Draft Second Milestone Report

As a followup to its first Milestone Report and in response to requests from its charters as well as the Board and Government Advisory Committee, this Joint Application Support Wording Group is pleased to submit a Second Milestone Report to its chartering organizations, the ALAC and GNSO.

The work given to this community working group (WG) has presented enormous challenges to its membership, most of whom care deeply about reducing obstacles for proposed TLD applications by or supporting communities in developing economic environments.

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Part 1: WHY provide applicant support?
Part 2: WHEN should support be provided?
Part 3: WHO qualifies for support? and HOW do we evaluate the applications?
Part 4: WHAT do qualified applicants get?
Part 5: HOW will the process work and how does it relate to the gTLD Applicant Guidebook (AG)?

Part 1 - Why provide new applicant support?

During the International ICANN Meeting in Nairobi in March 2010, ICANNs Board recognized the importance of an inclusive New gTLD Program and the concern expressed by ICANN stakeholders regarding the financial and technical obstacles faced by applicants from developing economies seeking to offer new gTLDs. The Board issued a Resolution (#20) at requesting ICANN stakeholders…

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This WG is comprised of members who support these aims and are committed to lowering the barriers to full participation in the gTLD program by a truly global and inclusive community. It is Chartered by both ICANN's At-Large Advisory Committee (ALAC) and its Generic Names Supporting Organization (GNSO); though the two charters are similar but not identical; a comparison between the two charters is available in this downloadable document.

Part 2: When should support be offered? In this round or wait until later?

This WG has determined that in order to be most effective, this program (of support for in-need applications) be implemented for the first and subsequent rounds. Several reasons are provided in support of this recommendation:

• Board Resolution 2010.03.12.46-47 clearly expressed the need to ensure that the New gTLD Program is inclusive. Much of the ICANN global community, particularly from developing regions, has welcomed this decision.
• With every new gTLD application round, the market competitive disadvantage of under-served communities increases. ICANN should not cause or allow the New gTLD Program to further the gap in gTLD Registry representation from other regions. The diversity, competition and innovation the New gTLD Program could bring should be an opportunity to all around the world since the Internet is a global resource that belongs to all. ICANN has the obligation to look closely into this issue and fulfill its responsibility to serve the global public interest by allowing accessibility and competition for all around the world.
• There  is no indication whether, in subsequent rounds, fees will be reduced and, in case there is any reduction, by how much. Therefore there is no benefit in waiting.
• Informal market research by some of the WG members indicates there is built-up demand for new gTLDs, including IDN gTLDs. There is expectation for a considerable number of applications. One of the main concerns is that, without some sort of assistance program, the most obvious and valuable names (ASCII and IDNs), will be taken by wealthy investors. This may limit opportunities in developing regions, for local     community institutions and developing country entrepreneurs. Of the current 21 New gTLD Registries, 18 are located in USA and three are in western Europe (with one having a sales/marketing presence in Asia). None are located anywhere else.
• While, per policy, ICANN plans for a second round, the timeline for this to happen is, at best, uncertain. Experiences from previous rounds add to the uncertainty. For example, ICANN communicated during the last round that this was to be followed soon by new rounds, nevertheless, it is taking almost a decade for a new round to materialise. Since ICANN cannot give guarantees and certainty of when future rounds will take place, those who cannot afford to participate in the program during this round, due to the current elevated fees, is perceived as an unfair and non-inclusive treatment.

Part 3 - Who qualifies for support? and How are gTLD applications evaluated against the above criteria?

The WG has determined a number of criteria to be used in the determination of a gTLD application eligible for support and/or cost relief (in this document called the “eligible application”):

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Applicants will be expected give a self-declaration that they are eligible to receive support under these criteria

3.1 Notes on the application's public interest qualifications

3.1.1 - Support by and/or for distinct cultural, linguistic and ethnic communities

The “.cat” Catalonian TLD is seen by many linguistic, ethnic and cultural communities as a success story that has helped to preserve and indeed grow the language and culture. Many such groups -- especially those with geographically dispersed diasporas -- see a TLD as unifying icon that will facilitate Internet use while encouraging community growth. We would note especially, linguistic minorities protected by treaties such as the European Charter for Regional or Minority Languages and the Council of Europe Framework Convention for the Protection of National Minorities.The WG agreed that the applications by such communities, should they meet the requirements of need, should be eligible for relief/support.

3.1.2 Service in an under-served language, the presence of which on the Internet has been limited

A number of WG members have advocated support for the build out of TLD strings in non-Latin scripts by communities that use these scripts and have to date been un-served or under-served on the web. 

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1. Least developed countries: category 199;
2. Landlocked Developing Countries: category 432; or
3. Small Island Developing States: category 722.
4. Indigenous Peoples, as described in Article 1 of Convention No. 169 of the International Labor Organization and the UN Declaration on the Rights of Indigenous Peoples

3.1.5 Operated by local entrepreneur, in those geographic areas where market constraints make normal business operations more difficult

While for-profit companies, private-public partnerships and hybrid entities can be eligible, the WG agrees that this support program must not be used as a substitute for conventional business risk; and the applicants set out in 3.3 are not eligible for support. It should be used to enable new gTLDs that could -- without this program -- be unimaginable.

Note for 3.1.3 and 3.1.5 The WG agreed that other forms of social benefit (including but not limited to: increasing skills; investment in the skills base of a target community; fostering gender balance and presence of minorities; positive contribution to regional or national economies) must be considered.

3.2 Notes on Financial Need

The overriding consensus of the WG is that financial need and capability is the primary criteria for determining eligible applications. Such need and capability is to be demonstrated through the following criteria:

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To demonstrate need, Applicants will be required to submit materials to the program administrators, detailing the various constraints which negatively affect the Applicant's ability to acquire and implement a gTLD without assistance under this program. Applicants should provide background on economic, technical, administrative, legal, and/or socio-cultural factors within their environment which are causing these constraints. As well, Applicants will be requested to detail any applicable constraints on management, human resources, IT infrastructure and the Applicant's technical capabilities. 

3.3 Notes on ineligible criteria

Applications by governments or government-owned entities

By consensus of the WG, purely Governmental or para-statal applicants have been listed as not entitled to receive support. However, at the ICANN San Francisco meeting the WG received a request from the GAC to consider including Government applications from Developing Countries for support.  The WG will work to obtain a mutually acceptable definition and criteria to fit Government applications with the GAC WG, but recognizes the difficulty in measuring a government’s “need” and concern of the appropriateness of offering support for one government over another if resources are limited. The GAC WG has offered to review the JAS criteria and provide its recommendations on a formulation of a solution for possible support to Developing Country Government applications.

Part 4 - What benefits do qualified applicants receive?

The WG recommends a number of different kinds of support to be made available for eligible applicants, which fall into the following categories:

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There is consensus in the group that external funding agencies would make grants according to their own requirements and goals. ICANN would only provide those agencies with applicant information of those who met the criteria established for support.

Part 5 - Evaluation process and relationship to the new gTLD Applicant Guidebook (AG)

The WG has determined, at this time, that best possible process to provide support for such applications is to be done through a process that is parallel to, and not a replacement of, the ICANN Applicant Guidebook. Thus, even after the Guidebook is formally approved, this WG can continue its work to refine those components of its mandate which remain unresolved. It is important that the AG make mention of this program and refer interested potential applicants to it, however it is not the WG's intention to otherwise affect the existing application process. To qualify for support applicants may be required to demonstrate that they meet this program's criteria on financial need and public interest; however such activity is intended to supplement, not replace, existing mechanisms in the AG. 

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