ICANN Brussels Reducing Barriers to New gTLD Creation in Developing Regions Wednesday, 23 June 2010 >>AVRI DORIA: Good afternoon. Starting the next session here, which is reducing barriers to new gTLD creation in developing regions. First I'll tell you a little bit about how we've scheduled the program. And then I'm going to give a brief overview of the paper, which was a snapshot that was just recently put out. So as I say, first I'm going to start with that overview. Then there's a panel sitting up here that will be moderated by my co-chair in this effort, Evan Leibovitch. And then -- and he'll introduce the panelists as that starts. At the end, Rafik Dammak, who is the liaison from the GNSO group, will give sort of a closing. In the middle somewhere, we're hoping that Katim Touray, the board member, gets a chance to get out of his workshop and come and tell us a little bit about his view for this, since he was the one that initiated this within the board. And then he'll very well to run off to his workshop. So at some point, there will be an interrupt if and when he can appear. And then we'll get back to it. So let me start with the overview. The first part of this was really started with the GAC letter. And in one of the GAC letters to the board, it said, "A single fee structure creates limitations, notably, by skewing the market in favor of applications from the developed world and those with significant financial resources." Now, that was a simple statement, but many people started talking about how difficult this process looked for those in developing regions. So eventually, the board resolution came out, and this came out in Nairobi, support for applicants requesting new gTLD applications. And that resolution by the board is what allowed us to then create this working group. The working group has been chartered by the GNSO and ALAC, so it's a joint SO/AC effort. It's one of those wonderful -- we're having more and more of those cross-community efforts, something that I think is really quite good. There are five chartered items on the working group. And that's joint AC/SO. Identify suitable criteria for applicants to qualify for dedicated support. So who is the target of this support? Identify how fees can be reduced and/or subsidized to qualified applicants. And one of the things that's a mandate for the group is, we do have to try and keep our proposals within the mode of cost recovery principle for the gTLD program. So that's been one of the essential constraints for the group, is that isn't supposed to change. Identify appropriate kinds of support. For example, technical assistance, organizational assistance, financial assistance, fee subsidies, time line adjustments, areas like that. And also identify the time line. So in terms of even fee payments, there may be time line adjustments, but also just the time lines for getting things done. Identify potential providers and appropriate mechanisms to enable support provisioning. And identify conditions and mechanisms required to minimize the risk of inappropriate access to support. And that should be fairly obvious. So we divided the group into two working teams, although the group remained as a whole together, we still used one list, and everybody can contribute to the conversations of the two teams. But we did divide into two groups, one of them, the first working team, is to identify how the net cost to applicants that fulfill the appropriate criteria can be reduced in keeping with the principle of cost recovery. So that team is not looking at the criteria. That's the work being done. They're just looking at the fee. They're analyzing the fee and such. So the fee for applying is currently, for example, $185,000. If you look at that, the fee's divided into three separate portions, the program development costs, 26,000; fixed and variable application costs, 100,000, which is based on an estimate; and then the risk contingency cost, 60. And in each of those fees, there may be different considerations. So at the moment, and remember, this is just a snapshot, none of the proposals are at all firm, but within the view of the group, two of the proposals appear to be approaching consensus. One is to waive the cost of program development for selected entities qualifying for financial assistance, sort of says for developing regions, then paying for the development costs of the program may not be the best use of their funds. Staggering fee payments incrementally during the process. People that have read the application guidebook have probably noticed that at certain phases, there -- if you come out of the process, there may be refunds. Well, perhaps for those who qualify for a developing region support, the notion would be pay in the stages as you go as opposed to paying up-front and getting refunds. There are still items under discussion. Auction proceeds, partial refund from the auction proceeds. The notion here is that, yes, we understand that the auctions won't happen until the end of the process. But to help in the sustainability of an application, perhaps some of the money from the auctions can be used to help the development region applicant or in this case the development region registry make it through their first years. Lower the registry fixed fees due to ICANN. Recover -- reconsider the risk contingency cost for the qualified applicants. And reduce the fixed variable cost of $100,000 for qualified applicants. In terms of all of these items, the panel will be going into each of them in more detail. The second team was looking at the who of -- would be qualified and what sorts of assistance were possible. So, first of all, in the first round, after long discussions, it was decided to limit the qualified applicants to those applying for cultural or linguistic applications. So from those communities. So it was basically community applications, ethnic, cultural, linguistic. Address support for other groups, such as NGOs, civil society organizations, at some future point in a future round. So it was sort of a -- there's a limited amount of funding, there's a limited amount of time to put a program together. Let's pick those that -- that that was directed to and seen as the most critical need. Various groups were listed as not recommended at this time. For example, if it's determined that an applicant has enough funding or has a source of funding, then they should not be considered in this round for the support. If they're brands or groups or such, then they should be self- supporting, self-funding organizations. Anything that's purely governmental or an inter-state type of function was not seen as qualified for this one. And then when looking at the business model, since the business model is part of the criteria for succeeding in this, when looking at the business model, if the business model was not feasible, was not sustainable, then that was not reasonable at this time. The "what" of offering assistance. There was basically three recommendations. The first is looking into the logistical, outreach, and support for the application process. So basically, you know, translation of relevant documents. There's going to be a lot both going and coming. So how does that -- so perhaps that kind of service. Logistical and technical help with the application process. I'm sure people who have read through the application guide have seen that various parts of it are complex, and for someone who is not a normal ICANN person and from a developing region, it is probably even more difficult than I imagine it is. Awareness and outreach efforts. Yes, the -- ICANN itself and the gTLD program is going to be doing outreach. And yet there's this belief that perhaps greater outreach efforts are required for some development regions. And then looking also at the fee and subsidization. The second is technical support for applicants in operating or qualifying to run a gTLD, whether those are infrastructure, education, consulting on how to solve the problems, possible technical waivers or step-ups, basically. Perhaps in the first year you don't need to have all of the technical requirements, although one has to be very careful in the, you know, security and stability vein. But there may be some that if it's a very small