Domain Name Prices Could SkyRocket If Versign Gets Their Way

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I was reading the latest GoDaddy newsletter to find the following article.

"Go Daddy opposes ICANN-VeriSign agreement

Yesterday, February 28, ICANN announced that its Board of Directors met and approved the pending deal with VeriSign for the .COM registry. The agreement will let VeriSign raise registration fees by 7% annually in four of the next six years. It will also give VeriSign control of the .COM registry indefinitely, as it extends VeriSign’s "presumptive renewal" right when this agreement ends in 2012.

The deal was approved by a majority vote, with nine voting in favor and five voting against. One director abstained. Vinton Cerf, who is the Chairman of ICANN and also now an employee of Google®, voted in favor of the give-away.

Following the vote, Credit Suisse increased the price target on VeriSign stock. Their analyst describes the .COM registry as VeriSign’s highest margin business (before any price increases). He goes on to say that the compounding effect of just the price increases could represent a net present value of $4 to $5 per share for VeriSign, or 1 to 1.25 billion dollars. The price increases will start in 2007.

Go Daddy CEO and Founder Bob Parsons is voicing strong disapproval of this agreement. "The agreement is a bad deal for our customers and the Internet community as a whole," said Parsons.

"The fact that this deal was approved is a loud signal that major changes are needed at ICANN. If we don’t step up and overhaul ICANN, and leave the Internet largely under the control of this incredibly inept organization, this will go a long way in providing the United Nations with the ammunition it needs to start taking control of the Internet that must never happen."

From here, before the deal becomes final, the U.S. Department of Commerce will still need to approve it. If you are disappointed with this recent decision, consider writing a letter to your Senator and Congressperson. You can find the email address of your representatives at the following two Websites:
For the Senate:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
For the House:
http://www.house.gov/writerep
For more information about the agreement, please visit Bob Parsons’ blog Hot Points! at http://www.bobparsons.com "

I hope that this will never happen. I thought you were supposed to make big money on domain names when you sell sites not when you are just starting out. Too many big fishes wanting a huge slice of the Internet pie without a care who they step on. I’ve heard rumors about this but thought it would never get approved. Now I’m not so sure!