Tucows 2014 Annual Report Download - page 18
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The New gTLD Program is a new, complex and untested process and if we do not properly manage our response to any
resulting changes in the business environment, it could adversely impact our competitive position or market share.
Each registry and the ICANN regulatory body impose a charge upon the registrar for the administration of each
domain registration. If these fees increase, this may have a significant impact upon our operating results.
Each registry typically imposes a fee in association with the registration of each domain. For example, Verisign,
the registry for .com, presently charges a $7.85 fee for each .com registration and ICANN currently charges a $0.18 fee
for each .com domain name registered in the generic top level domains, or gTLDs, that fall within its purview. We have
no control over these agencies and cannot predict when they may increase their respective fees. In terms of the current
registry agreement between ICANN and Verisign that was approved by the U.S. Department of Commerce in
November 2012, VeriSign will continue as the exclusive registry for the .com gTLD until November 2018. In addition,
pricing of New gTLDs is generally not set or controlled by ICANN, which could result in aggressive price increases on
any particularly successful New gTLDs. The increase in these fees with respect to any gTLDs either must be included in
the prices we charge to our service providers, imposed as a surcharge or absorbed by us. If we absorb such cost increases,
or if surcharges act as a deterrent to registration, our profits may be adversely impacted by these third-party fees.
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