This article sets out some of the background to the new ICANN-Verisign deal where Versign keeps .com and Icann gets greater authority over the dot users don't see at the end of the domain. More background here. At Icannwatch they ask a good question. Why do the new arrangements seemingly assign perpetual rights to .com if only a four year renewal was needed? Karl Auerbach says in commenting on the Icannwatch post that the 2001 agreement was perpetual and Icann is bound by that. He points to his notes from the time to back that up. So it seems the Board at the time bears the responsibility -- and the current Board had little room to maneuver.
That still leaves the question as to what is the benefit to the Internet community of a perpetual lock-in with a 7% permissible annual increase? This is well ahead of any forecast inflation rate and costs should, if anything, be decreasing. It is hard to see the sense in assigning a monopoly a 7% annual inflator not based on any transparent process or justification. No regulator, and Icann does not like to use that term, in the normal course of events would strike such a deal. They may be stuck with the 2001 Board decision but why 7%?
At a delicate stage of WSIS, which may be why Icann felt under pressure to strike this deal, the down side is that they have sadly handed critics of the present system a powerful argument. Under the new arrangements the dollars flow, in seeming perpetuity without any opportunity for competitive bidding, from the rest of the world to a United States company.