NEW YORK, NY – Although many had hoped it wouldn’t happen, Verisign (NASDAQ: VRSN), the company behind the registration and creation of .COM domain names, has been given the virtual green light by the US Government to raise the price of .com domain names by 7% in each of the last four years of a six-year incremental contract.
Late Thursday, news broke that the “Cooperative Agreement”, an agreement between the National Telecommunications and Information Administration (NTIA) and Verisign has been extended.
NTIA Statement on Amendment 35 to the Cooperative Agreement with Verisign:
NTIA and Verisign have agreed to extend and modify the Cooperative Agreement. These modifications are in line with policy priorities of the Trump Administration. The changes create a new commitment to content neutrality in the Domain Name System (DNS), provide market-based pricing flexibility, and reduce the regulatory burden on Verisign.
Amendment 35 confirms that Verisign will operate the .com registry in a content neutral manner with a commitment to participate in ICANN processes. To that end, NTIA looks forward to working with Verisign and other ICANN stakeholders in the coming year on trusted notifier programs to provide transparency and accountability in the .com top level domain.
The amendment repeals Obama-era price controls and provides Verisign the pricing flexibility to change its .com Registry Agreement with ICANN to increase wholesale .com prices. Specifically, the flexibility permits Verisign to pursue with ICANN an up to 7 percent increase in the prices for .com domain names, in each of the last four years of the six-year term of the .com Registry Agreement. The changes also affirm that Verisign may not vertically integrate or operate as a registrar in the .com top level domain.”
Although it was nice to think that prices shouldn’t be raised because the company Verisign (NASDAQ: VRSN), is already profitable enough or that there simply is no need to raise prices (a fact which is the opinion of many domain industry insiders), that unfortunately is just not the world we live in.
About The Author: John Colascione is CEO of Long Island Media Inc., publisher of the largest group of Long Island New York based websites and one print newspaper collectively reaching over one million people per month. He is also CEO of Cars Digital Inc., Internet Advertising Inc., specializes in Website Monetization, authored Mastering Your Website, and is a key player in several Internet businesses through his holding company Searchen Networks®