Price Increase for .RU/. Irina Danelia for ccNSO meeting at ICANN - - PowerPoint PPT Presentation

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Price Increase for .RU/. Irina Danelia for ccNSO meeting at ICANN - - PowerPoint PPT Presentation

Nov 20, 2023 136 likes •279 views

Price Increase for .RU/. Irina Danelia for ccNSO meeting at ICANN 61 San Juan, 14 March 2018 History Fee for 2 nd level domain name registration/renewal for registrars was stable since 2007 180,0 160,7 160,0 ~ 2,02 USD* According

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SLIDE 1

Price Increase for .RU/.РФ

Irina Danelia for ccNSO meeting at ICANN 61 San Juan, 14 March 2018

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SLIDE 2

148,4 160,7 78,1 70,0 120,0 0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 160,0 180,0 01.06.2003 - 31.08.2004 01.09.2004 - 30.06.2005 01.07.2005 - 31.07.2007 01.08.2007 - 30.06.2017 01.07.2017 - now

Fee for 2nd level domain name registration/renewal for registrars was stable since 2007

  • from 01.06.2003 till 31.08.2004 - 5 USD
  • from 01.09.2004 till 30.06.2005 – 5,64 USD
  • from 01.07.2005 till 31.07.2007 – 2,72 USD
  • from 01.08.2007 till 30.06.2017 – 70 rubles

History

According Rosstat

  • fficial

inflation rate from August 2007 till June 2017 was 128,21 %

~1,18 USD* ~ 2,02 USD*

* at the exchange rate RUB/USD on July, 1 2017

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SLIDE 3

Market Landscape

Russian TLDs (excl VAT, rubles) gTLDs (USD) .SU 211,86 .MOSCOW/.МОСКВА 220,3 .РУС 375,00 .COM 9.05 .ORG 9.68 .ОРГ 8,25 .ОНЛАЙН 20 .САЙТ 20

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SLIDE 4

Market Landscape

Source: registrars’ web-sites (publicly available data)

443 427 436 416 322 329 369 399 462 671 739 829 849 858

  • 100

200 300 400 500 600 700 800 900 1 000 01.01.2015 01.07.2015 01.01.2016 01.07.2016 01.01.2017 01.07.2017 01.01.2018

Average price for 2nd level domain name registartion/renewal for registrant in 2015-2017 years, rubles

registration renewal

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SLIDE 5

November 2014 exercise

  • Proposal: increase from 70 rubles to 87,5 rubles (excl VAT)
  • Ground:
  • negative growth in Mar-Oct 2014
  • negative fcst for 2015
  • Proposal hasn’t been approved by Council of Coordination Center

for TLD .RU/.РФ

  • Outcomes
  • Cut in expenses, mostly – advertising and funding of industry

events

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SLIDE 6

Price elasticity study

Period: November-December 2016 140 scenario-based interview (12 registrars, 28 resellers, 100 registrants)

  • It became evident during the interviews that respondents understand that

price increase might happen sooner or later and that Coordination Center has the reason for such an increase, i.e. growing operation costs

  • Scenario of price increase up to 100-120 rubles is considered as most
  • probable. Bigger registrars are ready for such an increase. Most negatively

reacted the registrars dealing with domainers and dropcatchers.

  • Price 150 rubles was considered “sharp” or “many-fold”
  • Price increase up to 150 rubles or higher almost all respondents perceive

negatively

  • Most respondents predict 10-15% drop in renewals in case of price increase

up to 100-120 rubles, mostly due to the domainers segment. Price 120-150 rubles may cause the increase of end-user price and drop in renewals in the private user segment.

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SLIDE 7

Decision

70 120

The increase of the registration/renewal fee gives the Coordination Center the opportunity to fund the broad-scale projects focused, as defined in the statue, on development of domain names registration system, facilitating the security of the Internet usage, broadening the use of global network to the benefit of users, business and state.

