GTM Research

December 1, 2009

The United States PV Market: Project Economics, Policy, Demand, and Strategy Through 2013

Demand for PV projects in the United States is rapidly expanding as a result of falling system prices, stimulus funding and new regulatory incentives. As the recession retreats, the U.S. is poised to become the largest global demand center for PV. Anticipating this trend, global solar market players from all parts of the value chain are seeking strategies to gain access to U.S. PV demand. Simultaneously, the market itself is evolving as utility-scale projects gain steam and innovations in project financing emerge.

However, the U.S. does not offer a singular demand market for PV. Rather, it is an amalgamation of 50 states, each of which has a unique set of incentives, regulations, electricity prices and political processes. Even within most states, these factors differ according to electric utility service territory and/or municipality. These factors ultimately impact PV demand and project economics differently based on project size, market segment, and end customer. Developing a downstream U.S. PV market strategy requires a deliberate, highly specified approach to each application, state market and market segment.

This report stands alone as the only analysis to provide the full range of tools necessary to develop a strategy to address each market. In addition to considering national trends in project financing, incentives and demand dynamics, it analyzes the 16 key state markets individually, accounting for each state’s unique incentive structure, solar availability, historical market size, barriers to adoption and electricity prices. It projects demand by market segment within each state, and uses these projections to develop a bottom-up forecast for the entire nation by state and by market segment. Finally, it contains competitive analysis of the project developers, integrators, and financiers that comprise today’s market, and the characteristics they will need in order to thrive as the market expands.

IN THIS REPORT:

  • Demand projections by market segment for sixteen primary state markets, together comprising over 97 percent of national demand
  • Analysis of demand drivers, incentive value, and subsidized grid parity for each market segment in each state
  • National bottom-up demand forecast by state and market segment
  • Competitive analysis of market players and development strategies
  • Comprehensive listing of incentives and regulations that impact the PV market, including the American Recovery and Reinvestment Act of 2009 (the stimulus package) and the potential for federal cap-and-trade
  • Analysis of trends in project financing and comparison of financing structures
  • Profiles of 31 residential, commercial and utility-scale project developers with U.S. operations

KEY FINDINGS:

U.S. PV Demand Grows in 2009 Despite the Recession: Grid-connected PV demand will reach 440 MW in 2009, up from 320 MW in 2008. In an upside economic scenario, demand could reach 544 MW in 2009. The residential sector and local/state government projects drive demand growth, thanks to stimulus funding and the recently uncapped residential Investment Tax Credit. California retains its dominant market share, accounting for 205 MW in the base case scenario, or 50 percent of national demand. Secondary markets in Arizona, Colorado and New Jersey support demand growth.

U.S. PV Market Becomes Global Demand Leader by 2012: Over the next four years, the U.S. will experience the most rapid demand growth of any major PV market. Base case U.S. PV demand grows to 1,515 MW in 2012, with annual growth from 2008 to 2012 averaging 48 percent. The upside scenario sees demand reaching 2,022 MW in 2012. During this period, the U.S. surpasses Spain, and potentially Germany, to become the leading global PV market.

Secondary Demand Markets Gain Increasing Importance: Although California’s market share remains relatively steady at around 50 percent of national capacity second-tier markets gain increasing value as their absolute size increases. By 2012, combined base case demand from leading secondary states Arizona, New Jersey, New Mexico, New York, Nevada and Massachusetts reaches 376 MW.

Price Convergence Between PV and Grid Electricity Already Reached in High-Demand Locations, 11 States to Follow by 2012: We model projects in 16 states to determine when post-incentive PV generation costs and grid electricity will converge. Each state offers an incentive package that favors some market segments over others. Price convergence in these markets is heavily sector-dependent. States with high levels of demand, such as New Jersey and California, have already experienced price convergence in particular market segments, while others stand on the precipice. By 2012, 11 of 16 states will have surpassed price convergence in the commercial sector, and ten will have done so in the residential sector.

New Financing Models Drive Residential Sector Growth: Financing models that obviate the need for direct ownership will drive residential market growth. Though we predict residential price convergence in a number of states, we maintain that up-front cost and simple payback are the two factors gating demand for residential projects. The expansion of residential solar financing through leases or power purchases agreements with little up-front cost will enable the residential sector to grow to 363 MW by 2012 in the base case.

Utility-Scale Demand Gains Market Share Through 2012: Utility-scale installations will be the fastest growing market segment, stealing market share from the commercial sector and reaching 466 MW in the 2012 regulatory scenario. This is a result partly of RPS requirements and a wave of new solar-specific RFPs in states with solar carve-outs. It is also a result of heightened interest in utility ownership of PV, for which there are numerous economic and operational benefits for utilities.

