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This annual report is the first produced in accordance with ICANN’s com- mitments under the Joint Project Agreement with the U.S. Department of Commerce, which was signed in September of 2006. The report is initially being published on the ICANN website, http://www. icann.org, to open a period for comments aimed at improving its content and meaningfulness of the report to the ICANN community in the future. Comments and suggestions from the community are encouraged. Every effort will be made to respond to suggestions for constructive improvement. A forum for submitting comments and suggestions is available at 2006- [email protected]. Comments can be viewed at http://forum.icann. org/lists/2006-ar-comments/. ICANN is a global corporation existing in the online environment. It aspires to be an innovator and leader in the areas of transparency, accountability and accessibility. Therefore, ICANN has established a blog on the ICANN website so that members of the community can exchange their views about the report. The blog can be found at http://blog.icann.org/. This inaugural annual report covers both the calendar and fiscal year in an attempt to capture the many activities and accomplishments of the entire ICANN community over the past year. The next annual report will be based on the 2006-2007 fiscal year and will include the relevant audit reports. It is expected that the annual report for 2006-2007 will be published during the third quarter of 2007. *BOARD OF DIRECTORS 2006 Vinton G. Cerf Chairman of the Board November 1999 – December 2007 Alejandro Pisanty Vice Chair November 1999 – June 2007 Paul Twomey President and Chief Executive Officer Ex-officio member Raimundo Beca May 2004 – June 2007 Susan P. Crawford December 2005 – December 2008 Steve Crocker Security and Stability Advisory Committee Liaison Daniel Dardailler Technical Liaison Group Liaison Peter Dengate Thrush Hualin Qian January 2005 – June 2008 June 2003 – December 2006 Roberto Gaetano Njeri Rionge At-Large Advisory Committee Liaison June 2003 – December 2008 Demi Getschko Rita Rodin January 2005 – June 2009 June 2006 – May 2008 Hagen Hultzsch Vanda Scartezini October 2003 – December 2006 December 2004 – December 2007 Joichi Ito Mohamed Sharil Tarmizi December 2004 – December 2007 Governmental Advisory Committee Liaison Veni Markovski David L. Wodelet June 2003 – December 2006 June 2006 – June 2009 Thomas Narten Suzanne Woolf Internet Engineering Task Force Liaison Root Server System Advisory Committee Liaison *Dates reflect full terms on the Board *BOARD OF DIRECTORS 2007 Vinton G. Cerf Chairman of the Board November 1999 – December 2007 Roberto Gaetano Vice Chair December 2006 – December 2009 Paul Twomey President and Chief Executive Officer Ex-officio member Raimundo Beca May 2004 – June 2007 Vittorio Bertola At-Large Advisory Committee Liaison Susan P. Crawford December 2005 – December 2008 Steve Crocker Alejandro Pisanty Security and Stability Advisory Committee Liaison November 1999 – December 2007 Francisco da Silva Rajasekhar Ramaraj Technical Liaison Group Liaison December 2006 – December 2009 Peter Dengate Thrush Njeri Rionge January 2005 – June 2008 June 2003 – December 2008 Demi Getschko Rita Rodin January 2005 – June 2009 June 2006 – May 2008 Steven Goldstein Vanda Scartezini December 2006 – December 2009 December 2004 – December 2007 Joichi Ito Mohamed Sharil Tarmizi December 2004 – December 2007 Governmental Advisory Committee Liaison until March 2007 Ambassador Janis Karklins Governmental Advisory Committee Liaison David L. Wodelet beginning March 2007 June 2006 – June 2009 Thomas Narten Suzanne Woolf Internet Engineering Task Force Liaison Root Server System Advisory Committee Liaison *Dates reflect full terms on the Board TABLE OF CONTENTS ICANN’s Mission 6 ICANN’s Values 6 ICANN’s Structure 7 Message from the Chairman of the Board of Directors 8 Message from the President and Chief Executive Officer 9 New Agreement with the U.S. Department of Commerce 10 Strategic Plan for the Next Three Years 12 Operating Plan for 2006 – 2007 13 Management of Operating Plan Objectives 13 Progress on Operating Plan Projects 14 ICANN Meetings 15 Activities of ICANN Advisory Committees and Supporting Organisations 18 Reports of Activities from ICANN Divisions 22 Activities of Nominating Committee 31 Appendix - Activities Relating to ICANN’s Responsibilities 32 Audit Report for Fiscal Year 2005 – 2006 38 Glossary of Terms 44 OUR MISSION Since ICANN’s creation in 1998, the Internet community has vigorously discussed and reviewed the mission and values that guide its actions. This extensive, inclusive and bottom up discussion has been encapsulated in ICANN’s bylaws, its mission and its core values. The limited and distinct