The Shared Registration System — SRS — was the technical mechanism that broke Network Solutions’ monopoly. Launched in 1999, it allowed multiple registrars to access the .com, .net, and .org registry, creating competition where none had existed. The SRS fundamentally transformed the domain industry.
The Problem It Solved
Before SRS, registering a domain meant going through NSI. Period.
The monopoly structure:
- Customer contacts NSI
- NSI processes registration
- NSI updates registry
- NSI collects payment
There was no separation between registrar (customer-facing) and registry (database operations). NSI did both.
Why this was problematic:
- No price competition
- No service competition
- No innovation incentive
- NSI controlled customer relationships
The White Paper demanded competition. SRS was the technical solution.
Separating Registry from Registrar
SRS introduced a crucial distinction:
Registry
The registry operates the authoritative database for a TLD. For .com, this means:
- Maintaining the master list of all .com domains
- Publishing zone files that make domains work
- Operating nameservers for the TLD
Think of it like the DMV’s vehicle database — one central record of truth.
Registrar
A registrar interfaces with customers:
- Markets and sells domains
- Processes registration requests
- Handles billing and support
- Submits changes to the registry
Think of it like car dealerships — many dealers, one DMV.
SRS as Connector
The Shared Registration System was the protocol connecting registrars to the registry. Any accredited registrar could:
- Query available domains
- Submit registration requests
- Modify existing registrations
- Renew domains
NSI continued operating the registry, but they had to share access.
Technical Architecture
The SRS was a relatively simple protocol:
Connection Model
Registrar A ──────┐
Registrar B ──────┼──── [SRS Server] ──── [Registry Database]
Registrar C ──────┘
Multiple registrars connected to NSI’s SRS server, which mediated access to the shared registry.
Protocol Details
SRS used a proprietary protocol (later replaced by EPP — Extensible Provisioning Protocol). Key operations:
- CHECK: Is a domain available?
- CREATE: Register a new domain
- UPDATE: Modify domain settings (nameservers, contacts)
- RENEW: Extend registration
- TRANSFER: Move domain between registrars
- DELETE: Remove domain
Each operation required proper authentication and payment authorization.
Real-Time Updates
Unlike the old manual process, SRS provided real-time updates. Register a domain, it’s live in minutes, not days.
The Launch (1999)
SRS officially launched on June 7, 1999, with the first competitive registrars able to register .com, .net, and .org domains.
Initial Registrars
The first wave included:
- Register.com — Early competitor to NSI
- Bulkregister — Volume registrar
- eNIC — International registrar
- And approximately 50 others
These companies had waited years for this moment.
NSI’s Position
NSI became both a registry operator (running SRS) and a registrar (selling domains). This dual role created ongoing conflicts:
- Did NSI give its registrar unfair advantages?
- Was SRS access truly equal?
- Was pricing non-discriminatory?
These concerns led to eventual separation.
Impact on Pricing
Competition worked exactly as economics predicted:
Before Competition
| Year | Annual Registration Cost |
|---|---|
| 1995 | $50/year |
| 1998 | $35/year |
NSI set prices with no competitive pressure.
After Competition
| Year | Typical Retail Price | Wholesale Price |
|---|---|---|
| 1999 | $35/year | ~$6/domain |
| 2000 | $25/year | ~$6/domain |
| 2002 | $15/year | ~$6/domain |
| 2005 | $10/year | ~$6/domain |
| 2010 | $8-12/year | ~$7/domain |
Registrars competed on:
- Price
- Additional services
- User experience
- Bundled offerings (hosting, email, etc.)
Industry Transformation
SRS transformed the domain industry:
New Business Models
Volume Registrars: Companies like GoDaddy emerged, offering rock-bottom prices subsidized by upselling hosting and other services.
Premium Registrars: Others competed on service quality, privacy features, and business support.
Reseller Networks: Registrars created reseller programs, letting thousands of smaller companies sell domains.
Bundled Services: Domains became loss-leaders for web hosting, email, and other services.
Consolidation
After initial fragmentation, the industry consolidated:
- GoDaddy became the dominant mass-market registrar
- Corporate registrars (CSC, MarkMonitor) served enterprises
- Regional champions emerged in different countries
Verisign Separation
In 2000, NSI was acquired by Verisign. Regulatory pressure eventually forced separation:
- Verisign kept the registry (operating .com and .net)
- The registrar business was sold (eventually to Web.com)
This completed the separation that SRS had enabled.
The EPP Transition
The original SRS protocol was proprietary and NSI-specific. This was problematic as new registries launched.
In 2004, ICANN mandated the Extensible Provisioning Protocol (EPP) as the standard registry-registrar interface:
- XML-based
- Extensible for new features
- Standardized across registries
- RFC 5730-5734
Today, virtually all registries use EPP. Registrars can connect to multiple registries with similar protocols.
The Transfer Problem
One SRS innovation was the domain transfer process — moving domains between registrars. This seems obvious now but was revolutionary:
Before SRS
You couldn’t transfer. Your domain was with NSI forever (unless you let it expire and re-registered).
SRS Transfer Process
- Request transfer at new registrar
- Authorization code required from current registrar
- Current registrar can accept/reject within 5 days
- Domain moves to new registrar
Transfer Battles
Early transfer policies were contentious. Losing registrars had incentives to block transfers. ICANN eventually standardized policies to protect domain holders.
Legacy
The Shared Registration System established principles that define modern domain registration:
Separation of Concerns
Registries operate databases; registrars serve customers. This separation enables competition while maintaining centralized coordination.
Open Access
Any accredited company can become a registrar. The barrier is meeting standards, not monopoly power.
Standardized Interfaces
EPP (descendant of SRS concepts) provides uniform registry access worldwide.
Consumer Choice
Domain holders can choose registrars based on price, features, and service — then switch if unsatisfied.
Key Takeaways
- SRS launched June 7, 1999, enabling competitive domain registration
- It separated registry (database) from registrar (customer service)
- Multiple registrars could access the shared registry via standardized protocol
- Prices dropped dramatically from $35/year to under $10/year
- NSI (later Verisign) was eventually forced to separate registry and registrar operations
- EPP replaced the original SRS protocol as the industry standard
- The model transformed domains from monopoly product to competitive market
Next
SRS introduced competition, but antitrust concerns persisted. The final chapter of the DNS Wars examines the legal and regulatory actions that completed the transition from monopoly to open market.