DSTI/ICCP/TISP(2004)2/FINAL 
attempting to reach the OECD's Website (
www.oecd.org
) typed instead 
www.oecd.net
, which is not 
registered by the OECD, they would be led to a traffic aggregation Website. A common practice, as in this 
instance, is for an initial Website to be presented with links or language targeted toward keywords or 
geography. If the user then moves to another Website, a pop up window will offer further directory options, 
the opportunity to set the page as a home page or download other content or software. 
One further aspect of the traffic aggregation model is important to understanding trends in domain 
name registration. Registrants aiming to make money from traffic aggregation closely follow the expiry 
dates of existing registrations. They target high traffic sites in the hope that the existing registrant will not 
renew their registration. Accordingly, if, due to an oversight, for example, the existing registrant failed to 
renew their domain name the speculator registers the name. The intent is to park the domain and earn 
revenue from traffic aggregation for the time the domain rests in the hands of the new registrant. If the 
previous registrant is willing to pay to retrieve the name, that presents an additional source of revenue. 
As the annual cost of domain names has fallen from USD 35 to below USD 6, the number of `click 
throughs' needed to generate a profit is relatively small particularly where links are targeted towards the 
previous registrant's area of economic or social activity. Even at a rate, such as USD 0.02 per click 
through, the cost of annual registration can be covered with one click through per day. 
A further difficulty in assessing the demand for new gTLDs is the practice of defensive registrations. 
To prevent the fraudulent or abusive use of names associated with their area of economic or social activity 
many entities make defensive registrations. Businesses, for example, will commonly register trademarks 
across all new gTLDs irrespective of whether they intend to use the name simply to prevent abusive or 
fraudulent registrations. In many cases businesses will either not use such a registration or apply a redirect 
to their existing Website.  
There are few data available to inform the question of what proportion of names under new gTLDs 
represent defensive registrations. At the time of writing ICANN is undertaking its own study to inform this 
question. A previous study of registrations under 
.biz
 carried out in 2002, and therefore relatively early in 
the evolution of a new domain name, found: 
 Comparison of registrants of 
.biz
 and 
.com
 domains has shown that approximately 25% of 
.biz
domains are likely registered by the same organization that holds the corresponding 
.com
 domain. 
Further inspection of these names shows that the overwhelming majority are not being put to 
active use. Accordingly, we conclude that these domains are, by and large,  defensive  
registrations, for which the registrants pay their respective registrars only to prevent other would 
be registrants from using the names. 
34
The foregoing practices of cyber squatting, domain name speculation, traffic aggregation and 
defensive registrations make it difficult to assess the demand for new domain names which results from 
registrants wanting names for new and unique Internet applications (
e.g.
 Websites, e mail). Some data are 
available from Afilias. Towards the end of 2002, as 
.info
 reached 1 million registrations, Afilias stated: 
 Of all the new TLDs, 
.info
 also boasts the highest percentage of active sites   close to 70%   as 
well as the largest number of live, dedicated Web sites that encompass 27% of its registrations 
and approaches 
.com
 s 35%. 
35
By April 2004, the Afilias Website contained the statement that over two thirds of 
.info
 Websites 
were active, including over 400 000 live, unique sites. Active registrations include dedicated Websites, and 
password protected pages but also redirects to other Websites and `parked pages'.
36
 All that can be 
determined from these data are that there are a significant number of Websites under 
.info
. This would 
 30 




  

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