mission of ICANN is clearly set out in Article I of its bylaws: The mission of the Internet Corporation for Assigned Names and Numbers (ICANN) is to coordinate, at the overall level, the global Internet’s systems of unique identifiers, and in particular to ensure the stable and secure operation of the Internet’s unique identifier systems. In particular, ICANN: 1. Coordinates the allocation and assignment of the three sets of unique identifiers for the Internet, which are: a. Domain names (forming a system referred to as DNS) b. Internet protocol (IP) addresses and autonomous system (AS) numbers, and c. Protocol port and parameter numbers 2. Coordinates the operation and evolution of the DNS root name server system 3. Coordinates policy development reasonably and appropriately related to these technical functions OUR CORE VALUES In performing ICANN’s mission, the following core values 8. Making decisions by applying documented policies guides its decisions and actions. neutrally and objectively, with integrity and fairness. 1. Preserving and enhancing the operational stability, 9. Acting with a speed that is responsive to the needs of the reliability, security, and global interoperability of the Internet while, as part of the decision-making process, Internet. obtaining informed input from those entities most affected. 2. Respecting the creativity, innovation, and flow of 10. Remaining accountable to the Internet community through information made possible by the Internet by limiting mechanisms that enhance ICANN’s effectiveness. ICANN’s activities to those matters within ICANN’s mission requiring or significantly benefiting from global 11. While remaining rooted in the private sector, recognising coordination. that governments and public authorities are responsible for public policy and duly taking into account governments’ or 3. To the extent feasible and appropriate, delegating public authorities’ recommendations. coordination functions to or recognising the policy role of other responsible entities that reflect the interests of These core values are deliberately expressed in very affected parties. general terms, so that they may provide useful and relevant guidance in the broadest possible range of circumstances. 4. Seeking and supporting broad, informed participation Because they are not narrowly prescriptive, the specific way reflecting the functional, geographic, and cultural diversity in which they apply, individually and collectively, to each of the Internet at all levels of policy development and new situation will necessarily depend on many factors that decision-making. cannot be fully anticipated or enumerated; and because they are statements of principle rather than practice, situations 5. Where feasible and appropriate, depending on market will inevitably arise in which perfect fidelity to all eleven core mechanisms to promote and sustain a competitive values simultaneously is not possible. Any ICANN body environment. making a recommendation or decision shall exercise its judgment to determine which core values are most relevant 6. Introducing and promoting competition in the registration and how they apply to the specific circumstances of the case of domain names where practicable and beneficial in the at hand, and to determine, if necessary, an appropriate and public interest. defensible balance among competing values. 7. Employing open and transparent policy development mechanisms that (i) promote well-informed decisions based on expert advice, and (ii) ensure that those entities most affected can assist in the policy development process. 6 ICANN’S STRUCTURE Within ICANN’s structure, governments and international treaty organisations work with business organisations and individuals to maintain the stability of the global Internet. Innovation as well as continuing growth bring constant challenges to stability. Working together, ICANN participants address issues that are directly concerned with ICANN’s mission of technical coordination. ICANN is governed by an international Board of Directors. The policy development process originates in three supporting organisations. Advisory committees composed of representatives from individual user organisations and technical communities work with the supporting organisations to create policy. In addition, over 120 governments and government institutions closely advise the Board via the Governmental Advisory Committee. Governmental Advisory Committee (GAC) At-Large Advisory Committee (ALAC) Security and Ombudsman Stability Advisory BOARD OF Committee (SSAC) President/CEO DIRECTORS Root Server System Advisory Committee (RSSAC) ICANN Staff Technical Liaison Group (TLG) Address Generic Names Country Code Supporting Supporting Names Supporting Organisation Organisation Organisation (ASO)