1. LOGO A presentation for APTLD Meeting Busan, South Korea, 26 August 2011.РФ update

2. Contents Overview 1 a New Project on Data Collection and Processing 2 Registrar malpractice case 3 4 2 4

3. Overview 3

4. Current Statistics priority registration (from 25-Nov- 2009 to 16-Sep-2010) open registration (from 11-Nov- 2010) As of 19 August 2011, the number of domains in.РФ hit 880,710

5. Current Statistics 5 Distribution of.РФ domains between individuals and organizations tends to be the same as in.RU 61% of.RF domains are delegated

6. Linguistic Analysis Examples: продажа-строительных-материалов-в-питере.рф (selling-construction-materials-in-Piter) продам-морского-окуня-холодного-копчения.рф (want-to-sell-a-cold-smoked-seabass)

7. IDN in Use: Outdoor Ads 7

8. a New Project on Data Collection and Processing 8

9. The Background 9 http://info.nic.ru/node/3404  Contributors: Coordination Center, TCI, Openstat®  Launch date: Q1 2011 г – start of data collection and processing.  Objectives:  Rendering unique stats relating to registration and usage of domain names.RU and.РФ to a broad circle of entities  Ensuring a high quality tool to evaluate and improve plans of development of Russian domain zones by Coordination Center  Target audiences: media reps and Internet analysts, and users concerned  Making the project available to the audiences: the autumn of 2011  The Openstat was picked as a partner, since it:  Has a12 year-long record of operations on the Web-stats market, with 500,000 –plus clients  Employs cutting-edge technologies, ensures a high accuracy and reliability of data collection and processing  Ensures the use of comprehensive solutions, per business requirements  Has a universal data collection and processing leverage, which allows generation of customized reports, metrics, algorithms, and apply comprehensive solutions to building complex reports  Provides a cluster architecture of the platform, which allows employment of computing resources at hand to address the customer’s individual needs

10. How Stats are Built 10 Sources:  Dumps of RU/РФ Registry database  Information on sites’ Audiences by Openstat’s counter  Data by Web-crawler, that scans web-sites corresponding to domains of registry database Accounts by groups:  Domains  Registrars  Administrators  Sites  Web-servers  Technometrics of the audience Reports can be aggregated :  Index-wise (eg domains/ administrators, registrar-wise)  By the sign of delegation  Geography-wise (geography/registrars Data collection Building reports Report delivery options

11. Product Characteristics Marketing  Complete set of indicators to evaluate development of.RU и.РФ  Always up-to-date data  User-friendly interface  Convenient navigation across reports  Data presented both in tables and charts and bar charts  Data can be downloaded in.csv,.tsv,.xls formats  Analysis of global and Russian domain markets and net development trends  Highlights, comments and glossary Features Technical  Huge data volumes  Data triple redundancy ensures a high level of reliability  Unlimited volume of processed information  Customization of any number of reports, segments, filters  Module architecture allows generating a new functional and improving the existing one  Users classifications by access rights with regard to groups of reports

12. Structure of the Stats System «Russian Domains».RUGeneral.РФ Global stats Analytics Terminology and definitions Aggregate report Registrars Administrators Domains usage Domains Aggregate report Registrars Administrators Domains usage Domains Aggregate report Sections Reports Extra materials Groups of reports

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16. What’s Unique 16 For the first time ever complete and trustworthy data was collected on the usage of domain names in.RU and.РФ. 2 nd level domain’s usage in.РФ Total 855 749 Website Error Not responded Redirected Not delegated 22,1 % 10,3 % 19,3 % 8,2 % 40,1 % 2 nd level domain’s usage in.RU Total 3 333 353 Website Error Not identified Redirected Not delegated 53,6 % 17,3 % 12,6 % 3,8 % 12,7 % Not responded - delegated, IP-address not identified Web-site: delegated, IP-address identified, http request OK Error - delegated, IP-address identified, http request error or connection error

17. Up Next Objective: create a comprehensive Russian Internet development statistics pool 17 Internet Content Audience Internet access Domains Extrapolation of domain stats onto the Internet audience’s socio- demographic parameters Under development Sites categorizer: classification of sites by subjects of content therein (eg. politics, economics, news, sport, games, shopping, etc.) Under development Complete statistics on 2 nd level domains in RU/РФ gathered, analyzed and published Collection and publication of data on the Internet development dynamic in Russia: penetration of fixed and mobile Internet Under development

