Suggested Comment - ICANN Reserve Fund
Stephanie Perrin
stephanie.perrin at MAIL.UTORONTO.CA
Tue Nov 14 10:43:54 EET 2017
Can you explain precisely what has not been addressed, Arsene? I am a
bit confused. In answer to the more general question as to why ICANN
should have a larger reserve fund, may I offer the following explanation
for why I think two years is better than one....
First, it is difficult to assess the necessary funding required to cover
unforeseen events without seeing the risk report that the Board is privy
to. The document they have posted in the call for comments is actually
quite useful, but in my view they seriously lowball some of the
numbers. Legal risk in particular....ICANN could easily be hit with
legal expenses for many of its decisions (e.g. current fight over .web,
GDPR fines, lawsuits in the event of a catastrophic event in one of
their offices, etc.). I therefore think upping it is required....they
have proposed 17 months, I think 24 is safer.
Second, the revenues are falling....registrars say they are about to go
down further. There will be significant costs associated with WHOIS
changes, ICANN has to pick up some of them or provide registrar relief.
If registrars start closing down because they are no longer profitable,
(and focus on web hosting and other services where they claim they make
their money in the first place, ICANN will have to close down some of
its operations, most likely in some of the regional offices (travel
costs to HQ for regular meetings are already steep). This comes at a
high price, given the generous salary and benefits packages ICANN has,
check that line item in the graph.
Third, they use Nominet and CIRA as comparators....not the same risk
environment at all, they are not global operators and have much lower
legal risk. Not that it is easy to find comparators for ICANN, as it is
a unique beast, but I think all this speaks to the need to up the ante
and go with two years.
I have no quarrel with the investment planning for the funds.
cheers Stephanie
On 2017-11-14 09:06, Arsène Tungali wrote:
> Hi Ayden,
>
> Thanks for working on the doc and thanks to those who were able to
> chim in to provide more substance or clarification.
>
> I hate Google docs because they allow the author to decide to
> "Resolve" comments even when they haven't reached consensus. Now for
> anyone who would like to go back to check the document, they won't be
> able to see the comments and the way they were adressed. This is
> unfortunate and I would request next time, the author of the document
> to leave the comments and only when the author feels they have been
> adressed, then to consider them as "Resolved".
>
> I would like to call on everyone here to check my concerns in this
> thread and then check the Google doc to agree with me whether they
> have been adressed or not. Also, please do share your thoughts by
> editing the document directly as a way to improve it (if appropriate).
>
> Thank you very much,
> Arsene
>
>
>
> ------------------------
> **Arsène Tungali* <http://about.me/ArseneTungali>*
> Co-Founder & Executive Director, /Rudi international
> <http://www.rudiinternational.org>/,
> CEO,/Smart Services Sarl <http://www.smart-serv.info>/, /Mabingwa
> Forum <http://www.mabingwa-forum.com>/
> Tel: +243 993810967/
> /
> GPG: 523644A0/
> /
> _Goma, Democratic Republic of Congo_/
>
> /
> 2015 Mandela Washington Felllow
> <http://tungali.blogspot.com/2015/06/selected-for-2015-mandela-washington.html>
> (YALI) - ISOC Ambassador (IGF Brazil
> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/igf-ambassadors-programme/Past-Ambassadors>
> & Mexico
> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/Current-Ambassadors>)
> - AFRISIG 2016 <http://afrisig.org/afrisig-2016/class-of-2016/> -
> Blogger <http://tungali.blogspot.com> - ICANN Fellow (Los Angeles
> <https://www.icann.org/news/announcement-2014-07-18-en> & Marrakech
> <https://www.icann.org/resources/pages/marrakech55-attendees-2016-03-14-en>).//AFRINIC
> Fellow//(Mauritius
> <http://www.afrinic.net/en/library/news/1907-afrinic-25-fellowship-winners>)/-
> /IGFSA Member <http://www.igfsa.org/> - Internet Governance - Internet
> Freedom.//
>
> Check the /2016 State of Internet Freedom in DRC/ report (English
> <http://cipesa.org/?wpfb_dl=234>) and (French
> <http://cipesa.org/?wpfb_dl=242>)
>
> 2017-11-13 16:39 GMT+02:00 Ayden Férdeline <icann at ferdeline.com
> <mailto:icann at ferdeline.com>>:
>
> Hi Arsene,
>
> I have now responded to all of your comments in the Google Doc. I
> encourage you to propose edits to the text directly if you think
> that the statement can be improved. It is a collaborative process,
> with the document open for all to edit and shape. In my experience
> it can be easy to criticise or object to something, but a lot more
> challenging to come up with evidence-informed, alternative
> recommendations.
