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<DIV><FONT size=2 face=宋体>Hi, Evan,</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>I may not disagree with your arguments. However,
regarding calculating the "costs", that is only next to impossible.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>Calculating the "costs" of the new gTLD program, is
very similar to the telecom industry adding new services. Exactly what
would be the costs for a particular new service? This could range anywhere
from ZERO to infinity. The reason for this is, without any exception, any
new services would always use the existing network, which should be the major
"cost" of this new service. However, regardless of there is such a new
service or not, the network is already built for the
"pailn-old-telephone-service" (POTS). All the costs for building it is already
spent, and there is no way to retrieve it. Thus, it is known as "sunk
costs", and is already paid for by the tariff for POTS.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>Therefore, what is the real cost for any additional
new service? In theory, it should only include any additional equipment
attached to the network specifically for this new service but for nothing
else. However, there are still problems with calculating the per unit
cost of the new service. For example, how many people are going to use
this new service? Also, for how long? This is pretty much like a
digital camara priced at $100. If you use it to take exactly 100 photos,
the cost of each photo will be $1. If you take 1,000 photos, each will
cost only $0.1. However, if you took only one photo and it is broken, this
single photo will cost $100, while if it was stolen even before you could use it
to take pictures, the cost to you for each photo with this camara will be
infinite.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>From the above exmples, I believe you can already see
the complexity of calculating the "real cost" of the new gTLD program.
Simply said, I do not believe in any claims of the "real cost", becuase it does
not exist at all.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>Now back to our original issue: What to do with the
excess funds collected via auctions? If the original intention was nothing
but to recoup the "costs" of the new gTLD program, and if this is how the USD
$175K was calculated (or guessed) to begin with, then this "excess" funds
is fully justified to be beyond ICANN's intention of recouping the
"costs". Therefore, providing a refund to the payees of thier $175K would
also be fully justified.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>Thank you again. Further discussions are most
welcomed.</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体>Kaili</FONT></DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
<DIV><FONT size=2 face=宋体></FONT> </DIV>
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<DIV style="FONT: 9pt 宋体">----- Original Message ----- </DIV>
<DIV style="FONT: 9pt 宋体; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=ja.bhenda@gmail.com
href="mailto:ja.bhenda@gmail.com">ja.bhenda@gmail.com</A> </DIV>
<DIV style="FONT: 9pt 宋体"><B>To:</B> <A title=evan@telly.org
href="mailto:evan@telly.org">Evan Leibovitch</A> ; <A title=kankaili@gmail.com
href="mailto:kankaili@gmail.com">Kan Kaili</A> </DIV>
<DIV style="FONT: 9pt 宋体"><B>Cc:</B> <A title=at-large@atlarge-lists.icann.org
href="mailto:at-large@atlarge-lists.icann.org">ICANN At-Large list</A> </DIV>
<DIV style="FONT: 9pt 宋体"><B>Sent:</B> Saturday, May 13, 2017 4:06 PM</DIV>
<DIV style="FONT: 9pt 宋体"><B>Subject:</B> Re: [At-Large] Auction Proceeds -
where we are and what you can help</DIV>
<DIV><BR></DIV>Thanks Evan<BR><BR>Your arguments clarifies the
matter<BR><BR>Jean Benda Nkurunziza<BR>AtLarge-ISOC Rwanda
President<BR>+250731000006<BR><BR>Sent from Bhenda Latest Tech Robot
<DIV style="LINE-HEIGHT: 1.5" class=quote><BR><BR>-------- Original Message
--------<BR>Subject: Re: [At-Large] Auction Proceeds - where we are and what
you can help<BR>From: Evan Leibovitch <EVAN@TELLY.ORG><BR>To: Kan Kaili
<KANKAILI@GMAIL.COM><BR>CC: ICANN At-Large list
<AT-LARGE@ATLARGE-LISTS.ICANN.ORG><BR><BR><BR type="attribution">
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<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: #0b5394"
class=gmail_default><SPAN
style="FONT-FAMILY: arial,sans-serif; COLOR: rgb(34,34,34)">On 13 May 2017
at 01:05, Kan Kaili </SPAN><SPAN
style="FONT-FAMILY: arial,sans-serif; COLOR: rgb(34,34,34)" dir=ltr><<A
href="mailto:kankaili@gmail.com"
target=_blank>kankaili@gmail.com</A>></SPAN><SPAN
style="FONT-FAMILY: arial,sans-serif; COLOR: rgb(34,34,34)">
wrote:</SPAN><BR></DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: #0b5394"
class=gmail_default><SPAN
style="FONT-FAMILY: arial,sans-serif; COLOR: rgb(34,34,34)"><BR></SPAN></DIV>
<DIV class=gmail_extra>
<DIV class=gmail_quote>
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<DIV bgcolor="#ffffff">
<DIV><SPAN style="FONT-FAMILY: 宋体">Besides all the suggestions for fund
usage, I would suggest another way to "use" the money. That is, to
REFUND all the applicants who paid for applying new
gTLDs.</SPAN></DIV></DIV></BLOCKQUOTE>
<DIV><BR></DIV>
<DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default>The original price was set by policy of cost-recovery,
at the price that it was because there was no precedent and that ICANN
needed to build-in contingencies for legal challenges and recoup
previously-spent expenses to design the gTLD program.</DIV><BR></DIV>
<DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default>ICANN has never calculated the actual cost of
delivering the program, and until it does the amount of a refund can not be
known. I think that the result of such research would be surprising, that
the gap between actual cost and anticipated cost is far less than might be
dreamed by the domain industry.</DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default><BR></DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default>Remember that the issue under debate is not the disposal
of excess funds from the gTLD application fees over real costs, but of
auction proceeds gained well in excess of those fees by applicants willing
to pay an even higher premium to get specific strings.<BR></DIV></DIV>
<DIV><BR></DIV>
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<DIV bgcolor="#ffffff">
<DIV><FONT size=2 face=宋体></FONT> <SPAN style="FONT-FAMILY: 宋体">If I
remember correctly, ICANN collected USD $175K per application, and
recognized as a hefty price to pay even by ICANN itself. This could
be a threshold that prevented some or many potential
applications.</SPAN></DIV></DIV></BLOCKQUOTE>
<DIV><BR></DIV>
<DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default>Perhaps a lower fee for future rounds based on the
experience of previous wounds would address this situation, but a
retroactive refund would not.</DIV><BR></DIV>
<DIV>
<DIV style="FONT-FAMILY: tahoma,sans-serif; COLOR: rgb(11,83,148)"
class=gmail_default>-
Evan</DIV><BR></DIV></DIV></DIV></DIV></BLOCKQUOTE></AT-LARGE@ATLARGE-LISTS.ICANN.ORG></KANKAILI@GMAIL.COM></EVAN@TELLY.ORG></DIV></BLOCKQUOTE></BODY></HTML>