Successful Project Developers Build Adaptation Into Their Market Strategy: Unlike Germany, Spain or Japan, the U.S. is comprised of 50 differentiable PV markets. With changes occurring both over time and by location, addressable markets are in a constant state of flux. Successful project developers will build adaptation into their market strategy, rather than seeking to minimize its necessity. By doing so, they will turn the complexity of the U.S. market into an advantage, rather than a limitation.

Florida M&A activity poised to rise - South Florida Business Journal:

Florida dealmakers said merger and acquisition activity is all but dead this year, but an Association for Corporate Growth/Thompson Reuters poll found 71 percent expect the market to pick up in 2010.

Ninety-five percent of dealmakers polled characterized the current M&A market as fair or poor, but 71 percent said they expect activity to increase next year.

The dealmakers said it remains a buyers’ market for strategic investors. They identified the hottest areas for mergers: health care and life sciences (22 percent), financial services (19 percent) and business services (19 percent).

The survey is conducted twice each year. The most recent poll, undertaken in October and November, was completed by 921 association members and Thompson Reuters customers, including 38 in Florida.

Click here to read more.

"Social Awareness" To Replace Social Networking



Social Awareness to replace Social Networking

The Internet of Things is fast approaching and with it comes Web 3.0, where "social awareness" will replace "social networking." Soon tweets and status updates will become fully automated and generated by the world around us versus us ever having to touch a keyboard again.

Ambient intelligence systems are being developed with sensors and smart objects that will instantaneously create awareness about our whereabouts. This data will then be shared with our social networking and messaging platforms. Our friends and followers on Facebook and Twitter will be alerted automatically without us ever having to manually tweet or post a status update.

Achilles KameasAchilles KameasAchilles Kameas, a senior researcher at the Research Academic Computer Technology Institute (raCTI) of Patras, Greece coordinated the EU-funded ASTRA project which brought together researchers from multiple disciplines, including psychology, interaction design, knowledge engineering and computer science. Their mission is to take social networking to the next level.

Internet of ThingsInternet of ThingsIn my past blogs, I have written about the Internet of Things and Semantic

Technology where Web 3.0 will eventually no longer need the input of humans, because all the content warehoused from the Web 2.0 era will be able to data-mined by machines and use when needed .

Users of a social networking platform based on the ASTRA approach would no longer need to post status updates manually to let their family know what they are doing or where they are. Surrounded by smart objects and sensors in their home or office, the system will continually update their status information, automatically telling friends that they are unavailable to receive a phone call while they are busy cooking

or that they do not want to be disturbed during a business meeting.

This video gives you a glimpse of the future which is just around the corner. The ASTRA project examines "social awareness" and how it extends the primary tenets of social networking that addresses our need to stay in touch with family and friends or to be reassured regarding our own well-being.

According to Kameas, creating mobile apps is the next step in the "social awareness" process and consumer electronics manufacturer Phillips and mobile operator Telenor are presently conducted trials of the ASTRA technology.  So soon there'll be an app for that!

The response of test users, Kameas says, "has been generally positive, although many have raised concerns about privacy and security issues." In that regard, the Kameas notes that the system is similar to Facebook and other online services in that users can choose how much information they share and with whom.

The researchers developed their approach based on the so-called focus-nimbus model to determine what information is shared and what is received by different people in a social network. A Psych Central report states that "in this context, a person’s nimbus consists of the type, amount and detail of information they want to share with others, while their focus contains the type and amount of information they choose to receive from others, including their reaction to the person’s nimbus."

In an ITC Results report, Kameas notes, “it’s like a window. You can leave it wide open, pull the curtain, or close the blinds. Then, what you choose to put on display in the window, be it content or an activity, can be seen by others.”

So the future is here, my friends. As long as it took us to get to Web 2.0, like everything else in life, we will soon be seeing it fade into our rear-view mirrors. It will be interesting however to see whether Twitter, Facebook and the other social networks transition into this brave new world, or whether they'll be stuck in a time warp, unable to adapt to the change!

See you on the other side!



Ron Callari
Society and Trends Writer
InventorSpot.com

82 Million Location-based Mobile Social Networking Subscriptions by 2013 | Press Release | ABI Research


Mobile location-based social networking is expected to become a key driver for the uptake of location-based services as it provides a unifying framework for a large set of applications such as friend finders, local search and geo-tagging. While many LBS applications will include features allowing the sharing of real-time experiences via fixed social networking sites such as Facebook and MySpace, fully-fledged mobile location-based social networking sites will also gain momentum with more than 82 million subscriptions expected by 2013.

