Management of the Transition to the Shared Registry System 20/11/01

Management of the Transition to the Shared Registry System

1. There are a number of issues that InternetNZ has to consider about the transition to the SRS, not only in its role as the steward of .nz, but also as the owner of the current registry/registrar entity.

2. This paper seeks to raise these issues for discussion by the Council. It is anticipated that further work will be required on the detail of these issues before any final decisions can be taken. However agreement in principle is sought on a number of issues to refine the scope of future work.

Domainz, the Registry

3. InternetNZ established a company, the New Zealand Internet Registry Limited, to take responsibility for the day to day management of the DNS. Progressively this company, trading as Domainz, took over management of the various components of the operation of the DNS from the universities, culminating in the implementation of the DRS in May 2000 and full management of the registry, registrar and DNS functions.

4. The Hine Report envisaged that the registry would be an entity separate to InternetNZ, providing registry services for .nz pursuant to a contract. Recommendation One of the Hine Report recommended also:

"ISOCNZ should alter its policy to remove the registration function from the registry. The registry should focus on registrars as its customers."

5. It is proposed that prior to the SRS being implemented and sometime around March/April next year, Domainz is effectively split into two entities, the registry operator and a registrar. The details of the split will need to be worked through and before this work commences, it would be preferable to have agreement in principle to this concept.

6. If Council approve this in principle, then the next steps would include:

• Consultation with Domainz staff about the proposed split
• An analysis of the best options for structuring both the registry and registrar components
• Detailed breakdown of the split of assets, staffing etc.

7. Consultation with members may also be required but this should follow any consultation with Domainz staff.

Domainz, the Registrar

8. Domainz will have to be the first registrar on Day 1 of the SRS. The situation for .nz providers will be no different on Day 1 of the SRS as it is at present. The providers will be interfacing with the register, through Domainz. Progressively other entities will become registrars and interface directly with the register. A number of entities who are keen to become registrars have raised issues about Domainz's role during the transition to the SRS.

9. There would appear to be no clear view of what Domainz's role should be, although the changes to the constitution of Domainz indicate a direction. InternetNZ is both the owner of Domainz and the steward for .nz. The stewardship role requires InternetNZ to act in the wider interests of the local and international internet community. This places a special responsibility on InternetNZ.

10. It is proposed that the following principles are adopted :

• InternetNZ, as the steward for .nz, should not own both a registry and a registrar beyond the transition period to a competitive SRS environment
• InternetNZ, as the steward for .nz, is responsible for ensuring an orderly transition to the SRS environment
• Domainz as the first registrar has a specific role in providing stability for .nz during this transition
• Once a competitive market is in place, InternetNZ no longer needs to own a registrar
• Domainz should not use its position as the first and stabilising registrar to gain market share or to price its services to attract new business.

11. If these are agreed, then these can also form the basis for consultation with staff, and the development of the detailed transition plan and understandings.

12. The way in which Domainz operates over the transition will, to a degree, impact on the number of entities that decide to become registrars. There are a number of issues that have been raised by potential registrars. These include:

• Whether a pro rata portion of their annual accreditation fee will be refunded by Domainz when the provider becomes an authorised registrar
• If Domainz is sold as a going concern, will this include the name "Domainz" which has a significant branding advantage for domain name registrations
• Will Domainz continue to accept registrations for new domain names once other registrars are operating
• Who will determine which names are allocated to a registrar for management

13. Providers are concerned that their investment in registrar software and systems will be compromised by a competitive approach by Domainz, the registrar.

14. InternetNZ, as the owner of Domainz, needs to ensure that in its role as a stabilising registrar, Domainz is still a viable trading entity, and that a clear exit point for ownership is established. This exit point will provide certainty for intending registrars, Domainz staff and will ensure that the capital reserves of Domainz are not depleted.

ccTLD Manager

15. The ccTLD manager will be responsible for overseeing the day to day management of .nz. It would be prudent to recruit the ccTLD manager soon rather than waiting till the SRS development is almost complete. This will ensure a better understanding of the issues and nuances as well as having a smooth transition between development and implementation.

16. The role requirements for the position of ccTLD manager are relatively clear and the role description is attached as Appendix I. What still requires some further thought is the size of the Office of the ccTLD manager. There has been some work already on the types of inquiries the Office of the ccTLD manager will receive (see Appendix II). In part however, the volume of queries will depend on the role that the ccTLD manager plays in dispute resolution. What is clear is that even without a formal role, the Office of the ccTLD manager will be the place where registrants complain about domain name registration and related issues. There will therefore need to be some administrative support for the manager to handle these queries.