18. Registrar malpractice case 18

19. Open Registration: between the Devil and the Deep Blue Sea  “Dutch” type auction – full set of documents developed (Rules, agreements, etc Concerns:  Significant change in current registry-registrar model  No clear vision what to do with the money gathered  High commission to be paid to registrars  Anti-trust committee objections  “Open registration” Concerns: big volumes of domains might be purchased by professionals As a result:  Domain names will not be available to ordinary customers  Significant registry database load  Risk management options:  Economic limitations (per-domain fee ~ 150 USD)  Technical  Administrative (5 domains per administrator)  te

20. Open Registration: the Right Pick The final solution  Price at.RU level ($2.3 for registrar, ~$20 for end-user customer)  Technical limitation: 4,800 requests per hour per registrar  Administrative limitations:  Local residents & Russian resident corporations only  A 1-year ban on transfer of domain names between registrants As we later found out, these measures were not enough

21. What’s Happened Registrar Prior to the start of the open registration, posts auction procedures and starts collecting preliminary applications, while deluding registrants into an absence of other options for registration of a “juicy” domain Enters into agreements with 6 other registrars on utilizing their technical quotas In the first hours of the open registration stakes out some 70,000 domains. Runs closed auctions, with winners being awarded the status of “owners” (no sign in the Registry database) Coordination Center Posts a warning of the illegality of running auctions and forewarns users of potntial problems Blocks the “auctioned-off” domains. But later, has to lift the blocking due to litigation costs and several dozens of thousands of pseudo- registrants held hostage The Coordination Center’s Council installs “the Commission on investigation of the current situation in the wake of the opening of registration of domain names in.RF” Given multiple complaints, launches examination of compliance with the Registration Terms and Procedures Anti-Monopoly Agency Basing on numerous complaints, takes proceedings on breaching the anti-monopoly law 21

22. Big Challenges, Hard Choices  One of the greatest scandals in the Russian domain industry’s history, in the focus of media and Internet community’s attention  Has affected dozens of thousands of users  No unambiguous exit :  To cancel registration of the “auctioned-off” domains?  To cancel the ban on change of administrator?  To revoke the accreditation? 22

23. The Findings 23 COMMISSION The composition: the CC Council members, internet community reps, and MPs. In operation: 29 Nov. 2010– 27 Jan. 2011 Arrived at conclusions, in particular: Measures on protection of final users’ interests proved insufficient the registrar’s act on registering domains on its name for the sake of their subsequent reselling at a closed auction constitute an abuse Users were deluded with regard to the substance of the service rendered The registrar acted in violation of the established procedures, which poses a threat to the stability of the domestic domain space Issued recommendations, in particular: To cancel registration of put on auction domains Introduce amendments to the CC’ normative documents, including the ban for registrars to register domains on their names, and set the procedure of registration of released domains COORDINATION CENTER As a result of examination, serious abuses of basic principles of the Registration Terms and Conditions were exposed: Equal price for domains FCFS principle Ban on domain registration for non-residents Correctness of the WHOIS data The order to remedy the abuses The registrar’s new management admitted the abuses and laid out a remedy plan ANTI-MONOPOLY AGENCY The period of consideration of the case 22 Nov 2010 - 1 July 2011. 12 in camera meetings, numerous requests to submit document. Verdict: To return the Registrar guilty in breaching the Competition Protection Act: Coordination of economic agents’ operations (concerted action), Imposing on clients unfavorable terms of contract Unfair competition, including diffusion of false, inaccurate or misguiding information which may inflict damages to the economic agent To enforce to the federal budget Rb. 239, 360 213 (>USD 8.5m) To assign the case to law enforcement agencies Six other registrars were found not guilty

24. Conclusions  We opted for compromise and allowed a longer timeline to remedy the violations, as do not want final users to suffer  Improvement of regulation documents is necessary :  Registration Terms and Procedures  Accreditation agreements 24

25. LOGO Irina Danelia http://ccTLD.RU or http://кц.рф 25