Icann ruling opens up domain name market

A controversial ruling by Internet Corporation Assigned Names and Numbers (Icann), the body which oversees Web address allocation, has laid the foundation to open competition of domain name registration.

The ruling allows other registration bodies access to the Network Solutions master database of Internet addresses. For the past few years the Network Solutions has dominated the domain name registration process by excluding other companies from accessing the database.

Icann has approved an agreement already sanctioned by the US Department of Commerce and Network Solutions.

But now it must give equal access to its competitors, has been banned from using its funds and assets to increase its business and can only act as the master of the database for four years. An annual fee of $6 can be charged by the company for its services.

The agreement also suggests the company sells or spins-off its database within 18 months.

However, the deal also states domain names should only be registered once paid for to prevent cyber squatters. This will end the current practice registering names, not paying and then trying to sell the name at a later date for a profit.