Posts Tagged ‘Trends’

The Card Game – How Visa, Using Fees Behind Its Debit Card, Dominates a Market – Series

Tuesday, January 5th, 2010

Every day, millions of Americans stand at store checkout counters and make a seemingly random decision: after swiping their debit card, they choose whether to punch in a code, or to sign their name.

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Your Money Guides

Credit and Debit Cards »

Monica Almeida/The New York Times

Mitch Goldstone, in his digital photo-processing shop in Irvine, Calif., is part of a suit against Visa and MasterCard.

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The Card Game series is a joint reporting project with the PBS program “Frontline.”

Readers’ Comments

“Smart retailers take advantage and offer a ‘discount’ on debit purchases. Sharing the savings with the customers is a great incentive.”

Tom, Texas

It is a pointless distinction to most consumers, since the price is the same either way. But behind the scenes, billions of dollars are at stake.

When you sign a debit card receipt at a large retailer, the store pays your bank an average of 75 cents for every $100 spent, more than twice as much as when you punch in a four-digit code.

The difference is so large that Costco will not allow you to sign for your debit purchase in its checkout lines. Wal-Mart and Home Depot steer customers to use a PIN, the debit card norm outside the United States.

Despite all this, signature debit cards dominate debit use in this country, accounting for 61 percent of all such transactions, even though PIN debit cards are less expensive and less vulnerable to fraud.

How this came to be is largely a result of a successful if controversial strategy hatched decades ago by Visa, the dominant payment network for credit and debit cards. It is an approach that has benefited Visa and the nation’s banks at the expense of merchants and, some argue, consumers.

Competition, of course, usually forces prices lower. But for payment networks like Visa and MasterCard, competition in the card business is more about winning over banks that actually issue the cards than consumers who use them. Visa and MasterCard set the fees that merchants must pay the cardholder’s bank. And higher fees mean higher profits for banks, even if it means that merchants shift the cost to consumers.

Seizing on this odd twist, Visa enticed banks to embrace signature debit — the higher-priced method of handling debit cards — and turned over the fees to banks as an incentive to issue more Visa cards. At least initially, MasterCard and other rivals promoted PIN debit instead.

As debit cards became the preferred plastic in American wallets, Visa has turned its attention to PIN debit too and increased its market share even more. And it has succeeded — not by lowering the fees that merchants pay, but often by pushing them up, making its bank customers happier.

In an effort to catch up, MasterCard and other rivals eventually raised fees on debit cards too, sometimes higher than Visa, to try to woo bank customers back.

“What we witnessed was truly a perverse form of competition,” said Ronald Congemi, the former chief executive of Star Systems, one of the regional PIN-based networks that has struggled to compete with Visa. “They competed on the basis of raising prices. What other industry do you know that gets away with that?”

Visa has managed to dominate the debit landscape despite more than a decade of litigation and antitrust investigations into high fees and anticompetitive behavior, including a settlement in 2003 in which Visa paid $2 billion that some predicted would inject more competition into the debit industry.

Yet today, Visa has a commanding lead in signature debit in the United States, with a 73 percent share. Its share of the domestic PIN debit market is smaller but growing, at 42 percent, making Visa the biggest PIN network, according to The Nilson Report, an industry newsletter.

The Risk of Refusing

Critics complain that Visa does not fight fair, and that it used its market power to force merchants to accept higher costs for debit cards. Merchants say they cannot refuse Visa cards because it would result in lower sales.

“A dollar is no longer a dollar in this country,” said Mallory Duncan, senior vice president of the National Retail Federation, a trade association. “It’s a Visa dollar. It’s only worth 99 cents because they take a piece of every one.”

Visa officials say its critics are griping about debit products that have transformed the nation’s payment system, adding convenience for consumers and higher sales for merchants, while cutting the hassle and expense of dealing with cash and checks. In recent years, New York cabbies and McDonald’s restaurants are among those reporting higher sales as a result of accepting plastic.

“At times we have a perspective problem,” said William M. Sheedy, Visa’s president for the Americas. “Debit has become so mainstream, some of the people who have benefited have lost sight of what their business model was, what their cost structure was.”