>
> Best wishes, Ayden
>
>
>
>> -------- Original Message --------
>> Subject: Re: Suggested Comment - ICANN Reserve Fund
>> Local Time: 13 November 2017 11:15 AM
>> UTC Time: 13 November 2017 11:15
>> From: arsenebaguma at gmail.com <mailto:arsenebaguma at gmail.com>
>> To: Ayden Férdeline <icann at ferdeline.com
>> <mailto:icann at ferdeline.com>>
>> NCSG-DISCUSS at LISTSERV.SYR.EDU
>> <mailto:NCSG-DISCUSS at LISTSERV.SYR.EDU>
>> <NCSG-DISCUSS at listserv.syr.edu
>> <mailto:NCSG-DISCUSS at listserv.syr.edu>>
>>
>> Thanks Ayden,
>>
>> I will try and input most of these comments into the doc directly and
>> hope they will be adressed.
>>
>> Regards,
>> Arsene
>>
>> 2017-11-13 12:48 UTC+02:00, Ayden Férdeline icann at ferdeline.com
>> <mailto:icann at ferdeline.com>:
>>
>> Hi Arsene,
>> You are welcome to propose edits to the text directly. The
>> Google Doc is
>> open for all to edit and shape, and I note that you managed
>> to comment on
>> another one roughly 30 minutes ago. As a reminder, this is
>> just proposed
>> text and of course not yet endorsed by the NCSG, so nothing
>> is final and
>> edits are still possible. That being said, if I may politely
>> suggest you
>> first read the supporting material which I linked to in my
>> initial email, it
>> might be helpful to see what it is that ICANN is requesting
>> that we comment
>> on.
>> Thanks,
>> Ayden
>>
>> -------- Original Message --------
>> Subject: Re: Suggested Comment - ICANN Reserve Fund
>> Local Time: 13 November 2017 10:33 AM
>> UTC Time: 13 November 2017 10:33
>> From: arsenebaguma at GMAIL.COM <mailto:arsenebaguma at GMAIL.COM>
>> To: NCSG-DISCUSS at LISTSERV.SYR.EDU
>> <mailto:NCSG-DISCUSS at LISTSERV.SYR.EDU>
>> Hi Ayden,
>> Thanks for pulling together this comment.
>> I am sending here few comments as my network doesn’t
>> allow me to work
>> on the Google doc now. I don’t have a very good
>> background with
>> finances or budgets, but I will try to share few comments
>> bellow.
>> First, I am in total agreement with you that ICANN should
>> not consider
>> taking away from the new gTLD Auction Proceeds funds as
>> these should
>> not seek to cover ICANN’s operating expenses but support
>> external
>> projects that align with ICANN’s mission. This discussion
>> has been
>> happening in the AP WG and that was my point as well.
>> “However, given the organisation’s unusual risk profile,
>> we would
>> encourage the organisation to set a target level for the
>> Reserve Fund
>> of a minimum of 24 months of operating expenses.”
>> Is there any reason why you are requesting this, Ayden?
>> If the org is failing to keep the fund to a minimum of 12
>> months, I
>> think it is asking too much for now (though it would be
>> great if they
>> are able to) to ask them to keep a minimum of 24 months.
>> I would
>> suggest this comment to focus on helping them to be able
>> to stick and
>> ensure they remain with a minimum of 12 months as they
>> have been doing
>> trying to do since 2007.
>> “However, there are many ways in which ICANN could cut
>> funding”
>> Thanks for suggesting some ways ICANN can cut down some
>> of its
>> expenses and call them on being more responsible with the
>> way they
>> make expenses. Many of these suggestions are valid after
>> a quick look
>> but need to be looked at in deep in order to ensure we
>> all have the
>> same opinion as the NCSG.
>> I do agree with a comment I read that these can be more
>> relevant
>> suggestions with regards to the Operating Funds not the
>> Reserve Funds.
>> Can we work on another comment in the future (not sure
>> whether there
>> is an open comment on Operating Funds) and present these
>> arguments
>> instead?
>> I know you have personal reasons or strong opinions with
>> regards to
>> the Fellowship program but I don’t think this is the
>> right place to
>> present that because there is no general agreement within
>> the NCSG on
>> what needs to be our response with regards to the
>> Fellowship program
>> and its expenses. I am sure many of us agree that there
>> is a need to
>> review this program though. I think this can be the
>> subject of a
>> different discussion that needs to happen before we can
>> present it as
>> the NCSG opinion.
