Verisign (NASDAQ: VRSN) has taken a proactive stance in addressing what it terms as misconceptions regarding its management of the .com registry. In a recent blog post titled “Setting the Record Straight – Myths vs. Facts about .Com,” Pat Kane, the senior vice president of Verisign’s naming and registry services, meticulously dismantles seven prevalent myths surrounding the domain.
One of the misconceptions challenged by Verisign pertains to the wholesale price of .com domain names, which currently stands at $10.26 as of September 1. While the company compares this price to other top-level domains to justify its stance, critics argue that this price point significantly exceeds what competitors might offer if allowed to vie for the management of .com.
Addressing another myth, Verisign refutes claims that it prioritizes share repurchases and dividends over infrastructure investments. Despite not attributing this assertion to a specific source, Verisign clarifies that the surplus profits are allocated towards buybacks rather than infrastructure enhancements.
A contentious issue raised in the blog post involves the renewal of contracts to operate gTLD registries, specifically .com. While some advocate for periodic rebidding of such contracts, Verisign emphasizes the unique status of .com within the internet landscape, highlighting its historical significance and operational efficiency as distinguishing factors.
Moreover, the post dispels the notion that the U.S. Government removed price caps on .com domain names in 2018, clarifying that while the price freeze was lifted, price caps remain in effect. Verisign underscores that the regulatory environment governing .com remains intact despite evolving market dynamics.
Furthermore, the blog post delves into Verisign’s perspective on registrars adjusting prices at a faster rate than wholesale costs and the impact of domain investors on market dynamics, emphasizing these as key areas of contention in the domain industry. By elucidating these points, Verisign aims to provide clarity and transparency regarding its operational strategies and the regulatory framework surrounding the .com registry.
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