nTLDs - application fee increases significantly

Anyone wishing to apply for a new generic top-level domain will have to dig deeper into their pockets in future: as the internet administration ICANN has indicated, the application fee is likely to increase significantly, albeit not as much as previously feared.

It has been clear since 12 June 2022 at the latest that there will be another round of introductions for new domain endings. ICANN has repeatedly announced that the application window will open in Q2 2026 at the latest; further details will be set out in the Applicant Guidebook (AGB), which should be available by May 2025. So far, ICANN has not revealed many more facts about the nTLD programme. This also applies to the amount of the expected application fee: ‘The gTLD evaluation fee is required from all applicants. This fee is in the amount of USD 185,000’ - as stated in section 1.5.1 of the applicant handbook from the last introductory round in 2012. From ICANN's point of view, this is merely to cover the costs incurred, which ICANN estimates at US$ 70 million for the next round; ICANN does not intend to make a profit with this. It became clear early on that this amount of US$ 185,000 would rise in view of the general cost increases and the high inflation rate driven by rising energy and food prices. But exactly how much the application fee will rise by has so far been unclear.

This fog seems to be clearing further. At the ICANN meeting in Rwanda in June 2024, it became public that the application fee is expected to range between US$ 208,000 and US$ 293,000; at the current exchange rate, this would be between EUR 188,000 and EUR 265,000. A current draft now shows that the fee is expected to be US$ 220,000, which is equivalent to around EUR 198,000. The exact amount of the fee depends largely on how many applications ICANN ultimately expects to receive; if a total of 1,930 applications were received in 2012, ICANN now estimates that 1,500 (instead of the previously assumed 2,000) applications will be received. The US$ 220,000 is purely the application fee, so additional fees can and will be incurred. As in a modular system, ICANN estimates that up to ten additional fees may be incurred; additional costs are mentioned for ‘Community Priority Evaluation (CPE)’, ‘Geographic name review’, ‘Brand exemptions (Spec 13)’, ‘Code of Conduct exemption’, ‘Reserved names eligibility’, ‘Background screening (if required after change request)’ and ‘Joint venture review’, the amount of which is still completely open. This also applies to the currently discussed ‘Occupancy fee for lingering applications’; apparently ICANN wants to deter speculators as well as encourage serious applicants to apply quickly.

The final binding fees can only be seen in the final version of the GTC. However, the figure of US$ 220,000 mentioned now is likely to be very close to the final price, as it was stated in June 2024: ‘ICANN org expects to confirm the gTLD evaluation fee at the latest by September 2024 for inclusion in the AGB.’

Source: https://www.icann.org/

This nTLD approval process by ICANN in two years will be a very important event.
We can expect to see many applications for TLDs that have been registered at Freename before.
In the best scenario, Freename will have its breakthrough before that, so that new TLDs at ICANN will become meaningless.

ICANN should reject all applications for TLDs that have been issued by relevant players.

If they don’t, than we should file an objection against all applications for TLDs registered by Freename customers previously.

If Freename is popular by then, nobody would be so stupid and apply for a TLD at ICANN if it’s available at Freename for only $ 79 one-time fee.

Indeed! The application fees are only a small portion of costs at ICANN. Operating costs will kill a lot of applicants, because usually they have to pay millions.