Agreement will allow VeriSign to raise registration fees by 7% annually in four of the next six years without cost-based justification.

GoDaddy.com, an ICANN accredited domain registrar, strongly opposed The Internet Corporation for Assigned Names and Numbers' (ICANN) 9-5 vote last night to approve a new .com registry agreement with VeriSign.

The agreement grants VeriSign uncontested price increases and perpetual monopoly power, which will lead to exorbitant profits at the expense of the Internet community. The proposed settlement agreement would allow VeriSign to raise registration fees by seven percent annually in four of the next six years without cost-based justification. It will also give VeriSign control of the .com registry indefinitely, as it extends VeriSign's 'presumptive renewal' right when the proposed settlement agreement expires in 2012.

According to a Credit Suisse analyst, the .com registry is VeriSign's highest margin business. One forecast puts the net present value of just the price increases in this agreement alone at about $1 billion.

"I personally don't have a problem with VeriSign making a fair profit, but that's not what we're talking about here," said Bob Parsons, CEO and Founder of Go Daddy. "I have a big problem with VeriSign's windfall profits being accomplished outside of the free enterprise system in which the rest of us must compete. I find it particularly outrageous that because of the special privilege VeriSign wants to be granted, all of us who use the Internet may be denied the economies and innovation that come along as a natural part of our competitive environment."

Parsons is encouraging all Americans to write to their Representatives and Senators and voice their opposition to the agreement. He is helping to facilitate this by providing a form letter on its website, people can send to their elected officials. "We are bitterly disappointed, but we're not giving up yet. It's simply a bad deal for the industry and registrants everywhere," added Parsons. "The fact that this monopolistic deal was approved is a loud signal that major changes are needed at ICANN."