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[cctld-discuss] A Funding Model by using "Number of Domain Name * GDP" (revised on 2nd June)


                      A Funding Model by using "Number of Domain Name * GDP"

                                                                                                                        ByungKyu Kim
                                                                                                                        2nd June, 2000 

Motivation:

    1. The current funding mechanism by ICANN has some problems because only
        the number of  domain name has been considered and it can not decide each 
        ccTLD's contribution to ICANN.
    2. Problems: a. Each ccTLD has different registration policy.
                         b. Economic sizes are different between rich and poor countries.
                         c. Only the number of domain name can not decide the size of ccTLD's 
                             internet industries.
    3. Apparently, the number of domain name is the most important factor for the ICANN 
        funding, but we might also consider ccTLD's economic size. 
    4. ccTLD is somewhat different from other commercial gTLD registrars because ccTLD 
        is in charge of its country code domains as a non-commericial organization in most 
        cases. So we need to consider the GDP factor to estimate the ICANN funding.  

Proposed Funding Model:

    I have tried to estimate an ICANN Funding Model by using "Number of Domain Name * GDP". 
    In this model, I used a simple calculation to get each ccTLD's contribution as follows: 

    0.  I picked ccTLDs in the list of the ICANN's contribution invoice.
    1.  Estimated total $1.4M from 74 ccTLDs to ICANN.  
    2.  Applied the same $500 for all ccTLD(about 240 ccTLD) as a basic fee (lower bound).
    3. Contribution of each ccTLD is (A/B) * ($1.4M - $500 * 74), where
         A means  "Number of Domain Name * GDP per Capita(1999)" and
         B means "Sum of (Number of Domain Name * GDP per Capita)".
    4.  I used 1999 IMF data - "Per Capita Gross Domestic Product, Current Prices
         (U.S. dollars per person)".
          URL is http://www.imf.org/external/pubs/ft/weo/2000/01/data/index.htm.
    5. Some of ccTLD has no data, so I put some temporal numbers (2000(?)).

Calculated contribution for each ccTLD (attached):
  
     Please look at the attached file. Here I compared three different proposals:

            1. Number of Domain Names * GDP (this proposal)
            2. Number of Domain Names by ICANN
            3. Number of Hosts by Elisabeth.
           
     In the attached file there are 6 columns including following contents:

    1st column: ccTLD.
    2nd column: Number of Domain Name(1999) which ICANN suggested.
    3rd column: Per Capita Gross Domestic Product, Current Prices 
                        (U.S. dollars per person).
    4th column: Each ccTLD's contribution(US$) suggested by KRNIC 
                       (Total $1.437M for 74 ccTLDs).
    5th column: Each ccTLD's contribution(US$) suggested by ICANN 
                       (Total $1.409M for 74 ccTLDs).
    6th column: Proposed contribution in the Elisabeth's proposal -
                       (http://www.dnso.org/constituency/cctld/00weightcctld2.html).

ccTLD                                no of Domains  GDP(1999, US$)   BKKim        ICANN       Elizabeth

