In November 2015, Nominet who are the official registry for all UK domain names announced that it would be raising wholesale domain prices. This change will affect the amount that 123-reg is charged for securing a UK domain name and will affect all names ending in .uk. This price change will be effective, 1st March 2016 and will be the first wholesale price increase since 1999.
This wholesale price increase will mean that 123-reg will increase the prices of UK domain names for customers, which will be effective, 1st March 2016. We fully understand that price increases can be a source of frustration for customers. That is why we are committed to helping customers understand these changes, explain why they are being made and help customers when renewing their domain names.
Why is this change happening?
In November 2015, Nominet announced to the industry that they would increase their wholesale prices for all registrars, which will apply to all web addresses that end in .uk. In a statement, CEO Russell Haworth said:
“We’re (Nominet) committed to running a first-class service for .UK registrants, including our renowned customer service, and we’re doing more than ever before to ensure the .UK space is safe and trusted home for all. But costs have risen considerably since we last changed the price, and we need to compete in a promotion-driven industry.”
At first glance, whilst the change is significant and there are a lot of questions about the knock-on effect, once you take a closer look, you will see a number of industry elements at play, creating an ultimately positive effect on customers.
What does this mean?
Firstly, it is important to remember that domains are international. While it is down to local discretion to regulate domains, in a globalised world, it would be a mistake not to align pricing and offerings with global standards. Nominet is making changes to its offerings to be on par with international registries – a move that will ultimately provide more support and promotions for customers.
Secondly, the price change is small when put into perspective, but there will be strong benefits created with the additional funds. Realistically, the increase amounts to approximately the same as buying a cup of takeaway coffee. But the change will allow registrars like 123-reg to invest in increasing security layers to protect businesses and individuals and providing additional services. For example, when you buy a .co.uk domain with 123-reg, you also receive a number of services, such as a website builder, email forwarding, malware monitoring and support services, for free.
With the price changes, we’ll adjust our offerings accordingly to ensure that customers do not feel a significant impact.
What can customers do?
If customers want to avoid these price changes, you are able to lock in current pricing. If customers Customer can buy or renew in advance for up to 10 years, so long as this is done before changes are implemented on March 1st, 2016.
Alongside such changes, 123-reg is committed to updating our customer loyalty programme through our account managers and sales teams to ensure customised and flexible solutions for those with large domain portfolios. 123-reg is dedicated to finding and implementing solutions for all customers. This year, changes are also expected for .com and .eu domain names alongside .uk. As such, we will keep all customers up to date as we confirm individual pricing structures.
123-reg can confirm to customers our new pricing structure, which will standardise the price of all .UK domain names, including .co.uk, me.uk and org.uk, to £6.99 per year. In addition, 123-reg will be relaunching its domain discount scheme from 1st March 2016. Customers who are applicable will be contacted directly by our teams, to offer further details.
123-reg has begun contacting all customers directly affected by these pricing changes to confirm the new pricing structure.