CFIT Asks House Committee on Small Business to Speak for Internet Community Ignored by ICANN'S .COM Deal with VeriSign; Less Competition, Price Increases without Basis, Presumptive Renewal Cause for Action.

WASHINGTON -- The decision by the House Committee on Small Business to hold a hearing tomorrow into the proposed .COM deal between the Internet Corporation for Assigned Names and Numbers (ICANN) and VeriSign is "another critical step" in preventing the damage the deal would do to small businesses and consumers, according to the Coalition for ICANN Transparency (CFIT).

"ICANN only agreed to this deal to settle VeriSign's litigation, and they have done it to the detriment of the broader Internet community," said John Berard, CFIT spokesperson. "This deal will only lead to higher priced 'lock-in' for consumers and market 'lock-out' for small business."

CFIT and other members of the Internet community including registrars, country code managers, at-large delegates, the business constituency and other registries, raised their objections to the deal, noted that it:

--Was granted without public notice, continuing the erosion of the Internet community's role in determining policy,

--"Locks in" price increases adding over a billion dollars to the cost to small businesses and consumers without economic justification as called for in every other ICANN/registry agreement (except .NET, the other VeriSign contract),

--Allows the expansion of VeriSign's natural monopoly to the detriment of competitive segments of the market,

--Grants permanent control of the .COM database to VeriSign,

--Reduces the traditional role of U.S. government oversight, and

--"Locks in" significant market differences between VeriSign-run and all other registries adding even more confusion to the market.

"It is our hope that the Committee will not be distracted by the claims from ICANN and VeriSign that this is all about stability and security. We do not object to VeriSign having the .COM contract; we object to it having this specific contract," said Berard. "It is disingenuous, too, to suggest that only VeriSign is capable of managing the .com registry. Other proven and capable companies like AT&T, NeuStar and IBM would certainly be up to the task."

The proposed contact, to be put in place before the current contract expires in November 2007, would set prices for a seven year period at a level $750 million higher than the current contract and $1.5 billion higher than a contract competitively bid. According to CFIT, this "tax" will be borne by consumers and will put uneven economic pressure on small-to-medium size registrars.

"We urge the House Committee on Small Business to speak for those who have been largely ignored through this entire process," added Berard.

For CFIT's official Statement of Record to the Committee, please visit www.cfit.info.

About The Coalition for ICANN Transparency

The Coalition for ICANN Transparency Inc. -- CFIT -- is a not for profit corporation based in Washington, D.C. CFIT's supporters include individuals, organizations, institutions and companies who are committed to the core principles on which ICANN, the Internet governing body is founded. More information on CFIT is located at www.cfit.info.