As part of the new gTLD program, all new gTLD applicants are required to provide a cost estimate for funding critical registry functions on an annual basis in case of registry failure.
Several community members and prospective applicants asked ICANN for further guidelines regarding the calculation of these estimated costs. After analyzing the costs provided from several potential providers who responded to the recent EBERO-RFI (Emergency Back End Registry Operator .The numbers provided are based on data gleaned from the proposals received, and are for guidance only. None of the costs in the table are identical to the estimates provided by the potential providers. All applicants are expected to complete calculations according to their particular circumstances, and to provide rationale for their cost estimates commensurate with the technical, operational, and financial approach described in the application.
Also note that these are costs only for providing the five critical registry functions identified in this process. These cost guidelines are not representative of the costs needed for running all of the services associated with operating a gTLD.
Applicants should ensure that the financial instrument will cover the costs for the five critical registry functions for a period of three years using the applicant’s projections of domain registrations under management.
As part of the new gTLD program, all new gTLD applicants are required to provide a cost estimate for funding critical registry functions on an annual basis in case of registry failure.
The financial instrument must be issued/held by a financial institution rated “A” or above (or the equivalent) by any of the following rating agencies: A.M. Best, Dominion Bond Rating Service, Egan-Jones, Fitch Ratings, Kroll Bond Rating Agency, Moody’s, Morningstar, Standard & Poors, and Japan Credit Rating Agency.
If applicant cannot access an “A” rated financial institution, but a branch or subsidiary exists in the applicant’s local jurisdiction then applicant may use any local institution with a similar or higher rating.
As a last resort applicants may use the highest-rated financial institution in their national jurisdiction, if accepted by ICANN.
Note: For any financial instruments that contemplate ICANN being a party, upon the written request of the applicant, ICANN may (but is not obligated to) execute such agreement prior to submission of the applicant's application if the agreement is on terms acceptable to ICANN. ICANN encourages applicant to deliver a written copy of any such agreement (only if it requires ICANN's signature) to ICANN as soon as possible to facilitate ICANN's review. If the financial instrument requires ICANN's signature, then the applicant will only receive 3 points for question 50 (for the instrument being "secured and in place") if ICANN executes the agreement prior to submission of the application. ICANN will determine, in its sole discretion, whether to execute and become a party to a financial instrument.
This announcement was sourced from :
http://www.icann.org/en/announcements/announcement-3-23dec11-en.htm