According to auDA CEO Chris Disspain, several suppliers are offering licences for periods of between two and 10 years, when licences can only be registered for a period of two years and are reviewed for eligibility every two years.
Disspain is concerned that if a supplier goes out of business, they cannot process renewals, even though the buyer has paid in advance. The buyer would have to move to a new supplier and pay for the remaining years again.auDa also checks the eligibility of domain names every two years. If an applicant's domain is rejected during renewal, the applicant again loses the money it pre-paid for the remaining years on the contract.
Disspain also acknowledges that domain prices may fall in the future, meaning long contracts do not necessarily equate to cost savings. He urges applicants to check the fine print of their contracts and make any necessary inquiries to auDA (www.auda.org.au) or the Australian Competition and Consumer Commission (www.accc.gov.au).
Story courtesy of ARNnet