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The board of the Internet Corporation for Assigned Names and Numbers may vote to allow internationalized domain names at the association's ongoing meeting in Seoul. Assuming the proposal is adopted, countries can apply to test country-code top level domains beginning in mid-November. IDNs are domain names that can use characters other than Latin scripts. ICANN's rationale behind the move is simple: "The Internet is accessed by more people who do not use Latin languages and scripts than those who do."
It exist since many years, but the problems came from the browsers. See here http://bit.ly/7KlXD for examples.

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