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[ga] $10 million+ rounding question -- interpretation of .com contract
- To: vint@xxxxxxxxxx
- Subject: [ga] $10 million+ rounding question -- interpretation of .com contract
- From: George Kirikos <gkirikos@xxxxxxxxx>
- Date: Fri, 6 Apr 2007 12:18:32 -0700 (PDT)
- Cc: ga@xxxxxxxxxxxxxx
- Domainkey-signature: a=rsa-sha1; q=dns; c=nofws; s=s1024; d=yahoo.com; h=X-YMail-OSG:Received:Date:From:Subject:To:Cc:MIME-Version:Content-Type:Content-Transfer-Encoding:Message-ID; b=2DfYFZXu1voa4vlhxtim/Ddcrrj4SIkljPCnyzFEkNkYvUjVAuwIPz9E7HrPY04oWhzODV5b5dn1qrQrXROPtczw7/OSlZPiIHX0NQZ8VW0+gYdPNuoKDK5xj5Nqiw6VklcLwNoHkMt4DL7NRxfG+ilxnxj3KWgwzl3RaDFeHgM=;
- Sender: owner-ga@xxxxxxxxxxxxxx
Hi Vint,
As you're aware, VeriSign can raise prices by no more than 7% for .com
domain names, and has announced their intention to do so for October
2007, to $6.42. That is exactly 7%.
However, this raises an interesting question about what happens the
following year, assuming they keep raising prices by the maximum
permitted amount.
1.07 x $6.42 = $6.8694
The contract would forbid VeriSign from rounding up to $6.87, as that
would be an increase greater than 7%.
However, is VeriSign compelled to round DOWN to the nearest penny,
$6.86, or would they be permitted to quote additional decimal places to
have "fractional penny" pricing.
Since 70 million domains multiplied by almost a full penny is $700,000,
and then compounded forward a number of years, this is a $10 million+
question, a potential cost saving for registrants. I'd appreciate it if
you can get counsel to investigate these rounding and "penny pricing"
issues, so that there are no surprises next year.
Sincerely,
George Kirikos
http://www.kirikos.com/
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