 

“While growth will be mainly driven by the availability of multimedia-centric GPS handsets, other mobile form factors will also become important”, says ABI Research director Dominique Bonte. “Mobile Internet Devices (MIDs) with built-in GPS receivers have been announced, with location-based social networking site GyPSii supporting Moblin-based Intel Atom processor-powered MIDs. Connected PNDs and outdoor GPS solutions are other obvious candidates for location-based networking. Nissan Carwings’ in-car telematics solution allows the sharing and ranking of fuel consumption in Japan.”

 

Licensing agreements with carriers and handsets manufacturers will be a crucial success factor for location-enabled social sites to reach critical market share. While initially a wide range of business models will coexist, ultimately advertising-based models will prevail due to the perfect fit with the local search- and content-driven social context.

 

Another important trend is the emergence of location-enabled instant messaging with applications such as Palringo Local and Nokia Chat enriching mobile communication with location context.

 

ABI Research’s study Location-Based Mobile Social Networking offers insight into trends, social networking features, drivers, barriers and includes detailed descriptions of solutions and market players, with special focus on business models. It also provides recommendations to all major players and shipment and revenue forecasts per region and per location-based social networking type. It forms part of the Location Aware Services, Consumer Mobility and Mobile Content Research Services.

 

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call +1.516.624.2500.

Social Media Predictions For 2010



Social Media Predictions for 2010!

With the first decade of the new century and new millennium coming to a close, its time to look forward at some of the prognostications that several of today's visionaries have divined from their social media crystal balls.

These predictions are meant to be thought-provokers more than a specific road map, and derive from an eclectic assembly of thought leaders,entrepreneurs and folks who are in the trenches every day dealing with the evolution of social media in our very many global neighborhoods.

Based on this research, I have also added findings from my own humble analysis that supports, questions and occasionally disputes some of these predictions.

Southeast Asia, Next Social Media Hotspot


Jimmy WalesJimmy WalesJimmy Wales, the founder of Wikipedia thinks the most important changes ahead will be forged by the “next billion people coming online, mainly in India and China.” He discussed the cross-cultural impacts as people from various backgrounds, cultures, and linguistic heritages “mix and match in amazing ways.”

This year I interviewed Shane Lennon, senior vice president of marketing for GyPSii, a location-based social network. On this topic, he noted that their company has "secured relationships with China Telecom and China Mobile." According to Lennon, "while social networks are built around the premise of who you know (a rather limiting force)," he sees "more of a future and one that’s playing out in China right now - that connects people (based) on where they are located." (see more on the topic of location-based networks below).

Web 2.0 Attacks & Political Tension


In a recent Websense report, it was noted that Web 2.0 attacks will increase in sophistication and prevalence. In the coming year, their analysis suggests that there will be a greater volume of spam and attacks on the social Web and real-time search engines such as Topsy.com, Google and Bing.com. In 2009, researchers have seen increased malicious use of social networks and collaboration tools such as Facebook, Twitter, MySpace and Google Wave to spread attackers’ wares. Spammers’ and hackers’ use of Web 2.0 sites have been successful because of the high level of trust users place in the platforms and the other users.

On August 6, I reported on Twitter's announcement that it was "defending against a denial-of-service" attack which was initiated when hackers commanded a whole army of computers to attack a particular site. As the story played out we learned that this attack was based on a very old turf dispute between Russia and Georgia. In my estimation, it is clear that social networking will become a new battleground for opposing forces around the globe to threaten and harass each other. This coupled with the Iranian Election Protests, I predict that more of this these types of global tensions will bubble up over into the social media space in 2010.

The Growing Popularity of eReaders


Sarah Rotman EppsSarah Rotman EppsJames McQuiveyJames McQuiveyAccording to Sarah Rotman Epps and James McQuivey of Forrester Research, eReaders will get apps, too. "As anyone with an iPhone knows, apps are where the magic happens: They make the device infinitely more useful." iRex Technologies, which has a B2B e-reader business in Europe and is launching its first consumer-targeted e-reader in the U.S, will release an SDK (software development kit) so that software developers can make their own apps for the iRex DR800SG. Rotman and McQuivey said they "wouldn’t be surprised to see Amazon launch a Kindle app store, too, including anything from a social-reading app from Goodreads to an enterprise app from Microsoft or Oracle would make e-readers vastly expand the possibilities for consumers and businesses."

As far as the iPhone replacing the Kindle, there is evidence to indicate the contrary.  While the "Kindle for iPhone" is a possibility, particularly since a user doesn't have to purchase another expensive device, the iPhone's small screen is cumbersome. My research indicates that for the voracious reader, the Kindle’s size and feel is more comparable to the book reading that many of us have grown accustomed to. Its advantage over an actual book is its light-weight and the ability to store hundreds of books in one self-contained device.

