[NA-Discuss] CONFIRMED: Briefing Session on Draft Operational Plan and Budget

[Kevin Wilson]

Hello Danny,



As we discussed in the At Large budget briefing today, here is my response to your questions about the $0.75 fees.  See section 7.2 below:

Section 7.2  Fees to be Paid to ICANN.

 Registry-Level Transaction Fee. Commencing on 1 July 2005, Registry Operator shall pay ICANN a Registry-Level Transaction Fee in an amount equal to US$0.75 for each annual increment of an initial or renewal domain name registration and for transferring a domain name registration from one ICANN-accredited registrar to another during the calendar quarter to which the Registry-Level Transaction Fee pertains. ICANN intends to apply this fee to purposes including:

(a) a special restricted fund for developing country Internet communities to enable further participation in the ICANN mission by developing country stakeholders,

(b) a special restricted fund to enhance and facilitate the security and stability of the DNS, and

(c) general operating funds to support ICANN's mission to ensure the stable and secure operation of the DNS.

Here is how the transaction fees for .NET add up in FYE2007.
FY 2006/07 Revenue for .NET Registry





# of transactions

Jul-Sep 2006

         2,188,601

Oct-Dec 2006

         2,378,039

Jan-Mar 2007

         2,741,716

Apr-Jun 2007

         2,738,499



       10,046,855





Fees per transaction

 $              0.75





 Transaction Revenue

         7,535,141


Using the language from Section 7.2 of the .NET contract, the transaction revenue can be allocated as follows:

enable developing countries to participate in the ICANN mission

         2,511,714

0.25

enhance and facilitate the security and stability of the DNS

         2,511,714

0.25

ensure the stable and secure operation of the DNS

         2,511,714

0.25



         7,535,141




ICANN did not set up specifically restricted funds for the three intended purposes.  However, ICANN certainly has spent and continues to spend considerable amounts for these purposes.  The following table shows how the FY08 budget might be allocated to these three intended purposes:

.NET Purposes

Amounts



Allocations

FY08 Budget

enable developing countries to participate in the ICANN mission

         2,511,714



Fellows, 1/3 of int'l meetings, RL's, IDN

        3,804,492

enhance and facilitate the security and stability of the DNS

         2,511,714



Relevant costs of  IANA, Part of policy development, compliance

        2,569,238

ensure the stable and secure operation of the DNS

         2,511,714



Relevant costs of IANA, Lroot

        2,642,965



         7,535,141





        9,016,695


Let me know if you would like to discuss this further.

Best regards and I look forward to seeing you in Paris.

Kevin  Wilson
Chief Financial Officer
ICANN
kevin.wilson at icann.org<mailto:kevin.wilson at icann.org>
+1.323.868.0514







-----Original Message-----
From: Danny Younger [mailto:dannyyounger at yahoo.com]
Sent: Thursday, June 05, 2008 9:54 AM
To: na-discuss at atlarge-lists.icann.org; At-Large Staff
Cc: Denise Michel; Kevin Wilson; Kevin at yahoo.com; Doug Brent
Subject: Re: [NA-Discuss] CONFIRMED: Briefing Session on Draft Operational Plan and Budget



This question is posed in advance of the briefing to Kevin and Doug:



The .net registry contract states:



Section 7.2  Fees to be Paid to ICANN

a)  Registry-Level Transaction Fee. Commencing on 1 July 2005, Registry Operator shall pay ICANN a Registry-Level Transaction Fee in an amount equal to US$0.75 for each annual increment of an initial or renewal domain name registration and for transferring a domain name registration from one ICANN-accredited registrar to another during the calendar quarter to which the Registry-Level Transaction Fee pertains. ICANN intends to apply this fee to purposes including: (a) a special restricted fund for developing country Internet communities to enable further participation in the ICANN mission by developing country stakeholders, (b) a special restricted fund to enhance and facilitate the security and stability of the DNS, and (c) general operating funds to support ICANN's mission to ensure the stable and secure operation of the DNS.



Could you please advise:



(1)  The total amount of fees obtained by way of this portion of the .net contract

(2)  The amount allocated to the special restricted fund for developing country communities (and by what means it will be dispersed)

(3)  The amount allocated to the security and stability restricted fund (and how such funds are spent)

(4)  The amount allocated to the general operating fund.



Thank you,

Danny Younger