Utande - Financial Matters

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FINANCIAL MATTERS FRIDAY APRIL 25, 2014

ZIMBABWE INDEPENDENT MONTHLY SUPPLEMENT

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Global Launch in New Generic Domains Widens Online Business Potential Michèle Scanlon SHAKESPEARE’S Juliet famously questioned what is in a name, stating that “a rose by any other name would smell as sweet”. So one wonders what Shakespeare would think of the land grab of coveted Top Level Domains (TLD) in the 1990s to secure a .com address for your business. A .com meant the global stamp of approval for your business. However in 2014, the world of domain names is undergoing its biggest change since first devised in the 1980s. The focus is more on individual business focus and regionalism providing further granular level of the traditional two letter country code specific domain such as .co.zw. The road to today’s new generic TLD naming was initiated in 2008 by ICANN, the Internet Corporation for Assigned Names and Numbers, the Los Angeles-based non-profit organization that coordinates the Internet’s global domain name system. This was driven by the increasing shortage of domain names. There were 15,000 .com domains registered by 1992, and 192 million TLD within 17 years. In 2012 ICANN authorized the creation of new generic TLD (gTLD) domain extensions .bike, .clothing .ski, .bio and .photography among others. Following a further selection phase, a total of 184 new domain name extensions are being launched in 2014 with commercial availability from Q3 2014. These new domains have already generated a 10% growth in the global domain market. ICANN projects that a further new 1,300 gTLDs could become available over a further few years. This is a significant development after years of just 22 gTLDs and 250 country specific domains.

The majority of .com domains are registered by US entities, thus .com whilst being a generic TLD often inferred being of US origin. When ICANN was established, the USA accounted for 90% of all global internet users, whereas today, the USA only accounts for 15% of global internet users, so it is only appropriate that the US Government is relinquishing control over the management of ICANN helping to ensure that the internet truly becomes globalised and ICANN a central global governing body. Regionalism, cultural identity and sector specific names are the focus of the new TLD releases. Among the first of the new domains to launch was dot shabaka, an Arabic extension, written in Arabic meaning web. Similarly .africa was officially launched at end of March 2014 aimed at African and Pan-African communities. South Africa’s ZA Central Registry (ZACR) is responsible for the management of this domain name as its official registry operator. Over 600 pre-reserved names have already been approved with over 17 African countries having applied for domains. In line with the dotAfrica launch, three cities in South Africa will launch their own TLDs:- dotCapeTown, dotDurban and dotJoburg - before the end of the year. This follows the trend set by other global cities to establish their own brand for tourism, event hosting and other services including Berlin, London, Paris, San Francisco, Sydney and Toyko. 41,000 .berlin domains have been sold since the end of January 2014 since its commercial release.

However for many being identified as a local service provider or company is better, underlining local support, delivery and knowledge, as well as an element of being patriotic. ZISPA, the Zimbabwean Internet Services Provider Association, who is responsible for managing the registry of .co.zw domains indicates that over 16,500 .co.zw domain names have been issued or reserved with an average of 100 new domains per month being registered. Many more have been warehoused for protection of global patents which prevents any potential lucrative cybersquatting of international copyrighted names with a local domain. Many organisations buy multiple domains to protect themselves from cybersquatters or potential competitive imitators. The launch of the new global domain extensions is likely to trigger a landrush in new domain names with existing companies looking to protect their online presence. Resale of already registered domains by cybersquatters is a big business globally; however the true value is unknown as many deals are concluded privately. Some of the biggest known domain transactions include: 1. Insure.com for $16 million in 2009 2. Fund.com for £9.99 million in 2008 3. Sex.com for $14 million in October 2010 4. Porn.com for $9.5 million in 2007 5. Fb.com for $8.5 million in November 2010 Not all global names are protected though. As recently as April 2014, Amazon, the US-based online retailer with an extensive glob-

al reach tried once again to buy amazon.se to establish a Swedish domain in line with its expansion across the Nordic region. The domain has been owned since 1997 by the owner of a local advertising company which also trades as Amazon. Despite numerous attempts to purchase the Swedish domain, the local Swedish company has refused on every occasion. So what makes a great domain name? Spell it correctly! Think of how your customer will be searching for your company or brand. Not every new start up is going to be successful with dropped letters in the Tumblr or Flickr tradition. Keep it Short & Relevant! Shorter names are easier to remember, and names can be better than acronyms depending on how your business is known to your audience. The domain name should be intuitive and relevant with the registered company name, brand or product subset. Longer names or multiple words can be used in conjunction with hyphens, but are still more

difficult to recall or get right on first time entry than shorter names. Don’t forget to renew it! Domain names are only leased to a company, individual or entity for a fixed period, usually on an annual basis. If you do not renew on time with your service provider or registrant, the domain could lapse and is in danger of being purchased by someone else while you renew, or worse being earmarked for purchase as soon as your lease expires. Finally choose a domain extension that matches your business and brand message to your audience. Whether you opt to keep it local, be generic or utilise one of the new more industry sector or location specific TLDs, there is a domain name suitable for you. Get your business online and leverage off the increasing number of connected Zimbabweans surfing the web for new products, services, ideas and resources.-Michèle Scanlon is CEO of Dandemutande, a licensed IAP operating the Utande and uMAX brands. She can be reached at michele.scanlon@ dandemutande.co.zw


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