Visa officials said the costs of debit for merchants had not gone down because the cards now provided greater value than they did five or 10 years ago. The costs must not be too onerous, they say, because merchant acceptance has doubled in the last decade.

The fees are “not a cost-based calculation, but a value-based calculation,” said Elizabeth Buse, Visa’s global head of product.

As for Visa’s market share, company officials maintain that it is rather small when considered within the larger context of all payments, where, for now at least, cash remains king.

While Visa may be among the best-known brands in the world, how it operates is a mystery to many consumers.

Visa does not distribute credit or debit cards, nor does it provide credit so consumers can buy flat-screen televisions or a Starbucks latte. Those tasks are left to the banks, which owned Visa until it went public in 2008.

Sign in to Recommend Next Article in Your Money (5 of 28) » A version of this article appeared in print on January 5, 2010, on page A1 of the New York edition.

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Prices slashed on 25% of homes in Miami in Q3

Wednesday, December 9th, 2009

Twenty-five percent of homes listed for sale in Miami have had their prices reduced at least once between June and December, according to Trulia. The national figure is 22 percent.

The San Francisco-based real estate Web site found the average price reduction in Miami was 15 percent, while the national figure was 11 percent, up slightly from 10 percent in the previous quarter.

Statewide, 23 percent of listings had price reductions in the last quarter, with an average reduction of 13 percent, or $53,591.

Nationwide, total listings fell 9 percent in December from the previous month, with the total amount slashed from home prices falling to $24.7 billion in December from $28.1 billion in November.

“The tax credit extension has provided sellers with a much bigger window of opportunity, creating significantly less pressure to sell now,” Trulia co-founder and CEO Pete Flint said in a news release. “With economic indicators showing positive signs during the past couple months, many sellers will be poised to wait to sell. They want to sell at the highest price possible and, as inventory levels are seeing a 9 percent decrease from the previous month, there will be less competition amongst sellers, leading to less price reductions in the near term.”

Cities that have experienced significant increases in percentage of listings with price reductions in the third quarter include:

  • Kansas City, Mo. – 40%
  • Omaha, Neb. – 39%
  • Houston – 32%
  • Minneapolis – 29%
  • Arlington, Va. – 28%

Cities with the highest percentage of declines for listings with price reductions between June and November include:

  • Las Vegas – 30%
  • San Jose, Calif. – 30%
  • Long Beach, Calif. – 25%
  • Honolulu – 23%
  • Albuquerque, N.M. – 22%

State government revenue falls 16%

Wednesday, December 9th, 2009

The U.S. Census Bureau reports that state governments took in nearly $1.7 trillion in total revenue in fiscal year 2008, a 15.8 percent decrease from 2007.

The largest share of the state revenue came from taxes ($780.7 billion), which made up 46.5 percent of the total. The Census Bureau said the decline was primarily because of a decrease in insurance trust revenue, which fell by $377.7 billion (72.7 percent).

Insurance trust systems include public employee retirement systems, the unemployment compensation system, state government workers’ compensation programs and other state social insurance trusts.

Florida’s total revenue was $69.2 billion last year, of which $35.8 billion came from taxes. Total expenditures were $76.9 billion, up from $72.7 billion in 2007. By function, the biggest chunk came from education, at $23.1 billion, followed by welfare, which totaled $18.06 billion, up from with $17.3 billion in 2007. Welfare expenditures comprised 23.5 percent of the state’s total expenditures in 2008.

Other findings:

  • Total state government expenditures increased 6.2 percent from fiscal year 2007, totaling $1.7 trillion in 2008. Education ($546.8 billion), public welfare ($412.1 billion) and highways ($107.2 billion) represented the top three outlays, accounting for nearly two-thirds of all state government total expenditures.
  • Eleven states spent more than 25 percent of total expenditures on public welfare, with Tennessee (32.8 percent), Maine (30.5 percent) and Rhode Island (29.8 percent) spending the highest percentage of their total expenditures.
  • Public welfare spending, used to support people based on need, includes such items as old-age assistance, temporary assistance for needy families, and commodities and services provided under welfare programs, including medical care or burial services.
  • Hawaii (11.5 percent), Alabama (10.1 percent) and South Carolina (9.9 percent) led in spending on public health and hospitals as a percentage of total expenditures.

