Pressing questions of the Ukrainian domains registrations market

Pressing questions of the Ukrainian domains registrations market (Market) Yuriy Kargapolov, independent expert, Head of Regulation Committee of UANIC

Contents 1. “Quantity” aspect 2. Regulation aspect 3. Governance aspect 4. Steps of averting the complex problems 5. Summary 2

“Quantity” aspect. The features and basic characteristics of the Market. • 60 public domains are accessible to registration: 53 geographical and 7 general purposes; • 666690 domains in total (stat. 09/2012); • >300 Registrars in general. UA • 183 Registrars in COM. UA; • ? ? ? Registrants; • IDN. ua (stat. 03/2011); • Registration domains extension – less 75 -85%. 3

“Quantity” aspect. The features and basic characteristics of the Market. 16000 14000 12000 01. 07 10000 01. 08 01. 09 8000 01. 10 6000 01. 11 4000 01. 09. 12 2000 0 . UA GOV. UA EDU. UA 4

“Quantity” aspect. The features and basic characteristics of the Market. 2000000 1800000 1600000 1400000 01. 07 1200000 01. 08 1000000 01. 09 800000 01. 10 600000 01. 11 400000 01. 09. 12 200000 0 COM. UA ORG. UA Total domains In opinion of Registrars 5

“Quantity” aspect. That did happen at the Market? • 2001 -2002. Conflict with Registrars. Refusal from a contract from Hostmaster’s side and as the result is loss of Registrants by Registrars. • 2004. Conflict with Registrars. Conflict with Antimonopoly Committee and as the result the fine for Hostmster. • 2007. Conflict with Registrars. EPP: not did applied new technologies. • 2008. Conflict with NRA. • 2009. Conflict with ALL. Refusal from negotiations with all engaged parties during implementation of multi stakeholders approach. • 2010. Conflict with Registrars. Issue of “. ORG. UA” • 2012. Conflict with Registrars. Case of “. KIEV. UA”: cartel conspiracy. 6

Regulation aspect. 4 Indisputable Facts 1) 2) 3) 4) The MONOPOLIST are present at the Market. The Rules of Domain. ua which regulate activity at the Market create problems and difficulties for participants more likely rather than competitive conditions, fair and transparent environment for development of business of Registrars. In fact the domain. ua administration activity is ancestral lands of Group of the private persons affiliated and collected at two enterprises - ООО "Хостмастер" ("Hostmaster Ltd. ") & ООО «Комьюникейшн Системз Лтд. » ("Communication Systems Ltd. ") and united in “Corporation HOSTMASTER”. Anybody not from this Group, and especially Registrars, Government's Representatives, hasn’t right and can't interfere in administration process, beginning from a stage of discussion of problems and finishing a stage of development and realization of methods and ways of decisions. Even if this issues concern domain. GOV. UA 7

Regulation aspect. 3 Root Issues • Problem #1. Full absence of ICANN‘s multi stakeholders approach/model in work practice of the current administrator of cc. TLD. ua. The current admin-c = Corporation HOSTMASTER • Problem #2. The current administrator of cc. TLD. ua simultaneously carries out two functions - administration role (admin-c) and technical role (tech-c) of the cc. TLD. ua Register. • Problem #3. The current administrator of cc. TLD. ua is the ONLY ONE ACTOR who carries out procedures of: ü dispute resolution between participants of the Market, ü management of the Rules of Domain. ua, ü and maybe the main - punishment of Market participants which has abused points of these Rule in opinion ONLY of the current admin-c or private members of Corporation HOSTMASTER. 8

Regulation aspect. Root’s conclusions • There is exist the «Group of the elite persons» which enter in "Corporation HOSTMASTER". • "Corporation HOSTMASTER" != "Hostmaster Ltd. “ • Without taking into account of any public interest "Corporation HOSTMASTER" exercise decision-making processes by the command methods R” E T S D E Aapproach No any multi stakeholders V M O T R stakeholders S No any multi model P O P H ANo any state law n o i t No anyrabusiness involvement o NGOs involvement p No any r o “C 9

