Readings for April 3rd, 2008


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Baltimore Sun: Marylander gets big slice of Web pie

Fourteen years ago, Chris Clark shelled out 20 bucks to register the domain name "pizza.com." This afternoon, he's selling it to the highest bidder for somewhere in the neighborhood of $3 million.

"It's crazy, it's just crazy," he said somewhat giddily yesterday morning from his home in North Potomac. By then, a week's worth of anonymous bidding at an online auction site had pushed the price to $2.6 million. The auction closes at 2 p.m. today.

"That amount of money is significant," said Clark, 43, who recently launched a software company. "It will make a significant difference in my life, for sure."

Source: Baltimore Sun

CircleID: Domain Name Price Jump: Moore's Law or Parkinson's Laws?

ICANN traded the community interest for some guaranteed money from VeriSign. It was a very simple trade in many ways, which allowed ICANN to bulk up to an annual $50 million budget. This is cleverly sliced up to appear to be diversified, but is upon closer examination really a lot of staff costs hidden under such categories as "Excellence in Policy Development"? ($2.97M); "Excellence in Operations"? ($15M) and so on.

Overall, ICANN now spends 37% of its $50M on personnel (=staff); 19% on "professional services"? (=outsourced staff); 13% on "administration and contingency"? (=staff); 9% on ICANN meetings (mostly staff travel and lodging costs); and 7% on travel and other meetings (more staff travel costs). Of the paltry $1.59M spent on capital projects, $650K went to the L Root Server, $54K went to IANA for DNSSEC, while the much of the rest is for staff-related costs such as a new telephone system and new office furniture. This from an organization which is supposed to assure the smooth technical functioning of the Internet.

The charitable view of this Constantinian bargain is that because ICANN is now simply too big to abolish, Internet users everywhere should rejoice that VeriSign and other big companies and governments will never have unfettered sway. But the corrosive effects of the deal with VeriSign are still eating through the organization: in addition to the redistribution of wealth from Internet users to VeriSign, the .com contract once and for all got rid of the now-dated notion that ICANN consisted of its membership, and not its leaders and the ICANN staff. Today, I am not aware of a single person who is not being paid by ICANN who says "we"? instead of "they"? when referring to ICANN.


Source: CircleID



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