diff --git a/rhn-client-tools.spec b/rhn-client-tools.spec
index 4ddbaad..a14055c 100644
--- a/rhn-client-tools.spec
+++ b/rhn-client-tools.spec
@@ -15,7 +15,7 @@
 Summary: Support programs and libraries for Red Hat Satellite or Spacewalk
 Name: rhn-client-tools
 Version: 2.8.16
-Release: 9%{?dist}
+Release: 10%{?dist}
 License: GPLv2
 Source0: https://github.com/spacewalkproject/spacewalk/archive/%{name}-%{version}.tar.gz
 URL:     https://github.com/spacewalkproject/spacewalk
@@ -689,6 +689,10 @@ make -f Makefile.rhn-client-tools test
 %endif
 
 %changelog
+* Fri Nov 02 2018 Tomas Kasparek <tkasparek@redhat.com> 2.8.16-10
+- Resolves: #1626421 - python3 is expecting str, not bytes
+  (tkasparek@redhat.com)
+
 * Thu Sep 27 2018 Tomas Kasparek <tkasparek@redhat.com> 2.8.16-9
 - Resolves: #1622145 - disable debug* packages (tkasparek@redhat.com)
 
diff --git a/src/up2date_client/config.py b/src/up2date_client/config.py
index 242f92e..077312f 100644
--- a/src/up2date_client/config.py
+++ b/src/up2date_client/config.py
@@ -312,7 +312,7 @@ def getProxySetting():
         if proxyHost[:7] == "http://":
             proxyHost = proxyHost[7:]
         parts = proxyHost.split(':')
-        parts[0] = idn_ascii_to_puny(parts[0])
+        parts[0] = str(idn_ascii_to_puny(parts[0]))
         proxy = ':'.join(parts)
 
     return proxy