Bismarck Mandan Development Association

MEDAG - The Mayor's Economic Development Advisory Group (MEDAG) will hold a Public Input Meeting, Saturday, July 11, 2009, 9 AM, in the Tom Baker Room, City County Building, 221 N 5th Street, Bismarck. Public input may be submitted during the meeting by calling 355-1312. The meeting will be broadcast live on Dakota Media Access Government Channel 2 and live web stream at www.freetv.org.



The public is invited to attend to provide input and to learn more about recommendations the committee developed that could enable more efficient and effective local economic development. The MEDAG was established by Bismarck Mayor John Warford and Mandan Mayor Tim Helbling and is supported by the City Commissions of both Bismarck and Mandan.



Please click MEDAG Enabling Strategies for Global Initiatives for details.

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Bismarck-Mandan in Prairie Business – The July 2009 issue of Prairie Business features an article about the Bismarck-Mandan community. Titled “Growing metro area features dynamic economy,” the article can be found here. If you don’t receive the print edition of Prairie Business and would like to, go to www.prairiebizmag.com and click on “subscribe” to sign up for your free subscription.



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Taxable sales and purchases – Taxable sales and purchases for the Bismarck-Mandan MSA in the first quarter of 2009 showed a slight decrease from the same period in 2008. The breakdown for Bismarck, Mandan, Burleigh County and Morton County is as follows:





2009 - Q1
2008 - Q1

Bismarck-Mandan MSA

$298,451,293
$314,952,765

Bismarck

259,189,502
271,106,399

Burleigh County

260,542,230
272,326,238

Mandan

35,553,458
40,061,334

Morton County

37,909,063
42,626,527





Overall, statewide taxable sales and purchases for the quarter were up 3.8 percent from the previous year. The Office of State Tax Commissioner issued this news release about the 2009 first quarter report.



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Community branding - With community branding being part of the discussion taking place within the MEDAG process, the BMDA offers this webinar by Ady International on July 16, 2009. Bob Ady is a long time recognized site consultant with an impeccable reputation. You can find the details of the webinar here. If you have ever had some serious thoughts about community branding this may be your opportunity to get some answers and guidance.



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Wind energy - Wind energy development continues to be a subject of growing interest around the world as well as here in the US and North Dakota. Next week the BMDA will have a visit by a representative of the British consulate in Chicago to talk about assisting the BMDA in making contacts with European wind energy developers and manufacturers of wind energy equipment.



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ICSC follow up - Richard completed his follow-up with the retailers, hoteliers and restaurant contacts that he and Mandan’s Business Development Director Ellen Huber made during the 2009 International Council of Shopping Center’s convention. Follow-up contact was made with 49 different hotel, retail, and restaurant users. Input is being solicited from a mix of users to determine which part of Mandan offers the strongest probability development as a mixed-use retail center.



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Mandan Tomorrow - The Strategic Planning process in Mandan is coming to completion, as a final draft of the proposed Mandan Tomorrow strategic plan has been completed. Over the course of the summer the Steering Committee and the Technical Advisory Committee will continue working on the implementation process. Please visit www.mandanvisionplan.com for final draft and other related planning documents. or click here for a pdf copy of the plan. This plan focuses on four key areas:



1. Leadership, Pride and Image

2. Economic Opportunity and Prosperity

3. Quality Places and Destinations

4. Education and Workforce



Please feel free to contact Richard with any questions at rmower@bmda.org or (701) 222-5530.



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Mandan Store Front Improvement Program - One application round remains this year for the Mandan Storefront Improvement Program. The application deadline for this round of funding is August 1st.

For more information, contact Mandan Business Development Director Ellen Huber at 667-3485 or send an e-mail to ehuber@cityofmandan.com

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Phones and Technology Continual to Change

Graham Brown-Martin wrote Tue, 7 Jul 2009 15:56:47 +0100:

>... Chris Nash who takes a long cold look at how the mLearning
>revolution failed to
>deliver on its promise of personalised anytime, anywhere learning
>... http://www.handheldlearning.co.uk/content/view/60/

The availability of better cheaper smart phones and the application
of social networking to education may see a new lease of life for
mLearning in 2010.

For several years I have been teaching the design of accessible web
sites to students at the Australian National University
. Designing web sites for blind
people is not that exciting, so I showed the same techniques applied
to mobile devices: .

But each year I have had to find new commercial mobile examples, as
the companies I showcased the previous year gone out of business by
the next year. Mobile web seemed to be a technology which was never
going to be mainstream .

This year things went slightly differently, not only were there some
companies still in business after a year, but I was able to
demonstrate the course lecture notes on one of the student's phones.

What has happened is that Apple's iPhone has made large screen smart
phones more popular and easier to use. Also the web browsers on the
phones have grown in sophistication and standards compliant web
design has reached the point where it will work with the phones.

The university installed Moodle this year. The default Moodle web
format is designed to be reasonably accessible and standards
compliant (hopefully other learning management systems are simialr).
As a result the content is readable on a large screen smart phone
(curiously the audio lecture Podcasts didn't work on the iPhone, even
though they are in Apple's format).

Being able to display lecture notes on a phone is not that exciting.
But if combined with collaborative learning techniques it can be. The
students don't just passively absorb information from the system,
they have to discuss with each other and search out information.

My masters Green ICT Sustainability course
uses an approach to
andragogy described in: "Computer Professional Education using
Mentored and Collaborative Online Learning", David Lindley, IJCIM
Special Issues on e-learning, Vol.15 No. SP4, November, 2007:
.

This will just use the relatively crude web based forums in Moodle.
However, there is the potential to use more sophisticated social
networking, as implemented in Mahara . I expect
we will see adaptions of these to make them work better on a smart
phone, using more than just emulation of a desktop display.



