Network Solutions, Inc. (NASDAQ: NSOL) (Price: $85.50) has finally succumbed to the U.S. Department of Commerce’s (“DOC”) demand that it must recognize ICANN’s regulatory authority and apply to ICANN for accreditation if it desires to continue to register .com names. Network Solutions (“NSI”) will only be allowed to continue in the .com registrar business under the rules and regulations established by ICANN. NSI will be in the exact same position as any and all of the other ICANN accredited registrars. This effectively ends NSI’s exclusivity to register .com names. As a result the U.S. government’s objective of terminating NSI’s usurped monopoly in the .com registration business has been achieved and prices will fall to reflect costs.
U.S. Secretary of Commerce William M. Daley acknowledged that the DOC’s negotiations with NSI had been “contentious” and “could have idled the Internet.” It is unfortunate that the U.S. government allowed a mere arrogant contractor to delay the development of an open and competitive .com registration system. The Internet community is now rid of NSI’s threats and will benefit from ICANN’s policies that provide safeguards that did not exist under NSI’s now terminated system.
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