me and others that this is not an invention of the monopolist
registry operator Verisign, seeking to maximize profits through a
self-serving "fix" of its own choosing.

2) Clear explanations as to why the numerous simple and inexpensive
technical solutions that have been proposed to reduce registry load
have not been implemented.

3) Explanations why we need a "test bed" at all, one that will be
highly profitable to Verisign and SnapNames alone, at the expense of
both consumers and competing registrars, given that the current system
seems to be working just fine (competitive business models offered; no
major complaints from any consumers seen on ICANN message boards,
except complaining about Verisign not releasing all on-hold names as
they're required to do).

4) The "discussion period" of 3 weeks for such a period should be
extended to at least 6 to 9 months, to give the opportunity for
registrars to get input from their clients, for ICANN to get input from
registrars and registrants, and for Verisign to have time to implement
the technical fixes that they've refused to do. Verisign's refusal to
implement fixes such as "rate-limiting" technology and extended
response codes (and others already proposed by numerous other parties)
can only be explained by a desire to perpetuate the mythology of having
"unsolvable problems", so they can try to push through a cash grab ($60
million/yr by their estimates) and assert dominance over registrars and
registrants alike. Pushing through a major change as a "done deal" is
not the behaviour a monopolist should be allowed to get away with. 
 
Sincerely,

George Kirikos
http://www.kirikos.com/

P.S. Feel free to forward this email to any other appropriate
discussion forums.





--- Joseph McDonald <[EMAIL PROTECTED]> wrote:
> 
> >>Okay, well, how should they solve it, then? If you have an idea,
> I'd love
> >>to hear it (and I'm not being sarcastic). I honestly don't think
> it's 
> >>solvable -- there is a virtually infinite demand for some names,
> and the 
> >>registry/registrars/resellers can't supply virtually infinite
> connection 
> >>resources.
> 
> HW> Simple. Every registrar has access to the batch-pool.  The
> registry
> HW> complains of tens of millions of worthless "checks" during drop
> times.  An
> HW> additional response code signifying a name has been registered IN
> THE LAST
> HW> 24 HOURS would stop the registrars from continuing to pursue that
> name.
> 
> YES!  I believe Tucows proposed a very similar idea to Verisign:
> Right now, if you do a "check" command on a domain, and you are not
> the registrar for that domain, you receive an error message,
> otherwise
> you get the expiration date.  The proposal was to have the check
> command return the expiration date regardless of who was the
> registrar.  This would eliminate *huge* number of check/add commands
> and
> largely solve the problem, just as your IN_THE_LAST_24_HOURS flag
> would.  Either one is fine by me.
> 
> There was another proposal which would also take a huge load off of
> the registry: The top registrars do millions of check commands
> against
> the registry on a daily basis to support normal operations. On
> average
> there are less than 50K adds and 50K drops performed at the registry
> each day. Let's say the top 4 registrars each do 2.5 million checks a
> day (my guess is that this is a conservative number) for a total of
> 10
> million checks a day. The idea is that the registry can push those
> 100K changes out to the registrars, thus saving 9.6 *million*
> transactions a day, which is more than 100 per second, and when you
> figure in the peaks, you may be talking 200 per second during busy
> times.
> 
> I also think that the registry should publish a list of names to be
> dropped and when they will be dropped to all the registrars.  This
> would eliminate check/add commands on names that people think are
> going to drop, but really aren't going to drop.
> 
> Implementing those 3 proposals (the first one could probably be
> implemented in an hour) would probably bring the load on the registry
> down to record lows.
> 
> regards,
> -joe
> 


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