The introduction of new Internet domains to the global marketplace has the potential to dramatically grow the domain name marketplace, increasing the value of domain names, driving new demand for registry services and opening new markets for registrars and registries alike.

Because VeriSign operates .com—the legacy generic top-level domain (gTLD)—many in the Internet community have assumed that we would oppose the introduction of new gTLDs. The truth is quite the opposite. VeriSign believes that the introduction of new Top-Level Domains creates one of the greatest opportunities of this decade, provided that appropriate safeguards are put in place to ensure security and stability, to control abuse and to protect rights.

New Domain Names increase interest in the market driving innovation and additional opportunities in the domain name space. The introduction of new TLDs should dramatically and permanently increase the size of the domain name marketplace.

While development of the new Top-Level Domains will surely bring new competitors, we are confident that the new markets opened by the new domain round will strengthen the domain name marketplace as a whole.

Increased competition among registry operators—as with the introduction of new domains in the previous two rounds—has always proven beneficial to the marketplace. We see no reason why that trend should change with the new TLD round.

The other, even more tangible, value that the new domain round creates for VeriSign and other established registry operators, comes in the form of new demand for third-party registry services.

For registries—like VeriSign—that offer backend services to other registries, the new domain round represents a significant business opportunity. VeriSign is already in talks with several prospective operators of new domains and intends to engage actively in the emerging backend services market.

None of this is to say that the new domain round comes without challenges. As the operators of .com, we know better than anyone the serious threats that face registry operators, and the extent to which those threats can wreak havoc in the network if not effectively mitigated at the registry level.

Given the importance of the registry function, it is also critical that new registries start from a position of financial stability and have clear mechanisms in place to protect registrants in the event of unforeseen events.

For both of those reasons, VeriSign strongly supports ICANN’s commitment to fine tuning the Draft Applicant Guidebook to ensure that it establishes appropriate standards and supports and effective, stable and secure rollout of new domains.

As that important work draws nearer to its close, we eagerly look forward to the launch of new domains. Indeed, we’re counting on it.