Magazine and Newspaper Apps


Sarah Rotman Epps and James McQuivey have also weighed in on magazine and newspaper publishers launching their own apps and devices. "Magazine and newspaper publishers aren’t satisfied with the way their content looks and functions on the Kindle and Sony Readers—they want color, video, interactivity, the ability to sell ads and control the subscriber relationship." Old media moves slowly, but in 2010 we’ll see them crawling towards some solutions. Time Inc.‘s John Squires is spearheading an effort to get other magazine publishers together in a joint venture, which would sell access to digital versions of their magazines that could be consumed on portable devices.

In November, I reported on ZenNews and its Zensify life-streaming app that provides a cutting-edge analysis of the latest breaking news stories from sources in real-time using a "tag cloud" visualization technology. All articles are available to read as click-thrus and include news from acclaimed news sources such as the The Guardian, AlJazeera, CNN and the NY Times.

Location-Based Social Networks


Pete CashmorePete CashmorePete Cashmore from Mashable recently reported in his CNN column, that "Fueled by the ubiquity of GPS in modern smartphones, location-sharing services like Foursquare, Gowalla, Brightkite and Google Latitude are suddenly in vogue...with Foursquare (potentially becoming) the breakout services of the year ... provided they're not crushed by the addition of location-based features to Twitter and Facebook."

Cashmore also believes that "location is not about any singular service; rather, it's a new layer of the Web. Soon, our whereabouts may optionally be appended to every Tweet, blog comment, photo or video we post."

In a recent report I published titled, "Pinpointing Popularity: Social Networking Gets Physical," my claim is that the potential of LBS lies in the hands of the major players who have been developing this technology for the last couple of years.

Whether or not ‘location’ becomes the must-have service for Twitter and Facebook to entertain and potentially absorb will most likely be based on monetization. And based on the forecasted numbers around the globe, it looks like location-based social networks are scaling fairly well in that arena - with Foursquare out front, not only striking deals with developers and new apps but also with restaurants, bars and gyms.  As a result, my prediction is that Foursquare and perhaps Gowalla will monetize their networks to a lucrative position faster than Twitter in 2010.

Augmented Reality Success or Bust?


augmented realityaugmented realityCashmore's position on AR is somewhat mixed. While he believes, "it's yet to become part of the consumer consciousness- it has attracted early-adopter buzz in the latter part of 2009," he has his doubts as to its continued functionality.

Enabled by GPS, AR maps the data from the likes of Google and the accelerometer technology in modern phones and overlays data on your environment with reviews of the restaurants you walk past and Wikipedia entries about the sights you see.

According to Cashmore, "the challenges for such services is to prove their utility - they have the 'cool factor,' but can they truly be useful."

While I understand Cashmore's concerns, I think there were several examples of AR used effectively in 2009 that counters his position. In an analysis I conducted in October, titled, "Real-Time Augmented Reality: Future or Fantasy?" I uncovered a application for AR that utilized real-time search most effectively.

Sporting events are perfect venues to adapt this type of technology, and this past June, Wimbeldon was the first major international arena to actually test it. The beta version of the Wimbeldon Seer developed by IBM, which runs on Google’s G1 smartphones provided fans at this past year’s matches with AR read-outs about what was being viewed during the tournament. The Seer’s features included match updates, players’ stats, newsfeeds, menu items available at the refreshment stands and could even tell you if the lines at a particular restroom were too long. All the real-time data on this system came from Wimbeldon’s own controlled channel.

Companies to develop social media policies


Dave AmanoDave AmanoDavid Armano's Harvard Business Publishing report asserts that "if the company you work for doesn't already have a social media policy in place with specific rules of engagement across multiple networks, it just might in the next year." From how to conduct yourself as an employee to what's considered competition, it's likely that you'll see something formalized about how the company views social media and your participation in it.

My tongue-and-cheek review back in October, titled, "Social Media Nazi Says 'No Twitter For You'" explored the 'prohibition' of Twitter and Facebook in the workplace. While Armano touches on the possibility of a formalized employee 'social media' handbook, I think there are going to be more stringent social media restrictions put in place as it pertains to social networking at your place of business.

Affecting more than half of all businesses in the US and according to a new survey conducted by Robert Half Technology, fifty-four percent of companies have completely blocked social networks at work, while another nineteen percent will only permit it "for business purposes." According to a CNET Report, social networks "have become so ingrained in culture and communication that some companies choosing to block them can appear draconian rather than prudent." Unfortunately , this 'big brother' trend, I believe will see even more traction in 2010.

Web 3.0 or the Semantic Web


The Semantic Web, which has been discussed, debated and debunked by many of the social media gurus mentioned here will emerge as a major sea change in 2010 as to how we conduct business and socially interact on the Web.

