-It appears that Melbourne IT is competing with us on a retail basis and selling domain names at 50 percent less," Internet Name Group general manager Mark Spektor said.
Currently, Melbourne IT acts as a wholesale provider, selling domain names from its .au database to its 500 channel partners, which then on-sell to the end user.
The board of the Australian Domain Name Authority (auDA) approved the final report for the introduction of competition in the domain name space. Part of the model is to introduce an open tender process for the .au domain name database, currently controlled by Melbourne IT.
auDA is aiming to implement the Panel's recommendations by the end of the year.
"The model will provide certainty for industry and consumers alike, by ensuring a level playing field and setting accepted standards of behaviour," auDA CEO Chris Disppain said in a statement.
According to Spektor, in the lead up to the introduction of competition, Melbourne IT has been selling domain names direct to the end user, acting as a retailer rather than a wholesaler.
-It's not giving the channel partners an opportunity to compete in the marketplace. If they charge a lesser price to the retail chains, we are being forced to compete with these prices, but we have to buy the names from them at wholesale prices,
-They are using their power to attract potential clients," Spektor said.
Spektor says Melbourne IT is abusing its position as sole registry by sending out -so called" consumer alerts, informing customers of the true price without mark-up of purchasing a .com.au domain name.
-But they are really just making trouble for their channel partners and promoting their own services. That's an unfair abuse of their monopoly status," he said.
I'm an average size business and have a few internet names, ive had some dealings with Melbourne IT and to this day all dealings have resulted in me contacting a third party for help as im not too tech minded on the net and I find myself stranded as Melbourne it simply say "check out our web site", one time I nearly lost a name as Melbourne IT didn't remind me to renew, when asked why, they simply replied, "the onus is on yourself Sir". Since reading your article I contacted this Internet Name Group and how refreshing, the help the advice, lots of it.
I spoke to a young man in there Corporate department Craig, and after a few minutes with him we worked everything out and I feel so at ease, It just goes to show that price and monopoly is always outweighed by service and security oh and that little thing called piece of mind!
Thank you zdnet, once again you have been of benefit