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VeriSign (NASDAQ: VRSN) is going to increase prices on .com and .net domains in 2007.

The company’s CEO Stratton Sclavos said there was a six month notice period before domain prices can be increased, which means it is possible that VeriSign will raise prices at some time in the third or fourth quarter of this year.

As per the contract between VeriSign and ICANN, VeriSign can raise .com domain wholesale prices by 7% per year and .net prices by 10% per year.

It is likely that most domain registrars will pass the price increase to their customers, because many registrars currently charging $7 or less per domain registration per year will face even higher margin pressure.