Price increase concerns for domains addressed

ZADNA has stated that domain registration fees won’t increase, but insiders warn a price increase may be unavoidable.

By - March 17, 2016 Share on LinkedIn
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A special general meeting to discuss the annual business plan of the ZA Domain Name Authority (ZADNA) will be held on 17 March.

Part of the discussion is an increase in the per-domain fee the ZA Central Registry (ZACR) pays to ZADNA from R7 to R12 per domain.

It said the increase is based on ZADNA’s increasing workload and need for resources to support its work.

The fee has not increased since ZADNA first appointed Uniforum SA to become ZACR in 2012.

ZADNA said the increase will not affect the fees Internet service providers pay the ZACR, and will not cause a retail price increase.

“The increase is limited to the fee between ZADNA and ZACR,” said ZADNA.

When ZADNA approved the increase of the fee that registrars pay ZACR in November 2014 from R35 to R45 per year, ZADNA promised to avoid a fee increase for at least 3 years – unless drastic circumstances justified a change.

“ZADNA remains committed to keeping the fee at R45 for the foreseeable future,” it said.

However, insiders have warned that a retail price increase may be unavoidable as the ZACR would not be able to absorb the additional R5 per domain per year.

ZADNA said it isn’t clear how such a conclusion was reached, as the fee increase between it and the ZACR was decided at the end of February.

“ZACR provided as much financial, operational, and other information as they wanted to present,” said ZADNA.

“ZADNA then decided that R12 is the fee that shouldn’t disrupt ZACR’s operations.”

ZADNA said it would not implement fees that negatively affect the business of registry operators such as ZACR.

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