Peter SweeneyPeter SweeneyAccording to Peter Sweeney, founder of the semantic technology firm Primal Fusion, "Web 3.0 is industrial" and as an industrial entity "the automation of tasks displaces human work." He states that "instead of users manually creating content, machines will automate the heavy lifting. Consumers simply push the buttons and get stuff done. Think textile
mills versus spinning wheels."

Semantic web refers to the web-study of interlinked documents accessed via the Internet. Web pages are generally written in HTML,which describes the structure of information i.e the syntax but not the semantics. But if the computers can understand the meaning behind the information then this can help us surface the information that we are looking for more expeditiously. There are quite a few Web 3.0 applications we have been exposed to already including the likes of Twine, Google Squared and Mozilla Ubiquity. Also many regard Google Wave as the first major door-opener of Web 3.0 wave era.

In my article, "'Social Awareness' To Replace Social Networking," I see us getting closer to the 'Internet of Things' where 'social awareness' will aggregate everything we do online to the extent that tweets and status updates will become fully automated by the world around us versus us ever having to touch a keyboard again. This will be accomplished by the coding of every object, appliance and entity we interact with on a daily basis where all of our movements will be recorded, stored and communicated automatically when appropriate. This coupled with all of our content being warehoused for future data-mining purposes, the involvement of humans for some of these tasks will no longer be needed (as noted above by Sweeney).

My feeling is that while real-time search, location-based social networks, augmented reality and the other predictions noted here will all make significant inroads in 2010, the one most noteworthy will be Web 3.0  --  as all of these other new developments will have a direct correlation with how that movement unfolds.

The next decade has been marked as the beginning of the age of semantic technology. Once that ball starts rolling downhill, all of these other social media components will unfold at a faster and faster clip. Jennifer LeggioJennifer LeggioJennifer Leggio, also known as "Mediaphyter" notes in a ZDNet article, that "2010 is the year that social media will just be, rather than serving as a shiny new toy." I concur with Leggio's assumption that social networking will become ubiquitous, and add that Web 3.0 will replace Web 2.0 as the next new shiny thing we can't stop talking about in 2010.



Ron Callari
Society and Trends Writer
InventorSpot.com

News & Views / Demand for Broadband Revised Upward

COOPERSTOWN, NY  - A new method for calculating broadband take rates reveals that demand for broadband is significantly higher than it was thought to be – a finding that changes the business case for service providers considering further buildouts.

Consulting firm Brian Webster Consulting published a revised methodology for calculating broadband take rates in the United States. Using the approach described in Webster’s new white paper, the broadband adoption rate in areas where broadband services are available is 72.9 percent, or about 10 percent higher than currently accepted industry estimates. The report has a breakdown for each state.

Based on these higher take rates, broadband deployments or expansions may be economically viable in areas once written off due to low household density. More accurate data and the ability to identify exactly where unserved homes are located leads to better-informed deployment strategies and more effective use of funding to address unserved households.

“Combining the enhanced broadband take rate with other economic data and trends as input to return-on-investment models and analysis,” notes Haig Sarkissian, principal consultant at Wireless 20/20 LLC, “builds additional confidence for investors on the merit of the broadband deployment business case.”

Brian Webster Consulting teamed with data provider Gadberry Group to design and prototype an approach that provides near address-level provision for broadband consumption and take rates.

“Earlier this year we provided several first-round [stimulus funding] applicants with block-level demographics, including consumer broadband usage,” explains Gadberry Group principal Larry Martin. “Combining these data with innovative analysis techniques has led to this new perspective on broadband take rate.”

“By leveraging our years of mapping experience, we help our clients strengthen their business case and go-to-market plans, allowing them to present their cases more clearly with images as well as with hard data,” says Brian Webster, principal consultant. “With the new insight provided by the census block take rate, business case analysis is further enhanced, thereby reducing the risk in the broadband investment and deployment.”

The complete white paper is available on the WirelessMapping Web site .

WirelessMapping.Com has been providing wireless and geospatial mapping services for seven years, both with and without accompanying demographic reports that show the number of households covered or passed. Most recently WirelessMapping has been involved in census block level mapping and demographic support services to clients developing applications to the American Recovery and Reinvestment Act (ARRA) stimulus funding through the NTIA BTOP and RUS BIP. Past and current clients include Lockheed Martin, EarthLink, Covad, Federal Engineering, Sprint PCS, ExteNet Systems, Southern California Gas and Electric, Strix, Thunder Bay Telephone Company and BroadbandCensus.com.

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First National Database of Broadband Connectivity and Usage Slashes Prep Time, Increases Accuracy of Stimulus Proposals, Opens Markets for Broadband Carriers

 

NORTHFIELD, MINN. (December 3, 2009) — Broadband stimulus grant applicants can cut proposal prep time, dramatically reduce their risk to challenges and create more accurate statewide broadband maps to support a national broadband strategy using the first national broadband database. BroadBand Scout from data and analytics company ID Insight reports broadband connectivity and usage down to the census block, also helping broadband service providers open new markets.

