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Unclassified OCDE/GD(97)207 INTERNET DOMAIN NAMES: ALLOCATION POLICIES ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Paris 60465 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format Copyright OECD, 1997 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Services, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France 2 TABLE OF CONTENTS FOREWORD.................................................................................................................................................. 5 MAIN POINTS............................................................................................................................................... 6 INTERNET GROWTH AND THE DOMAIN NAME SYSTEM................................................................. 8 DOMAIN NAME SYSTEM OPERATIONS IN OECD COUNTRIES...................................................... 16 The Administration of Top Level Domains and Market Structure .......................................................... 17 The Administration of Generic Top Level Domains and Market Structure ............................................. 18 POLICY COMPARISON BETWEEN DOMAIN REGISTRARS.............................................................. 29 Location Requirements ............................................................................................................................. 29 Application Limits .................................................................................................................................... 29 Trademark Policies ................................................................................................................................... 30 Information Availability ........................................................................................................................... 31 DOMAIN NAME PRICING........................................................................................................................ 39 Domain Name Fee Structure..................................................................................................................... 39 Are Prices Cost Oriented?......................................................................................................................... 40 Who is setting the prices? ......................................................................................................................... 41 DISCUSSION OF POLICY ISSUES........................................................................................................... 49 Competition Between Registries .............................................................................................................. 50 Naming, Identification and Location ........................................................................................................ 53 Trademark Issues ...................................................................................................................................... 55 STATISTICAL ANNEX.............................................................................................................................. 64 GLOSSARY ................................................................................................................................................. 71 Tables Table 1. Domain Name Registrations in Selected Registrars.................................................................. 13 Table 2. Domain Name Registries in OECD Countries .......................................................................... 14 Table 3. Selected Mercedes-Benz Related Domain Names .................................................................... 23 Table 4. Operators of the Internet's Root-level Name Servers................................................................ 24 Table 5. Network Solutions Deposits for Intellectual Infrastructure Fund ............................................. 24 Table 6. Comparison of IAHC, eDNS and NSI Proposals for gTLD Reform ........................................ 25 Table 7. Registrar Location Requirements for Applicants ...................................................................... 32 3 Table 8. Registrar Restrictions on Number of Domain Name Applications ........................................... 34 Table 9. Registrar Trademark Policy for Application ............................................................................. 35 Table 10. Whois: Availability of Registrars ............................................................................................ 37 Table 11. Domain Name Pricing, February 1997.................................................................................... 45 Table 12. Netnames Registration Pricing ................................................................................................ 46 Table 13. Apple Computer TLDs and gTLDs ......................................................................................... 47 Table 14. Domain Name Pricing in France ............................................................................................. 48 Table 15. Internet Hosts in the OECD Area ............................................................................................ 65 Table 16. Internet Hosts per 1 000 Inhabitants........................................................................................ 66 Table 17. Domain Name Surveys (RIPE and Network Wizards)............................................................ 67 Table 18. Domains Queried/Missed by Network Wizards Survey.......................................................... 68 Table 19. Domain Queried/Missed by Network Wizards Survey per 10 000 Inhabitants ...................... 69 Table 20. Ranking Domain Queried/Missed by Network Wizards Survey Per 10 000 Inhabitants ....... 70 Figures Figure 1. Domains Recorded in RIPE Survey ......................................................................................... 43 4 FOREWORD This report was presented to the Working Party on Telecommunication and Information Services Policy (TISP) at its meetings in 1997 and was recommended to be made public by the Information, Computer and Communications Policy (ICCP) Committee in November 1997. The report was prepared by Dr Sam Paltridge of the OECD’s Directorate for Science, Technology and Industry. It is published on the responsibility of the Secretary-General of the OECD. 5 MAIN POINTS The Domain Name System (DNS) maps Internet addresses and is a necessary element enabling communication routing to function. While some may view the DNS as a narrow technical issue its implications for GII-GIS are extremely important. At present there is no consensus among the Internet community and all sectors of the Internet industry on how a governance structure will evolve for the DNS. There is increasing agreement that decisions over reforms to the DNS should involve all stakeholders and in particular industry. Accordingly the transition period must be inclusive particularly of the for-profit sector, since, (to a large extent) educational and research institutions would only be minimally affected by the proposed addition of new generic TLDs. To ensure public confidence, the transition process itself should be subject to standards of openness, transparency, and public accountability, and so should the rules which bind the final authority. In addition the leading proposals for reform all call for competition to be introduced into domain name markets. The role of governments is to ensure that the administration and operation of the DNS is stable and that competition occurs in a fair and open manner. The DNS may also prove to be very important for governments in areas such as taxation compliance and protection of minors. The databases of DNS registries not only perform critical functions in signposting information highways, they are the only identification records available for governments, businesses, consumers and parents. Several main issues are emerging which OECD governments could benefit from reviewing. In commenting on these issues the OECD notes that Member governments hold, as a fundamental GII-GIS principle, that they should exercise caution before implementing regulation on a new communication media such as the Internet. On the other hand, experience shows that monopolies are open to potential abuse and that some government action may be required to ensure that this and other public policy matters can be addressed. Despite their critical importance for electronic commerce the policies and procedures of many registries in the OECD area have had little input from business or consumer groups. DNS Registrars currently have monopoly power based on their administration of national or generic top level domain names. In the transition to a commercial and competitive market for DNS the need to introduce safeguards, to ensure transparent and non discriminatory practices, is increasing. A first step could be to monitor prices via international benchmarks and for monopoly registrars to publish accounts. Over the longer term governments could benefit from supporting industry-led reforms seeking to introduce competition in generic and other top level domain markets. As in other communication markets which have been opened to competition it may be necessary to introduce safeguards to ensure DNS infrastructure, where it can be said to form a bottleneck,
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