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New domain names set to change the Internet

The registry operator expects a big shift in the functioning of the Internet with the launch of new domain names by end of next year. By Pupul Dutta

With nearly 2.09 billion users globally, Internet has come of age playing a central role in everyone's life. Being in line with the laws of evolution, Internet too is going to get a makeover with the launch of new domain names. Next year will see the launch of new generic Top Level Domains (gTLDs) that are expected to revolutionize the way websites are named.

TLDs are the collections of Internet real estate and are represented by the characters on the right side of the “dot” in a domain name, like .com, .in, etc.

The development which is a result of the recent decision by Internet Corporation for Assigned Names and Numbers (ICANN) to expand the number of gTLDs, will see corporate houses, cities, municipalities going all out to grab these new domains so as to name them after their respective sectors.

“New gTLDs will offer organizations, cities and communities around the world with unprecedented opportunities to acquire their very own new gTLD to market their brand, products, community or cause in new innovative ways,” said Manish Dalal, Vice President – APAC, Verisign Naming Services.

However, if everybody starts to apply for a domain name then the exclusivity factor would be killed and also there could be an overflow of applications. To this Dalal said, “The application or the acquisition fee is very high so as to maintain the exclusivity. Not everyone can apply for these domain names. In fact, ICANN is not expecting more than a few hundred applications.”

The application fee has been fixed at $185,000 for a 10-year contract. There is also a $25,000 annual fee and a charge of 25 cents per domain name after 50,000 names are registered. There will also be additional costs for maintenance to keep the registry running and monitor for potential abuse.

So, basically the new era of Internet will be categorized into four main sections – geography, brand, community and generic. The applications for new domain names would open from January 12 and will be accepted till April 12. Within 15 days of the closure of application, ICANN will publish the name of all the applicants.

The results however, will be out only by November. “Given how things work out and the number of appeals or objections, by January 2013, the brand names would make their way in the root server,” Dalal said.

End of dot com?

This cannot mean the end of dot com due to various reasons. Firstly, the cost itself is a deterrent for many and this would be hence, for some niche companies/multi nationals. Moreover, organizations will still have to maintain their .com and .co.uk presence so as to enable smooth transition for consumers as they wouldn't switch to the new domainovernight. Also, from a brand protection perspective, companies wouldn't want anyone else to use and use their brand name.

However, in the long term, as consumers get more accustomed to these names, confusion will disappear making way for prestige element for companies with their own brand name. For example, if Dell decides to apply for a domain name, it would get easier for people to look for Dell products and services as the domain name would be something like products.dell.

“There are not just benefits but one needs to protect his brand as well. For example, who would apply for .oxford – the bookstore chain or the university? Brand owners need to assess the risks, as well as the benefits and take the step forward,” noted Dalal.

In fact, lot of experts believe that it is going to be more of a defensive action. To this Dalal retorts, “We don't know if it is going to be more of defensive applications or the aggressive ones. For that, time will only tell.”

Opportunities and Risks

New gTLDs are expected to throw open new opportunities from a marketing perspective. “Businesses may want to consider registering domain names in geographic gTLDs which are seen as prestigious or beneficial to their brand. It can also help in managing the sales channel for promotional domain names or to secure their brand's presence online,” explained Nitin Wali, Head – Business Development.

Further, companies who have many products in their portfolio may find that this change will enable their customers to find them more easily online. As an added benefit, online presence and brands could be extended through new and different applications to provide consumers with easier access to products and services. It will also help enable security features like acceptable use policies, dispute resolution and brand infringement regulations.

So far as risks are concerned, there are not many involved from the application process to the expansion of gTLDs. Any temporary confusion within user ranks is likely to be exploited by brand abusers. It’s important to remember that abuse found in currently existing TLDs can and most likely will continue—and the addition of potentially hundreds of new gTLDs with non-stringent eligibility requirements will create new locations for domainers, squatters, phishers and others to exploit. Monitoring for abuse will now have to be extended to a much wider universe.

Change coming

“The Internet is changing and it will have a profound effect on the way that people interact and do businesses in the future. To be better prepared to deal with the phenomena, we suggest that it is important to follow three rules – educate, prepare and connect and this will help you sail through,” said Dalal.

The rapid expansion of Community-Based and Standard gTLDs will impact every large—and many smaller—corporations worldwide. Given the significant risks and opportunities ahead, each brand owner will need to carefully assess that impact, choose an offensive, defensive or combined strategy, and begin developing processes to execute that strategy.

These efforts will take time— but time is limited in ICANN’s aggressive schedule and 'wait and watch' certainly does not seem to be an option.

pupul.dutta@expressindia.com