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SVLUG: Competition for DNS

Mar 30, 1999, 17:51 (0 Talkback[s])
(Other stories by Chuck Ritter)

"The Internet Corporation for Assigned Names and Numbers (ICANN) is preparing to allow additional companies to assign top level com, org, and net domains--previously the sole right of Network Solutions, Inc. (NSI). But will new registrars really create competition, or just share the wealth between a few well connected companies and a new regulatory agency?"

"The unlikelihood of real competition is a result of the methods ICANN has chosen to create it. Under the ICANN plan the newly designated "competitors" will be granted access to the NSI database, to create new records and manage existing ones. In other words, there will still only be one infrastructure. This is what will create the problem. Sharing infrastructure implies sharing costs. Each company will manage their own administrative costs but the operating costs are the same; NSI will have to send the others a bill. So what is NSI's incentive to reduce operating cost? And how will the competitors know that NSI is only charging them for operating expenses and not passing along their own administrative costs? The answer is: they won't."

Complete story.