The findings come from the 2008 Annual Survey of State Government Finances, which includes data on revenue, expenditures, debt, and cash and security holdings for each state, as well as a national level summary.

Click here to access the report.

S. Fla. home value losses top $45B in 2009

Wednesday, December 9th, 2009

South Florida ranks among the five markets in the country with the biggest home value losses – down $45.9 billion in 2009, according to the latest statistics from Zillow.

Still, that’s better than the $137.2 billion in value lost in 2008.

The improvement also is reflected on the national level, where U.S. homes lost $489 billion in value during the first 11 months of the year, significantly less than the $3.6 trillion that was lost in 2008.

Forty-eight of the 154 markets tracked by Zillow showed gains in home values this year, with the Boston metropolitan statistical area showing the largest gain, at $23.3 billion. The Providence, R.I., MSA was second, with a $12.4 billion gain.

Fewer single-family homeowners also were underwater in the third quarter – 21 percent, down from 23 percent in the second quarter, according to Zillow.

“Most housing markets across the country had a good summer, spurred largely by the government’s tax credits for homebuyers combined with very low mortgage rates,” said Stan Humphries, Zillow’s chief economist, in a news release.

However, he noted that demand is expected to drop as mortgage rates creep back up, and the number of foreclosures remains high.

On Tuesday, Condo Vultures reported that there were 7,000 foreclosures last month in the tri-county area.

U.S. Justice Department’s Bureau of Justice Statistics Releases New Numbers about Nation’s Correctional Population

Tuesday, December 8th, 2009

December 8, 2009
For Immediate Release

U.S. Justice Department’s Bureau of Justice Statistics Releases New Numbers about Nation’s Correctional Population

New York—The Bureau of Justice Statistics (BJS) released two bulletins today that examine the numbers of prisoners and individuals under probation or parole supervision in the nation for 2008 and report on related trends—including an overall increase in the number of individuals being released from federal and state prisons.

Although these bulletins contain rich information for policymakers and practitioners, the CSG Justice Center’s National Reentry Resource Center, supported by the Bureau of Justice Assistance, is highlighting just a few of the findings related to reentry and providing information on how to access the full reports as soon as they became available.

The new statistics reveal that the total prison population growth rate (.8 percent) was the slowest in eight years; however, “the numbers of state and federal prisoners reached all-time yearend highs in 2008.” BJS estimates that about 1 in every 198 U.S. residents was incarcerated in federal or state prison at the end of 2008.

Prisoners in 2008 reveals that the number of individuals released from federal and state prisons rose to 735,454 (an increase of 2 percent). The bulletin also reports that there was an 8 percent increase in the number of individuals released to the community without any conditions. These numbers underscore the need for reentry resources and technical assistance to state and local service providers.

Probation and Parole in the United States, 2008 provides useful information about the nearly 5.1 million adults under community supervision—about 1 in every 45 adults in the country. (The bulletin on prisoners indicates that although the number of parole violators admitted to state prison increased again in 2008, the rate of that increase was slower than in the previous two years.)

Both bulletins provide detailed appendixes with information about particular states, methodologies, and notes that describe how jurisdictions collect and report data.

Prisoners in 2008 (NCJ-228417), by William J. Sabol, Heather C. West, and Matthew Cooper, can be found at http://www.ojp.usdoj.gov/bjs/abstract/p08.htm. Probation and Parole in the United States, 2008 (NCJ-228230), by Lauren E. Glaze and Thomas P. Bonczar, can be downloaded at http://www.ojp.usdoj.gov/bjs/abstract/ppus08.htm.

GTM Research

Tuesday, December 8th, 2009
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

Tuesday, December 8th, 2009

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

Tuesday, December 8th, 2009

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

Social Media Predictions For 2010

Monday, December 7th, 2009

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

Demand for Broadband Revised Upward

Monday, December 7th, 2009

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.