American Samoa(.as)                  14,148        2,000	               932	     4,614                  0 
Argentina(.ar)                              151,591       7,793                 18,534      49,438           14,000 
Ascension Island(.ac)                    4,502       2,000(?)                  637	     1,468	    100 
Australia(.au)                              122,902      20,696                  39,326	   40,082         109,047 
Austria(.at)                                    63,470      25,793                  25,490	   20,699           27,417 
Belgium(.be)                                 24,372      24,760                    9,711	     7,948           32,084 
Brazil(.br)                                      59,628       3,437                    3,629	   19,446           44,644 
Canada(.ca)                                  71,002     20,874                  23,124	   23,156         166,966 
Chile(.cl)                                        21,608       4,521                    1,991	     7,047            2,000 
China(.cn)                                     34,673          791                       919	   11,308            7,000 
Christmas Insand(.cx)                     7,598       2,000(?)                  732       2,478              100 
Cocos(Keeling)Island(.cc)             30,000      2,000(?)                1,416	     9,784               300 
Colombia(.co)                                  4,088       2,204                      638	     1,333            2,000 
Croatia/Hrvatska(.hr)                       2,937       4,364                      696	        958            2,000 
Cyprus(.cy)                                     1,654     13,965                      853	        539               300 
Czech Republic(.cz)                      42,342       5,181                   3,849	   13,809           14,000 
Denmark(.dk)                               147,985     32,727                  74,429	   48,262           33,693 
Egypt(.eg)                                       1,647       1,382                       535	       537                300 
Estonia(.ee)                                    4,106       3,504                       720	     1,339            2,000 
Finland(.fi)                                     19,599      25,195                   8,038	     6,392           63,125 
France(.fr)                                     58,997      24,594                 22,648	    19,241          77,988 
French Southern Territories(.tf)       1,688        2,000(?)	                 552          551                  0 
Germany(.de)	                         1,480,974       25,782               583,342	  482,985        170,249 
Greece(.gr)                                   15,919       11,873                  3,385	      5,192           7,000 
Hungary(.hu)                                 10,249         5,071                  1,293	      3,342         14,000 
Iceland(.is)                                      3,129       33,218                  2,087	      1,020           2,000 
Indonesia(.id)                                  4,618           729                     551	      1,506           2,000 
Ireland(.ie)                                     10,807       24,529                 4,546	      3,524           7,000 
Israel(.il)                                        22,873       15,584                  5,941	      7,460         14,000 
Italy(.it)                                           99,348       20,734                31,944	    32,400          65,831 
Japan(.jp)                                      52,139       34,402                27,880	    17,004        263,654 
Latvia(.lv)                                         2,460         2,622                    598	         802           2,000 
Lebanon(.lb)                                    1,621        4,977                     623	         529              300 
Liechtenstein(.li)                              2,608        2,000(?)                 580	         851                 0 
Lithuania(.lt)                                     3,606        2,818                     655	      1,175           2,000 
Luxembourg(.lu)                              4,595       44,206                  3,601	      1,499              300 
Malaysia(.my)                                  9,876        3,640                  1,049	       3,221          7,000 
Mexico(.mx)                                   16,311        4,748                  1,682	      5,319         40,487 
Micronesia(.fm)                               2,442         1,561                    558	         796                 0 
Moldova(.md)                                  2,554            286                    511	         833             100 
Montserrat(.ms)                              6,680         2,000(?)                704	      2,179                 0 
Netherlands(.nl)                          173,488        24,988               66,673	     56,579         82,094 
New Zealand(.nz)                         48,125        14,597               11,223	     15,695         27,100 
Niue(.nu)                                      59,898          2,000(?)             2,329	     19,534              300 
Norway(.no)                                 35,939         34,214               19,269	     11,721         40,189 
Pakistan(.pk)                                  4,333             453                    530	       1,413              300 
Peru(.pe)                                       1,653           2,097                   553	          539              300 
Philippines(.ph)                             6,339              975                   594	       2,067           2,000 
Poland(.pl)                                   35,671           3,978                2,666	     11,633         14,000 
Republic of Korea(.kr)                141,113           8,712               19,266	     46,021         28,346 
Romania(.ro)                                 5,367           1,507                    624	       1,750          2,000 
Russian Federation(.ru)               21,636          1,240                    910	       7,056        21,470 
Sao Tome and Principe(.st)         26,562             352                    643	       8,663                0 
Singapore(.sg)	                            16,923         24,808                 6,908	       5,519        14,000 
Slovak Republic                           14,419           3,556                 1,283	       4,702          2,000 
Slovenia(.si)                                  5,507         10,802                 1,408	       1,796          2,000 
South Africa(.za)                          53,722           3,033                 2,987	     17,520         14,000 
Spain(.es)                                   18,379          15,369                 4,812	       5,994         41,564 
Sweden(.se)                               40,289          26,870               17,025	     13,139         59,463 
Swizerland(.ch)                         108,458          36,254               60,522	     35,371         30,607 
Taiwan(.tw)                                 17,603           12,700                3,913	       5,741         59,704 
Thailand(.th)                                 3,580             1,994                   609	       1,168          2,000 
Tonga(.to)                                   25,059             1,793                1,186	       8,172             300 
Turkey(.tr)                                   14,259             2,890                1,129	       4,650          7,000 
Turkmenistan(.tm)                         3,077               764                    536	       1,003                0 
Turks and Ciacos Islands(.tc)      4,814             2,000(?)                647	       1,570                0 
Ukraine(.ua)                                 2,652                625                    525	          865          2,000 
United Kingdom(/uk)                 765,700           24,633               288,408	    249,715       190,181 
United States(.us)                       10,241          33,934                   5,805	        3,340      187,566 
Uruguary(.uy)                               1,740            6,357                     669	           567         2,000 
Venezuela(.ve)	                             2,760            4,321                     682	           900         2,000 
Virgin Islands(.vg)                         1,647           2,000(?)                 550	           537               0 
Western Samoa(.ws)                    1,679            2,224	                 557	           548               0 
Yugoslavia(.yu)                             4,434            2,000(?)                635	        1,446            300
                                                                        TOTAL          1,437,000    1,409,001   2,031,769 

If you want to list up your country's "No of domain names" and "GDP" with correct values,
please let me know the values and sources.

This proposal is a personal opinion.

Thank you.

Sincerely yours,

ByungKyu Kim
++++++++++++++++++++++++++++++++++++++++++++++++++
Byung-Kyu Kim, Ph.D.
Director, Dept. of Address Management
Korea Network Information Center (KRNIC)
TEL: +82-2-2186-4533, FAX:+82-2-2186-4498
Email: bkkim@nic.or.kr, URL: http://www.bk21c.pe.kr
++++++++++++++++++++++++++++++++++++++++++++++++++

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