conference presentation - uasg.tech · conference presentation michael kende, andrew kloeden 12...

2008414-415 | Commercial in confidence

White paper regarding Universal Acceptance

Conference presentation

Michael Kende, Andrew Kloeden

12 March 2017


Agenda

▪ This presentation sets out the work Analysys Mason has performed on behalf of UASG in

producing a white paper related to Universal Acceptance.

▪ We have circulated a draft version of the paper

▪ The agenda is as follows:

– Introduction and purpose of our paper

– Overview of content and messaging

2Agenda


Introduction and purpose of the paper

▪ We have produced a white paper for UASG regarding Universal Acceptance (UA) of new generic

top level domains (gTLDs), including Internationalised Domain Names (IDNs)

▪ The purpose of this paper is to raise awareness of the benefits of UA, showing the value of the

new names, in order to encourage UA

– The paper is pitched at a senior-level commercial, policy, and cultural audience

– It is short, clear, and non-technical, with an executive summary and infographics

▪ Our paper is based on the following methodology

– 10 interviews with key players, including registries, users of the new domains, and application

owners

– The production of 5 case studies

– Secondary research of third party sources

3Introduction and purpose of the paper


Overview: our paper has a clear and simple storyline that highlights both

the importance of UA, and the relative ease of implementation

▪ The focus of this paper is the benefits of UA for software and application owners, to be able to accept users

regardless of their domain:

– UA has progressed, but is not complete. Without UA, people will not be able to use their preferred ‘identity’ that

the new gTLDs and IDNs have enabled

– UA has benefits for software and application owners, domain registrants, and Internet users more broadly,

driven in part by the take up and popularity of the new domains. (There is demand for gTLDs, and registrations

have grown strongly, although IDNs have been less successful)

▪ The key benefit of UA to software and application owners is to seamlessly receive demand from the many

users of the new domains in order to maximise their revenue and satisfy their customers

– The effort required to implement UA in most cases is not onerous but depends on the initial software design,

organisational factors, and the upgrade schedule of the software. This is the case for both gTLDs and IDNs

▪ However, certain systems (e.g. aviation booking systems using Teletype) may have difficulties that require

further upgrades

– It makes sense for application and software owners (e.g. enterprises, cultural institutions, government

institutions) to implement UA to gain the benefits from the strong demand for the new domains

4Overview of content and messaging of the paper


Demand for gTLDs has grown, and this underpins the benefits of

Universal Acceptance; IDNs have grown but remain at a lower level

5

Cumulative registrations of IDNs (top level)

-

100

200

300

400

500

600

700

800

900

1,000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Thousands

Cumulative registrations of gTLDs

-

5

10

15

20

25

30

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Mill

ions

Total registrations Used domains

Overview of content and messaging of the paper

Source: nTLDstats.org

There are an

additional ~1.8m

country-code IDNs

also registered in

Russian and Chinese


The benefits of UA accrue from the benefits of the new TLDs, flowing to

end users, domain owners, and application owners


BenefitsEntity

Internet users

Domain and website owners

Application and software owners

▪ Internet users gain from UA fundamentally because it

means the Internet “works” without extra tweaking

▪ Users with new email addresses will have their emails

delivered, and will have access to all the services they

normally use

▪ The benefits of UA for domain owners flow from the

benefits of the new domains

▪ The new domains allow a stronger or new identity, helping

with marketing or awareness. UA means the domains

work, which means that domain owners don’t look bad in

the eyes of their customers

▪ If an application does not accept new domains, it looks

bad to its customers. This causes a problem in proportion

to the number of customers using the new domains

▪ E.g. an email system without UA will scramble the

presentation of emails from the new domains

These benefits can create a virtuous circle. Internet users benefit from the

acceptance of the new domains, which drives traffic to domain and website

owners, which further spurs application and software owners to implement UA


Bayern Domain Gmbh has positive experiences with the use and

acceptance of the .bayern domain, which has provided cultural benefits

7

Source: interview


Case study subject

Bayern Domain gmbh owns and registers the .bayern domain, which is used in

Bavaria for regional content (e.g. the Bayern München football team’s website in

the local dialect)

Benefits of UA

The benefits of UA to Bayern Domain, and to Bavarians flow from the benefits of

the new domain. These include a stronger regional identity that is of benefit to

entities with a strong Bavarian link. UA allows these domains to work seamlessly

across the Internet

Experience with UAIn Bayern Domain Gmbh’s view, UA, as it relates to the .bayern domain has now

progressed well. Most applications now accept the domains of its clients.

