Sedo Outlines ICANN Proposal for Distribution of One-Letter Domain Names

Sedo, the #1 domain name brokerage and parking provider in the world, has just released this press release that outlines their proposal to ICANN for the distribution of one-letter domain names.

Here is the press release:

Democratic Process Designed as a Model for Issuing Similar High Value Domain Names Could Eliminate Additional ‘Internet Tax’

Cambridge, Mass. – January 25, 2006 – Sedo today issued a proposal whereby the Internet Corporation for Assigned Names and Numbers (ICANN), the independent body which oversees domain name distribution, could conduct an all-inclusive, transparent online auction for one-letter .com domain names. Sedo’s objective is to allow any global citizen that is interested in purchasing these high-value domain names to do so at fair market value, rather than limiting the process to large corporations or to those with a technology advantage.

The proposal comes in response to discussions that ICANN is considering making one-letter .com domains, such as O.com, available to the public. These domain names would be extremely valuable to any potential owner due to their branding potential. Most experts estimate these domain names could be worth up to six or seven-figures each.

Concurrently, ICANN is proposing an increase to its imposed fees per domain name registered. Critics argue that ICANN does not have legal standing to issue such fees or increases and such decisions should be governed by an outside body.

“As ICANN comes under increasing scrutiny from international critics, it must operate in the most self-sufficient and democratic way possible,” said Matt Bentley, CEO of Sedo. “This proposal allows ICANN to accomplish both goals by capitalizing on its most underutilized asset – high-value domain names – and distributing them in a fair, transparent manner and using those funds to eliminate any proposed ‘Internet taxes.’”

Typically, new domain names are distributed on a first-come, first-serve basis. However, this is not a truly democratic process as it favors those who have computer programs written to monitor and immediately purchase newly available domains.

Sedo proposes that the proceeds from the auction of uniquely valuable domains go directly to bolster the ICANN budget, offsetting the proposed new ICANN fees. The company estimates that the sale of the remaining 23 one-letter .com names would generate approximately $2 to $5 million. The auction would serve as an ideal test-case to determine whether the practice can be used in similar future situations.

For more information on Sedo’s proposal, please contact at Matt Bentley at Matt@sedo.com or visit http://www.sedo.com/ICANNproposal/.

Source: Sedo

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