ICANN has reported meeting fierce resistance and indirect opposition from Network Solutions Inc., (NASDAQ: NSOL) (Price: $78.375) which includes funding and encouraging certain individuals and entities to act to attempt to delay the process of terminating NSOL’s DNS government contract. This NSOL activity may have resulted in the recent highly publicized letters critical of ICANN from Citizens Against Government Waste, Americans for Tax Reform and Ralph Nader of the Consumer Project on Technology. None of these individuals or entities have any authority or role in DNS regulation.
The process of terminating NSOL’s DNS government contract has been made difficult by the federal political process, but is now in its final stages. ICANN was formed and is the DNS industry’s sole and exclusive self-regulatory organization. It has DOC authorization to create a DNS regulatory system. ICANN has developed DNS policy and systems that safeguard the DNS’ stability. NSOL’s system was devoid of these safeguards. We know of no reasonable basis to believe that NSOL’s self-serving opposition will result in the DOC’s terminating ICANN’s authorization instead of NSOL’s contract. We believe expectations of such an occurrence based on a series of letters from uninformed, non-parties is absurd. On the contrary, we view this flurry of opposition to ICANN, particularly that of long-time NSOL defender Congressman Tom Bliley, as a clear indication that NSOL is acutely aware that its delaying tactics have been exhausted.
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