gTLD that is starting slowly, that there may be a program one could design where you stepped up with that. And then, basically, possible to help organize various groups that could work together. And then, finally, support for buildout and underserved languages and IDNs for new gTLDs. That's one of the primary focuses of the aid. So looking at price discounts to sort of incentivize, to bundle pricing for buildout in multiple scripts, or to -- and to make sure, again, that there are clear tests to prevent gaming and ensure the support reaches the right people. And that -- given that this is ICANN -- is always an important thing to mention. That one was already covered. Several principles were set. One is a self-financing responsibility. While there's still discussion about what percentage is going to be required from an applicant, that's still very much under discussion, there's certainly, I would say a consensus that it can't be 100%, that it must be much less than that, that there must be some notion that there is some financial capability on the part of the applicant. That there is a sunset period, that there is not a notion that there is support forever, but there needs to be a business case that shows that support will diminish and then no longer be needed or available. There's transparency in terms of making sure that the applicants and the information and the process involved in deciding who is qualified and how it's administered is all done in sort of a maximally transparent method. This last one I found at another talk needs a little explanation. Application form is not limited. What we're saying is that it is not just for nonprofits. An entrepreneurial effort from a developing region is not prevented, might be encouraged. It depends on how it all is put together. But we're not saying it is only for the nonprofit, whatever that might mean in various development regions. Needs to be limited government support. We sort of said no -- no one is qualified as full government support. But if there's any level of government support, then it needs to be very limited. And then there's repayment in success cases and looking at various methods of repayment, whether that's into funds for future help for others or how that would be handled is still a question. But certainly there is a repayment for success, with success. A message is being sent out to various registry service providers sort of asking them what kind of help they may or may not be willing or able to give to this sort of effort. So asking them, "Are there types of support that they would be willing to provide?" That would, you know, help a disadvantaged applicant succeed in a new gTLD. Would the organization be willing to provide any of the support functions either for free or at a cost-recovery basis? So what kind of help could they offer financially. And then asking them if they're aware of any other providers that would support disadvantaged applicants. So, basically, at the next steps, we are getting public comments with this session today. There was a session yesterday, meeting with the Afri-ICANN and the AFRALO, basically talking about this and encouraging them to give us comments on the program. They already gave us a couple good ones. Continue the discussion within the Joint Working Group based on the comments we get, until the 10th of August. And then, basically, produce our recommendations that we send to our two chartering organizations, the GNSO and the ALAC, at which point what they do next with it is their decision. One would assume that they would pass them on to the board. But, you know, that's their decision. So at this point, I pass it over to Evan, who will be -- actually, not quite to questions yet, but we'll get there. Pass it over to Evan, who will basically moderate. And as I say, at some point, if Katim does come in, I will interrupt Evan so Katim can say a few words to us. Thank you. >>EVAN LEIBOVITCH: Hi there. Thanks, Avri. Okay. Without further delay, I want to introduce our panel. This is representative of the many people that have been involved with our group, that have brought contributions from across the diversity of at-large and GNSO. And they will speak between the two different working teams. From the first working team, the first speaker is going to be Tijani Ben Jemaa. >>TIJANI BEN JEMAA: Thank you, Evan. I think Avri said everything so I have nothing left to say. I'm part of the team number one, looking after financial support. So which type of support we can bring to those two TLD applicants. And within the team, a consensus was reached on the need to waive development costs from new gTLD applicants. We're talking about $26,000. The reason is those costs are not part of the application. Instead, they are overhead that were divided by all the different applicants of the next round. And, therefore, in order to try and reduce the costs, the overall working group reached a consensus by agreeing to waive all the costs mentioned. Another way to reduce costs is to reduce registry costs linked to ICANN by reducing cost of $25,000 per civil year, and, therefore, the applicant will only pay the transaction funds that are 25 cents per name, domain name, because a $25,000 cost would, of course, compromise the new TLD community, which is quite a small community. Anyway, nowadays, many gTLDs are not currently paying fixed costs of $25,000, and pay less than 25 cents per transaction. Therefore, the team decided that a good way to reduce the costs would be to reduce these particular costs. >>EVAN LEIBOVITCH: Next speaking is Elaine Pruis. >>ELAINE PRUIS: So another proposal that the working group seemed to agree upon was that we would stagger the application fees. Currently, when you apply, you pay $5,000 just to get an application slot initially, and then once you have gone through a quick administrative check, you would pay the remaining $180,000, and that's supposedly to get you through the entire process, unless there's some additional extended evaluation fees. Since the idea is cost recovery, we thought that perhaps we could just pay -- our applicants could pay a bit at a time as they go through the process. So paying a staggered fee would help disadvantaged applicants in that they wouldn't have to finance the entire application fee up front. They could do 5,000 initially and then 50,000 at submission of application, 65,000 after the initial evaluation, and then 65 when they are approved for delegation. These figures might change if our applicants are not required to pay that entire fee, but it could go like that, and that's basically the reverse schedule of how the refunds would be issued. The idea there is if an applicant gets through the initial evaluation and then they see they might have a contention string, they wouldn't have had to put out the 180 up front. Or they might be able to go to their financiers, if it's clear there is no contention set, then they might be able to raise the rest of the money they need. This second proposal that I will discuss, we couldn't really come to agreement on it because of the fact that the auction proceeds is an unknown figure. We don't know if -- how much money will come in through the auction, if there will be anything. So we don't really want to count on that as a main way to support our applicants, but the idea there is if there are contention sets and the parties can't resolve the issues amongst themselves, then they will go to auction and ICANN will receive the proceeds from that auction. And in the guidebook, it's specifically noted that -- I'll just read the phrase. "Proceeds from the auctions will be reserved and earmarked until uses of the proceeds are determined. It's planned that costs of the new program will be offset by fees. So any funds coming from a last resort contention resolution mechanism such as auctions would result in additional funding. "Funds must be earmarked separately and used in a manner that supports directly ICANN's mission and core values and also maintenance it's not-for-profit status. Possible uses include the formation of a foundation with a clear mission and transparent way to allocate funds to projects that are of interest to the greater Internet community, such as grants to support new