1. ICANN: The Case for Reform Stuart Lynn President & CEO ICANN APRICOT 2002 Bangkok

2. Overview l Where We Are –An Unfulfilled Experiment l At a Crossroads –Heading Towards a Cliff l Roadmap to Reform –Focus on Core Mission –A Public/Private Partnership

3. WHERE WE ARE

4. ICANN’s Mission l Create private sector, global coordination body –Privatize + internationalize –Agile and effective l Better alternative to government treaty organization –Coordinate names, numbers,addresses? –Plus? l Conceived as a bold experiment –Incredibly ambitious –No agreements, no funding model, no funds l Three years later: –Can mission be achieved?

5. Main Thesis l ICANN as structured cannot succeed –Much accomplished, but key goals not attainable l Pre-requisites for full transfer of DNS root – From USG l ICANN needs significant structural reform –Amazing if it did not! l A reformed ICANN can succeed –Tight focus on core mission l Which is? l A new kind of public/private partnership required –Purely private will fail –Purely governmental highly undesirable –Workable balance is needed

6. Why ICANN Cannot Succeed l Lack of full participation by key stakeholders –Only real measure of legitimacy l Overburdened by process –At expense of effectiveness –Government-like layers of process l Without government legitimacy, resources –Too many distractions l Inadequate, unreliable, US-centric funding –With no clear path to solution l Not seen as credible by key stakeholders –Instead: A (loud) debating society

7. Key Stakeholders l Name Registries/Registrars –gTLDs –ccTLDs l Address Registries l Root name server operator l Infrastructure providers l “Major” Users l Governments l Etc.

8. Too Much Process l Process over Progress –Form over substance –History of ICANN as a political exercise l Get everyone’s agreement l Shackle ICANN l Oversensitivity to role of government l More and more controls –Balance out of whack l Process has become an end in itself –At expense of effectiveness –Too many distractions l At Large Elections l Diminishes support for ICANN

9. Inadequate Funding l ICANN started with no guaranteed funding l Only registries/registrars participate –But not all l Underfunded for three reasons –Significant budget shortfall each year –Accommodated by l Not hiring to authorized levels l Foregoing reserves –Inadequate even if fully funded l No backup of key individuals l Cannot take on needed work

10. AT A CROSSROADS

11. Status Quo Not Sustainable l ICANN cannot succeed without –Participation by key stakeholders –Focus on effectiveness over progress l End irrelevant distractions –Adequate, reliable, international funding –Government backing for private-sector management l Status quo not sustainable –Funding inadequate to perform core functions well –Unable to globalize l Cannot meet conditions for full transfer of DNS root from USG l Loss of interest l Muddling through not good enough –A weak ICANN is a vulnerable ICANN l Drift towards government alternative

12. Reform Required l Not tinkering –Illusion of solutions l Requires radical change l Requires new mindset l Effectiveness as key goal –Accomplishment –Credibility –Confidence –Participation l A public/private partnership –Is there any other workable alternative?

13. ROADMAP TO REFORM

14. Three Pronged Approach 1. Structure 2. Funding 3. Openness and Transparency

15. 1. Structure Government Advisory Committee Technical Advisory Committee (SAC, RSSOC, etc) ADVISORY COMMITTEES (2) NOMINATING COMMITTEENOMINATING COMMITTEE OMBUDSMANOMBUDSMAN POLICY ADVISORY COUNCILS (3) Steering Committee Forums* Steering Committee Forums* Steering Committee Forums* Generic Names Geographic Names Numbers and Addresses (11)(9)(7) PUBLIC PARTICPUBLIC PARTIC BOARD OF TRUSTEES (15) Government Appointed Public Ex-Officio (5 Regional?)(5 via NonCom)(4 + CEO) [+ non-voting GAC, IAB Designees] At Large *Self-Organizing Forums

16. 2. Funding Principles l Adequate, Reliable, International l Related to Costs –Core l e.g., policymaking; root name server activities –Services –Reserves l Bundled or Unbundled –Agreements vs Fee for Service l Tiered –According to size, GNP etc l Fair Share Principle for Organizations –Full participation = Fair share funding l Broaden Sources –Signed agreements –Fees for service –Governments

17. 3. Openness & Transparency l Ombudsman l Mgr. Of Public Participation l Nominating Committee –Bound by constraints l Experience, knowledge, leadership, judgment, geographic and functional diversity, etc. –Stakeholder Liaisons l Open and Transparent l Public Conferences –Bi-Annual l Objective: meaningful participation –Self-organizing forums

18. CONCLUSIONS

19. How Does This Solve The Problems? l Participation –Carrot and Stick l Too much process –Greater Opportunities to Act l Funding –Broader Participation

20. We Need You l Starting point not an ending point l Need ideas, comments, criticisms –lynn@icann.orglynn@icann.org –comment-reform@icann.orgcomment-reform@icann.org –http://forum.icann.org/reform/http://forum.icann.org/reform/ –Q&A session l Directed at all problems l We must move with dispatch

21. ICANN Redux l A Strong Organization –Effective and Agile l Supported by Key Stakeholders –A Public/Private Partnership l Led by Best Team Possible –Board & Steering Committees l Open and Transparent –Real Participation not Process l Properly Funded

22. THANK YOU!