Protests of Network Solutions Pact May Extend Its Reign

Dozens of firms are eager to compete with Network Solutions Inc. in the lucrative business of registering Internet domain names, the cyberspace addresses that end in .com, .net and .org. But in an ironic twist, NSI’s monopoly could be extended beyond its expected end date in early November because of protests from the company’s competitors.

Ten firms are critical of an agreement reached last month by Network Solutions, the Clinton administration and the Internet Corp. for Assigned Names and Numbers, the Los Angeles-based nonprofit set to take over administration of the domain name system.

The agreement is designed to level the playing field between NSI and other companies that want to help customers sign up for domain names, such as latimes.com.

But in letters sent to representatives of ICANN and the Clinton administration, the protesters say the agreement will help preserve Network Solutions’ monopoly unless changes are made.

The agreement would “seriously threaten” the ability of new registrars to compete with NSI and consumers will suffer as a result, says a letter signed by nine of the firms.

Another letter sent by Silicon Valley attorney Gary Reback--who helped persuade the U.S. Justice Department to bring an antitrust case against Microsoft--warns that if the agreement isn’t modified, “NSI will maintain its monopoly control.”

Both letters criticize the decision to let Network Solutions keep all 5.3 million customers it amassed during its six-year monopoly.

They also question the fairness of allowing NSI to collect a $6-per-name wholesale fee from its competitors in exchange for operating a shared database of domain names.

Network Solutions and the Clinton administration have already signed off on the agreement, and they are waiting for ICANN’s board to do the same next week.

ICANN Interim President Mike Roberts said the criticisms would be considered, but that while “no one got everything they wanted,” they got “a set of agreements that the parties believe they can live with.”

Should the ICANN board reject the agreement, Network Solutions and its would-be competitors would find themselves back at square one. If that were to happen, some observers fear NSI’s monopoly would stay intact for months, if not years.

Reback’s letter was sent on behalf of NameSecure.com of Moraga, Calif. The other letter was jointly signed by the U.S.-based firms Register.com, Concentric Network, ENom, ENetRegistry, PSI USA and InfoNetworks, as well as by SiteName of Israel, Computer Data Networks of Kuwait and PSI Japan.

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Times staff writer Karen Kaplan can be reached at karen.kaplan@latimes.com.