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USPS on Donuts: You’re undercapitalized

September 25, 2012.delivery, Domaining, Domainnamewire, donutes, new tlds, Policy & Law, unites states postal serviceComments Off on USPS on Donuts: You’re undercapitalized

USPS fears Donuts won’t deliver on .delivery.

Well, this is amusing.

The United State Postal Service has just filed a comment on Donuts’ application for the .delivery top level domain name.

What’s the USPS concerned about? That Donuts is undercapitalized to run its domain names.

Here’s what @thereforeicann has to say about that:

The comments were submitted by USPS lawyers Lewis and Roca LLP for the Financial Capability Evaluation Panel. Subject line: “Insufficient Capital for 307 gTLDs”.

It argues that Donuts won’t have enough money to run all 307 domain names if it gets them because it has only raised $100 million to date.

Letters of credit notwithstanding, the community estimates that it will cost approximately $2-3 million to run each gTLD for the ten years to which applicants commit. Thus, if Donuts is granted all 307 gTLDs, there is a question whether its costs, which could be in the range of $600-900 million, may be significantly more than Donuts is able to raise while keeping all 307 gTLDs fully operational.

Economies of scale is something that never entered the USPS’ lexicon.

And trust me, if Donuts manages to get all 307 domain names it will raise plenty more money.


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