Cost and effort to upgrade

Bayern Domain Gmbh helps its clients deal with UA issues as they arise. In their

experience, it is not a great effort to implement UA, since there is a continuously

updated list of new domains, and the coding effort is similar to a normal bug fix

Other interviewees have also suggested implementation of UA is not typically

difficult


We have conservatively estimated the total benefit of UA to be USD 9.8

billion

8

Source: statista, Ethnologue, Internet World Stats, Verisign, Radicati


5

1

7

3

6

2

4

0

Russian

Chinese

IDns

US

D b

illio

n

0.5

0.10.3

3.2

2.2

Vietnamese6.2

Indian languages

3.6

gTLDs

Arabic

Estimated per annum benefit of UA for IDNs by language group and by gTLDs, USD


Our estimation methodology is conservative and relies on a number of key

assumptions


Note: we count speakers of all Indian languages (and also Chinese dialects) as a single group

Source: Analysys Mason, statista, Ethnologue, Internet World Stats, Verisign, Radicati

Calculation methodology for the impact of UA for gTLDsCalculation methodology for the impact of UA for IDNs

Number of non-Internet users:

▪ Russian: 68m

▪ Chinese: 550m

▪ Arabic: 132m

▪ Vietnamese: 19m

▪ Indian: 805m

Number of non-Internet users for whom

lack of local language content is a barrier:

▪ Russian: 15m

▪ Chinese: 121m

▪ Arabic: 29m

▪ Vietnamese: 4m

▪ Indian: 177m

New internet users based on UA

▪ Russian: 0.7m

▪ Chinese: 6m

▪ Arabic: 1.4m

▪ Vietnamese: 0.2m

▪ Indian: 8.9m

22% (based on primary research)

5% (conservative assumption)

Total active gTLDs:

▪ 11.7m

Total active gTLD based email addresses:

▪ 154m, assuming 13 email addresses per

domain

Total gTLD email addresses where users

do not have a second non-gTLD address

▪ 77m, assuming 50% of email addresses

are used by people with no non-gTLD

address

E-commerce spend per email address

▪ Global average of USD360 per annum

Proportion of web sites missing out on this

revenue due to lack of UA

▪ 13% based on .club testing

Total e-commerce revenue that could be

generated if all e-commerce sites

implemented UA

▪ USD3.6billion

USD 360 average spend per new user

Total benefit of USD6.2 billion


Studies show that progress has been made toward UA, but this is

incomplete

10

Acceptance of the .club domain by various website categoriesResults of ICANN testing on the acceptance of domains of

different formats

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Short gTLD Long gTLD IDN.com Unicodemailbox,

gTLDdomain

Right-to-leftIDN

UnicodeIDN


Source: ICANN, .Club Domains LLC

ICANN found better

acceptance of gTLDs

than IDNs in its testing

65%

55%

78% 80%

52%

60%67%

13%

22%

17%9%

12%

8%

11%

21% 23%

5%11%

36%32%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NewslettersSocial

networks

Could not test

Failed

Music

Passed

TravelE-mail RetailersTotal


Case studies show the effort required to implement UA is not onerous,

although certain legacy applications m


Source: Interviews

fTLD

fTLD’s experience in helping its clients get their domains accepted has been

relatively positive, with fixes made in relatively short times. This was the case for

Adobe and Twitter, for example

Bridge Community Bank

Bridge Community Bank had UA issues with Verizon and Wells Fargo, which were

fixed quickly by local staff, without the need to go back to head office.

There have been unresolved problems with the US Treasury, however

IATA

In the airline industry, acceptance of ASCII-based gTLDs is not problematic.

Legacy use of Teletype, however, may make it more difficult to accept IDNs, as

punycodes are typically longer than gTLDs

Case study Key findings


Contact details

12

Michael Kende

Senior Advisor

[email protected]

0)1223 460866

Cambridge

Tel: +44 (0)1223 460600

[email protected]

Dubai

Tel: +971 (0)4 446 7473

[email protected]

Dublin

Tel: +353 (0)1 602 4755

[email protected]

London

Tel: +44 (0)20 7395 9000

[email protected]

Madrid

Tel: +34 91 399 5016

[email protected]

Manchester

Tel: +44 (0)161 877 7808

[email protected]

New Delhi

Tel: +91 124 4501860

[email protected]

Paris

Tel: +33 (0)1 72 71 96 96

[email protected]

Singapore

Tel: +65 6493 6038

[email protected]

Boston

Tel: +1 202 331 3080

[email protected]

Milan

Tel: +39 02 76 31 88 34

[email protected]

Hong Kong

Tel: +852 3669 7090

[email protected]

@AnalysysMason linkedin.com/company/analysys-mason youtube.com/AnalysysMason analysysmason.com/RSS

Andrew Kloeden

Principal

[email protected]

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