Dot-net to go non-profit?

The tussle over dot-net domains has begun.

Five companies announced this week that they're hoping to win the contract to operate the master database for .net domains, a job currently performed by VeriSign.

VeriSign is trying to convince ICANN to renew its contract, which expireson 30 June. Other bidders include DENIC, which handles Germany's dot-de domain names, NeuLevel, which oversees dot-us and dot-biz domains, Afilias, which runs the dot-info domain, and Core++, a global consortium of domain registrars, registry operators and telecommunications and networking companies.

Currently, VeriSign collects $6 for each .com and .net domain, which effectively imposes a price floor for those top-level domains. If ICANN grants a contract to a company that charges less for .net this time around, prices for those domains would be likely to fall. (VeriSign's contract to operate the master registry for .com expires in November 2007.)

ZDNet UK sister site CNET News.com spoke with Sabine Dolderer, a director of DENIC, in person and in a follow-up phone conversation about ICANN, VeriSign and the dot-net competition process.

Q: Why is DENIC the best-qualified to run the dot-net registry?
A: One of the major advantages we have is long-standing experience in bringing highly reliable technical service in the registry area. We are coming from a truly not-for-profit background. We are very focused on our mission in providing stable services.

How would you characterise the job that VeriSign has done with dot-net?
It's difficult to describe. In some instances, they have abused their dominant position. I think it's important that there is some competition in that area. Only if there is competition will you see better services for everybody.

You're categorically denying you'd ever do anything like VeriSign's heavily criticised SiteFinder project?
Yes, definitely. We are in the position that we usually coordinate very very carefully with the community what services the community expects and do the roll-out of our services in cooperation with the community. We will never just by accident start a new service that nobody expects.

When you say community, who do you mean?
The users and the registrars and the [individual owners of domains]. We try to encapsulate any of their needs.

In your proposal to ICANN, how much will DENIC collect per domain?
It will be 10 percent less than the current fee [which is $6, making DENIC's fee $5.40]. We expect in the long run that we will be able to go further down.

You have to be aware that this fee encapsulates a new 75-cent fee going to ICANN. So there's an even greater reduction.