.Tel travels into “renewal valley”. How will it come out on the other side?
The folks at .tel registry Telnic are certainly sweating this week: .tel domain names registered during general availability are hitting their first renewal period.
I call this period — when new top level domain names hit there first renewal period — the “valley of renewals”. Renewal raters during this critical time are a barometer for how the TLD is doing as a whole, and the rate can often signify the future of the domain.
When dotMobi hit its first renewal period it lost 10% of its registration base, similar to many other domains.
At the end of last year there were about 275,000 .tel domain names registered. With $35 million invested in Telnic, the base of registered domain names will hardly support the valuation the company must have reached. It needs to grow and it needs to grow quickly. Pay attention to this renewal period to see where it’s headed.
My guess is that many of the people who registered domains this time last year will renew for another year before making a judgment call. I renewed 100% of my .tel domain names: all one of them.