Category Archives: Russia

Russia’s Internet growth is just getting started

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I checked domain registration stats from Russia’s registry and here are the high-level numbers:

If you combine IDNs and ccTLDs, Russia becomes the third-ranked country in terms of country code registrations, behind Germany and the UK.

But what caught my eye is that, according to the registry, only 44% of the population has Internet access (52 million people).

Russia has a great deal of Internet growth ahead of it still. I expect to see a number of newly localized Russian websites as I continue work on the 2012 Web Globalization Report Card this month.

From Russia, with IDNs

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A little more than a year ago, Russia opened up registration for its top-level IDN: рф.

Since then, more than 900,000 domains have been registered, making this the most successful IDN by far.

I’ve always been quick to stress that the bulk of these registrations are coming from squatters: folks hoping to make a quick buck reselling them. Yet according to Russia’s registry, about one in five registered domains is now hosting a live website.

I’d still love to see a list of some of these live websites to make sure they truly are legitimate websites — and not just placeholders.

Even so, let’s assume that 100,000 web sites are indeed live and indeed legitimate, that’s an impressive number.

Take McDonald’s.

McDonald’s supports a localized website at макдональдс.рф,

However, for the most part, the companies that are using Russia’s IDN are Russian nationals and government agencies.

Here are a few live sites:

I suspect I’ll read an article in the NY Times a year from now about how there’s a huge domain rush on for Russia’s IDNs — and how Western companies are late to the party.

Because they are.

And in case you’re wondering if you can register a Russian IDN — you absolutely can. The restriction on foreigners was just lifted.

 

The top 10 country codes (and the fall of China)

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Verisign published its quarterly industry brief a few weeks ago.

In it, the guide includes the top 10 ccTLDs, reprinted below:

There are now more than 81 million registered ccTLD domains, which comprise about 40% of all registered domain names. Verisign says ccTLD registrations increased nearly 8% over last year. This is impressive given that China has really cracked down on .cn registrations over the past two years. For a brief period of time China was the leading country code, though a large percentage of these registrations were squatters. Here are the top 10 ccTLDs in late 2009:

So Germany is now firmly back in first place and China has fallen to fifth place.

But China may actually be in sixth place if you include IDNs.

I don’t believe IDN registrations are included in the ccTLD counts. For most countries, this isn’t a big deal because ccTLDs counts are quite low. But then there is Russia, with more than 800,000 registrations for .РФ. If you were to bundle IDN and ccTLD counts together, then Russia would surpass China and squeeze into fifth place.

 

World 3.0: Making Sense of a Semi-Global Planet

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I received an advance review copy of Pankaj Ghemeawat’s new book World 3.0: Global Prosperity and How to Achieve It.

I greatly enjoyed his previous book, Redefining Global Strategy, calling it a valuable counterpoint to Tom Friedman’s book The World is Flat.

In his newest book, Pankaj sets out to chart a course forward that balances global integration (globalization) with regulation.

In light of the global recession, Pankaj does not want to see countries revert to an all-or-nothing approach to globalization — either embracing globalization with no checks or balances or completely closing the door to trade, immigrants, ideas, etc.

Of course, charting such a course requires making sense of a world that cannot be easily summarized in sound bites — something most American politicians seem unable or unwilling to do. The fact is, the globalization “train” has long ago left the station. We’re all connected, whether we like it or not. We can either choose to create relationships that benefit everyone or we can live with the outdated mindset that some countries must win at the expense of others. What I really appreciate about Pankaj’s writing is that he believes that globalization (properly regulated) can benefit everyone and he backs up these beliefs with plenty of data and recommendations for politicians, business leaders, and ordinary folks like myself.

What I most liked about this book was how Pankaj debunks popular misconceptions about globalization, which he calls “globaloney.” For example:

  • We have vastly overestimated how global we think we are. At best, Pankaj writes, we are semi-global. According to Panjak, global exports account for just 20% of global GDP. Cross-border Internet traffic accounts for about 20% of all traffic. And about 20% of VC money is deployed outside of that VC’s borders. And from where I sit, as one who studies web globalization, most companies are still very much in the early stages of figuring out how to expand globally.
  • Globalization has not, in fact, resulted in less diversity of brands, but greater diversity. He cites the auto industry, which is more diverse today than it was forty years ago. He stresses that globalization is not a one-way street towards homogenization.While there are Starbucks and McDonald’s seemingly everywhere, the US has seen its fair of share of international retailers set up shop here as well — from IKEA to Uniqlo. But more important, Pankaj illustrates how global brands are effectively localized to such a degree that they are just as local as they are global.
  • Successful global trade depends heavily on trust. And it’s easier to trust someone who shares your language, culture, and time zone. Pankaj cites data to show how trade levels drop the further two countries are from each other. He devotes quite a bit of ink to just how little trade is conducted between the US and Canada, despite our shared language, time zones, and cultures. Why is that? He cites obstacles like lack of harmonized rules and regulations, customs nightmares that hold up goods, and other seemingly minor details that, in total, give companies reason to rethink expanding beyond borders.

However, I think Pankaj does a bit too much debunking at times. Pankaj says that the “race to the bottom” of countries focusing on low costs at the expense of the environment, human rights, etc. simply does not exist. I disagree. He focuses on pollution largely but there are so many other issues that should be addressed.

For instance, factory farming is, in my view, an absolute atrocity and it is now being exported around the world via US trade agreements. That is, when the US exports meat that has been produced cheaply via factory farming, local farmers in other countries are forced to embrace factory farming to remain competitive or go out of business. A number of Korean family farmers committed suicide in protest of the recent trade agreement between South Korea and the US. Pankaj vastly trivializes these so-called “externalities” and, in doing so, overlooks what is one of the great (and growing) forces mobilizing against globalization.

That said, I recommend this book. Pankaj is one of a handful of writers who are tackling globalization, warts and all, in a thoughtful manner. Globalization is not a black and white argument; there are many shades of gray and this book does a very good job of shedding light on them.