Why is the cost of a New Zealand website address increasing by 20%

Business

Jacinda Ardern and Jordan Carter, Head of InternetNZ, at the Christchurch Call summit in Paris in May. Photo / File

The cost of registering a new internet address and the monthly cost of maintaining it are about to increase slightly, reflecting big changes in the background.

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InternetNZ – the nonprofit that administers the .nz domain (or local website and email addresses) – increases its wholesale fees from $ 1.25 to $ 1.50 per month from the 1st June.

ISPs and others who sell domain names should pass on this increase.

“The decline in registrations threatens our ability to provide the basic security and coordination services demanded by our market. In order to deliver these vital long-term services sustainably, we need to increase our prices,” said CEO of InternetNZ, Jordan Carter.

InternetNZ is now facing competition from private .kiwi and, more broadly, from the tendency of individuals or businesses to create a page on Facebook rather than creating their own website, thus ending years of strong growth in registrations.

InternetNZ now knows the true size of the local market, Carter said.

“Since we started, everything has been focused on growth. We can now see the true size of our market and with this change, maintain our organization at the right size to serve that market, while still meeting our commitments to the public good.

Carter described the increase as modest and well overdue.

The most recently published accounts of InternetNZ are for the 12 month period as of March 31, 2018.

They show that the nonprofit has a surplus of $ 867,051, up from $ 772,358 in 2017.

Operating revenue – generated almost entirely by wholesale domain fees – increased to $ 10.7 million from the $ 10.2 million reported in 2017. This was supplemented by $ 658,560 in revenue from the domain. investment activity.

Spending, which included advocacy work and community and research grants, increased from $ 10.0 million to $ 10.5 million.

Carter oversaw a 2018 restructuring that saw InternetNZ merge with its subsidiary NZ Registry Services, while the board of directors of the Domain Name Commission or DNC – which arbitrates, among other things, web address disputes – has been lightened. .

And while it faces an apparent drop in recording revenue (its 2019 accounts won’t be released until July, a spokeswoman told the Herald), life is getting more complicated for InternetNZ.

The past year has been a complicated one for the nonprofit, struggling with the fallout from the Christchurch shooting.

In April, InternetNZ said it had “emergency measures” in place that “lock down” a local website address with harmful content if necessary.

Carter later said that while his organization has the ability to make content inaccessible, he didn’t want to play the role of the sheriff.

The government was to clarify whether and when the chief censor, police or other agency – or a combination of agencies – should call for content to be blocked.


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