VeriSign Inc will be allowed to raise the price of .net domain names, but by a limited amount, under a compromise deal with the Internet Corp for Assigned Names and Numbers announced last week.
The company, which will still reduce its wholesale price for a one-year .net registration from $6 to $4.25 under the new contract, will be able to raise its prices by up to 10% each year after January 1 2007.
Previously, VeriSign and ICANN had agreed to lift price caps entirely after that date, but this caused outrage from VeriSign’s registrar channel partners, who said they wanted the maximum price fixed for the duration of the agreement.
Under the deal, which is now open for comments before being finalized, registrars would pay VeriSign $4.25 for each .net sale they make, $0.75 of which would go to fund ICANN. Registrars sell generally for between roughly $8 and $35 per year.