Now that VeriSign settled the CFIT case, I thought we should take a look at what that means in dollars and cents to domain holders.
Verisign contract to run the .Com registry (.Net too) calls for presumptive renewals and the ability to increase the wholesale cost of domain name registrations and renewals, 7% in 4 of every 6 years.
Currently the wholesale price of domain name registrations and renewals sits $7.85 (there is also an ICANN fee of $.18 but we are going to exclude that for now).
Lets look back.
When VeriSign was awarded this contract the wholesale price of a .Com registration was $6.00
Here are the annual wholesale price:
That means that VeriSign can rise prices again either this year 2011 or in 2012, the final year of this six year contract to $7.85.
That means during the next 6 years contact VeriSign can raise prices again 7% in 4 of 6 years, meaning that here will be the prices through the next contract (fractions have been rounded up & the ICANN fee has been excluded)
That puts the wholesale price for a .Com registration or renewal in 2018 at $10.30.
During the following 6 year contract here will be the wholesale prices:
That takes us through 2024 or 12 years from now.
After that prices will start increasing by $1 or more per rate increase and that is when the dollars will really start adding up.
Of course along the way registrars will be raising the retail prices as well.
As wholesale prices rise the cost of such things like credit card merchant fees and costs of processing also rise so retail prices might rise faster than wholesale prices along the way.
The silver lining? You can renew your domains out for up to 10 years and count your savings.