Operation Plan & Budget FY09 - Estimate for new TLDs Application Fee

ICANN posted a draft "ICANN Operational Plan & Budget FY09". Highlighted projects such as planning to launch new IDN ccTLD/ gTLD and some sTLD are described along with some estimation e.g. for the three- year model it is assumed that organization will receive about 100, 300 and 500 Applications for new TLDs, in fiscal years 2009, 2010, and 2011 (respectively). Fine, but there is no estimated cost per application request is mentioned. Similarly there is a big difference on the expenses regarding gTLD and IDN (ccTLD/gTLD) TLDs. Again there is no estimated cost per TLD Application is mentioned, however it is mentioned that "new gTLD program will be addressed in a separate new gTLD budget (described more fully below) at a later date". As it is a draft document, it is requested to please mention the estimated fee of the new gTLD as well as new IDN ccTLD and IDN gTLD Applications and Fee on Transaction basis. We also understand that estimate varies and will have differences from actual figures but still it is requested to please mention the estimate. Thanks Imran Ahmed Shah

Comments

Estimated application fee

Hi Iashah, Your request for an estimate of an application fee is a very common one, and one ICANN is trying to address as soon as possible. I will explain the difficulty: the entire new gTLD process (and that includes IDNs, so I'm not sure why you feel there are different costs) will be run on a revenue-neutral basis i.e. the application fee will cover the costs of the whole process: no more; no less. This was the decision reached by ICANN's GNSO Council after alot of work and it is one that ICANN staff are therefore obliged to follow. The problem is how to quantify both sides of the equation. So, on one side, how many applications will there be? There have been careful educated guesses but they are still guesses. If there are far more, or far fewer, it will mean the cost-per-application is a long way off. On the other side of the equation is the cost of running the process. Some elements of the process, and their associated cost, are still being worked out - for example, the dispute resolution process (i.e. how to decide who gets a particular string if two or more people apply for it; how to decide it an objection to a particular application should be upheld or not). There are other factors also being worked on, such as the review of a company's technical ability; plus measures to ensure that if a registry fails that those with domain names under that registry don't suffer. All of these things will contribute to the overall cost of the programme, and so until further progress is made on solid estimates of how much each component will be, it is very difficult to know what the per-application fee will be. With both sides of the equation still unfixed, it is extremely difficult to arrive at an estimate. And it would be irresponsible to put out a figure or band of figures when it would be based on too many guesses. So while your impatience is understandable, you should understand that ICANN is working very hard on the different components so it can come up with a figure. As soon as we are sure we can fit the fee within a certain band of cost, the community will be the first to know. I hope this answers your question. If you have any more queries, do just ask. Kieren McCarthy General manager of public participation, ICANN

Reply to - Estimated Application Fee

Hi Kieren Thank you very much for a prompt reply to my query. We understand that this is a difficult job and hard working of ICANN is appreciate. We hope that the expected numbers of applications for IDN TLDs will be higher then applications for normal gTLDs (with English letters). A rough estimate: IDN ccTLDs: About 200 applications out of 258 countries. IDN gTLDs: About 125 applications from 25% of 112 Official Languages x 5 Application per Official Languag. sTLDs (en): About 5 applications (Other Languages). gTLDs (en): About 25 applications (English Language). sTLDs (en): About 5 applications (English Language). My rough estimate is about 360 Applications (putting the duplication aside), so the total cost of whole process (one side of the equation which will be figure out very soon) would be divided by 360 application quantity to find out the cost per application. But if ICANN deals IDN TLDs separately from gTLDs, the cost (application fee) per gTLDs will become very high comparing to IDN TLDs. My estimation may be considered as “irresponsible approach” but would you like to confirm the actual policy for dealing IDN TLDs & gTLDs, will you be dealing them separately or as same (accumulated). Please also inform about the policy for application fee, is it still non-refundable or changed? If answer is "non-refundable", is there any refund policy applies for loser, if there are more then one applicant? Again thank you for prompt and detail reply. Imran Ahmed Shah

Let me find out

Hi Imran, I was going to write what I *think* is the case, but then we will both be better served if I go and find out. Thankyou for raising these precise questions. I think ICANN needs to produce some clear documentation on this point and I will see what I can do to make that happen. If you have other questions you would like answered, please raise them here and I will seek out the answers. Kieren

Previous Policy for TLDs Application Fee - (Yr-2000-Round)

Hi Kieren, I would like to quote the reference of application fee refund policy, which was adopted by ICANN during last-round of new gTLDs in year 2000 (FAQ#54, #13, 22) - -> Previous Policy for TLDs Application Fee - (Yr-2000-Round)<- - - -> (http://www.icann.org/topics/background-info-newgtld-apps-13feb08.htm) <- - . . . . FAQ #54: If our TLD application is not accepted, what becomes of our application? I understand that the $50,000 is non-refundable, but does the application remain active for the second round of TLD applications? Answer: As stated in FAQ #28, plans for any subsequent rounds of TLD introductions will not be made until evaluation of the present "proof of concept" round. It is likely that, if there are subsequent rounds, there will be revisions in the program based on experience in the first round. This will likely require submission of new application materials. As to the non-refundable application fee, please note that it "is only an application fee to obtain consideration of this application." See Items A7 and B6 of the transmittal forms. The FAQs also reference the purpose and use of the $50,000 application fee. FAQ #13: I have the question about paying the US$50,000 fee. If the application is not granted, is ICANN giving the US$50,000 back? Answer: No. The fee is only an application fee, in exchange for which ICANN will review your application. ICANN will keep your fee even if it does not grant your application. There is only one situation in which your application fee might be returned. If you claim your application contains confidential information and ICANN disagrees, ICANN will delete the information before reviewing your application on the merits. In this situation, you will be offered the opportunity to withdraw the application and obtain a refund of the US$50,000 application fee. See section I of the Statement of Requested Confidential Treatment of Materials Submitted for details. FAQ #22: What is the procedure in the event of duplicate submission of a domain name by different parties? Which party would get preference? Would the fee be non-refundable for the party that is not selected? Answer: Applications to sponsor or operate a TLD will be evaluated according to the Criteria for Assessing TLD Proposals, under which all aspects of the proposal (operational, financial, technical, etc.) will be considered. The particular TLD string requested is only one of many factors in the evaluation. Clearly, the same TLD cannot be established for both proposals; differences between the applications would be considered according to the criteria. The fee paid by a non-selected applicant would not be refundable. Imran Ahmed Shah

