[ga] More concerns regarding the proposed .biz/info/org contracts

[George Kirikos <gkirikos@xxxxxxxxx>]

Hello,

In addition to my prior concerns about differential pricing on a
domain-by-domain basis (I don't believe the new contracts would forbid
that activity):

http://gnso.icann.org/mailing-lists/archives/ga/msg04185.html

I believe the new contracts would not forbid volume pricing at the
registrar level. For example, a registrar that registers/renews 100,000
domains per month (i.e. a large one like GoDaddy) could be given a
volume discount or rebate that a smaller registrar could never hope to
achieve.  Section 7 of the .biz agreement starting on page17:

http://www.icann.org/tlds/agreements/biz/registry-agmt-28jul06.pdf

(and equivalent sections of .info/org) would not appear to forbid a
volume pricing schedule or rebates, which would still be consistent
with "equivalent access". An office supplies store could for example
treat all comers equally and non-discriminantly, yet charge a different
average unit price if 10 binders are purchased instead of 1 binder, or
give a bonus of free paper, as long as that's in the pricing schedule
for all to see and take advantage of equally. Indeed,  if one reads the
proposed contracts carefully, they are careful to use words like
"average price", which is consistent with price schedules.

I believe the current "flat" pricing systems fosters competition,
because it enables new entrants to compete on a level playing surface
with the dominant players. If volume pricing had existed when the
monopoly Network Solutions was broken up into a separate registry and a
registrar, we would have much less competition than we do today amongst
registrars, which ultimately benefits consumers.

This is another consequence of the poorly written contracts, and I
think the General Counsel should provide another interpretation on this
matter. In my opinion, specific and very clear language needs to be
added to the contracts to forbid differential pricing, either on a
domain-by-domain basis or due to volume discounts/rebates. If
registries do not consent to those additional clarifications and clear
language, that's as good as an admission that they intepret the
contracts as I do, and intend to bring in these changes to pricing, to
exert monopoly power.

Sincerely,

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