White paper regarding Universal Acceptance 12 March 2017 Michael - - PowerPoint PPT Presentation

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White paper regarding Universal Acceptance

Conference presentation Michael Kende, Andrew Kloeden 12 March 2017

2008414-415 | Commercial in confidence

Agenda

▪ This presentation sets out the work Analysys Mason has performed on behalf of UASG in

producing a white paper related to Universal Acceptance.

▪ We have circulated a draft version of the paper ▪ The agenda is as follows:

– Introduction and purpose of our paper – Overview of content and messaging

2 Agenda

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Introduction and purpose of the paper

▪ We have produced a white paper for UASG regarding Universal Acceptance (UA) of new generic

top level domains (gTLDs), including Internationalised Domain Names (IDNs)

▪ The purpose of this paper is to raise awareness of the benefits of UA, showing the value of the

new names, in order to encourage UA – The paper is pitched at a senior-level commercial, policy, and cultural audience – It is short, clear, and non-technical, with an executive summary and infographics

▪ Our paper is based on the following methodology

– 10 interviews with key players, including registries, users of the new domains, and application

• wners

– The production of 5 case studies – Secondary research of third party sources

3 Introduction and purpose of the paper

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Overview: our paper has a clear and simple storyline that highlights both the importance of UA, and the relative ease of implementation

▪ The focus of this paper is the benefits of UA for software and application owners, to be able to accept users

regardless of their domain: – UA has progressed, but is not complete. Without UA, people will not be able to use their preferred ‘identity’ that the new gTLDs and IDNs have enabled – UA has benefits for software and application owners, domain registrants, and Internet users more broadly, driven in part by the take up and popularity of the new domains. (There is demand for gTLDs, and registrations have grown strongly, although IDNs have been less successful)

▪ The key benefit of UA to software and application owners is to seamlessly receive demand from the many

users of the new domains in order to maximise their revenue and satisfy their customers – The effort required to implement UA in most cases is not onerous but depends on the initial software design,

• rganisational factors, and the upgrade schedule of the software. This is the case for both gTLDs and IDNs

▪ However, certain systems (e.g. aviation booking systems using Teletype) may have difficulties that require

further upgrades – It makes sense for application and software owners (e.g. enterprises, cultural institutions, government institutions) to implement UA to gain the benefits from the strong demand for the new domains

4 Overview of content and messaging of the paper

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Demand for gTLDs has grown, and this underpins the benefits of Universal Acceptance; IDNs have grown but remain at a lower level

5 Cumulative registrations of IDNs (top level)

• 100

200 300 400 500 600 700 800 900 1,000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Thousands

Cumulative registrations of gTLDs

• 5

10 15 20 25 30 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Millions

Total registrations Used domains

Overview of content and messaging of the paper

Source: nTLDstats.org

There are an additional ~1.8m country-code IDNs also registered in Russian and Chinese

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The benefits of UA accrue from the benefits of the new TLDs, flowing to end users, domain owners, and application owners

6 Overview of content and messaging of the paper Benefits Entity

Internet users Domain and website owners Application and software owners

▪ Internet users gain from UA fundamentally because it

means the Internet “works” without extra tweaking

▪ Users with new email addresses will have their emails

delivered, and will have access to all the services they normally use

▪ The benefits of UA for domain owners flow from the

benefits of the new domains

▪ The new domains allow a stronger or new identity, helping

with marketing or awareness. UA means the domains work, which means that domain owners don’t look bad in the eyes of their customers

▪ If an application does not accept new domains, it looks

bad to its customers. This causes a problem in proportion to the number of customers using the new domains

▪ E.g. an email system without UA will scramble the

presentation of emails from the new domains These benefits can create a virtuous circle. Internet users benefit from the acceptance of the new domains, which drives traffic to domain and website

• wners, which further spurs application and software owners to implement UA

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Bayern Domain Gmbh has positive experiences with the use and acceptance of the .bayern domain, which has provided cultural benefits

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Source: interview

Overview of content and messaging of the paper

Case study subject Bayern Domain gmbh owns and registers the .bayern domain, which is used in Bavaria for regional content (e.g. the Bayern München football team’s website in the local dialect) Benefits of UA The benefits of UA to Bayern Domain, and to Bavarians flow from the benefits of the new domain. These include a stronger regional identity that is of benefit to entities with a strong Bavarian link. UA allows these domains to work seamlessly across the Internet Experience with UA In Bayern Domain Gmbh’s view, UA, as it relates to the .bayern domain has now progressed well. Most applications now accept the domains of its clients. Cost and effort to upgrade Bayern Domain Gmbh helps its clients deal with UA issues as they arise. In their experience, it is not a great effort to implement UA, since there is a continuously updated list of new domains, and the coding effort is similar to a normal bug fix Other interviewees have also suggested implementation of UA is not typically difficult

