If an applied-for gTLD string failed the String Similarity review due to similarity to an existing TLD it would not pass the Initial Evaluation.
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It will be the task of the registry operator to formulate policies on how domain names are managed in the variant TLDs. For example, policies could cover whether the same domain name under the variant TLDs must be associated with the same registrant. Consideration would also need to be given to registry policies on expiration, deletion, and transfer of registered names. It will also be for the registry operator to determine the appropriate pricing models for such registration offerings. The relevant policies concerning registrations in the variant TLDs, as well as the relevant IDN tables or other reference documents used for domain name registration at the second or lower levels, should be made available to the public. A failure of consistency in these policies across registries could have disastrous effects on user experience; see section 5.2.5 for more discussion
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Cyrillic 10 stresses the need for a conservative (perhaps even precautionary) approach to the admission of variants. Furthermore, it urges that selective blocking (rather than joint delegation, or some form of aliasing) is the best mode to take account of any variants which are admitted.
More DNAME and additional information:
http://www.icann.org/en/topics/new-g...23dec11-en.pdf