BroadBand Scout provides instant access to the data required to successfully apply for grant monies from the $7.2 billion American Recovery and Reinvestment Act of 2009 broadband stimulus program. This same data also allows broadband and wireless carriers to cost-effectively target new areas for service expansion and better research competitors.

BroadBand Scout was developed by a unique analytical survey process of accessing the millions of records in ID Insight’s proprietary databases that were initially assembled to track retail activity. By combining known Internet access information with address-related data, BroadBand Scout allows clients to see connectivity and usage at the most granular level. For more information, visit www.IDInsight.com/broadband.asp.

“Communities, carriers and states have been starving for this data,” said ID Insight president Adam Elliott. “Understanding current broadband usage by geography is an ongoing need for stimulus applicants as well as for the broadband and wireless carrier community. By creating easy access to extensive data and sophisticated analytics, we see a phenomenal opportunity for service providers and communities to develop a data-driven approach to planning so they gain access to grant monies that may have otherwise been impossible to get.”

One of the biggest frustrations of stimulus grant applicants is compiling the necessary broadband usage data as required by the federal agencies awarding the funds. They are further frustrated by the difficulty in defending proposals from challengers who claim incumbents already cover the areas where applicants plan to provide broadband. With BroadBand Scout, communities and companies are able to accurately identify broadband access and usage when requesting grants from the broadband stimulus program.

ID Insight is partnering with broadband industry expert Craig Settles, president of Successful.com, to deliver professional services that assist stimulus grant applicants prepare and defend their proposals, and help state broadband mapping teams effectively execute their projects. “The key to effective broadband strategy, both locally and nationally, is to capture accurate connectivity data directly from consumers and businesses,” said Settles. “ID Insight offers an excellent combination of expediency and accuracy that broadband project leaders need.”

In October 2009, the first grant application to receive funding was for statewide broadband mapping projects to support the FCC’s efforts to develop a national broadband strategy. BroadBand Scout enables states to launch their projects faster and execute with greater accuracy to meet the FCC’s requirements. Other stimulus funding awards should be announced in January 2010. There is one additional round of stimulus funding with all funds distributed by September 30, 2010.


ID Insight is currently licensing the data and information to companies, states and communities. The data is available in reports summarized at the state, county, tract, block group or block number levels. Using its patent-pending analytics system, ID Insight can also provide case-by-case consulting services to predict additional high-potential expansion markets. Besides grant applicants, these services are valuable to broadband carriers looking for insights, validation and competitive advantage for their plans to open new markets.

Broadband Webinar
Broadband industry expert Craig Settles and ID Insight president Adam Elliott are co-hosting a free Webinar to discuss the vital role accurate broadband usage data and coverage maps play in implementing an effective national broadband strategy on Wednesday, December 16, from 4:00 to 5:00 p.m. Eastern. To register, visit https://www2.gotomeeting.com/register/212771379.

About ID Insight
ID Insight, the innovator in Access-Point Intelligence, knows more about people and their access points -- physical addresses, IP addresses, phone numbers and other points where fraud occurs -- than any other identity-fraud risk-assessment company. Based in Northfield, Minn., the company combines its massive collection of data on people and access points with patent-pending analytics to help companies prevent fraud, reduce costs and capture more business. ID Insight provides next-generation market research, verification, authentication, and fraud solutions to financial services companies, credit issuers, retailers, online merchants and wireless providers nationwide. For more information, visit www.IDInsight.com.

About Successful.com
Successful.com has delivered community broadband services since 2006, though it provided services to technology companies and end-user organizations beginning with its inception in 1986. Previous needs assessment clients include the City of Glendale, Calif., the Little Tokyo area of Los Angeles and several cities in Santa Clara County, Calif. For over 20 years the firm’s workshops, consulting services and books have helped government and other organizations worldwide use technology to cut costs, improve business operations and increase revenue.

Broadband Maps Available From ID Insight

NORTHFIELD, MN  – A new set of nationwide broadband maps is now available from analytics firm ID Insight. According to the company, these maps enable broadband stimulus grant applicants to cut their proposal preparation time, reduce their vulnerability to challenges and create more accurate statewide broadband maps to support a national broadband strategy. BroadBand Scout from ID Insight reports broadband connectivity and usage down to the census block, also helping broadband service providers open new markets.

BroadBand Scout provides instant access to the data required to successfully apply for grant monies from the broadband stimulus program. This data also allows broadband and wireless carriers to cost-effectively target new areas for service expansion and better research competitors.

