Tucows 2015 Annual Report Download - page 8

Retail, primarily through our retail website hover.com (“Hover”), derives revenues from the sale of domain name
registration and email services to individuals and small businesses. Retail also includes our Real Names Service – based on
over 36,000 surname domains – that allows roughly two-thirds of Americans to purchase an email address based on their
last name.
The Tucows Domain Portfolio generates revenue by offering the portfolio’s domain names for resale via our
reseller network and other channels. In addition, we generate revenue from the payments for the sale of rights to gTLD
strings under the New gTLD program.
Additional information about segments can be found in “Note 18 – Segment information” in the Notes to
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report.
Net Revenues
Network Access Services
Mobile and Other services
We derive revenue from Ting's sale of retail mobile phones and services to individuals and small businesses
nationally as well as providing fixed high speed internet access in select cities and Internet hosting and network consulting
services to customers in Central Virginia. Ting provides customers with access to our provisioning and management tools
via the ting.com website.
Revenues are generated in the United States and are provided on a monthly basis with no fixed contract term.
Domain Services
Wholesale - OpenSRS Domain Service
Historically, our OpenSRS Domain Service has constituted the largest portion of our business and encompasses
all of our services as an accredited registrar related to the registration, renewal, transfer and management of domain names.
In addition, this service fuels other revenue categories as it often is the initial service for which a reseller will engage us,
enabling us to follow on with other services and allowing us to add to our portfolio by purchasing names registered
through us upon their expiration.
We receive revenues for each domain registration or other Internet service processed through our system by
Service Providers.
With respect to the sale of domain registrations, we earn registration fees in connection with each new, renewed
and transferred-in registration and from providing provisioning services to Service Providers and registrars on a monthly
basis. Domain registrations are generally purchased for terms of one to ten years. Payments for the full term of all services,
or billed revenue, are received at the time of activation of service and where appropriate are recorded as deferred revenue
and are recognized as earned ratably over the term of provision of service. This accounting treatment reasonably
approximates a recognition pattern that corresponds with the provision of the services during the quarters and the year.
Wholesale – OpenSRS Value-Added Services
We derive revenue from our hosted email service through our global distribution network. Our hosted email
service is offered on a per account, per month basis, and provides resellers with a reliable, scalable “white label” hosted
email solution that can be customized to their branding and business model requirements. The hosted email service also
includes spam and virus filtering on all accounts. End-users can access the hosted email service via a full-featured, multi-
language AJAX-enabled web interface or through traditional desktop email clients.
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