Government, Firm Reach Net Domain Agreement
The Commerce Department on Tuesday reached an agreement with Network Solutions to phase out U.S. government control of the Internet’s domain name system over the next two years.
Under the new contract, the Herndon, Va.-based company’s monopoly on registering domain names ending in .com, .org, .net and .edu will come to an end by June 1. Instead, Network Solutions will create a registration system that it will share with a host of new competitors to assign domain names on behalf of Internet users, said Becky Burr, associate administrator of the Commerce Department’s National Telecommunications and Information Administration.
The change is part of an international effort to make the Internet a self-governing entity, and to introduce competition to the various functions--such as domain name registration--that have become profitable thanks to growing commercial interest in the global computer network.
“Under this agreement, the price for registry services would drop dramatically, and registrars could come in with a whole variety of business models and value-added services,” Burr said.
Some companies have already begun registering domain names by offering a variety of package deals, but all these companies must pay Network Solutions an annual $35 registration fee. Under the new contract, the U.S. government will set the wholesale price that Network Solutions can charge for access to its registry.
Network Solutions will have to operate the registry separately from its retail registration business, Burr said.
A number of companies that plan to compete with Network Solutions expressed disappointment that the contract allows the Virginia firm to maintain its monopoly for several months at least, said Ken Stubbs, chairman of the Council of Internet Registrars, which represents 89 firms in 23 countries.
Network Solutions spokesman Christopher Clough said the long transition period is necessary for the complex task of creating a shared registration system.
Network Solutions’ stock fell 75 cents to close at $36.25 on Nasdaq Tuesday.
