Demand for internationalized domain names

Once a year or so ICANN holds a conference called ICANN Studienkreis.  This is another forum where one can get updated with various ongoing internet governance topics.  The last meeting took place earlier this week in Barcelona, but unfortunately there was no streaming of the event and I could not find any records or transcripts from it.  The only available record is the agenda with links to a number of PDFs of various presentation.  These are of course not very informative, but there is still something we can learn from them.

One presentation that caught my attention was by Andrey Kolesnikov from the Russian Coordination Centre for TLD.ru, which he gave in a session on internationlized domain names (PDF).  It caught my attention because I got recently interested in the debate surrounding this topic and hoped to learn about how things are going in countries that have already applied for a localized top level domains (other presenters on the panel were from Egypt and China). There is only so much one can learn from just looking at PPT slides, but here is an attempt.

Russia is the only country I know of that has already auctioned localized domain names, even though the approval of the top level domain in Cyrillic is still in the works.   As such, Kolesnikov was in a position to shed some light on the actual demand for localized domain names, as opposed to arguments about their great potential.  And if I read his slides correctly, I think he did.  Here is what he has to show:

The early registration process, or the “sunrise” period, is still going on, but these numbers are interesting.   There are currently over 369K domain names registered in Russia and according to Coordination Centre for TLD.ru, there are over 2.6 million domains registered under the .ru top level domain (RU).  In other words. we can see that the trademark holders and Russian domainers are either careful with grabbing this opportunity or skeptical of the entire enterprise.  Of course this is a very early stage in the process, but if it is indicative of a trend, than at least in the case of Russia, the skeptics might have a point.  Of course the situation may be different in other parts of the world and in other cultures, but Russian industry does not seem to be too excited.

Am I overanalyzing this?  Am I taking these number out of context?  What do you think?