prepare for the approaching domain-name-land-grab

The Board of the Internet Corporation for Assigned Names and Numbers (ICANN) today approved a recommendation that could see a whole range of new names introduced to the Internet’s addressing system.

“The Board today accepted a recommendation from its global stakeholders that it is possible to implement many new names to the Internet, paving the way for an expansion of domain name choice and opportunity” said Dr Paul Twomey, President and CEO of ICANN.

A final version of the implementation plan must be approved by the ICANN Board before the new process is launched. It is intended that the final version will be published in early 2009.

“The potential here is huge. It represents a whole new way for people to express themselves on the Net,” said Dr Twomey. “It’s a massive increase in the ‘real estate’ of the Internet.”

Presently, users have a limited range of 21 top level domains to choose from — names that we are all familiar with like .com, .org, .info.

This proposal allows applicants for new names to self-select their domain name so that choices are most appropriate for their customers or potentially the most marketable. It is expected that applicants will apply for targeted community strings such as (the existing) .travel for the travel industry and .cat for the Catalan community (as well as generic strings like .brandname or .yournamehere). There are already interested consortiums wanting to establish city-based top level domain, like .nyc (for New York City), .berlin and .paris.

“One of the most exciting prospects before us is that the expanding system is also being planned to support extensions in the languages of the world,” said Peter Dengate Thrush, ICANN’s Chairman. “This is going to be very important for the future of the Internet in Asia, the Middle East, Eastern Europe and Russia.” The present system only supports 37 Roman characters.

Upon approval of the implementation plan, it is planned that applications for new names will be available in the second quarter of 2009.

Source:ICANN

Ken’s Comment: Domains = Wealth Creation

The Opportunity:
This is a great opportunity for people to establish new domains that will segment markets into more readily definable spaces, thereby affording more targeted marketing and sales efforts. While the application process might be limited in number, those with the tenacity and drive to define a space ought to be able to find a way to do so!

Underlying Motivations:
When one looks at on-line environments such as World of Warcraft and Second Life, one sees burgeoning virtual economies. For the past few years Second Life’s currency, the Linden Dollar (L$), has been valued at 1/265 of the U.S.$1. The currency in Entropia Universe, Project Entropia Dollars (PED), has been bought and redeemed for real-world money at a rate of 10 PED for U.S.$ 1. Many Korean virtual worlds (such as Flyff) and other worlds outside that country (such as Archlord and Achaea) operate entirely by selling items to players for real money.
Research into the valuation of virtual property has led to a theory that such value depends the following conditions:

1. Rivalry: ­Possession of property is limited to one person or a small number of persons.
2. Persistence: ­Possession is maintained even when the property is not in use. Users expect property to remain in their possession between sessions.
3. Interconnectivity: ­Property may affect or be affected by other people and other property. The value of property varies according to a person’s ability to use it for creating or experiencing some effect.
4. Secondary markets: Virtual property may be created, traded, bought, and sold. Real assets (typically money) may be at stake.
5. Value added by users: Users may enhance the value of virtual property by customizing and improving upon the property.

Collectively, virtual economies have served to test whether or not people would attribute value to virtual property. The results must be viewed as a resounding YES. More significantly, domain names satisfy each of the five conditions set out above.

Punch Line:
There may be no such thing as a free lunch, unless that is the lunch is virtual!