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We have conservatively estimated the total benefit of UA to be USD 9.8 billion

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Source: statista, Ethnologue, Internet World Stats, Verisign, Radicati

Overview of content and messaging of the paper

5 1 7 3 6 2 4 Russian Chinese IDns USD billion 0.5 0.1 0.3 3.2 2.2 Vietnamese 6.2 Indian languages 3.6 gTLDs Arabic

Estimated per annum benefit of UA for IDNs by language group and by gTLDs, USD

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Our estimation methodology is conservative and relies on a number of key assumptions

9 Overview of content and messaging of the paper

Note: we count speakers of all Indian languages (and also Chinese dialects) as a single group Source: Analysys Mason, statista, Ethnologue, Internet World Stats, Verisign, Radicati

Calculation methodology for the impact of UA for gTLDs Calculation methodology for the impact of UA for IDNs

Number of non-Internet users:

▪

Russian: 68m

▪

Chinese: 550m

▪

Arabic: 132m

▪

Vietnamese: 19m

▪

Indian: 805m Number of non-Internet users for whom lack of local language content is a barrier:

▪

Russian: 15m

▪

Chinese: 121m

▪

Arabic: 29m

▪

Vietnamese: 4m

▪

Indian: 177m New internet users based on UA

▪

Russian: 0.7m

▪

Chinese: 6m

▪

Arabic: 1.4m

▪

Vietnamese: 0.2m

▪

Indian: 8.9m 22% (based on primary research) 5% (conservative assumption) Total active gTLDs:

▪

11.7m Total active gTLD based email addresses:

▪

154m, assuming 13 email addresses per domain Total gTLD email addresses where users do not have a second non-gTLD address

▪

77m, assuming 50% of email addresses are used by people with no non-gTLD address E-commerce spend per email address

▪

Global average of USD360 per annum Proportion of web sites missing out on this revenue due to lack of UA

▪

13% based on .club testing Total e-commerce revenue that could be generated if all e-commerce sites implemented UA

▪

USD3.6billion USD 360 average spend per new user Total benefit of USD6.2 billion

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Studies show that progress has been made toward UA, but this is incomplete

10 Acceptance of the .club domain by various website categories Results of ICANN testing on the acceptance of domains of different formats

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Short gTLD Long gTLD IDN.com Unicode mailbox, gTLD domain Right-to-left IDN Unicode IDN

Overview of content and messaging of the paper

Source: ICANN, .Club Domains LLC

ICANN found better acceptance of gTLDs than IDNs in its testing

65% 55% 78% 80% 52% 60% 67% 13% 22% 17% 9% 12% 8% 11% 21% 23% 5% 11% 36% 32% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Newsletters Social networks Could not test Failed Music Passed Travel E-mail Retailers Total

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Case studies show the effort required to implement UA is not onerous, although certain legacy applications m

11 Overview of content and messaging of the paper

Source: Interviews

fTLD fTLD’s experience in helping its clients get their domains accepted has been relatively positive, with fixes made in relatively short times. This was the case for Adobe and Twitter, for example Bridge Community Bank Bridge Community Bank had UA issues with Verizon and Wells Fargo, which were fixed quickly by local staff, without the need to go back to head office. There have been unresolved problems with the US Treasury, however IATA In the airline industry, acceptance of ASCII-based gTLDs is not problematic. Legacy use of Teletype, however, may make it more difficult to accept IDNs, as punycodes are typically longer than gTLDs

Case study Key findings

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Contact details

12

Michael Kende

Senior Advisor michael.kende@analysysmason.com

0)1223 460866

Cambridge Tel: +44 (0)1223 460600 cambridge@analysysmason.com Dubai Tel: +971 (0)4 446 7473 dubai@analysysmason.com Dublin Tel: +353 (0)1 602 4755 dublin@analysysmason.com London Tel: +44 (0)20 7395 9000 london@analysysmason.com Madrid Tel: +34 91 399 5016 madrid@analysysmason.com Manchester Tel: +44 (0)161 877 7808 manchester@analysysmason.com New Delhi Tel: +91 124 4501860 newdelhi@analysysmason.com Paris Tel: +33 (0)1 72 71 96 96 paris@analysysmason.com Singapore Tel: +65 6493 6038 singapore@analysysmason.com Boston Tel: +1 202 331 3080 boston@analysysmason.com Milan Tel: +39 02 76 31 88 34 milan@analysysmason.com Hong Kong Tel: +852 3669 7090 hongkong@analysysmason.com @AnalysysMason linkedin.com/company/analysys-mason youtube.com/AnalysysMason analysysmason.com/RSS

Andrew Kloeden

Principal andrew.kloeden@analysysmason.com