German group bids to wrestle dot-net from VeriSign

Denic, the not-for-profit German organisation responsible for the administration of dot-de domain names has thrown its hat into the ring in bidding to handle dot-net domains, adding that it is time the market wrestled some power back from US firm VeriSign.

VeriSign currently runs the hugely profitable dot-com domain name space and until now its ownership of dot-net has remained unchallenged.

However, today internet naming body Icann's deadline closed for companies bidding to take over the running of the dot-net domains, which account for around five million internet addresses.

According to Denic the competition will be a two-horse race between itself and VeriSign, though it expects Afilias (dot-info) and NeuStar (dot-us) to be there at the starting gate, if not the finish line, with rival applications.

Sabine Dolderer, executive board member of Denic told silicon.com she is "very confident" the Denic bid will be successful and the running of one generic top level domain will be brought outside North America.

"There should be greater competition in this market," said Dolderer. "Currently there is too little and there is only one very dominant player," she added.

Unlike VeriSign, Denic is run on a not-for-profit basis, established over ten years ago as a co-operative of German ISPs and registrars to run the dot-de domain - now the second largest in the world.

"One of our main advantages is we are funded solely to provide an infrastructure and a service," said Dolderer, expressing a belief that companies who must also deliver value to shareholders as well as customers cannot be as effective.

"All income goes directly into operating the domain registry, expanding the infrastructure, maintaining the financial stability and improving the services offered," added Dolderer.

Icann will now review all applications with an announcement expected in March as to the successful applicant.