ICANN releases data about new top level domain application system bug.

105 applicants for new top level domains might have had the filenames of some of their application documents and their username exposed, ICANN revealed today.

The non-profit also revealed that 50 applicants might have been able to view these details.

Of course, just because filenames or usernames were exposed doesn’t mean that someone actually saw them or knew what they were seeing. And even if they realized what they were viewing, that doesn’t mean that the filename or username gave away any competitive intelligence.

ICANN is in the process of notifying the 105 applicants that they may have been victims of the programming bug. It hopes to complete notifications by May 8.

There were 1,268 registered users of the TLD Application System, or TAS, when the system was pulled offline due to concerns about the bug.

…and that doesn’t include new TLD costs.

ICANN’s latest proposed budget segments out the core ICANN functions and the new top level domain program.

But even its core functions budget are slated to grow by nearly $12 million next financial year compared to what it expects to spend in the current year (FY 12). Here’s why.

Contractual Compliance: $2.4 million increase

Let’s face it, ICANN’s contractual compliance has historically sucked. Fixing the problem is welcome, and the money will be well spent if it resolves the problems. Here’s how ICANN breaks down and extra 62% in expenses for next year:

- headcount increase from an average of 9 FTE in FY12 to 15 FTE in FY13 for approximately $1.1
million
- Compliance audit for $0.5 million
- Legal allocated costs increase for $0.4 million
- other overhead increases for $0.3 million

Meeting Logistics: $0.9 million increase (or $2.6M)

The cost of meeting logistics will go up next year despite a reduction in the number of meetings. ICANN saves about $1.5 million from the lack of a third meeting, yet still spends $0.9M more than last year. So it’s really a $2.6 million increase if the number of meetings were held constant. Here’s why:

- increase in headcount from 11 FTE to an average of 15 FTE to allow an increase in the size and complexity of the meetings (1 FTE) and the implementation of the language policy
(3 FTE) for a total of $0.5 million,
- increased IT costs related to audio-visual infrastructure at the meetings for $0.3 million
- increased language services costs due to the increased volume of translation and interpretation for approximately $1.2 million
- a meeting costs contingency of $0.3 million

Community Support: $0.8 million increase

This increase is basically due to community requests. It includes more money for travel/sponsorship, meetings, etc.

Global Engagement: $1.4M increase

Keep in mind this is on top of added expenses at ICANN meetings for language services.

- $0.2M increase in publications and information materials
- $0.4M increase in sponsorship contribution and outreach materials
- $0.8M in travel, outside providers and equipment to enhance its multilingual programs.

Ombudsman: $0.1M increase

The Ombudsman’s office is going to cost about $100,000 more in 2013 than in 2012. And when I say office, I mean it. The added costs are primarily attributed to “the additional administrative cost for renting an office and the associated expenses.”

I’d really like to see that office.

Board Support: $0.7M increase

Here’s how it breaks down:

- $0.3M for Board compensation
- $0.2M for additional Board training , communication tools and self assessment,
- $0.2M for an additional Board workshop

Organizational Reviews and Implementation: $0.7M increase

ICANN will spend $3.7M in FY 2013 mainly to comply with the Affirmation of Commitments. That includes implementing some of the recommendations from the Accountability & Transparency Team,
WHOIS policy, etc.

Of course this is just part of the budget difference. See more in the full draft budget.

Main ICANN budget still assumes 500 applications.

In January ICANN released its framework for the FY 2013 budget (which begins in July). Its framework for new TLD revenue was based on 500 applications for new top level domains.

ICANN just published its draft budget and now it’s budgeting for…

only 500 applications.

I realize these things have a long lead time, but this is ludicrous. It’s quite clear there will be over 1,000 applications for new top level domains.

Releasing a budget based on less than half of that makes no sense.

To be fair, ICANN has also released variance analysis showing what the numbers would look like with 1,000 and 2,000 applications. But I would think they’d go ahead and put at minimum the 1,000 scenario as the crux of its budget.

And in the magic of ICANN finance, the historical costs of the program increase when you add in more domain applications.

Under the 500 application scenario, the historical costs of the program are $12.5 million. Under the 1000 application scenario the historical costs are $25.0 million, so it appears on paper that the program is still cost-neutral. If there are 2000 applications then the historical costs are $29.9 million.

What’s really going on here is ICANN says the total historical costs are $29.9 million. It has budgeted $25,000 per application in historical cost recovery. So if there are fewer than 1,196 applications then it will just eat some of these historical costs.

Regardless, it’s all funny money because the historical costs component will be transferred back to the “core” of ICANN and placed into its reserve fund.

By the way, if ICANN ends up making excess money from the program due to more applications than expected or lower legal costs, it will ask the community what it should do with the extra money.

It’s the end of year, and that means it’s time for Domain Name Wire’s annual Domain Dunce awards.

Let’s kick things off with a smelly situation.

By all accounts the Hotel des Almadies, which housed attendees of ICANN’s meeting at its recent meeting in Dakar, Senegal earlier this year, was far from luxury.

Attendees complained of rats, security concerns, air conditioning issues, and non-working showers.

That prompted Barbara Ann Clay, ICANN’s Vice President for Communications, to write a nastygram to Senegal’s Minister of Communication asking for compensation for guests. Attached to the letter was a 20 page report from ICANN’s at-large committee (ALAC).

But before the hotel or Minister of Communication could respond, ICANN retracted its complaint, writing that the letter was sent without appropriate buy-in from ICANN’s leadership.

Oops.

Below: a staircase at the Hotel des Almadies, which ALAC labeled “A dark, steep Staircase” and complained of a “tripping risk”.

Non-profit publishes profile of desired CEO.

Want to be the CEO of an organization launching a highly controversial expansion of the internet namespace and seeing its budget double or triple your first year on the job?

ICANN has a job for you.

Today ICANN announced it has selected search firm Odgers Berndtson of Brussels to help it find a new CEO to replace Rod Beckstrom. ICANN has used the same firm previously.

It also published a candidate profile (pdf). Among the attributes that will make you successful in this role is being able to work within the “internet governance ecosystem”. It’s a bit scarey to see mentions of the United Nations in this profile document. But the truth is ICANN’s CEO needs to be able to manage expectations of other governments that want to play a greater role in internet governance.

This will be interesting to watch.