Re: [ga] Pass through costs

[Jeff Williams <jwkckid1@xxxxxxxxxxxxx>]

Dr. Dierker, Karl and all former DNSO GA members or other interested
stakeholders/users,

I believe Karl is essentially saying that ICANN with the versign
agreement
recently struck, is engaged in price fixing.  Hence Karl's earlier
contention
as well as now godaddy's that this agreement is ripe for antitrust legal

action's...

Registries and registrars, will never be able to sustain profitability
over
the long run on registry and/or domain registration business alone,
hence Dr. Dierker is IMHO correct that value added services
is essential to those registries and registrars if they are to remain
in business...

Hugh Dierker wrote:

>   There is no doubt that the consumer will end up paying this bill. I
> hope there will be no price fixing and that the competition will come
> in the form of value added services.
>   Registrars and ISPs are not blameless here, as their costs of
> services have been declining i have not seen a lowering fees in
> general.
>   Just perhaps we will see an increase in cctld useage.
>
>   e
>
> Karl Auerbach <karl@xxxxxxxxxxxx> wrote:
>
> On Sat, 18 Mar 2006, Hugh Dierker wrote:
>
> > Are the registrars not able to raise their rates in response?
>
> There is no legal reason why they can not raise rates.
>
> However, registrars, unlike registries, are in a competitive
> marketplace
> in which price is, in the minds of many customers, the major
> differentiator. So the registrars are going to end up holding to the
> same
> customer prices and absorbing the increase themselves.
>
> If you take a look at my blog at
> http://www.cavebear.com/cbblog-archives/000239.html you'll see a note
> in
> which I calculate that the real cost of performing a registration at
> the
> registry level is under $0.02 rather than the $6 going to $7+7% price
> that
> ICANN is imposing for .com.
>
> That works out to roughly $5.98 (going to $6.98+) of money that ICANN
> is
> taking out of our pockets each time we register a domain name. When
> multiplied by all the domains in .com that works out to a boatload of
> money every year.
>
> --karl--
>
>
>

Regards,

--
Jeffrey A. Williams
Spokesman for INEGroup LLA. - (Over 134k members/stakeholders strong!)
"Obedience of the law is the greatest freedom" -
   Abraham Lincoln

"Credit should go with the performance of duty and not with what is
very often the accident of glory" - Theodore Roosevelt

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liability depends upon whether B is less than L multiplied by
P: i.e., whether B is less than PL."
United States v. Carroll Towing  (159 F.2d 169 [2d Cir. 1947]
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