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By Peter Ward
The process of application began this month for the generic Top Level Domain (gTLD) programme, and although it is not cheap, it will now be possible to register any word as the web address suffix. For example, .com could be replaced with .dubai, .spinneys or .ameinfo.
For this region the major change in the system is the allowance to now use non-Latin language scripts, such as Arabic, in a gTLD. This may go far to expanding the amount of Arabic content on the web.
Rod Beckstrom, president and CEO of the Internet Corporation for Assigned Names and Numbers (ICANN) explains: "[This] heralds a new era in the domain name system and yet another milestone with the opening of the new round of gTLDs.
Applicants from around the world will be able to apply for domain names either in Latin characters or in their own native scripts of different languages. And this is the first time in the history of the internet that generic top level domains can be created in different languages such as Chinese and Arabic."
Beckstrom went on to say that meetings had taken place around the world with governments, the private sector and NGOs to ensure that the new domain system would be beneficial.
Application window closes in three months
The window for applications will close in three months time, possibly for a number of years, but there isn't just a short deadline stopping businesses branching out with their own domains. The cost is enough to put off all but the biggest businesses. Each application costs $185,000, while set-up expenses are estimated at $500,000. Annual running costs are thought to be around $100,000.
For the Middle East, the impact remains unclear. Analysts are currently unwilling to predict how it will affect business in this region. Regional managing director of IDC Middle East, Jyoti Lalchandani, tells AMEinfo: "We've tracked the announcement and we're not sure yet what impact this will have. From a positioning standpoint this will be a great development but I'm not sure what impact it will have on the industry as a whole. I think there are a lot of initiatives by the TRA and other organisation to drive home the message about domain names but I think it's a bit too soon to see what people are doing."
Applications are expected from cities with strong identities such as London or Madrid or Mumbai. So it would be no surprise to see Dubai buying its own domain in order to boost the online attention the country receives, which could provide a knock on effect to the tourism industry.
Consumer trust to be boosted
One area where the new domain system can make a big impact is consumer trust. If a domain name were to have the suffix of a bank, then users would have no doubt they were on the official website of that bank and not something set up as a hoax or as a scam. This increased consumer confidence could in turn boost e-commerce and sales online, an area where the Middle East trails Europe and North America.
Should two applicants both have a legitimate claim to the same domain, ICANN will hold an auction between the two, with the winner of the auction receiving the domain. This has met some criticism in the US, as some say it forces companies to make expensive bids just to protect their brand identity.
One by-product of the new system is a number of consultancy firms being created or moving into the business of helping companies apply for their domain change. The application for a domain is a long and complicated process. Any budding applicants will have to demonstrate that they have the relevant intellectual property rights primarily. They will then have to explain in detail how they will operate the domain. The aim of this process is to prevent cyber squatters from buying up the valuable domains and leaving them inactive, before negotiating a profitable sale of them later. This was seen in the early years of the internet, with some huge figures paid to individuals who had bought the rights to domains which were wanted by big organisations.
Digital marketers on high alert
Digital marketers will no doubt be highly interested in this development. A domain for a company on its own opens up a whole new level of brand identity, and could increase the value of a company's online presence significantly.
The success of this project in the Middle East region will depend on the number of applicants from here. Should a number of companies opt to buy an Arabic domain, it would signal a milestone in the use of Arabic on the internet. Other companies may be more interested in the publicity, attention and visibility the change could give them, either way, the internet will not be the same from the moment the domains are rolled out.
Staff
