VeriSign increases cost of .com & .net domains for 2nd year in a row

Registrars will pay $6.86 for .com domains in October

[Laker]

VeriSign has the contractual right to raise prices -- and that's just what they are doing again -- the second increase in two years, since VeriSign extended it's control over the .com and .net TLDs in 2006.

Registrars currently pay VeriSign a base registration fees of $6.42 for .com domains and $3.85 for .net domains.

Beginning in October the prices will increase to $6.86 per .com domain and $4.23 per .net domain name. Coincidentally, this is the maximum 7% increase allowed under the terms of VeriSign's contract with ICANN. The contract currently runs until 2012.

There is little doubt registrars will pass the costs on to customers.

If VeriSign continues their annual 7% increase, registrars will be paying $9.00 per .com domains by the time the contract ends in 2012 -- an increase of 50% in six years.

VeriSign has a press release justifying the price increase that can be found here [verisign.com].

[LifeinAsia]

Actually, the agreement only allows them to raise rates in 4 of the 6 years of the contract. So it would be a max of $7.86.

I don't think there is anyone who doesn't assume that NS will raise the rates the max. in each of the first 4 years.

[Laker]

Thanks for the correction, LifeinAsia.