Not only do I think that that introducing .au domains adds value. I believe it's value destroying and wastes businesses precious resources.
I see this move as no different to the any of the other domain administration entities that have done this previously, ie the pros and cons are the same:
PROS OF .AU (vs .COM.AU)
- Shorter than .com.au (but how much value does this REALLY add?)
- More visually appealing (maybe, but it's debatable)
- Makes more domain names available (this is not the case if existing owners of .com.au get first right of refusal)
- Added revenue for AUDA and .Au registrars (do they deserve to make more money if the system is worse off as a result)?
CONS OF .AU (vs .AU)
- Undermines the trusted brand of .com.au
- The current system of .com.au vs org.au vs .gov.au is effective and well understood
- No technical reasons to change the current structure
- Businesses will incur large setup costs to run or redirect two domains/websites/emails/hosting as well as the ongoing costs to manage the duplication
- Using .AU and .COM.AU simultaneously creates both confusion for both the business and customer
- Businesses will be forced to acquire and maintain both registrations, regardless of cost, to protect their brands
- Forces 300,000+ businesses already using .com.au web addresses to invest resources to discuss, manage and potentially mitigate the potential threat /opportunity of .au domains to their already established online brands (which is non-value adding)
- Potential for astronomical rebranding costs to traditional marketing, business cards, quotes, billboards, websites, tv ads, stationary, business signs, company cars, etc
- Increased yearly domains fees for no value add
- Added complexity to digital marketing management
- High human resource costs to fix and deal with the complications of emails being sent to wrong extensions or websites not functioning correctly
- Increase in scamming in light of having an easier ability to "pass off" as an established brand
- Potential privacy breaches, loss of trade secrets etc because of emails gone astray
And don't get me started on the potential for business confusion of operating multiple domains (I worked with an Australian firm that owned its business names in .com, .com.au and .net.au extensions and had opted to use a .com as their domain extension but redirected the .com.au and net.au domains, when I got there I found out that there were hundreds of emails a month that were being sent to a .com.au email addresses that were just going into the abyss and they had no idea - they easily lost millions in revenue over the years...)
As a domainer, this might be could for many of us, given that any business that registers the .au extension of domains that I own the .com.au and develops it will ensure they will be sending traffic to my domains making it more value to either them or their competition and likely forcing them to also acquire the .com.au version.
That said, I don't this AUDA could argue their is a shortage of domains, given the .com.au extension is no where near as popular as most other international domains and if you look at what extremely good .com.au domains sell for on NetFleet's catalogue there is no shortage or great domains available for $XXX or low $XXXX that would be FAR better for businesses to buy rather than deal with the complications of using an unknown extension and having the constant problem of not also owning the .com.au...
At the end of the day, more domain names don't increased the number of potential customers or help streamline their operations, yet the ongoing added expenses and high potential for complication will operate like a tax on a businesses and everyone in the system worse off.
So if ADUA were being truly altruistic about the decision I don't feel there is any benefit to warrant such a move.
To be completely honest, if AUDA really cared about Australian businesses they'd consider getting rid of .net.au domains (which SO MANY businesses opt to register out of fear) rather than introducing another domain.
And if AUDA REALLY wanted to promote the growth of Australian domains (the .com.au version) they'd get rid of the requirement of needing an ABN to own a .com.au domain - I can't count the number of times I've had friends start hobby sites with .com domains (when they would have preferred a .com.a) because they were easier to register when in many cases these hobby sites have the potential to go on and become businesses at which point they are stuck with their .com domain because that's what they've built their brand on...
Of course it saddens me that in spite of the "logic" of not introducing the .au extension it will likely happen because of the "vested interests" of those making the decision... real shame.