Operating and financial review

The strategic objective of this division is to combine high value added

domain management with high quality customer service in order to

secure solid customer relationships and derive sustainable, recurring

revenue streams.  The three phase approach taken is one of initial

consultation utilising NetNames' unique Brand Audit software (Consult),

followed by a reorganisation of the customer's domain portfolio

(Consolidate) and then ongoing maintenance and management of the

portfolio according to industry best practice (Control).

Powerful and robust domain name registration technology is the essential

platform of the domain management services business.  The group

continues to invest in developing and enhancing its integrated sales order

processing and domain name registration system (DNRS) in order to

provide a complete domain management solution.  As part of the March

re structure programme, software and systems development was 

re located to the UK from the US.  This has progressed well and the

benefits of having an integrated product management and software

development team are already apparent.

In March 2001, NetNames became an operational ICANN* Registrar.

ICANN registrars are able to directly create and administer domain

records in the central domain registry databases, thereby having

complete control over customer domain records.  This capability is highly

desirable from the perspective of corporate customers.  An additional

benefit is that registration and renewal of domains is procured at the

lowest possible cost.  Also, ICANN registrars are in a unique position in

being qualified to register names under the new domain extensions (such

as .info and .biz).  NetNames is one of only three operational registrars in

the UK.

(*ICANN   the Internet Corporation for Assigned Names and Numbers  

is the international domain name governance body whose responsibilities

include overseeing and sanctioning policy of the existing registries e.g.

.com and the introduction of competing registries e.g. .info).

Further information can be found at www.netnames.com.

Web hosting

Web hosting services are marketed under the NetBenefit brand in the UK

services

and the Voxpop brand in France.  The services provided range from

shared to dedicated server hosting and include a range of associated

services to facilitate e commerce service provision by the group's SME

end customers.

The strategic objective of this division is to supply high performance, 

cost effective web hosting services to SME customers.  Primary target

customers of the division are value added resellers that supply SME end

customers.  Dedicated account management staff manage relationships

with resellers and the approach taken is to concentrate on high levels of

customer service supported by regular product enhancements.

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