18(c) What operating rules will you adopt to eliminate or minimize social costs?
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Multiple requests for the same domain name will be handled on a first-come, first-served basis. Since the FRL registry will become and stay a relatively small registry, we do not expect many problems in this area. Where problems arise with multipe parties wanting the same domain name, the legal personnel of the registry will solve these issues together with the parties involved.
Domain name pricing
The Provincie Fryslân has produced an extensive report on the FRL tld in 2011, stating that with a price of EUR 40 for a domain name, it would be possible to register 40.000 domains, and have a valid business case. However, this plan did not include the large consumer market in The Netherlands, consumers that are accustomed to much lower prices per domain name than 40 euro.
To accommodate the consumer market, the registry will start pricing at EUR 15,- per domain name. This will allow ICANN-accredited registrars to set their pricing at 20 – 30 euro, acceptable for consumers and businesses alike. With the Provincie Fryslân an agreement has been proposed, that on higher numbers of registrations the price will automatically drop, to a minimum of EUR 2,50 per domain name when total numbers of registrations hit 800.000 or more. Price increases are not expected. If a price increase would be deemed necessary, ICANN will be notified and asked for permission, as well as timely notification to all registrars that are connected to the registry. There are no specific plans for price increases. We are convinced that the 100.000 domain names in our plan is very well achievable, and that there is a high probability that domain name registrations will exceed 100.000 domains. At that point prices will drop, and not increase. There are no commitments to registrants about price escalation, only a commitment to the Provincie Fryslân about price decreases.
Together with the Provincie Fryslân a plan has been made to address all Frisian companies and citizens. In the first stages the sunrise (where trademark holders can apply) all companies that have a head office in Friesland will receive a letter from the Province that a top-level domain name can be registered for their company. This letter will contain a domain name for the company, and a authorization code to register specifically that domain name. The auth code is not bound to a specific registrar.
In the second stage, where all Frisians can apply, we will send letters to all Frisians and companies in Friesland with discount ⁄ auth codes. These codes will allow registration of Frisian domain names at a discount price (5,00 euro per domain name). The discount codes are not bound to a specific registrar.
When letters with discount codes are sent to the addresses in Friesland, these codes will allow any ICANN-accredited registrar to pay only EUR 5.- per domain name (the discount is part of the marketing costs⁄budget). When the ‘Frisian sunrise’ is over and the general landrush has arrived, the normal price of EUR 15 per domain name will apply. In this phase, discount codes will still be accepted, and will still only charge EUR 5,- for a domain name to the ICANN-accredited registrar during the first year.
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