Proposed SA internet domain rules cause concern

If implemented, the proposed licensing regulations for South Africa’s internet domains run the risk of creating a barrier to entry for local web-hosting companies and could result in high costs for customers.

This was the concern raised by local hosting company 1-grid over the newly-published draft rules aimed at further regulating the registration and operation of websites in SA.

In April, the .ZA Domain Name Authority (ZADNA) published draft regulations for SA’s registry operators and registrars/web-hosting firms that offer .ZA domains.

ZADNA’s mandate is to regulate the .za namespace and ensure its efficient use, management and administration.

According to ZADNA, the draft regulations are in accordance with the Electronic Communications and Transactions (ECT) Act 25 of 2002, Section 68 and 94 of the ECT Act, which authorises the authority, with the approval of the minister, to make regulations.

The proposed regulations stipulate:

• Licence and registrar fees payable via the registry.

• Registrars must apply for a licence valid for 10 years − this was not a requirement until now.

• If non-commercial registrars stop operating, they must provide customer registration data to ZADNA.

• Registrars must collect and store identity documents, physical addresses and contact information of people wishing to register .ZA domains.

• Registrars must provide broad-based black economic empowerment information with their licence application − specifically details of BEE ownership.

The public have until 6 June to comment on these regulations.

However, Thomas Vollrath, head of 1-grid, says he is concerned that the technical implications of these regulations will result in complexities for local customers and deter them from seeking a local domain in favour of an international one.

In addition, he believes the proposal, which comes less than one year after the 2021 domain registration fee increase, might impact the prices consumers and companies will be charged for web-hosting solutions.

“Our concern is that the costs related to compliance and licensing will end up being passed on to the consumer, which in turn will have a knock-on effect for local hosting companies. If a potential registrant has the choice of registering a .com domain more easily than a .co.za, this may put them off a .co.za domain,” notes Vollrath.

“Even when implemented with the best of intentions, restrictions run the risk of creating a barrier to entry. While we support the work of the registry in ensuring the domain database is accurate, we also believe in an open market.

“Internationally, we’ve seen the most successful registries have been the ones that ensure wide-scale open access to domains, without unnecessary barriers to registration.”

Only 1.3 million .co.za domains are currently registered in SA .In 2020.ZADNA announced it will charge R10 more for the wholesale extensible provisioning protocol fee for co.za, org.za, web.za and net.za domain names.

“To support local providers and promote industry growth, we should be encouraging South Africans to invest in local domains. Our hope is that additional licence conditions and fees do not end up increasing the costs of domains to the end-user – which might deter them from purchasing a .co.za domain,” comments Vollrath.