TLD applicants or operators from communities in subsequent rounds." So the idea there, this is not original from our working group, it's already in the applicant guidebook, we could just like to make note of it that it's a source of funding that we would like to use for these applicants. And the way we could use it is if we have a fund set up where the applicants can borrow against those funds, the auction proceeds could go back to refill that fund, or possibly if there's a second round of new gTLDs being applied for, those auction proceeds could be used to lower the fees there. >>EVAN LEIBOVITCH: Okay. And our final speaker from work team one is Tony Harris. >>TONY HARRIS: Hello, everybody. I'm going to refer to the last points on the slide up on the screen, which basically refer to the discussions we had about the cost components of the application fee. We had some soul searching before we embarked on this discussion because of this provision that the application fee has been explained as cost recovery, and thereby the implication was, well, this is pretty much set in stone. But nonetheless, we did try to take a look at the implications of the different -- of the three components of the cost of the application fee. And to begin with, if we look at the risk and contingency cost per applicant, which in the documents that ICANN has submitted is quantified as $60,000, we are further told in the document that explains the costs that in that case, if there were 500 applications, times $60,000, that would mean there would be a contingency income, let's call it that, of $30 million to deal with unforeseen costs and developments. One of the things that we threw around in the working group as well, we're not proposing that we waive for every single applicant but we are talking about disenfranchised applicants or people with limited resources, nonprofits. Perhaps it's attributing one-third of the application fee to potential risks in the case of these type of applicants does seem a little bit high. The second item we looked at, which is number 6 on the screen, concerns the fixed and variable cost which is explained as $100,000, but if do you the math, it's probably 99 to get to the 185 total. And we're also told in the explanation of the cost calculations that in the previous round of applications, the cost for the ten applications received in 2004, I think was the date, the cost of processing these was $1.8 million. Those applications, if memory serves me -- I forget if the application fee was 45,000 or 50,000, but it was on that order. When we consider that of those ten applications, at least two were rejected outright and dropped off the map, thereby not generating any further costs in discussions, lawsuits, or whatever, and at least one, which was dot post, was automatically granted. It was the European postal union. There wasn't really much to discuss about that. For the remaining TLDs, the only thing, explanation we can come up with why this cost went up to $1.8 million, since they were all sponsored anyhow, was the ongoing litigation that resulted from the dot XXX domain application, which as all of you know is still ongoing. There again, the debate was, well, we don't know if this is actually factored into this cost calculation, but nonetheless, I thought I'd mention it because it does seem that perhaps part of the cost -- what this cost ICANN may have been factored into this calculation, which seems rather high for what went on in the previous round. So basically, we do think -- some of us in the group, there's no total consensus on this, think that this 99,000 or 100,000 fee, which is for the actual evaluation costs, might also be a little high. Let's say in the case of you got an application for dot Eskimo, a very simple community application which may not run into too many objectors and competition to get to the final award, again it seems a little bit high for that type of applicant. Once again, I'd like to stress that when we make these comments and tell you that we have been pulling the application fee apart and looking at it, we are not suggesting that this be waived for the entire applicants for new TLDs. We are talking about disenfranchised applicants; people, organizations with, let's say, different grades or limitations on their financial resources to be able to pay an application fee of $185,000. >>EVAN LEIBOVITCH: Thanks, Tony. We will now move to the work done on working team B, and the first speaker on that is going to be Carlos Aguirre. Go ahead. >>CARLOS AGUIRRE: Thank you. I'm tempted to speak in Spanish, because I think it's going to be easier for me. (Switching from Spanish to English) ... and so I speak in English. Let me introduce myself because when you talk about who, are talking about people. And the group decide that I have to talk about who. My name is Carlos Aguirre. I am lawyer and professor of law and economy at national university of Cordoba in Argentina, currently ALAC member and liaison between ALAC and joint supporting organizations and Advisory Committee for applicant support on new gTLD working groups. So the group decide that it is my turn to talk briefly about who, and who receives support. Before that, I personally want to comment what was my motivation to decide, work and invest my voluntary time in this working group. We are living in a world where difference can be felt in the scheme. We can see how the people around the world have different possibilities, different economies, different ways to achieve goals, different languages. And we have difference, almost, in everything. And at least, following the board resolution sense, my idea was we need to reduce the impact of these differences in order to make a world less different. Because as somebody says yesterday, Internet is about people. And the people, especially interest to me. All people. Not only who have economical power. I don't know if the result of this working group is the better result, but our intention was in this way. Obviously, the result always can be improved, and for that and after this first tip, we expect input from the community. Because this will be a great, great help for us to get the better conclusion possible of our work. We work very, very hard during two month and was not easy to get the final document, which was deeply discussed for all members in a weekly teleconferences. Sometimes among all participants of working group, sometimes personal chats with other members and trying to define some concept or objectives. Almost 400 mails were sent in the same time to the list of working group. All of this can give to you an idea of how work developed. Before to mention identify who, let me say that another way to reduce the gap of difference must be giving enough communication about this process. Making the necessary outreach to give the all interested people, person, parties around the world opportunity to know about this and give the possibility to all to get this support. Now I am going directly to whom it's clear for us who merit or need assistance for us. But once again, input of the community will be hoped and welcome received. So who would receive support? The proposal is in the first round, only ethnic and linguistic communities. Ethnic and linguistic communities -- for instance, the (saying name) community, (saying name) speakers Tamil speakers, (saying name) speakers and community. For us, when we talk about this, for this group, this division is clear and noncontroversial. All on the working group agreed that ICANN must facilitate to those communities to have their communities on the Web. For that is a working group recommendation, is to start with this group. Another proposal, address support for other groups, especially NGOs and civil society organizations at the future points, as the idea of who constitutes a community in this space is less clear, and the test for which groups might need/merit support will be trickier. This group is more programmatic because if at the beginning could seem very clear its inclusion, when you start to analyze, also starting the necessity or definitions to precise more and more concepts in each case. For many reasons, this group need more test in our criteria. Moreover, the number of applicants