Suggestions for New Policy for TLDs Application Fee

Hi Kieren, In previous rounds, the no-refund policy was followed which made the applicants dissatisfied and unhappy. This is because all the applicants were taken on the same level of equality which can be described as fairness and justice. But logically the applications are not same to bear the equal expenses (w.r.t. fee-breakup = Previous + Current + future expenses of new TLDs). For example only 7 applicants were granted with TLDs out-of 40 complete-proposals during the round of Yr-2000. The cost paid by each applicant was US$50,000, which was fixed-up keeping in front the all kind of expenses of the following three processes: A. Previous expenses of initial working + B. Current expenses for review & evaluation of applications, applicant and proposed TLD naming convention & its impact etc. + C. Future expenses which includes cost of enabling, operational and implementation as well as possible litigation or dispute resolution. ICANN had approximately $350,000 remaining from the application fees from the 2000 round which was suggested to refund on pro-rata basis or to keep with ICANN to move forward with their applications with next review to grant. (it is also clear that the fee charged was on higher side) Ultimately, beneficiaries were those 7 applicants, who were granted TLD names and were able to start their business on the final decision of Board. ICANN implemented these 7 TLDs by enabling them in root servers. Now the main question is what benefit the remaining applicants achieved: Only one the experience that how to proposing and applying for new TLDs? This experience cost them US$50,000+. Its understandable that the applicants paid US$50,000 as a non-refundable proposal fee, with the full knowledge that only a few would be selected and that those who were not selected could not expect any special privilege in any future undertaking. Some one can take it as with the meaning of a gambling game or as a lottery where the losers are always neglected. But it should be noticed that: 1. The loser applicant has no concern with the future costs (which includes cost of enabling, operational and implementation as well as possible litigation or dispute resolution). So, why he was charged for the expenses which are required to enable TLD domains which are not granted him but to winner applicants. 2. Similarly some part of the previous expenses which includes the cost of basic formation process/ introduction of new TLDs may be justified to be charged from loser applicant but not the whole cost. 3. Only current cost is well justified to be charged from each applicant, which includes the cost of review & evaluation of applications, applicants and proposed TLD naming convention & its social impact etc. We appreciated that ICANN is conducting a review on this policy at this stage and invited the comments or suggestions before the fixing up fee and application policy for the introduction of about 100+ new gTLDs and IDN ccTLDs/gTLDs. We suggest that the fee for new TLD applications should be divided into 3 parts. Part-A: The cost of Initial Process on the issuance of new TLDs. Part-B: The cost of Evaluation Process of Application, Applicant & the Proposed TLD. Part-C: The cost of enabling new TLDs in root servers including operational/admin. Basic Application Fee: (Part-B + Part-A) (Refundable Part-A = 75%) ========================================== All applicants will have to pay the above mentioned Part-B and which will be fully utilized during the process of application evaluation. Refund Policy: This will not be refundable unless until the application is rejected before its evaluation process is started. All applicants will also have to pay the above mentioned Part-A, which already utilized before the start of the process of application evaluation. Refund Policy: 75% of Part-A of each application may please be refundable to the loser applicants, 25% will be charged from them because this was the cost of the basic process, which enabled them to apply for. However, successor will be charged full amount (100% of Part-A), because he is the beneficiary. TLDs Enabling Fee: (Part-C + Remaining cost of Part-A) =================================== Only winner applicants who are granted with their proposed TLDs will have to pay the above mentioned Part-C and which will be utilized for enabling their respective TLD domain names according to expected scope of the business. The winner applicants may also be charged for the difference of reaming cost of PART-A after refunding the loser applicants. Refund Policy: This will not be refundable. P.S.: We hope that this is right way to charge only related cost. Best Regards Imran Ahmed Shah

Suggestions for New Policy for TLDs Application Fee...

Here I have used the term of “respective TLD domain names”, because commercial TLDs will get higher business where as the IDN ccTLDs or gTLDs will have to create their own market with the passage of time and by providing awareness of using different tools in different languages (and keyboard mapping). So, this cost may please be charged according to the expected future scope of second level domain name business. There are multiple factors involved. For example a German or French IDN ccTLD will get many times higher business comparing to a Hindi or Bengali IDN ccTLD. Germans’ & French’ have a large numbers of applications developed in their language where Hindi, Banghali, Afghani, Persian public can not find application of their language, even most of them are not aware with the compatible keyboard for their native languages. Chinese IDN TLD also got better business because there a very few percent of population knows English and they already have developed a large number of applications in Chinese. We hope that ICANN will make respective necessary modification in policy Thanks Imran Ahmed Shah