NTIA issues bizarre statement regarding .com pricing

NTIA states it can’t set prices even though it sets the prices.

The National Telecommunications and Information Administration (NTIA) issued a statement Friday regarding the continuation of its agreement with Verisign (NASDAQ: VRSN) for running the .com registry.

Bizarrely, the NTIA stated:

Given the importance of the Cooperative Agreement for the stability of the DNS, and the fact that NTIA does not have authority to set .com domain prices [emphasis added], we believe the continuation of the Agreement is in the public interest.

This statement is strange since it is NTIA that literally sets a cap on .com prices.

Perhaps it means it cannot change the prices without a mutual agreement with Verisign since the NTIA previously signed an agreement saying so. In fact, it noted that “Over the past a number of months, NTIA and Verisign have engaged in serious conversations, but, despite our best efforts, we have been unable to agree how wholesale .com pricing ought to change.” 

Elsewhere in its statement, it notes, “NTIA recognizes concerns regarding current pricing and believes a reduction in .com prices would be in the best interest of the public.”

It continued by stating Verisign’s firm line: “We also recognize that prices at both the wholesale level and downstream, counting prices charged by resellers and substantial markups by warehousers, need to be addressed.”

Since most people only own one or two domains, they aren’t in a position to push back against pricing. Verisign is pushing on registrars (aka resellers) and domain investors since these are the only two groups practically fighting against price increases. Of course, both of these groups work in highly competitive markets.

Discussions regarding reducing .com prices will likely die when the Trump administration takes office. It was under the previous Trump administration that price caps were raised and Verisign got the “mutual agreement” clause added.