>> With regards to GSE expenses, I would appreciate to have
>> a reference
>> that supports this claim or if you could expand more here
>> on what you
>> mean because this can be seen as a pure claim with no
>> evidences. Are
>> you saying that the GSE is making expenses for activities
>> that are out
>> of ICANN’s remit?
>> I would not like to sound like commenting on all these
>> suggested ways
>> for ICANN to cut its expenses but I think for an NCSG
>> comment, we may
>> need to base our current and future comments on issues we
>> have openly
>> discussed on the list and where we seemed to have an
>> agreement and
>> only have been waiting for an opportunity to make them
>> public as a
>> stance.
>> So, I would strongly suggest that we don’t make
>> suggestions (unless
>> someone has other suggestions) and stick to the fact that
>> ICANN should
>> carefully look at the way they make expenses in their
>> operations and
>> use some of the remainder to replenish the Reserve Funds.
>> I wish I was
>> able to provide more.
>> I would like to thank you, Ayden for holding the pen here
>> again
>> (something many of us here are not yet able to do) but I
>> would call
>> for caution that we should not seek to use NCSG to
>> channel personal
>> opinions. I would instead encourage whenever we have a
>> concern or an
>> opinion over something, to raise it with the membership,
>> discuss it
>> and then when there is an opportunity to publicly address
>> them, then
>> we can use NCSG voice to raise them.
>> Thank you very much,
>> Arsene
>> 2017-11-12 14:46 UTC+02:00, Carlos Raul Gutierrez
>> crg at isoc-cr.org <mailto:crg at isoc-cr.org>:
>>
>>
>> Dear Ayden,
>> thanks a lot for this excellent draft, which by
>> the way updated me and
>> gave
>> me a very good picture of the whole discussion.
>> Based on my own experience, ICANN high dependency
>> on a stream of fees
>> directly related to the size of the DNS market is
>> a problem of capture in
>> waiting. Most entities that deal with such
>> dynamic markets (I'm no going
>> to
>> use the word) tend to prefer vaccinate themselves
>> from the illusion of an
>> endless source of income, by developing a cost
>> based budget first, and
>> justifying every year its budget to the providers
>> of income, instead of
>> defending a TAX or cut of their business.
>> My humble suggestion is that within your
>> suggestion that the Board would
>> think a little bit harder about this issue, we
>> include the general notion
>> of a cost based budgeting system, as an important
>> step to reduce the risk
>> of inflated expectations about the growth
>> potential of the DNS market of
>> the present tax based system. Some new gTLDs are
>> not sustainable under
>> the
>> present cost structure of the ICANN Corporation,
>> and it would be a pity
>> to
>> limit the innovation and openness of the DNS just
>> because its structure
>> is
>> so expensive to maintain.
>> Thanks again for your work and considering my ideas.
>> Carlos Raúl Gutiérrez
>> ISOC Costa Rica Chapter
>> skype carlos.raulg
>> +506 8837 7176 <tel:+506%208837%207176>
>>
>> Apartado 1571-1000
>> COSTA RICA
>> On Wed, Nov 8, 2017 at 2:28 PM, Ayden Férdeline
>> icann at ferdeline.com <mailto:icann at ferdeline.com>
>> wrote:
>>
>> Hi,
>> I have drafted a response on behalf of the NCSG
>> regarding ICANN's
>> Reserve
>> Fund. The call for public comments and supporting
>> documentation can be
>> found
>> here
>> https://www.icann.org/public-comments/reserve-fund-2017-10-12-en
>> <https://www.icann.org/public-comments/reserve-fund-2017-10-12-en>.
>> The proposed comment that I have drafted is on
>> Google Docs here
>> https://docs.google.com/document/d/1WJICv5BgHyBIo_o3twOkK0BZDyALIvZYjKXiY5s3RgI/edit?usp=sharing
>> <https://docs.google.com/document/d/1WJICv5BgHyBIo_o3twOkK0BZDyALIvZYjKXiY5s3RgI/edit?usp=sharing>.
>> This is a rough draft; your comments will be
>> instrumental in shaping the
>> final version, if the NCSG choses to submit one.
>> But for now I welcome
>> your
>> constructive edits to the text. Thank you.