Fee for registration/renewal/transfer from 01 July 2017

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SLIDE 8

Model for Forecast

2 566 392 2 652 415 2 701 411 2 774 149 2 860 029 2 935 758 2 990 782 3 061 960 941 347 922 383 914 877 916 543 921 720 937 406 940 015 928 863 395 767 366 740 338 988 350 968 383 210 431 548 431 245 411 361 177 057 135 589 134 036 116 871 131 282 146 694 152 044 151 797 319 673 319 069 285 378 252 761 266 105 287 375 305 607 290 367 92 993 115 904 82 792 109 491 102 047 111 836 142 394 137 666 198 544 175 524 174 604 153 192 147 955 165 905 127 533 176 895 220 352 226 819 227 372 227 480 227 930 228 968 335 299 358 440 2 300 000 2 400 000 2 500 000 2 600 000 2 700 000 2 800 000 2 900 000 3 000 000 3 100 000 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 1 000 000
  • dec. 13
  • jun. 14
  • dec. 14
  • jun. 15
  • dec. 15
  • jun. 16
  • dec. 16
  • jun. 17

Quantity of domains by category

1 - 10 11 - 100 101 - 500 501 - 1000 1001 - 5000 5001 - 10000 10001 - 50000 > 50000 56% 17% 8% 3% 5% 2% 3% 6%

Domain names in .RU by registrant category

1 - 10 11 - 100 101 - 500 501 - 1000 1001 - 5000 5001 - 10000 10001 - 50000
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SLIDE 9

Model for Forecast

  • Forecast assuming no price change: new registrations & renewals

by segment. Total growth in 2017 +2,7%

  • Adjustment by segment (vs ‘no change’ forecast):
  • New registrations -10%
  • Renewals -5%...- 25%
  • Total growth 2017 fcst: -1,7%
  • 2017 EOP fcst: .RU 5,344,000 domains, .РФ 868,000

domains

  • Stress test: drop 20%
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SLIDE 10

Market Reaction

  • Feb 2017 – silence
  • End of March 2017 – letter from registrars to Council and Board of

Founders of Coordination Center for TLD .RU/.РФ

  • Voting results:
  • 120 rub is OK - 5 registrars (market share 45%)
  • Price increase should be less - 6 registrars (market share 43%)
  • No price increase - 28 registrars (market share 18%)
  • Forecast: drop 11% in 2018 & 25% in 2019

Some domainers predicted that .ru will drop below 5 bln this winter

  • May 2017 – open public consultations
  • End of June 2017: 9 registrars sent complain to Federal Antimonopoly
  • Service. Still under investigation
  • July,1 – price increase came into force
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SLIDE 11

Market Reaction

  • Side effect: growth in new registrations & renewals in June 2017
  • Minimal increase of registrars’ price for end-user customers
  • Main category of registrants (1- 10 domains per registrant) continues to

grow

  • 2017 actuals better then forecast
  • Side effect: strong discussion regarding transfer (change of registrar)
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SLIDE 12

Stats (as of Feb, 1 2018)

Jun’ 17 Sep’ 17 Dec’ 17 Jan’ 18 Total domains (.RU + .РФ) 6 410 808 6 353 434 6 239 355 6 183 973 New registrations in .RU + .РФ (actual vs fcst) 21,72%

  • 12,46%
  • 1,04%
  • 2,32%

Renewals in .RU + .РФ (actual vs fcst) 43,22% 3,01% 5,51% 3,67%

120 000 130 000 140 000 150 000 160 000 170 000 180 000 190 000 Jun' 17 Jul' 17 Aug' 17 Sep' 17 Oct' 17 Nov' 17 Dec' 17 Jan' 18

New registration in .RU + .РФ

FCST ACTUAL 200 000 250 000 300 000 350 000 400 000 450 000 Jun' 17 Jul' 17 Aug' 17 Sep' 17 Oct' 17 Nov' 17 Dec' 17 Jan' 18

Renewals in .RU + .РФ

FCST ACTUAL
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SLIDE 13

Thank you for your attention! Any questions?

i.danelia@cctld.ru