could be very large, so preference could be given to applicants geographically located in emerging markets and developing countries. And the languages whose presence on the Web is limited. In those points, we think that the document is very clear. It seems to me it's not necessary more clarification. But if you need it, we are. At the moment, and after many considerations, we decided to which you in the document some applicants who are not eligible to receive support. For instance, we not recommended for support at this time applicants that don't need the support, and who have ample financing, it's clear. Applicants that are brands, groups that should be self-supporting companies, also for me is clear. Organizations purely government or parastatal applicants, because we think that the government organizations or parastatal applicants have the possibility to get money required. Last, applicants whose business model doesn't demonstrate sustainability. The last classification was made in order to defend the users' interests, because if the applicant's debt in the first time, one, two, three, years, what happen with the new user of the gTLD? Or at least it's more difficult for them. This is all my presentation. More details the next speaker. >>EVAN LEIBOVITCH: Okay. The next speaker is Andrew Mack. And I'd just like to remind the speakers to try to keep things within three or four minutes because we want to try to maximize the time for people speaking from the floor. Our next speaker is Andrew Mack. Go ahead. >>ANDREW MACK: Thank you, Evan. And thank you to Avri and Evan for being such great leaders of our working group and for all of the people who participated. It was, as Carlos mentioned, a tremendous amount of work and a great labor of love for many of us. On the basis of the highly successful effort that I think we had in setting up a working group to support new applicants, I am also announcing at this moment the formation after a new working group to support the U.S. soccer team in its application of the next round of the World Cup. That will be meeting at 4:00, and you can catch me for details after this presentation. Okay. I am not going to go through everything that Avri very ably captured, especially since I have a number of different pieces that I'm responsible for covering. What I will do in my hopefully four minutes instead is to hit what I think are some of the high points and also some of the things that I think might be a little bit less intuitive, things that came up in more detail as we had our conversations. On the logistical outreach and fee support side, you heard about the fees, and I think that was very well covered. One of the things that came out of our conversations that many people noticed and many people from Latin America, from Africa, especially from the French-speaking and generally from the non-English-speaking world is just how difficult getting to a lot of these documents and getting through a lot of these documents is. And so one of the areas that we recommend strongly for support is on the very simple logistical side, translation of relevant documents, help with the application process, especially the legal and filing. It was very obvious to those of us who worked extensively in emerging markets just how difficult it is, for example, to find a lower who can help you with this process. Who speaks English, who speaks French, who knows technology. These are very, very difficult people to find and oftentimes very expensive. And so what we set out was that, in fact, emerging markets applicants are oftentimes doubly or Tripoli disadvantaged just to start. We don't really think of the advantage that we have by being close to these resources. A second point that Carlos mentioned and came up a lot in our conversations was this idea around outreach and awareness. We all home very much that ICANN can do more to get out in front of the public, because we know that there are groups out there that are interested who don't really even know that much about what we do here in this room. On the technical support side, there were a number of things that were mentioned. Infrastructure specifically related to IPv6; education and consulting to help with DNSSEC; possible technical waivers Avri mentioned, and this is one of the things that will need to be discussed in much more detail; and lower cost or shared back-end registry services, bringing people together to cut costs. Lastly, there were a number of people who mentioned, and there has been discussion of this even in this week's Monday group on new gTLDs, price discounts to incentivize buildout in scripts with limited presence on the Web. I see Sophia there from Ethiopia. Amharic is a perfect example of a language which might not make it on the Web unless we can find a way to get it bundled in with the new TLDs as they're expanded out. In terms of the recommendations that Avri mentioned, self-financing, we had down a notional 50% number. But there may be a different number that is more appropriate in different cases. The idea, though, is to make sure that each applicant that comes in is responsible for themselves or able to be responsible for themselves. A sunset period, similarly, we don't want support to go on indefinitely. There are two reasons for that. Someone because we want to make sure that people are viable to a large extent on their own. And second of all, because we recognize that there will be limited resources. Limited resources in terms of staff, limited resources likely in terms of funding. Transparency, I think, makes perfect sense. To get to the notion that Avri mentioned about the applicant form not being limited, this is one we struggled with the language a great deal. But the general idea is this: What it means to be an NGO in different countries, in different regions, is oftentimes very different. There may also be applicants on behalf of a community that start off as an NGO but as they go and as they develop, they find out that there is, in fact, a fairly strong business component to their work as well. These groups can transition from a start, perhaps, as an NGO and turn into very viable businesses. And so we didn't want to preclude the fact that something that starts as an NGO or starts as a business or a mixed entity might be applicable. Limited government support, the general idea is to make sure that this is not an initiative that the government really wants funded on their own. And the last one is this idea of repayment. If some of these support -- these entities that receive support are themselves successful, we see no reason why they would not pay back into the system to help other entities like them get their start. So those are my big points on this. And I will turn it over -- is that -- >> Our final speaker on team two is Alex Gakuru. >>ALEX GAKURU: Thank you very much. When you speak last, you have the benefit of saying the least because most people preempt everything. I'll take a slightly different tangent and introduce you on something different, and that is now a real-life examples of what it is we have done, our outreach, what is it like in Africa, as we talk of the policy side and what the ICANN board resolved and we want to give developing nations, what, really, is the picture like on the ground. So at the -- right at the beginning, I will say that all of the names I am using here maybe should not be mistaken as endorsement of the group's position. But since I have to cite real examples and real people and real needs, I must say real names of real people and organizations. So, first of all, borrowing from an association I'm quite proud to be a member is that the Internet is for everyone. That's ISOC's vision. You probably all know it. So the people that built the Internet believe that it should be for everyone. Everyone, it's for everybody to actually better improve their lives. So for the developing nations and the regions or emerging markets, whatever criteria or name we use, the best thing is to actually formulate ways of making them better participate and have the Internet and empower them and so that they can actually make good use of the Internet in their own ways. So this work is long overdue and we are pleased the board is having us