>> —Ayden
>>
>> ------------------------------------------------------------------------
>>
>> Arsène Tungali http://about.me/ArseneTungali
>> Co-Founder & Executive Director, Rudi international
>> http://www.rudiinternational.org
>> <http://www.rudiinternational.org>,
>> CEO,* Smart Services Sarl http://www.smart-serv.info*,
>> Mabingwa Forum
>> http://www.mabingwa-forum.com
>> Tel: +243 993810967 <tel:+243%20993%20810%20967>
>> GPG: 523644A0
>> Goma, Democratic Republic of Congo
>> 2015 Mandela Washington Felllow
>> http://tungali.blogspot.com/2015/06/selected-for-2015-mandela-washington.html
>> <http://tungali.blogspot.com/2015/06/selected-for-2015-mandela-washington.html>
>> (YALI) - ISOC Ambassador (IGF Brazil
>> http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/igf-ambassadors-programme/Past-Ambassadors
>> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/igf-ambassadors-programme/Past-Ambassadors>
>> & Mexico
>> http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/Current-Ambassadors
>> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/Current-Ambassadors>)
>>
>> *
>> AFRISIG 2016
>> http://afrisig.org/afrisig-2016/class-of-2016/
>> <http://afrisig.org/afrisig-2016/class-of-2016/> -
>> Blogger
>> http://tungali.blogspot.com - ICANN Fellow (Los Angeles
>> https://www.icann.org/news/announcement-2014-07-18-en
>> <https://www.icann.org/news/announcement-2014-07-18-en>
>> & Marrakech
>> https://www.icann.org/resources/pages/marrakech55-attendees-2016-03-14-en
>> <https://www.icann.org/resources/pages/marrakech55-attendees-2016-03-14-en>
>> ). AFRINIC Fellow (Mauritius
>> http://www.afrinic.net/en/library/news/1907-afrinic-25-fellowship-winners
>> <http://www.afrinic.net/en/library/news/1907-afrinic-25-fellowship-winners>)*
>> *
>> *IGFSA Member http://www.igfsa.org/ - Internet
>> Governance - Internet
>> Freedom.
>>
>> Check the 2016 State of Internet Freedom in DRC report
>> (English
>> http://cipesa.org/?wpfb_dl=234) and (French
>> http://cipesa.org/?wpfb_dl=242)
>>
>>
>> --
>>
>> ------------------------------------------------------------------------
>>
>> //Arsène Tungali/ http://about.me/ArseneTungali/
>> Co-Founder & Executive Director, /Rudi international
>> http://www.rudiinternational.org <http://www.rudiinternational.org>/,
>> CEO,* Smart Services Sarl http://www.smart-serv.info*, /Mabingwa
>> Forum
>> http://www.mabingwa-forum.com/
>> Tel: +243 993810967 <tel:+243%20993%20810%20967>
>> GPG: 523644A0
>> /Goma, Democratic Republic of Congo/
>>
>> 2015 Mandela Washington Felllow
>> http://tungali.blogspot.com/2015/06/selected-for-2015-mandela-washington.html
>> <http://tungali.blogspot.com/2015/06/selected-for-2015-mandela-washington.html>
>> (YALI) - ISOC Ambassador (IGF Brazil
>> http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/igf-ambassadors-programme/Past-Ambassadors
>> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/igf-ambassadors-programme/Past-Ambassadors>
>> & Mexico
>> http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/Current-Ambassadors
>> <http://www.internetsociety.org/what-we-do/education-and-leadership-programmes/next-generation-leaders/Current-Ambassadors>)
>>
>> *
>> AFRISIG 2016 http://afrisig.org/afrisig-2016/class-of-2016/
>> <http://afrisig.org/afrisig-2016/class-of-2016/> - Blogger
>> http://tungali.blogspot.com - ICANN Fellow (Los Angeles
>> https://www.icann.org/news/announcement-2014-07-18-en
>> <https://www.icann.org/news/announcement-2014-07-18-en> &
>> Marrakech
>> https://www.icann.org/resources/pages/marrakech55-attendees-2016-03-14-en
>> <https://www.icann.org/resources/pages/marrakech55-attendees-2016-03-14-en>
>> ). AFRINIC Fellow (Mauritius
>> http://www.afrinic.net/en/library/news/1907-afrinic-25-fellowship-winners
>> <http://www.afrinic.net/en/library/news/1907-afrinic-25-fellowship-winners>)*
>> *
>> *IGFSA Member http://www.igfsa.org/ - Internet Governance -
>> Internet
>> Freedom.
>>
>> Check the /2016 State of Internet Freedom in DRC/ report (English
>> http://cipesa.org/?wpfb_dl=234) and (French
>> http://cipesa.org/?wpfb_dl=242)
>>
>
>
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