[GTER] [OT] Internet powered by Google

[Alexandre Hautequest]

Google is now an ICANN-accredited registrar of domain names, providing
it with yet another potential line of expansion. The fast-growing search
provider is approved to sell names in seven top-level domains (TLDs)
including .com, .net, .org, .biz., info, .name and .pro.

Google's registrar status, first noted by LexText, is likely to prompt
speculation about its ambitions in web hosting and blogging. Google
operates Blogger, the free blog hosting service with a huge user base.
Cheap or free domain names could prove useful to Google in the
notoriously price-sensitive blog hosting sector, where most bloggers use
subdomains (i.e. myblog.bloghost.com) rather than full domain names
(www.myblog.com).

Domain sales have also become an important tool in the business hosting
market, where domain registrations have surged in the past 18 months,
even as prices have dropped steadily. Hosting providers like Hostway,
EV1Servers, Interland and Yahoo have used cheap domains to attract
hosting customers.

Those four hosting companies are not domain registrars, however. All buy
their domains from wholesalers like Tucows, Go Daddy or Melbourne IT,
and have a minimum per-domain cost, usually at least $6.50. Rather than
viewing domains as a for-profit business, these providers have
approached domain sales as a marketing cost. A recent survey by The Web
Host Industry Review found that the keyword phrase "web hosting" was
selling for $7.70 per click on Google AdWords and $9.02 on Overture. Not
all of those clicks will become new customers, either, making a $1 or $2
loss on a domain sale seem like an affordable way to acquire a customer.

The greatest domain cost efficiencies are available to hosting companies
that are also ICANN-accredited registrars, such as 1&1 Internet of
Germany, which offers .com domains at $5.99, the lowest non-promotional
price of any major hosting provider. As a registrar, Google could have
similar flexibility to aggressively price its domain names.

http://news.netcraft.com/archives/2005/01/31/google_is_now_a_domain_registrar.html

-- 
Alexandre