Reader Comments on Aardvark Daily 26 July 2001
Note: the comments below are the unabridged
submissions of readers and do
not necessarily reflect the opinions of the publisher.
From: David Farrar For : The Editor (for publication) Subj: Domain Name Fees Just wanting to clarify a few things in your article about domain name fees and DOMAINZ profits. Firstly I personally agree fees should fall in the near future and also that profits of $1.5 million should not continue to be made. However we are at somewhat of a transition. The SRS should bring a cheaper wholesale price for domain names and with competition cheaper retail prices. Competition has generally worked well in the gTLDs and as you say are as cheap as NZ$25. However there are some economies of scale with 10,000,000 names compared to 100,000. Also some ISPs can now get dot nz domain names for their customers at NZ$20/year + GST. There have been some major costs at DOMAINZ which have been regrettable. Until it is known what the costs of moving to the SRS will be plus what the cost of fixing or replacing DOMAINZ's DRS is there is some conserativism about dropping fees. It is hoped the SRS will be operational in the first half of 2002. This should IMO trigger quite different pricing structures - we may even get ISPs including a domain name gratis as part of their minthly fee? DPF (speaking just for himself) From: Shane Walbran For : The Editor (for publication) Subj: Domainz Pricing Bruce, you don't say where you come up with the $83 for setting up a new domain name, and on a first glance at the Domainz site I can't see any thing obvious. Looking at www.freeparking.co.nz I can get the cost up to $50-$60 but not $80'ish. Aardvark Responds: I was working from Domainz' own figures quoted about half-way down this page: www.domainz.net.nz/Content/Presence.htm From: Keith Davidson For : The Editor (for publication) Subj: Are .nz Domain Names Too Expensive? Your article this morning contains some information which could be considered misleading if read in isolation. You can register a new .nz name for considerably less than $83.25 - and a quick look at some of .nz's largest name agents shows new .nz names available at $34.95 plus GST. Some name agents offer the service at even lesser costs for .nz. The average price paid to Domainz last year for a new .nz name is $39.00. If you chose to register a .com/net/org name with the gTLD registry, you would pay a minimum US$35.00 (that is about NZ$83.00) per year. So .nz is similar to .com/net/org, insofar as the registry offers a tier of costs for individual name holders through to large registrars / name agents. Furthermore, it should be noted that Domainz's internal costs have dropped from $34.49 per domain name the year before last, to $20.83 per name last year. You should also remeember there are economies of scale for a registry dealing with tens of millions of names, compared to the .nz registry with less than 100,000 names. But in any case, the same answer applies to .nz as to .com/net/org names, it does pay to shop around, to obtain significantly better prices. It should also be noted that many nameholders in .nz are aware that there are cheaper prices available for their .nz names, yet they elect to continue dealing directly with the registry. The SRS is coming, and it certainly isn't the trivial task that many hoped it would be (no-one has come up with the "5 lines of PERL" yet!). There will be some significant expenditure required to cover the SRS project in its entirety. You should also recall the demand that Domainz should be primarily the operational arm of InternetNZ. If you like, the profit made by Domainz is a gross amount, and dividends that flow back to InternetNZ continue to be used for the braoder ccTLD administration. Including international representation to ICANN, SRS implementation costs, legal and regulatory purposes etc, InternetNZ has an expense budget for the forthcoming year (that was approved by its membership 2 months ago) that contains more than $550,000 in expenditure. Unfortunately, the passing of dividends from the Domainz company to InternetNZ (an incorporated society) results in further taxation of 33% on dividends passed, meaning an $800,000 dividend from Domainz covers the $550,000 expenditure requirement for InternetNZ. The IRD are taking a large slice of the overall profits through this "double dip" on taxation. This is a matter of concern to InternetNZ and expert tax advice is being sought to see if there is a way to minimise these costs. But if InternetNZ remains an Incorporated Society, which potentially is the best legal structure for a true "bottom up", open and transperant operation, this double tax situation probably remains the only option. Thanks for the opportunity to set the record straight. Keith Davidson Chair InternetNZ From: Michael Hallager For : The Editor (for publication) Subj: US$35 domain names? - I don't think so! I have purchased US TLD's .com/.net.org for as low as US$6.50 (Aprox NZ$16.25) recently in a Bulkregister special. Their normal price is US$12.00. (Aprox NZ$30.00 - Both low quanity pricing). Based on my many issues with Domainz I would surmise that we are all paying for their former CEO and their massive stuff up with the new online registration system. When I asked the question why their system was coded with Windows/ASP: I was told that although they used *.nix on the backend, the choice to use Windows/ASP on the frontend (In preference to *.nix/PHP) was made for "political reasons". Further to this, Domainz recently had the cheek to charge me high 20 something dollars to reinstate a domain name that had lapsed because their system made it impossible for me to renew. (Faults)... I explained the whole senario to them at the time but they didn't care. We MUST have real competition in the register market to ensure that Domainz offers us all better deals and to keep them honest. Michael Hallager Managing Director Comsolve Networks (NZ) Limited From: Mark Denholm For : The Editor (for publication) Subj: Domain Fees Firstly $83.25 IS right for some ISPs who register domain names, comprising of the first years fee + nameholder fee with Domainz. Generic TLDs can be gotten at very competitive pricing to .nz domain names if the person registering shops around, places like register.com, 123cheapdomains and others offer generic TLDs at pricing well below that of Network Solutions. (who generally charge $35 USD) Its also something to note that the nameholder "ID" gotten when you register a TLD is included in that registration price, in the .nz structure you pay for your ID seperately. (And its not optional, unless you know someone with an ID you're willing to use and also accept that you won't be the "owner" of your domain or be able to request changes through domainz because of that. This may also depend on wether or not you're registering through a service or an ISP though.) One other small note of caution, if you are registering an .nz domain cheaper through a "domain service" then beware of transferring problems. Some services delay their payments (or have late in the month payment schedules) with Domainz that mean that when you register it isn't when the domain is paid for. If you try moving these to your isp, then expect a couple of headaches.Now Have Your Say
Home | Today's Headlines | Contact | New Sites | Job Centre | Investment Centre