A few years ago, ICANN gave Verisign the right to raise prices each year. If I recall correctly, they can raise their prices around 7% per year without any further justification during the term of the contract. Verisign claims that rising costs in keeping the dns secure makes increases necessary. Of course, this makes it more difficult for domain investors to justify holding domains, especially since Pay Per Click revenue shares have decreased over the past few years.
Verisign’s press release is below…
DULLES, VA (Marketwire) – VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure services for the networked world, today announced, effective Jan. 15, 2012, an increase in registry domain name fees for .com and .net, per its agreements with the Internet Corporation for Assigned Names and Numbers (ICANN).
Verisign announced that as of Jan. 15, 2012, the registry fee for .com domain names will increase from $7.34 to $7.85 and that the registry fee for .net domain names will increase from $4.65 to $5.11.
Continued strong global Internet usage growth, along with increasingly powerful distributed denial of service (DDoS) attacks leveled against all parts of the Internet’s critical infrastructure, have dramatically increased the demands on Internet infrastructure providers such as Verisign. In the last five years, the volume of Domain Name System (DNS) queries on Verisign’s global Internet infrastructure has more than doubled, increasing to an average daily query load of 57 billion in the first quarter of 2011. Future growth is expected to occur at an even faster pace. Verisign’s infrastructure has maintained 100 percent operational security, accuracy and stability for more than a decade due to continued innovation and investment in the infrastructure.
VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet infrastructure services for the networked world. Billions of times each day, Verisign helps companies and consumers all over the world to connect online with confidence. Additional news and information about the company is available at www.verisigninc.com.