The US Commerce Department announced yesterday that it would allow the Internet Corporation for Assigned Names and Numbers (ICANN) to continue overseeing the internet's global addressing system for another three years, to give the organisation time to overcome deep rooted problems.

This is the fourth extension granted to ICANN since 1998, when the body was formed by the US government and authorised to regulate the internet domain name system.

The new agreement includes key amendments designed to ensure that ICANN develops into an independent, stable and sustainable organisation, capable of meeting its responsibilities for the technical management of the domain name system. To date ICANN has not achieved these goals and has been roundly criticised for its poor management.

An internal reform process began in February 2002 and has, according to the Commerce Department, made some headway. A new CEO has been put in place, and eight new board members appointed – all with relevant experience and skills. But much remains to be done.

The Memorandum of Understanding agreed on Tuesday therefore sets out targets that have to be achieved by the organisation, including the formalisation of ICANN's relationship with root server system operators, which link domain names to numerical addresses and improvements in transparency, efficiency and timeliness. ICANN is also expected to improve the accuracy of the WHOIS database.

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