ICANN IS A GLOBAL, NON-PROFIT, CONSENSUS-DRIVEN ORGANIZATION

ICANN represents a unprecedented effort by the Internet business, technical, non-commercial and academic communities to create a globally representative private sector (that is, non-governmental) policymaking body. Consistent with the principle of maximum self-regulation in the high-tech economy , ICANN is perhaps the foremost example of collaboration by the various constituents of the Internet community – individuals and organizations, entrepreneurs and educators, corporate enterprises and non-profit advocacy groups. Though often contentious, the ICANN structure creates an open and transparent global forum in which competing interests can work toward consensus.

The many hundreds of individuals, organizations, corporations, engineers, entrepreneurs, educators, and others that have participated in the process of creating and building ICANN encompass a wide cross-section of the global Internet community. ICANN recognizes that it will require significant ongoing effort in the coming months to reach out and to bring previously uninvolved individuals and organizations into the ICANN process, particularly in the developing world.

To accomplish this, ICANN and the Department of Commerce (DoC) entered into a Memorandum of Understanding (MoU) on November 25, 1998, agreeing to work together to manage the transition from government control to private sector control. The single most visible and important element of DNS management is the registration of domain names (for example, .com, .org and .net). A single historical provider, Network Solutions, has for years enjoyed a government-granted monopoly over new domain name registrations and renewals.

Under the MoU, ICANN has already accredited an initial group of five new competitive registrars (America Online, CORE, France Telecom, Melbourne IT, and register.com), as part of a test of the Shared Registration System, which will permit competition among multiple registrars in this very public component of the Internet’s underlying technology. Following completion of the test and the negotiation of an acceptable registry agreement with Network Solutions, at least 52 other companies from around the world will also be eligible to offer registration services alongside Network Solutions, heralding a new era of full and open competition.

The move to ICANN-administered open competition in the market for domain name registrations, with the addition of dozens of accredited competitive registrars, is likely to see consumers reap significant price benefits far in excess of ICANN's administrative costs.

Building a global, consensus-driven organization has been a complicated and contentious task. The development of consensus from vastly diverse views and interests is a daunting challenge.

ICANN has no statutory or other governmental power: its authority is entirely a consequence of voluntary contracts and compliance with its consensus policies by the global Internet community. It has no power to force any individual or entity to do anything; its "authority" is nothing more than the reflection of the willingness of the members of the Internet community to use ICANN as a consensus development vehicle.

ICANN was created and has developed under the full scrutiny of the public eye. The agendas, results, and minutes of the Initial Board’s deliberations are widely publicized, and posted in advance. The Board holds a quarterly public meeting where everything on the agenda is subject to full and open public discussion. In order to reduce costs for participants, ICANN broadcasts its public meetings live over the Internet, allowing remote participants to watch and send comments and questions by email to the meeting room. The text of all resolutions adopted by the Board is immediately released, and the Board holds a public press conference. All decisions of substance are preceded by prior notice and a full opportunity for public comment.

Beginning at its August 24-26 meetings in Santiago, ICANN's Board meetings will be open to the public for observation, in person and via realtime webcast.

ICANN was created by members of the Internet community in response to a June 1998 White Paper, issued by the U.S. Department of Commerce (DOC). As the Internet developed, DNS functions were carried out by a variety of volunteers and US Government contractors. A non-competitive, government-funded system developed. The DOC's White Paper envisaged a "global, consensus, non-profit corporation", to serve as the means by which DNS management could be privatized, enabling an open, competitive system.