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

[Danny Younger]

Kevin,

Thank you for your work on this topic.  I have several concerns:

(1) If a registry contract indicates that ICANN intends to apply fees toward special restricted funds, then rightfully we should be honoring that intent by actually having such specifically restricted funds established.

(2) Rather than guessing at where the money might be going that was intended for the benefit of (for example) developing country stakeholders (i.e. fellowship program, IDNs etc.), the broader community should be involved in the process of determining how such considerable monies should be spent -- Two and a half million dollars could pay for a number of regional gatherings in the developing world.

Here is where we have the conflux of strategic and financial considerations and where community input would be of value.

regards,
Danny



--- On Tue, 6/10/08, Kevin Wilson <kevin.wilson at icann.org> wrote:

> From: Kevin Wilson <kevin.wilson at icann.org>
> Subject: RE: [NA-Discuss] CONFIRMED: Briefing Session on Draft Operational Plan and Budget
> To: "dannyyounger at yahoo.com" <dannyyounger at yahoo.com>
> Cc: "Denise Michel" <denise.michel at icann.org>, "na-discuss at atlarge-lists.icann.org" <na-discuss at atlarge-lists.icann.org>, "At-Large Staff" <staff at atlarge.icann.org>, "Kevin at yahoo.com" <Kevin at yahoo.com>, "Doug Brent" <doug.brent at icann.org>
> Date: Tuesday, June 10, 2008, 6:06 PM
> 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