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This consultation is now closed

We are running a consultation that gives you the opportunity to have your say about potential changes to the self-regulation model of the domain name industry in the UK.  Today the future of that self-regulatory model is at stake and we want to ensure maximum participation from all those with an interest in .uk.

We want to hear your opinions about the recommendations made by Professor Garratt in his recent independent governance review. Now is the time to act to ensure that self-regulation continues and to avoid the potential increased costs, slower pace of change and possible fines for non-compliance that could become a part of everyday life if the industry were to be regulated.

This is your chance to have your say, and help shape the future of the domain name industry in the UK.

What’s it all about?

Nominet and our membership are key components of the self-regulation model that has allowed the UK domain name market to thrive.

Our constitution was put in place in 1996 to ensure the industry would be competitive and stakeholder driven and was seen at the time as a world leader in this area.  However, as the Internet has developed our constitution has not significantly changed despite the changes in the external environment.

Recently the Department for Business, Enterprise and Regulatory Reform (BERR) suggested it was time to consider how the model could be updated to ensure self-regulation in the industry could continue.

As a result Nominet commissioned an independent corporate governance review conducted by Professor Bob Garratt.

Professor Garratt concludes that the Nominet membership needs to self-regulate effectively in a number of key areas, and that if that does not happen, it could result in public intervention in the UK domain name industry and external regulation being imposed.

Only the Nominet membership can resolve these issues and we believe it is in everyone's interests to do so.  Government regulates industries, rather than companies and therefore regulation of Nominet means regulation of the domain name industry in the UK as a whole. This would have serious consequences for every business in the UK Internet sector and result in fundamental changes to the ways in which we work.

We believe in the responsible self-regulation model of Internet governance and ask for your support to identify and deliver suitable changes.

BERR have made their position very clear: "If Nominet’s members implement in full the changes proposed in the report, we are confident that Nominet will remain a beacon of industry self-regulation, protecting the wider public interest, without the need for intervention by government."

What has self-regulation done for me?

Self-regulation has enabled the domain name industry in the UK to thrive.  It has:
  • Increased levels of innovation in the industry by allowing start-ups to enter the market at relatively low cost;
  • Created a large registrar base for .uk;
  • Provided an environment where the pace of change is unencumbered by red tape and issues of compliance;
  • Enabled the UK Internet industry to grow at a pace that outstrips many of our neighbours.

How would regulation of the UK domain name industry affect me and my business?

The Government has not indicated exactly what form regulation would take if it felt the need to intervene.  Therefore the consequences of not updating the self-regulation model are not entirely known but here are a few possible consequences:
  • The costs involved in working in the industry may rise, to meet the demands of compliance and reporting;
  • Fines could be imposed for registrars failing to comply with agreed standards of customer service as a result of accreditation;
  • The industry could lose influence in the setting of policy that may result in other cost implications;
  • There may be a more restrictive environment for companies in terms of expanding services, entering new markets, adopting and developing new technologies;
  • The pace of change within the whole industry, the development of new tools and systems may slow considerably as decision-making process becomes more complex and laborious.

Is regulation a real threat?

Professor Garratt cites a number of changes in the external environment that could shape the future of Nominet and the UK Internet industry, including:
  • the national reliance on the Internet as the major communications system;
  • the Credit Crunch and its consequent tightening of national and international financial controls;
  • significant shifts in thinking and tougher regulation in global corporate governance practice and risk management;
  • the fast-changing face of Corporate Governance in the UK in which Nominet must show legal compliance, especially the 2006 Companies Act and its Seven Non-Exhaustive Director’s Duties;
  • The BERR letter and its role as a warning signal that the Government on behalf of the general public is concerned over the current behaviour and roles of the Nominet membership.
However, if we can show that we are addressing the concerns, moving forward, and demonstrating a healthy self-regulation model, then the UK domain name industry will be better placed to continue justifying no Government intervention.

Why should you care?

You may consider yourself to be a ‘passive member’ of Nominet and feel that:
  • Nominet is just a supplier
  • Nominet governance issues are not high on your agenda
  • You would vote in elections, but don’t really know who to vote for
  • You would have supported Nominet’s governance resolutions in the past if they had been communicated more clearly
  • Nominet does a great job and you’re satisfied with our service
  • What you think of these wider issues doesn’t really matter
However, we want your opinions, and need you to engage with us on the issues in order that we can achieve a suitable update to our governance that will work for both government and the industry.

How can you help?

As a member of the domain name industry in the UK, your voice deserves to be heard in this debate. You have this opportunity to respond to the big questions that Professor Garratt asks about the future of Nominet and its role within the UK Internet industry.

You can also have your say on the recommendations from Professor Garratt’s report on the specific issues about Nominet’s governance that caused the approach from BERR in the first place.

You can give us your full and frank answers to these questions either directly by email to governancereview@nominet.org.uk, by completing our online questionnaire or by talking to us at one of our events.

Get involved!

The future of the UK domain name industry self-regulatory model is at stake here and we want to ensure maximum participation from all those with an interest in .uk.

To that end, we will be holding a series of open meetings in London, Manchester, Glasgow and Cardiff to enable us to discuss these matters face to face with as many people as possible.

We also want your help to get this message out to the wider audience. We would encourage you to link to this consultation on your web site or blog and to use social networking sites such as twitter to advertise it to people you know with a stake in the future of .uk.

The bottom line

We urge all members to fully engage in discussion of these questions to ensure the industry can remain self-regulated and that Nominet can effectively support the Internet industry and community in the UK.

This would help avoid the need for any form of Government intervention in the sector, whether by regulation, legislation or otherwise.
 

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