17. It is proposed therefore that we commence the process for recruiting a suitable candidate for the ccTLD manager. A remuneration range and contract conditions need to be developed for the role, and it is suggested that the SRS IOC and the Administration Committee could have a joint role in signing off on these.

Recommendations

18. It is recommended that the InternetNZ Council

(a). note the issues raised by .nz providers outlined above in paragraph 12;

(b). agree in principle to the split of Domainz into the registry operator and a registrar;

(c). agree to the following principles to guide the transition to a competitive SRS market

• InternetNZ, as the steward for .nz, should not own both a registry and a registrar beyond the transition period to a competitive SRS environment
• InternetNZ, as the steward for .nz, is responsible for ensuring an orderly transition to the SRS environment
• Domainz as the first registrar has a specific role in providing stability for .nz during this transition
• Once a competitive market is in place, InternetNZ no longer needs to own a registrar
• Domainz should not use its position as the first and stabilising registrar to gain market share or to price its services to attract new business

(d). approve the role description for the ccTLD manager;

(e). agree that recruitment for this position commences: and

(f). delegate decision making on the remuneration range and contract details to the SRS IOC and Administration Committee.

Rose Percival
SRS Implementation

Appendix I

Role Description

.nz Manager

Background

InternetNZ is an incorporated society established to foster co-ordinated and co-operative development of the Internet in New Zealand. The Society works to safeguard the Internets philosophy of open and uncensored exchange of information.

InternetNZ has delegated responsibility for management of New Zealand (.nz) domain name space.

Purpose

The purpose of the .nz Manager role is day to day oversight of the operation of the .nz domain name registration and management system.

This is a new position and will go through two phases:

The first will involve overseeing the transition to the shared registry system for domain name registrations. This will include the establishment of both the .nz Office and the new registry organisation, authorisation of the initial pool of registrars and the transfer of management of specific domain names from Domainz to authorised registrars.

The second phase will be the ongoing development and monitoring of the competitive registrar market, and the environment for domain name registration and management for .nz domain names.

Key Responsibilities

The .nz Manager reports to the .nz Board and is responsible for the operational aspects of the following:

• Maintaining the policy for .nz domain name management
• Authorising new registrars
• Monitoring registrar activity - "market" surveillance, specific investigations of any registrar, de-authorising a registrar
• Contracting for registry services and monitoring the registry's performance and register charges
• Convening the Registry-Registrar Committee
• Monitoring of and influencing international developments in relation to the management of the DNS, in so far as they may impact on the .nz domain name space.
• Running the process for creating the second level domains and appointing moderators for moderated second level domains

Role Dimensions

Relationship Management

Successful implementation and management of the Shared Registry System will depend in part on the ability of the .nz Manager to build and manage relationships with a range of stakeholders and participants including:

• The .nz Board and InternetNZ Council
• The registry operator
• Domainz
• Registrars

Staff Management

The requirements of the .nz Office will evolve but it is anticipated that the initial staffing will involve up to two administrative support staff.

Budget Management

The .nz Manager will be responsible for managing the budget for the .nz Office.

The .nz Manager will be responsible for forecasting revenue and expenditure for the shared registry system for .nz, and recommending changes to registry fee levels for .nz domain name registrations.

Other

The .nz Manager will be required to devote as much time is necessary to fulfil the requirements of the position in an outstanding way.

Key Competencies

The .nz Manager will be expected to demonstrate the following competency behaviours:

Analysis and Judgement

Displays the ability to critically analyse information and to arrive at the best solutions, decision and judgements fitting to the particular situation

Influence

Establishes a credible presence with all stakeholders to achieve support and buy-in to achieve the effective management of .nz

Change Management

Anticipates the impact and complexity of change and develops strategies to ensure a smooth transition

Relationship Management

Builds and maintains effective working relationships across .nz.

Communication

Able to effectively communicate, both orally and in writing, and present to different audiences. An open and honest communicator who is able to present effective arguments to influence others and negotiate mutually acceptable solutions.

Self-Management

Able to consistently demonstrate overall personal effectiveness in work attitude, orientation and approach.

Continuous Improvement

Actively seeks ways to improve processes and outcomes.

Knowledge, Skills, Qualifications and Experience

• Broad business knowledge and experience
• Proven experience at leadership in the planning, implementation and management of significant change especially in relation to new systems and processes.
• Ability to lead, manage and energise a group with diverse strategic and operational activities and interests
• A sound grasp of the issues facing .nz
• The ability to view .nz as an integrated whole and to apply this thinking to problem solving and relationship management.
• The ability to think strategically and systematically
• Political acumen

Appendix II