[cctld-discuss] A Funding Model by using "Number of Domain Name * GDP" (updated on 1st June, 2000)

["Byung-Kyu Kim" <bkkim@nic.or.kr>]

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

                                                                                                                        ByungKyu Kim
                                                                                             Korea Network Information Center
                                                                                                                          1st 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: 

    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: Elisabeth's proposal (http://www.dnso.org/constituency/cctld/00weightcctld2.html).

If you have some comments, please let me know.

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
++++++++++++++++++++++++++++++++++++++++++++++++++

funding4.xls