gTLD Subsidy Program Fails, Active Applicants Drop Sharply

ICANN recently released new data indicating that its new gTLD Applicant Support Program (ASP) is progressing far slower than expected.

As of September 19th, 42 applicants had registered for the subsidy program. However, this number is significantly lower than the over 70 applicants registered the previous month. ICANN noted in its statistics that 30 applicants were removed from the list after 90 consecutive days of inactivity, indicating a rapid decline in application enthusiasm.

Currently, only three companies have received provisional approval: one has completed the entire review process, while the other has explicitly withdrawn. This means that only a small number of organizations will make it to the final stage before the official application opens.

According to ICANN's policy, the Applicant Support Program is primarily for nonprofits and charities, but small businesses in developing countries are also eligible. Qualified organizations can receive substantial subsidies when submitting new gTLD applications, with an estimated 75% to 85% reduction in the $227,000 application fee. This program was originally highly anticipated, aiming to enable more applicants from underdeveloped regions to participate in the next round of gTLD bidding.

However, current results have been disappointing. In particular, the number of qualified applicants remains low in underserved regions like South America, drawing criticism from some governments. Critics argue that while ICANN's policy design is well-intentioned, its actual implementation has been limited, failing to truly lower barriers to entry.

With the next round of gTLD applications expected to launch in the second quarter of next year, ICANN still faces the challenge of expanding its applicant base. Attracting more small and medium-sized organizations from around the world will directly impact the program's effectiveness and subsequent expansion.