ccTLDs are under the authority of the Internet Corporation of Assigned Names and Numbers (ICANN) and are delegated to nations for administration. ICANN generally creates a ccTLD for country codes listed in ISO 3166 (ICANN has also created dot EU and dot Asia). This process was originally implemented in order to avoid having the DNS authority determine what is and is not a country. [RFC 1591]
Countries are permitted to administer their ccTLDs pursuant to their own policies. Some countries, such as Tuvalu, have sought to exploit their ccTLDs in the market; .tv is marketed as the TLD for television. Other countries have followed restrictive policies, permitting registrations only from residents of their own country. See, for example, the policy of the Isle of Man. Historically, because of the casual manner of administration of ccTLDs, it was not uncommon that a ccTLD was administered by an entity that had no direct ties to the related country. This has created problems where those countries have sought to gain control of the ccTLDs or where the third-parties have inefficiently managed the ccTLD space. Getting a ccTLD online can be a source of significant national pride. See experience of Iraq and Afghanistan.
A ccTLD issue is the introduction of internationalize domain names using non ASCII characters.
One issue is the possibility of ccTLD using different alphabets.