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Changes to domain name – Whether a gain or a loss?

Written by Hiteshi Dekhtawala in September, 2011


Changes to domain names. Whether a gain or a loss?Recent changes by global body to the online naming process for internet addresses has supported brands in having a chance to carry marketing campaigns by buying specific domain names linked to them. However, at this stage it is difficult to comment whether or not this revolution would prove to be a gain or a loss globally.

At a convention in Singapore, the Internet Corporation for Assigned Names and Numbers’ (“ICANN”) board approved the practice to be applied for the generic top-level domains (gTLDs).  The development marks the end of several years of regulatory limbo and heated debate over the most efficient process to reallocate specific domain names.  The resolution has marked the most significant change in the internet addressing system since its inception. It would not be hard to believe that this has not been some overnight decision. It’s been part of ICANN’S concern to introduce competition and increase the number of gTLDs for a while now and also the process did not escape the criticisms raised by nations at various levels.

The process has the potential to transfigure online brand positioning as it will extend the 21 common domain name suffixes such as .com and .net and well-known country code names. ICANN has indicated that it anticipates between 300 and 1,000 new names could be created under the new program.  As ups to this revolution, the revolution will prove to be a powerful marketing tool for most large brands from the entertainment and financial service industries.  Their own web domain names may give the big brands an opportunity to monitor the protection of their brand and build trust amongst its clientele in the increasing complex market.

Applications for new TLDs will open in early 2012 and close 90 days later. Once the application period is closed, it is expected that future applications for new TLDs will be unlikely to be accepted for at least 2-3 years. The first new TLDs are expected to go live on the Internet in 2013. The major downside of this revolution is an initial upfront fee of US$185,000 and further ongoing maintenance costs.  At US$185,000 for your own .brand, etc, it may be difficult to see a lot of people going for their own.

Another major point of discussion which is gaining everyone’s attention is the question as to whether Google will see a loss in its revenue due to this revolution.  Public would have a mixed opinion on this one, it would not be wrong to say though that it is difficult to budge a giant from its position.  Even though the new suffixes such as .car, .health, .love, .movie, etc would seem easier for public to search for what they are looking for, in real world scenario, even by creating more styles of domain names we are not going to suddenly know all the possible web addresses off the top of our heads.  As a matter of fact, to navigate our way through the new system, we will remain to be if not more, dependent on Google and other search engines.

It must also be appreciated that there may be domain name applications received which may develop controversy and certain domain names may not be acceptable to few nations.  To avoid such controversy, there is a proposal that domain approval procedures include a mandatory “review” by an ICANN advisory panel comprised of representatives of roughly 100 nations. The process is open-ended, saying that any government “may raise an objection to a proposed (suffix) for any reason.” Unless at least one other nation disagrees, the proposed new domain name “shall” be rejected.

Having discussed on the topic, it seems interesting to know how the whole process works for all and whether this revolution brings a major change to the internet world.

 

Copyright © 2011 Condon Associates, All rights reserved.

PLEASE NOTE:  All information contained in the articles below was correct at time of publishing.