Governance aspect. Myths Myth #1. The corrupted civil servants wish to grasp the. ua Domain, and the oligarchical state sleeps and sees how to take the. ua Domain at principal and strong "Hostmaster Ltd. “ D E egrasp the. ua Domain during 12 c V • Disproof. No any real activity from Government to n O e i Rbe mainrand/or years. The Government don't want single actor in the P of thexpside of admin-c administration process - only one A ebut Government been agreed to find the T process, • Disproof. It was redelegation e O f i N l compromise by the proposition of ICANN. Hostmaster has tricked both e Government and ICANN th y b Myth #2. Strong and principal "Hostmaster Ltd. " to guard and protect of the. ua Domain • Disproof. Hostmaster can’t created competitive environment during 12 years • Disproof. No any real attempts to create real public discussion during 12 years. 10

Governance aspect. ? Root’s conclusions The MONOPOLIST is objectively threatens of stability work of the cc. TLD. ua under influence of Economic, Financial and Regulation Risks and creates of the not competitive environment. It’s exist big risks of stability work in administration aspect admin-c By objectively not threaten of stability work of the cc. TLD. ua under influence of Technical Risks. It’s not exist big risks of stability work in technical aspect – tech-c 11

Steps of averting the complex problems 6 steps 6 should be invalidated 5 D Step #1. The «Communication Systems Ltd. » E § V t, O c R A n to be admin-c. and should be deprived of. Alegal PP validity o i t ca i n u • The basis. Today «Communication Systems Ltd. » illegally carries m m o c e out this function. Teunder the Ukrainian legislation l Step #2. The admin-c rights must be transferred to the multi stakeholders organization. ED V es l O p i R c GAC Principles on multi P • The basis. Realization of. APpoints ICP-1, n i r P C stakeholders approach creation. GA At this organization there should & -1 state, business and community; be representatives Iof CPthe participants of the market from Registrars should be presented. 12

Steps of averting the complex problems 6 steps Step #3. The new Rules of the domain taking into account requirements for the competitive market must be developed. The Rules should be obligatory for execution all participants of the s ED by s n e V i io O rt t R a a l multi stakeholders approach. P p is l l g AP a e l f o nincluding "Hostmaster a s i u Market, • The basis. The all actors ofnsthe n ai r e k s n Rulese developers. U Ltd. “, must be invited Within of Rules to Coas h t f o e create the effective and independent mechanism of dispute c n a rv of multi stakeholders model and defense e s resolution on. Othe basis b of participants of Market. 13

Steps of averting the complex problems 6 steps b 4 § D the regulatory , Eas a Step #4. Rules should be accepted document and V 4 O § R , 1 P 3 P 7 are registered in the Ministry A of Justice. t# c A et the regulatory legal act, obligatory to n • The basis. The Rules become i b a C execution by allyparticipants of the Market in accordance of he t b Ukrainian legislation b of the domain Step #5. It's necessary to develop Technical Order 5 § , EDstakeholders a V 5 cc. TLD. ua within the frames of. Rmulti approach. O § , 1 P 3 P 7 A # t • The basis. The Technical Order c become the flexible legal act which A t ne of the cc. TLD. ua in accordance of i will regulate technical policies b a C e h t Ukrainian legislation y b 14

Steps of averting the complex problems 6 steps D s the joint ETechnical s Orderioby n Step #6. It’s necessary to confirm e V i t O r t R a a l P p s P i l g A NRA. f al decision of the Register and e l n a so i u n s nof the Market, ai • The basis. The all actors including "Hostmaster r e k s n U o e C hcomply t Ltd. “, must be execute and the decisions under Technical f o e c n Order. a rv e s Ob 15

SUMMARY “Corporation HOSTMASTER” – admin-c + tech-c “Hostmaster Ltd. ” – tech-c “Multi stakeholders association” – admin-c 16

Questions ? Is your silence means consent ? Yuri KARGAPOLOV Head of Regulation Committee of UANIC mailto: yvk@uanic. net http: uanic. net 17