The 2012 New gTLD Application Round

Background: Why ICANN Opened New gTLD Applications

For decades, the internet's domain name system was limited to a small set of generic top-level domains (gTLDs) like .com, .net, and .org, along with country code TLDs. By the late 2000s, it became clear that this limited namespace couldn't adequately serve the growing, global internet community.

After years of policy development and community input through ICANN's multistakeholder process, the New gTLD Program was approved in 2011. The goals were ambitious:

• Increase Competition: Break the dominance of .com and create a more competitive marketplace
• Enable Innovation: Allow creative and industry-specific domains that better reflect modern internet use
• Support Choice: Give businesses and individuals more meaningful options for their online identity
• Promote Diversity: Support internationalization and non-Latin scripts in TLDs
• Reflect Communities: Enable geographic, cultural, and interest-based communities to have their own TLDs

Timeline: The Application Window

Application Process and Requirements

Eligibility

The application window was open to any established public or private organization anywhere in the world. There were no geographic, organizational, or industry restrictions on who could apply.

Application Components

Each application required comprehensive documentation across multiple areas:

Evaluation Criteria

Applications were evaluated in three main areas:

• String Review: Similarity to existing TLDs, reserved names, geographic names
• Technical Review: DNS infrastructure, security measures, stability plans
• Financial Review: Adequate funding, realistic projections, continuation planning
• Registry Services Review: Compliance with ICANN policies, registration policies

Application Fees

Additional Fees

• $5,000 - Extended Evaluation (if required)
• $10,000 per objection - String Confusion Objection defense
• $20,000 per objection - Legal Rights, Community, or Limited Public Interest Objection defense
• Variable - Private auction fees if choosing commercial resolution
• Ongoing - Annual ICANN registry fees ($25,000 fixed + $0.25 per domain)

Applicant Support Program

ICANN established an Applicant Support Program to reduce financial barriers for qualified applicants from underserved regions and communities. Successful applicants could receive:

• Reduced evaluation fee: $47,000 (75% reduction)
• Assistance with application development
• Pro bono legal and technical consulting

However, very few applications were processed through this program, highlighting challenges with the support model that informed improvements for future rounds.

By the Numbers

Application Categories Breakdown

• ~660 applications - Brand/Corporate TLDs (e.g., .google, .bmw, .apple)
• ~310 applications - Geographic TLDs (e.g., .london, .nyc, .tokyo)
• ~550 applications - Generic/Industry TLDs (e.g., .shop, .app, .music)
• ~100 applications - Community TLDs (e.g., .bank, .radio, .catholic)
• ~310 applications - Other categories (IDN, niche interests, etc.)

Contention Sets and Auctions

What are Contention Sets?

When multiple applicants applied for the same or confusingly similar TLD strings, they were grouped into "contention sets" that needed resolution before any could be delegated.

Most Contested Strings

Resolution Methods

Contention could be resolved through several mechanisms:

• Community Priority Evaluation: Community applications could win over standard applications
• Private Resolution: Applicants could negotiate among themselves (joint ventures, withdrawal with compensation)
• ICANN Auction (Last Resort): Sealed-bid auction conducted by ICANN as the final resolution mechanism
• Private Auctions: Third-party auction houses conducted auctions as form of private resolution

Notable Auction Results

Community Objections and Disputes

Types of Objections

The program included formal objection procedures to protect various interests:

Governmental Advisory Committee (GAC) Advice

The GAC, representing governments worldwide, issued advice on numerous applications, particularly concerning:

• Geographic names and sovereignty issues (e.g., .amazon opposed by South American countries)
• Sensitive strings related to regulated industries (.pharmacy, .doctor)
• Safeguards for consumer protection
• Strings that could enable criminal activity

Success Stories and Notable Launches

Lessons Learned from the 2012 Round

What Worked Well

• Scale: Successfully processed nearly 2,000 applications and delegated over 1,200 TLDs
• Diversity: Brought non-Latin scripts, geographic diversity, and industry-specific namespaces
• Innovation: Enabled creative marketing campaigns and new business models
• Brand Protection: Gave companies control over their brand in DNS

Challenges and Issues

• Timeline: Process took much longer than anticipated; some applications took 5+ years to resolve
• Costs: Final costs often exceeded $500,000 when including legal, consulting, and auction expenses
• Closed Generics: Significant controversy over single entities controlling generic terms
• GAC Objections: Some applications faced multi-year delays due to governmental concerns
• Applicant Support: Very limited uptake of support program; barriers remained for developing regions
• Predictability: Inconsistent evaluation outcomes and policy interpretations
• Name Collision: Technical issues with certain strings conflicting with internal corporate names

Market Adoption Realities

• Many new gTLDs struggled to achieve significant registration volumes
• .com remained dominant for general-purpose websites
• Niche and industry-specific TLDs found more success than generic alternatives to .com
• Brand TLDs succeeded in their strategic objectives even without public registrations
• Geographic TLDs with local nexus requirements built authentic communities

Impact on the Domain Industry

Transformation of the Namespace

The 2012 round fundamentally changed the DNS landscape:

• Expanded root zone from ~22 gTLDs to over 1,200
• Created new registry operator market with diverse business models
• Introduced internationalization at TLD level, not just domain level
• Shifted some registrar strategies to focus on specialized TLDs

Economic Impact

• Over $350 million collected in application fees alone
• Created new jobs in registry operations, consulting, legal services
• Auction proceeds generated funding for ICANN operations and community programs
• Increased competition in domain registration market

Technical Infrastructure

• Proved DNS could scale to accommodate large root zone expansion
• Accelerated DNSSEC adoption among new registries
• Improved registry-registrar technical standards and protocols
• Enhanced monitoring and security practices across the industry