and that's why we are working tirelessly, all of us, and also the diversity of all the people involved is most welcome. So in my real examples, I want to say there was also a lot of evangelism involved and I am going to cite Africa, but, obviously, the same applies with other regions. There is not time to go to every region and do it, and, of course, it's convenient for me being in several fora and meetings across Africa. The evangelism across the various networks that were involved. And incidentally, turns out that when one of our own speaks the language and tells us what it is, even without the expensive translation of the complicated documents, people begin to identify. So even the new gTLD now is better understood because some people have participated and I explained to people in simple language. So the kind of organizations I want to cite, for example -- and like I said earlier, it's not an endorsement of any -- one of the organizations is Free and Open Software Foundation for Africa. This is an organization that was launched in Geneva in February 2003. It is registered in Mauritius. It serves the entire African content in the issue of free and open software. They have expressed strong interest. They have asked questions. We have tried to give them more information, as much as I can, and, of course, in the same spirit of expectations management, made sure that they have not been assured, we have not promised them that they are not going to get a new gTLD. But the interest is what I want to report back here, and they obviously would be interested to get the comments the community would have, because they are very, very interested. They are professionals. And so in the free and open software arena. The second is an outreach which I will call upon the people who may be here, like Andrew has just mentioned, Sophia has been mentioned, who can outreach to -- and then support to people that don't speak English, and they are not Arab. By the way, for those who doubt, Africa is the one continent who has the most Arabic speakers, the population that speaks Arabic is highest in Africa than any other region in the world. And we are pleased with the Arabic script. But you also notice that there are others in Africa that do not use it. And a good example is Amharic, the one that Andrew Mack has mentioned and Sophia is here. And so we also are reaching out to other people in the diaspora who may want to assist in building a community with the multistakeholder format so that we can also announce that for the IDN as we also support the community to bring their content online. So we are sort of achieving several things with various stakeholders. Thus, an area I would request the outreach for anybody here, and others, and other languages that may be available in all developing regions, not just Africa. As -- The other organization or initiative I could say is that I'm pleased also to note that with the support of Kenyan government, I would say consumer protection initiatives, child protection have received government support. And this is in line with harmonized five eastern African countries, harmonized ICT policy. Therefore, you will find the governments turning, and regulators, to consumer empowerment as the best way of protecting consumers, not -- to protect themselves. So initiatives like this are welcome in regions of Africa by the authorities, which is good, because without government support or endorsement or however you want to look at it, chances of that not succeeding at ICANN would be a problem. So we are happy that -- specifically about the government of Kenya, minister of information and communications, I am pleased that they are supporting the ICT consumer association of Kenya initiatives towards the same. Since yesterday and in line with what has just been mentioned, AFRALO initiative, I'm happy I joined that yesterday and I am getting input. The final point is the linkages with business. Within the audience there are two sponsors of this meeting. One of them is -- we have an upcoming -- we have dot Africa registry which is run by Dot Connect Africa. And Sophia is quite associated with so forth sponsors to today's event. Part of the linkages we are exploring is how they can support these other nonprofits with back-end services. We also have dot org. I believe Kathy should be in the office also. So we are trying to create linkages with business so Africans who are likely to come, we can already start giving them support in this regard. In any case, there is a letter we have written to all registries that can offer whatever services they can to this. So we value to all of them and give them, and hopefully they can create businesses out of that. So we are pleased with the positive responses we are already getting, particularly from those real ones that I already mentioned. >>EVAN LEIBOVITCH: We have already gone way, way above. Keep your comments to three minutes has sort of been lost here. This is a workshop as much as a lecture. >>ALEX GAKURU: Finished. >>EVAN LEIBOVITCH: Please, can you tie up what you're -- >>ALEX GAKURU: Yes. Finally, I just want to thank the work team, all of the staff and the people assigned to give us the services. It's been a wonderful time working with you. I look forward to working with you further. Thank you, Evan and Avri. >>EVAN LEIBOVITCH: Okay. Thank you. Like I say, this was intended to be a workshop. We're here to listen as much as we are to talk to you. The microphones are open. Okay. And Karla already has some comments from the online participation. So go ahead, and we'll route the questions as best we can from the panel. >>KARLA VALENTE: So the first question comes from Danny Younger. Director Touray, I am aware of a registry operator that handles a limited amount of registrations that does not charge any fee for registrations and that uses no registrar services. Their organization's contract is up for rebid next year, and we all know that the prospect of competition often inspires new innovative solutions. This registry operator, Diana, can provide such registry services for IGOs by the way for INT. Is there any particular reason why it couldn't be cajoled into providing equivalent registry services for NGOs in the developing world, perhaps a similar dot NGO TLD? >>EVAN LEIBOVITCH: Okay. In the interests of brevity, I'm going to limit this to work team B, because this is the "who." So could the three of you, Carlos, Andrew, and Alex, all, if you'd like to answer that. Do any of you have something to say -- >>ANDREW MACK: Evan, I'm not sure I understand the question. >>EVAN LEIBOVITCH: I think what -- as I read it, Danny is saying you have an organization that's already been trying to do things. The contract is up for renewal, and all of a sudden they may have some competition coming in. Are they protected under the kind of things we're suggesting? >>ANDREW MACK: The idea is to provide support to get people onto the -- onto the Web who aren't now. Anyone who is interested in helping with that support, certainly, I would see no reason why we wouldn't be interested in talking to them; right? >>EVAN LEIBOVITCH: Okay. I guess I want to invite up to the podium Katim Touray, who is on the board and brokered this in the first place and is probably the person responsible for our working group existing. Do you have something you want to say? Please come up. >>KATIM TOURAY: Good afternoon, everyone. And thanks very much, Evan, for that, your very kind, and I daresay overblown presentation. I don't think it's quite accurate to say that I was responsible for the resolution that resulted, in effect, in this Joint Working Group. I'd like to see it as everything that ICANN does as a joint effort that really saw the involvement of each and every one of us. And it's for this reason that I promised Avri and also Olof that I was going to try to do my best to come and join you here, even if briefly. We have an ongoing board workshop right now, but I had to pull myself out of that, because it's important, I think, to come and be with you and express my gratitude to you for the wonderful job, especially the Joint Working Group has been doing. The work that you're doing is very important. As I was telling the African group yesterday, it