APPENDIX 51
Supplementary memorandum submitted by
Personal Domain Names Limited
THE UKDA—A FOUNDATION FOR THE FUTURE
INTRODUCTION
In just under two decades the UK domain name
system (DNS) has established itself as a national resource of
the utmost importance to the British economy. PDN, a non-profit
company, is spearheading a campaign to create a new self-regulatory
body to lay the foundation for the imminent growth of the UK's
domain name system. This new body would be more efficient, pro-consumer
and pro-choice than current arrangements.
THE PRESENT
POSITION
The .uk domain is one of about 200 country code
top level domains (ccTLDs). The ccTLD .UK was issued to the United
Kingdom on the 24 April 1985. Since then six commercially available
second level domains (SLDs) have been created. They are co.uk;
org.uk; plc.uk; ltd.uk; net.uk; and sch.uk. Through an historical
accident in 1996, the management of the UK's domain name system
was assumed by a private monopoly called Nominet. Its members
predominately consist of Internet service providers and other
interested parties. There are presently no other SLD operators
in the UK, other than Nominet.
Not only does Nominet maintain the database
of all commercially available SLDs in the UK but it also sets
the policy on whether to establish any new SLDs. In short, it
is in charge of both the commercial running of the dot UK infrastructure
and the regulation of policy—Nominet sets the rules and
acts as judge.
In 1999 an application procedure was developed
to provide third party organisations with the opportunity to apply
for the creation and management of a new SLD. In order to encourage
the participation of the private individual and to improve the
diversity of the dot UK namespace, PDN sought to establish a new
SLD called me.uk.
In a procedure that saw Nominet acting as co-bidder,
regulator and bid adjudicator, Nominet despite being faced with
a superior application awarded the contract to itself.
As the potentially largest SLD [.me.uk] to have
been created within the UK, Nominet has assumed total dominance
over the dot UK namespace and has successfully established itself
as the UK's sole "national operator".
This application procedure is under preliminary
investigation by the Office of Fair Trading.
THE SOLUTION
It is believed that there should be a clear
separation between the formation and regulation of policy and
the running of a commercial operation.
Following examples set by the Australian Government,
the UK should look towards the establishment of a body capable
of laying the foundation for the successful and imminent growth
of the .uk namespace.
Australia has established a new regime in which
a self-funded and self-regulated body has assumed regulatory control
over the ccTLD .au and everything below. This body is called the
Australian Domain Administration (auDA). In order to introduce
full and open competition into what was considered to be a closed
market, this new body has put all existing SLDs out to public
tender. Beyond the increased security a decentralised network
brings, it is believed that this regulatory model provides the
greatest value for every pound spent on domain name registration
services.
This paper proposes a similar transparent self-regulatory
regime in the UK—a ukDA. Under the approval of the UK Government,
the ukDA would assume responsibility for the ccTLD .UK and be
nationally responsible for the formation and regulation of all
policies concerning the UK's domain name system and its day to
day operation.
The UKDA would not be responsible for the running
of an SLD, since this would compromise its ability to remain impartial.
Furthermore, to ensure that the ukDA remained truly representative
of and responsive to the UK Internet community, membership would
be granted to every single domain name registrant whom would be
actively encouraged to participate in the regulatory regime.
In short, the ukDA would:
— Ensure a clear separation between
policy and commercial operations.
— Introduce competition into an environment,
which is presently controlled by one "network operator".
— Be subject to legislative and Judicial
Review.
— Derive income on a per domain name
registered basis.
— Periodically review the self regulatory
system.
— Improve industry confidence through
the establishment of a national dispute resolution policy, consumer
protection program and the introduction of a service level agreement.
OUR RECOMMENDATION
At present there is no formal agreement between
the UK Government and Nominet governing the management of the
UK's domain name system. In view of its national importance, the
UK Government should attain reserve powers that would allow it
to assume and re-delegate control of the ccTLD, in the event that
self regulation proved ineffective. For example, the UKDA would
be subject to powers held by the Secretary of State or Oftel or
later OFCOM if it failed to:
— Promote an adequate level of competition.
— Provide an acceptable balance between
innovation and efficiency.
— Operate in the Interests of all concerned.
It is believed that the forthcoming OFCOM bill
provides a timely opportunity for the Government to make way for
formal powers to be introduced that will allow it to ensure that
this national resource is run in the interests of the United Kingdom.
THE FUTURE
The ukDA could also take the lead in forming
a European wide body which, in co-operation with other continental
bodies [eg Australasia] could merge to form a global authority,
which unlike current arrangements would have no ties to any specific
nation.
At present ICANN, a US-based organisation, is
responsible for the making of decisions that affect the global
running of the Internet. ICANN is being consistently criticised
by Civil Liberty Groups over its inability to act democratically.
A body similar to the United Nations would be better placed to
represent the interests of each nation on an equal and totally
accountable basis.
5 March 2002
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