Spinoff From Retail Databases

BroadBand Scout was developed by an analytical survey accessing the millions of records in ID Insight’s proprietary databases that were initially assembled to track retail activity. By combining known Internet access information with address-related data, BroadBand Scout allows clients to see connectivity and usage at the most granular level.

“Communities, carriers and states have been starving for this data,” says ID Insight president Adam Elliott. “Understanding current broadband usage by geography is an ongoing need for stimulus applicants as well as for the broadband and wireless carrier community. By creating easy access to extensive data and sophisticated analytics, we see a phenomenal opportunity for service providers and communities to develop a data-driven approach to planning so they gain access to grant monies that may have otherwise been impossible to get.”

One of the biggest frustrations of stimulus grant applicants is compiling the necessary broadband usage data as required by the federal agencies awarding the funds. They are further frustrated by the difficulty in defending proposals from challengers who claim incumbents already cover the areas where applicants plan to provide broadband. With BroadBand Scout, communities and companies are able to accurately identify broadband access and usage when requesting grants from the broadband stimulus program.

ID Insight is partnering with broadband industry expert Craig Settles, president of Successful.com, to deliver professional services that assist stimulus grant applicants prepare and defend their proposals, and help state broadband mapping teams effectively execute their projects. “The key to effective broadband strategy, both locally and nationally, is to capture accurate connectivity data directly from consumers and businesses,” says Settles. “ID Insight offers an excellent combination of expediency and accuracy that broadband project leaders need.”

In October 2009, the first grant application to receive funding was for statewide broadband mapping projects to support the FCC’s efforts to develop a national broadband strategy. BroadBand Scout enables states to launch their projects faster and execute with greater accuracy to meet the FCC’s requirements. Other stimulus funding awards should be announced in January 2010. There is one additional round of stimulus funding with all funds distributed by September 30, 2010.

ID Insight is currently licensing the data and information to companies, states and communities. The data is available in reports summarized at the state, county, tract, block group or block number levels. Using its patent-pending analytics system, ID Insight can also provide case-by-case consulting services to predict additional high-potential expansion markets. Besides grant applicants, these services are valuable to broadband carriers looking for insights, validation and competitive advantage for their plans to open new markets.

Are Credit Card Interchange Fees Hurting Your Business? | Business Money Matters

Several weeks ago convenience store operator 7-Eleven submitted a petition to Congress to protest the fees that credit card companies charge retailers each and every time a customer uses credit instead of cash to purchase its goods.  These are known in the industry as interchange fees and according to a recent Wall Street Journal article, amounted to 1.82% of every transaction made in the U.S. in 2008.

The article also detailed that this meant $45.3 billion in additional fees for U.S. banks, 75% of which stemmed from them using the Visa and MasterCard brand names.  American Express charges even higher interchange fees given it serves a higher-brow client base that many merchants like to cater to.  And apparently Diner’s Club charged rates as high as 7% for the privilege of accessing its privileged members when its cards first came out on the market.

The year-over-year increase in banking fees garnered was 78% and is serving as ammo for 7-Eleven and other like-minded retailers to claim the fees are getting out of hand.  Not surprisingly, the industry has countered that the average interchange fee has actually decreased in recent years and was closer to 2% back in 2005.

What Exactly is an Interchange Fee?

An interchange fee is the amount that credit (and debit) card companies charge businesses and represents a cost for accessing its vast system of cardholders and payment network that executes the transaction, starting from the store charge and ending when it shows up on the client’s statement as is paid off.  Banks also earn hefty interest from consumers that rack up credit card debt and is not a cost born by merchants.

Letting banks and other credit card issuers take on credit risk (risk of nonpayment) is a definite perk for retailers, the majority of which don’t offer in house credit programs themselves.  It also makes payment much easier for consumers and allows them more flexible payment options (e.g. pay off the balance with one payment at the end of the month, pay it off over time with credit, or pay-as-you-go with a debit card).  Another key perk is a points program that allows a card holder to receive 1% of all purchases back in the form of points that can be used to buy plane tickets, other merchandise, etc.

The Merchant Foots the Bill

The benefits offer sweet deals for credit card companies and consumers but it is merchants that must foot the bill.  The fees also loom large for many retailers as they already operate with razor-thin profit margins.  For instance, many mom-and-pop gas stations lacking 7-Eleven’s purchasing clout have gone out of business in the past couple of years on the combination of credit card fees and gasoline profit margins that evaporated along with record-high oil prices.

The Bottom Line

The good news for merchants is that current industry sentiment favors taking a closer look at interchange fees.  Europe and Australia already regulate these fees to keep them between 0.3% and 0.4%.  They are unlikely to fall this low any time soon in the U.S., but the downward pressure on interchange fees isn’t going away any time soon.