must also be seen in the context of the fact that it's work that you are doing not only for your own benefit and the benefit of developing world, but also for the benefit of ICANN itself. You will recall that the board resolution that we passed, board resolution number 20 in Nairobi, specifically mentioned that to do this would be very much in service of ICANN's objectives of being an inclusive organization. So to the extent that you are helping move the objectives of the resolution forward, you are also helping ICANN achieve its objectives. I really want to thank you again very -- thank you again for the wonderful work that you're doing, that you have been doing, and also encourage you to get as much information as is possible, as many perspectives as is possible. Because as I always keep saying, none of us is as smart or smarter than all of us. And so that's why it's particularly important that we move this multistakeholder approach, the grass roots-driven approach by ensuring that we have as much input into these deliberations as is possible. We certainly are looking forward to the recommendations that are going to emanate from the wonderful work that you are doing, and hopefully we'll come away with something that's going to be to the mutual satisfaction of all of us. Again, thank you very much. I'm sorry I came in late, and I'm especially sorry that I have to leave to go and join the board back again in our workshop. Again, thanks very much and all the best wishes of success in your deliberations. Thanks. >>EVAN LEIBOVITCH: Okay. We've got a lot of questions and a dwindling amount of time. So what we're going to do is, this mike, this mike, and then online question. We'll just cycle through. Ask your question. Don't make a statement. If it's not a question, please sit down. And we'll try and keep the answers as brief as possible. Go ahead. >> Okay. Thank you. I hope it's the right place to pose a question. (inaudible) what will happen long term IDN language-wise competition. One has the domain name burnout.com. Now will come maybe a domain name in Swahili, burnout.africa. Both are TLDs. They will be translated by search engines. So in three years' time, what name will win the page ranking competition internationally? And I already experienced that my Farsi name for caviar is being translated in -- >>EVAN LEIBOVITCH: I'm sorry. I hate -- I hate to cut you off, but I really don't think that's relevant to what -- we're talking here about cost reduction. >> But I thought it was about IDNs. >>EVAN LEIBOVITCH: No. Not at all. Sorry. >> Okay. Look for another workshop. >>EVAN LEIBOVITCH: Okay. Good question. Wrong place. Sorry. >>STEVE DELBIANCO: Steve Delbianco for Net Choice Coalition. Carlos, you said your focus on who was all about people. I feel as if talking about just applicants as people, you missed the fact that 56% of the people on the planet don't use the Latin script as their primary language. And until this year, they've had zero capability to do a URL, domain name, or e-mail address. So I have a question, if the who is the people, we aren't really serving them today with anything but a couple of IDN ccTLDs. And what I'm hearing this week, it would be one or two years before the gTLD IDNs can serve these people. So I saw a little bit of a clash, if the who we're serving are the people, it may be necessary to give incentives to companies to launch their gTLDs in versions of other languages that are IDNs or they're just not going to do it. They're not going to spend 2- to $400,000 to serve those people. So how does that clash between the first group that said we wouldn't serve, say, a commercial applicant, even though we know they're serving the people that need it most? >>EVAN LEIBOVITCH: Okay. Elaine, go ahead. Anybody -- first Elaine. >>ELAINE PRUIS: I'm afraid that the summary on the slide was incorrect in our findings about who we would support. We all agreed that it was obvious ethnic and linguistic communities might need support, and it would be easy to build the criteria so that they could come through. There was quite a bit of discussion that we would not limit our considerations to only that crowd. It's just the most obvious crowd. We're looking at providing whatever resources we can to whichever applicant might need support in order to launch a new gTLD that would benefit their community. >>EVAN LEIBOVITCH: Okay. One more answer. Go ahead. Andrew. >>ANDREW MACK: Yeah, the other part is in our third kind of support, we talked about build-out for underserved languages by looking at price, discounts for scripts with a limited presence on the Web, and bundling as a way to promote scripts coming in so that, for example, you might be able to purchase a series of different scripts to incentivize people to build out in smaller languages. I think both of those address your question pretty directly. But I agree, getting to people who do not use Latin character sets is a very good priority, no question. >>EVAN LEIBOVITCH: Okay. Next question comes by the web through Karla. Go ahead. >>KARLA VALENTE: The question comes from Mary and's a segue from what Elaine just said. Just to be clear, the basis or assumption is that support is only for community-based TLD applicants, and the question was based on the slide that says first round only for ethnic and linguistic communities. We clarified on the chat room that the support is not limited to communities only. That was just the way that the slide was written. So the other question from Mary is, to the extent that the first-round recommendations are more likely to and more clearly be candidates from community-based applicants, I wonder if the group considered the requirements and dispute resolution sections of the Draft Applicant Guidebook Version 4 as within its mandate. For example, fair, attainable by likely candidates. >>EVAN LEIBOVITCH: Anybody on.... Okay, Alex, go ahead. >>ALEX GAKURU: I would comment and say that in addition to community and ethnic and also in further response to the other question, for- profit, like Avri mentioned, are going to be supported and whatever criteria we'll come up with. We just want to promote the people that have not had any presence. In terms of the DAG that is being mentioned, whether we have gone through DAG and started going through specific clauses, dispute resolution, et cetera, we have not had any training or gone through the entire process. It's being discussed even in this room this morning, so we have not yet reached a stage where we are accepting applications, as it were. We are creating a framework for reducing barriers with our charter. It's very simple. We have not been -- Our charter does not involve already giving those services, and some of the panelists already say that some of the required needs is legal services to aid the applicant. So I think that's the stage we want to stop at. Thanks. >>EVAN LEIBOVITCH: Does anybody else want to answer that? Okay. Go ahead, Carlos. >>CARLOS AGUIRRE: I want to say two or three words, no more. The idea is the discussion is open. This is the first step. We need the input of the community. All of you are asking now. It's very important for us. Our work just start. So the definitions -- Sorry. Definitions or concepts are not definitives. We try to evaluate the -- your inputs for new conclusions after the discussion. >>EVAN LEIBOVITCH: Okay. Go ahead. >>CHUCK GOMES: My name is Chuck Gomes. I have a question with regard to the bundling idea with regard to underserved language communities. New gTLD applicants as well as even existing registries who want to offer IDN gTLDs are not in need of special support with regard to financial support or like that, but they would be very unlikely to be able to justify, from a business point of view, offering their versions of their IDN TLDs and pay 185,000 fee, et cetera, to underserved language community. Is it the intent or even consideration, I know they are not definite recommendations yet, of the working group to include that kind of bundling opportunity in your recommendation? >>EVAN LEIBOVITCH: Andrew, did you want to speak? >>ANDREW MACK: Chuck, I did a post on this in Nairobi that was kind of related to this, and the goal of the post, I think it was the circle ID. The