The National Telecommunications and Information Administration (NTIA) recently released a perplexing statement regarding its agreement with Verisign, the operator of the .com domain registry. In this statement, the NTIA emphasized its lack of authority to set .com domain prices, despite being the entity that establishes price caps for these domains.
The NTIA’s assertion that the continuation of the Cooperative Agreement is essential for the stability of the Domain Name System (DNS) was coupled with an admission of its inability to alter .com pricing unilaterally. It appears that any changes to the pricing structure require mutual consent with Verisign, as established in prior agreements. The agency noted that discussions with Verisign aimed at adjusting wholesale .com pricing have been ongoing but have not resulted in consensus.
While the NTIA’s statement recognized public concerns about current pricing levels, it suggested that lowering .com prices would serve the public interest. It echoed Verisign’s perspective regarding the need to scrutinize wholesale prices as well as the additional costs incurred by resellers and domain investors.
Notably, the general public, which typically owns only a handful of domains, lacks the leverage to contest these pricing practices. The primary stakeholders advocating for price reductions are registrars and domain investors, both of whom face intensely competitive environments. As preparations are underway for a potential change in administration, it is suggested that discussions surrounding price reductions could become stagnant, reminiscent of previous policies that raised price caps under the last Trump administration.
This situation presents a paradox: while the NTIA aims to address the issue of .com domain pricing, it operates within a framework that limits its ability to enact changes absent Verisign’s agreement.
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