Credit Card Experts for the Lodging Industry

What's Your Rate?

Short Answer -- Interchange + 50 Basis Points + 5 Cents

When I started in the merchant account business over 20 years ago and a prospective merchant asked “What’s your rate?” it was easy to simply quote 1.69 % + 20 cents, take out my pen, and start writing up the paperwork. Wow has that changed. Over the past two decades MasterCard and Visa, in their infinite wisdom, has developed a daunting list of interchange rules based upon your type of business, what type of card is presented by the consumer, the amount of the sale, what type of data you enter into your terminal or software, and if you swipe or manually key in the sale. In the 1980’s I could count on one hand the number of different interchange categories while today the list is over 100 pages long. Up until recently interchange was a trade secret guarded like the recipe for Coke but now it is publicly posted on Visa and MasterCard’s corporate websites.

It is important to know that every merchant account provider is bound by the exact same interchange schedule. It is the markup from this schedule that determines what you will ultimately pay. There is no such thing as wholesale rates, not even for the largest retailers. So when today a sales rep quotes you a tiered rate such as 1.69 % you really have to ask for the rest of the picture as very few of your transactions will qualify for that rate. As you can see from the chart below interchange cost for almost every category is higher including all rewards cards, business type cards and keyed cards. Therefore only swiped debit/check cards and small ticket (Under $15) sales in a limited number of business types have an actual cost lower than 1.69 %. In this example one could expect that most sales would be downgraded to a mid-qualified or non-qualified rate which usually adds 1 to 2 % to the qualified rate.

OK, so why do we have rates on our site similar to the 1.69 % example. The reason is because it has been so embedded in merchant’s minds over the years to just say “What’s your rate?” that it would be foolish for us to not at least offer this popular option. However, the educated merchant (which we want you to be), including most every large merchant knows that the least expensive option is Interchange Plus pricing. That is why Credit Card Processing Services offers all of our merchants either tiered pricing or the following low cost interchange plus pricing schedule.

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CATEGORY INTERCHANGE ADD 30 BP + 10 Cents YOUR RATE
Visa Check Cards  
CPS Hotel - Debit Cards 1.46 % + $0.15 Add 30 BP + 10 Cents 1.76 % + $0.25
Visa Credit Cards  
CPS Hotel - Credit Cards 1.68 % + $0.10 Add 30 BP + 10 Cents 1.98 % + $0.20
CPS Rewards 2 T&E 2.00 % + $0.10 Add 30 BP + 10 Cents 2.30 % + $0.20
Signature Card Electronic 2.40 % + $0.10 Add 30 BP + 10 Cents 2.70 % + $0.20
Visa Commercial Cards  
Business Card Electronic 2.50 % + $0.10 Add 30 BP + 10 Cents 2.80 % + $0.20
Corporate Card Electronic 2.30 % + $0.10 Add 30 BP + 10 Cents 2.60 % + $0.20
   
MasterCard Offline Debit Cards  
Merit 3 - Debit Cards 1.15 % + $0.15 Add 30 BP + 10 Cents 1.45 % + $0.25
MasterCard Credit Cards    
Merit 3 - Credit Cards 1.68 % + $0.10 Add 30 BP + 10 Cents 1.98 % + $0.20
MasterCard World & Elite Cards  
World Card T&E 2.40 % + $0.10 Add 30 BP + 10 Cents 2.70 % + $0.20
World Elite Card T&E 2.85 % + $0.10 Add 30 BP + 10 Cents 3.15 % + $0.20
MasterCard Corporate & Business    
Face-to-Face Corporate Cards 2.15 % + $0.10 Add 30 BP + 10 Cents 2.45 % + $0.20
Face-to-Face Business Cards 2.42 % + $0.10 Add 30 BP + 10 Cents 2.72 % + $0.20
World & World Elite Business T&E 2.60 % + $0.00 Add 30 BP + 10 Cents 2.90 % + $0.10
Diners Club Electronic 2.10 % + $0.00 Add 30 BP + 10 Cents 2.40 % + $0.10
       
Discover      
Hotel - Debit Cards 1.45 % + $0.10 Add 30 BP + 10 Cents 1.75 % + $0.20
Hotel - Credit Cards 1.81 % + $0.10 Add 30 BP + 10 Cents 2.11 % + $0.20
Hotel - Premium Cards 2.40 % + $0.10 Add 30 BP + 10 Cents 2.70 % + $0.20
     
   
Interchange Rates already include Dues and Assessments which we have rounded off to 10 BP
Interchange Plus Pricing available for all lodging properties processing at least $10,000 per month in volume
Visa Dues and Assessments are .0925%  
MasterCard Dues and Assessments are .0950%  
Discover Dues and Assessments are .0950%  
   
Interchange Table Current as of June 2009