goal of the post was to get more of these languages on the Web. The thought is a little bit like buying a six-pack of beer as opposed to buying each individual beer. If you buy a six-pack, if you are willing to buy the six-pack, you should a little bit of a discount. And especially since we have, as an Internet community, determined that it's a value to have a language presence for an Amharic, for a Georgian or a Tamil or a Sinhalese that have a different script, I see no reason why we shouldn't try to incentivize the people who are going to make that happen. We have already talked about the possibility of reducing costs, and there may be some cost savings if you bundle, and that's one of the things that would seem to make sense based on both what we've learned and also the intent of this group. >>EVAN LEIBOVITCH: Anyone else from the table? Okay. Go ahead, Alex. >>ALEX GAKURU: I was saying he captured what I was going to say. No need to spend time. >>EVAN LEIBOVITCH: Okay. Go ahead. >>ROBERT HUTCHINSON: I am Bob Hutchinson from Dynamic Ventures. We specialize in helping entrepreneurs start new businesses. And I was wondering if you considered the lively idea of bundling. I think it makes a lot of sense. I wonder if you looked at micro-capital kinds of ways of funding the beginnings of these bundled businesses and so on and so forth. I'm curious if you did that. >>EVAN LEIBOVITCH: Alex. >>ALEX GAKURU: Somewhat related also to what he said, yes, the letters we wrote to registries is going in that direction where we are already asking a generic we wrote to them. And to remove doubt, I mentioned the names I mentioned for purposes of demonstration. There's no specific endorsement, like I said everywhere. So for the record. But we did a generic letter we sent to people, and we said besides what we have asked you for, registries is obviously another side of background, back-office services, what are the ways you feel you can assist this program take off? So perhaps if you can -- funding could be included, we will consider that in our next deliberations. Thank you. >>EVAN LEIBOVITCH: Anyone else from the table? Elaine. >>ELAINE PRUIS: That letter is posted on the announcements, ICANN announcements Web site. There were some documents that came out last week. That includes the snapshot of the working group and a copy of that letter. And that letter is not intended exclusively for established registry providers. It's meant for anybody that would like to support these applicants in any way. Financially would be fantastic. >>ANDREW MACK: I would just also add that there is a very strong economic development part of this, element of this. And so obviously we would look to reach out potentially to foundations. Who knows? The World Bank or the African Development Bank or others might be interested as well. >>EVAN LEIBOVITCH: Okay. Next question is online. >>KARLA VALENTE: Hi, this is Karla on behalf of our remote participants. So you know we have around 28 remote participants throughout this session. This question comes from John McCormick. Will local ccTLD's impact be part of the evaluation process for community linguistic gTLD proposals? Basically the commercial impact of a community language gTLD on a local ccTLD where most of the community language group is based. >>EVAN LEIBOVITCH: Tony? >>TONY HARRIS: I didn't understand the question. >>EVAN LEIBOVITCH: As I heard it, if there's a ccTLD in a country that is -- in which there's an applicant for a linguistically based new gTLD, has this group considered the impact of potentially that linguistic gTLD on the existing CC that's already in that country, that may already be attracting people? Andrew? >>ANDREW MACK: Tony, would you like to? I will give a stab at that if you like. >>TONY HARRIS: Mine is very short. I would just say that I think if our experience, where we're going to be an applicant, and this discussion has taken place in the ccTLD world, and gTLDs of whatever nature, IDN or ASCII, in general have not been considered as the enemy. So I don't think they will have a negative impact on existing ccTLDs. On the contrary, it should expand the use of the Internet. >>EVAN LEIBOVITCH: Go ahead. >>ANDREW MACK: If I could just add one more thing to what Tony said and that is with people's increasing mobility, what we are finding is that a community that's limited to one state is a very, very rare thing nowadays. The diaspora that you find, the African diaspora that you find in the United States or the U.S. diaspora that you find in Kenya are growing as a percentage of population and growing in their awareness of themselves. So my guess is -- our goal isn't in any way to undermine or to keep the CCs from doing what they will do, but rather to offer an opportunity for communities that want to self-associate and have their own presence. >>EVAN LEIBOVITCH: Alex, do you have something? >>ALEX GAKURU: Very briefly. Studies have also shown that over 60% of the people look for content that is local to them. So what we'll be doing, when we bring this localized community and various other participation, we actually are going to increase the use of Internet. So rather than competing, they are going to complement, and they may actually make the ccTLDs grow, which do just fine with maybe 10,000 registrations, I know. So maybe I will see it more like it will complement, but no specific study to show what our proposals will have because we have a stage of formulating what it will be. Thank you. >>EVAN LEIBOVITCH: Okay. >> Hi, my name is Xing Hsao (phonetic). I work for DotAsia registry, but speaking on my own behalf. Two questions. First is I would like to know how confidence is the group right now, for example, in the next six months to incorporate the ideas into the real implementation plan of the new gTLD program. Speaking of which is that, for example, I'm understanding the mission of cost cutdown for the applicant fee, but there's still fees involved in additional cost. For example, like registry evaluation or even in the question of that 50 questions, there will be requirement of a three-year -- I mean, their financial deposit for the operation. So that's one. And actually the second is noticing that there's some exemptions of the brands from the developing country may not be eligible for that. I would like to take from a different perspective is that perhaps the groups can also think about to help the brand owners in the developing countries, like China, India, or Brazil, to make sure that they are aware of the program, so their brands in the new gTLD rounds can be more involved and be aware of what's happening in the trademark clearinghouse area and so on and so forth. >>EVAN LEIBOVITCH: Okay. Some of that seems a bit outside the scope of what we have been working with. >>ANDREW MACK: I was going to say I think your second point is probably better for another group, because with the kind of applicant support we were looking at is getting people in. But your point seems very valid. And in terms of the confidence, how confident are we that people will pick up our recommendations? I think I can speak for the panel in saying that we are hopeful, but that it's not our vote, and part it have will depend on you and depend on the feedback that the board and others get from what you say. >>EVAN LEIBOVITCH: Okay. I just want to note that we're only about seven minutes before the end of the session, so we'll close the line off with the folks that are up here now. Go ahead. >>NII QUAYNOR: Yes, my name is Nii Quaynor. I come from Ghana.com. I am a registrar but I am speaking for myself. I want to be clear that we are doing this for a better Internet, and I want to ask publicly whether you do have a particular operate in mind as you define the applicant support system. And specifically to Alex, you mentioned a dot Africa operator. Does it exist? Thank you. >>EVAN LEIBOVITCH: Go ahead. >>ALEX GAKURU: Yes. Thank you very much. Like I said right at the beginning, and I think that's a very -- indeed, a valid question, like I said, every example I gave was to demonstrate the reality of the outreach. Ghana, your registry, is most welcome to participate. In fact, the mere mention of any -- I also say the not -- and those, including the