ICANN now accepting applications for controversial new gTLDs

Businesses will be able to use their company name instead of .com

The Internet Corporation for Assigned Names and Numbers (ICANN) has today begun accepting applications from businesses looking to buy new generic top-level domains (gTLDs).

For the first time websites will be able to branch out of the 19 standard gTLDs currently available, including .com and .gov, and purchase gTLDs that may include a company name, such as .Apple, or words in non-Latin languages, such as Chinese or Arabic.

ICANN has divided opinion in the industry, where some claim that it allows companies to brand themselves more effectively and will increase competition among dominant registrars that sell .com domains, while others insist that the initiative is a costly annoyance for firms who will feel pressure to purchase new gTLDs.

The standard application cost for a company applying to ICANN for a gTLD is $185,000 (£120,000), although a "limited number of qualifying applicants" will only pay $47,000 (£30,000), thanks to a $2m (£1.3m) donation to the programme by ICANN's board of directors.

Andreas Edler, managing director for hosting company Hostway UK, argued that companies will be forced to choose between a new gTLD and other investments.

"The introduction of new gTLDs will likely be welcomed by the big global brands that have the money to pay for costly registry rights and marketing power to promote the new address to customers," said Edler.

"However, cost is going to be a major barrier for the vast majority of businesses. The cost can be compared to several new members of staff, an investment decision many businesses will find tough to make. That doesn't mean they should bury their heads in the sand though," he added.

"They should look to do business benefit and risk analysis and then make a decision. By going through this process they'll become aware of the potential cyber squatting issues. For companies that have invested heavily in establishing their online brand, it is now a question of whether they make protective registrations now or take their chances later, once gTLDs become more prevalent."

"In the future, we could even see brands reselling these domains as third-level extensions to partners to enhance their brand recognition and recoup costs."