Why we need to make this change

To reinforce Government confidence in our ability to self-regulate and to remove concerns about a potential cartel of members as described in the review conducted by Professor Garratt, we need to give the Board the power to determine charging and pricing.

What this change will mean

We propose that the EGM should remove Article 19A, which says:

Except as required by law, before making any change to the level of Membership subscriptions or registration fees, the Board must consult with the Members by conducting a ballot. The ballot, which may be carried out by electronic communication or in writing must seek votes for and against each proposed change; and the Board shall only implement the proposed change if at least seventy-five percent of the votes cast in the ballot are in favour of the proposed change.

This would mean that the Board has control over pricing and membership fees.

The current Board has no intention to change the current fee structure for registrations or renewals in terms of amount (£5 registrar and £80 direct) for the foreseeable future or to change the fee structure for membership without due consideration of the registrar base.

We believe that giving the Board control over pricing would make Nominet more democratic (because at the moment a minority with a vested interest can thwart changes in the interests of the registrar and stakeholder community as a whole) and also enable us to respond to changing market conditions and opportunities. The Board is committed to engaging members and stakeholders when it exercises these powers, and is very conscious of the importance of not adversely affecting the business models of registrars.

For example, if the Board wanted to introduce Variable Registration Periods (allowing domain name registration periods of up to 10 years, in addition to the current two year period) they would be able to do so without needing to call a member vote over pricing. Similarly if they wanted to run an auction for two letter domain names they could do so without needing to call a member vote. They could also run a price promotion that was equal and fair for all members if they wanted to without needing to call a member vote.