organizations, the applicants, and it was part of the things I said in the outreach, was a strategic expectations management for the applicants so that they don't give us information and believe that ICANN has mandated, has to go and give them a new gTLD. So the same with the registrars, the same with that letter we have sent out. Anybody is asked to participate, but for the purposes of demonstration of real-life examples for the region where I have come from and what I have done on behalf of the group and particularly my work team, I had to mention what, indeed, I had done. If I had mentioned any registry anywhere in the world, I would have equally included them. And from now on anyone who expresses in the next round any comment, I will include any contact we have had in a transparent manner. Thank you. >>EVAN LEIBOVITCH: Okay. Go ahead. >>NARESH AJWANI: My name is Naresh Ajwani. I am a president of Cyber Caf Association of India. We are an ecosystem of 180,000 cyber cafss, 70 ISPs, 49 government application, and 70 million Internet users. I have a question. I am sure the cost for the entry fee is very a thought throughout approach of ICANN. So when we are talking about the cost reduction, from where this cost would be recovered is my question, is my query? >>EVAN LEIBOVITCH: Okay. I mean, that's pretty well at the core of some of what we have been doing. Who would like a stab at that? Tijani, you haven't answered many questions. Would you like a stab at that? >>TIJANI BEN JEMAA: Yes, I think I understood the question. He is asking which is the type of cost reduction we are trying to make. As we explained before, we are talking about the new gTLD program development costs that the working group thinks it is possible to exempt the applicants from paying them, and this cost is quite important. It is, I think, $65,000. >>TONY HARRIS: I think your question was a very good one. I think perhaps also we should stress that when we discuss a possible reduction of the application fee, we were not actually thinking that this should become a burden on -- an additional burden on other applicants. I think that's where your point may be going to. But, rather, that since one-third of the application fee is predicated or reserved, let's say, for contingencies or unforeseen costs, in the case of certain applications such as we are discussing, which will probably not be very many, this might be reconsidered. In other words, a significant part of the application fee is not actual costs but provision for possible future costs. I think that is where most of our concern might lie. I don't know if that answers your question, Naresh. >>NARESH AJWANI: Shortly, it does. But yes, I have a comment to make. It is a cross-subsidy. There are no free lunches. I think if a business model can be considered based on revenue share, this particular challenge can be addressed. Entry fees in all these developing countries are now getting replaced by revenue share model. For example, if a hundred dollars come into an organization, then a percent from the gross revenue is taken by the licenser, government, or anybody like ICANN. So I'm sure that particular piece might have been considered by you to not bring a cross-subsidy or a feeling of cutting the cost. Revenue share is only suggestion I think I can make at this juncture. Thank you. >>EVAN LEIBOVITCH: Okay. And finally, Carlos. Alex or Carlos? >>ANDREW MACK: Two quick points to your suggestion, and my quick point is related specifically to India because you have so many languages and so many scripts that are present in India, and linking of your own market, one of the things we were trying to get at through these kinds of support was the sense of fairness, that for people that aren't native to the English language or the Latin script they have greater barriers to entry. So whether you call it a cross-subsidy or whether you call it -- you know, it's a very, very, very minute movement of funds. The important thing is the goal is to create a higher level of fairness to you. >>EVAN LEIBOVITCH: Carlos. >>CARLOS AGUIRRE: You can read my answer on the screen because I respond in Spanish. To be more quickly, more fast. We have been -- in the working group we have been talking about the possibility of making sure that those organizations which were applying and which need the support, which I have given the support, after that, to the commercial development of that gTLD actually have benefits. Then we consider the possibility of those organizations giving back part of those benefits they have obtained in order to support other people. So that is we come back to the idea of the costs we were talking about. That was the idea, that they can actually give them back afterwards. >>NARESH NAJWARI: Suggestion would be kindly consider different provision also that will really make not somebody to feel that he is being benefited in different business model. You have referred about India. I must tell you, a few years back, the biggest company in shampoo, P&G, was going back thinking shampoo can't be sold in India. So they changed the business model and they brought sachets, small pouches. Today every house, nook and corner of India has got shampoo from P&G. It's all about changing business models instead of doing any cross-subsidy, reducing the cost. If that particular aspect can be considered, I am very confident it will be accepted much faster. Thank you. >>EVAN LEIBOVITCH: Okay. That's the last question. Before closing off, I just want to recognize two other participants, one of whom is Rafik Dammak who has graciously ceded the floor. He has been very involved as the liaison between GNSO and this group. I also wanted to call attention to the combined AFRALO AfrICANN effort. I was at the meeting yesterday with Avri. They came up with some very, very clear and specific recommendations to this group. They did not have an opportunity to read it here in person, but we want to make sure it is on the Web site and attached from our work, and I want to thank them from doing it. Okay. Rafik has a few words to close off and then we will end. >>RAFIK DAMMAK: Okay. First, just to summarize what happened in this workshop. It's good to remind that this effort is really cross-community with representation from ALAC, GNSO, but also from ccNSO and the GAC. And also, I want to lament about the working group that is working in a sustainable approach. I stress about the word sustainable. For the new gTLD program to bring more applicants from developing countries and help them to avoid those barrier. We still need public comments to get the feedback of those proposed recommendation, which was -- were presented by those panelists, and looking at how we can improve and extend them. And I encourage everybody to provide comments and to participate. In that matter, the working group membership is still open. And for that I encourage people who made comments now in this workshop to join us and to participate as I think we get a lot of interesting idea, that it's really very worthy to be added. I would say finally I want to thank all the members of the working group, but also the staff who worked really hard regarding the tight schedule that we had to have this first outcome in time for Brussels meeting, and to present this snapshot in this workshop. But I also want to thank the workshop audience. But not just the audience here who is physically present but also the remote participation who asked a lot of questions. And at the end, I want to thank Avri and Evan for sharing the working group and for arranging this workshop. >>EVAN LEIBOVITCH: Okay. Most of all, thanks to all of you for coming. I know it's been warm in here and it's late in the day so I appreciate you making the effort to come out. I want to remind you that the deadline for public comments on our efforts is July 21st. Please go there. Please be verbose, speak what you want. We need to listen as much as we need to talk. We have a lot of work to do still, but the progress has been really, really good, especially considering how fast things usually move here. This has been extremely fast. It's a very good group of people. I thank all of you for doing this. And thank you for coming and that's it. Thank you. [ Applause ]