Tom Worthington FACS HLM tom.worthington@tomw.net.au Ph: 0419 496150
Director, Tomw Communications Pty Ltd ABN: 17 088 714 309
PO Box 13, Belconnen ACT 2617 http://www.tomw.net.au/
Adjunct Senior Lecturer, Australian National University

**********
Participation and subscription information for this EDUCAUSE Constituent Group discussion list can be found at http://www.educause.edu/groups/.

A Medicare Update

Hello Everyone,

Please enjoy the information contained in this edition of Frontier Focus. Please be sure to share it with your members, colleagues, providers and office billing staff. Thank you for your continued efforts to broadcast Medicare information to the providers in Region VIII.





Table of Contents



1. DMEPOS Competitive Bidding Messages (3) With Important Information on What You Should Be Doing NOW to Get Ready



2. Healthcare Common Procedure Coding System (HCPCS) Quarterly Update



3. Revised National Correct Coding Initiative (NCCI) Edits for Physicians from July 1st



4. New Ratings for America’s Hospitals Now Available on Hospital Compare Website



5. And Now A Word About Medicare Preventive Services



6. The National Cancer Institute, the Agency for Healthcare Research and Quality (AHRQ), and the Department of Veterans Affairs (VA) Publish Report on Health Care Costing: Data, Methods, Future Directions



7. New Report By HHS' Agency for Healthcare Research and Quality on Genetic Testing Now Available



8. New from the Medicare Learning Network



9. Extra Help for Beneficiaries Paying for Prescription Drugs









~~~~~~~~~~~~~~~~~~~~



1. DMEPOS Competitive Bidding Messages (3) With Important Information on What You Should Be Doing NOW to Get Ready



The Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS)

Competitive Bidding Program Round 1 Rebid Is Coming Soon!!





Summer 2009

Ø CMS announces bidding schedule/schedule of education events

Ø CMS begins bidder education campaign

Ø Bidder registration period to obtain user ID and passwords begins



Fall 2009

Ø Bidding begins



If you are a supplier interested in bidding, prepare now – don’t wait!



Ø UPDATE YOUR NSC FILES: DMEPOS supplier standard # 2 requires ALL suppliers to notify the National Supplier Clearinghouse (NSC) of any change to the information provided on the Medicare enrollment application (CMS-855S) within 30 days of the change. DMEPOS suppliers should use the 3/09 version of the CMS-855S and should review and update:

• The list of products and services found in section 2.D;

• The Authorized Official(s) information in sections 6A and 15; and

• The correspondence address in section 2A2 of the CMS-855S.

This is especially important for suppliers who will be involved in the Medicare DMEPOS Competitive Bidding Program. These suppliers must ensure the information listed on their supplier files is accurate to enable participation in this program. Information and instructions on how to submit a change of information may be found on the NSC Web site (http://www.palmettogba.com/nsc) and by following this path: Supplier Enrollment/Change of Information/Change of Information Guide.



Ø GET LICENSED: Suppliers submitting a bid for a product category in a competitive bidding area (CBA) must meet all DMEPOS state licensure requirements and other applicable state licensure requirements, if any, for that product category for every state in that CBA. Prior to submitting a bid for a CBA and product category, the supplier must have a copy of the applicable state licenses on file with the NSC. As part of the bid evaluation we will verify with the NSC that the supplier has on file a copy of all applicable required state license(s).



Ø GET ACCREDITED: CMS would like to remind DMEPOS suppliers that time is running out to obtain accreditation by the September 30, 2009 deadline or risk having their Medicare Part B billing privileges revoked on October 1, 2009. Accreditation takes an average of 6 months to complete. DMEPOS suppliers should contact a CMS deemed accreditation organization to obtain information about the accreditation process and the application process. Suppliers must be accredited for a product category in order to submit a bid for that product category. CMS cannot contract with suppliers that are not accredited by a CMS-approved accreditation organization.



Further information on the DMEPOS accreditation requirements along with a list of the accreditation organizations and those professionals and other persons exempted from accreditation may be found at the CMS website: http://www.cms.hhs.gov/MedicareProviderSupEnroll/01_Overview.asp .



Ø GET BONDED: CMS would like to remind DMEPOS suppliers that certain suppliers will need to obtain and submit a surety bond by the October 2, 2009 deadline or risk having their Medicare Part B billing privileges revoked. Suppliers subject to the bonding requirement must be bonded in order to bid in the DMEPOS competitive bidding program. A list of sureties from which a bond can be secured is found at the Department of the Treasury’s “List of Certified (Surety Bond) Companies;” the web site is located at:

www.fms.treas.gov/c570/c570_a-z.html.



Visit the CMS website at http://www.cms.hhs.gov/DMEPOSCompetitiveBid/ for the latest information on the DMEPOS competitive bidding program.



# # # #



DMEPOS Supplier Accreditation and Surety Bond Requirement Deadlines Coming In October

Suppliers May Choose to Voluntarily Terminate Enrollment If They Do Not Plan To Comply



Medicare suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS), unless exempt, must be accredited and obtain a surety bond by October 1, 2009 and October 2, 2009, respectively.



If you have made the decision not to obtain accreditation or a surety bond when required, you may want to voluntarily terminate your enrollment in the Medicare program before the implementation dates above. You can voluntary terminate your enrollment with the Medicare program by completing the sections associated with voluntary termination on page 4 of the Medicare enrollment application (CMS-855S). Once complete, you should sign, date and send the completed application to the National Supplier Clearinghouse (NSC). By voluntarily terminating your Medicare enrollment, you will preserve your right to re-enroll in Medicare once you meet the requirements to participate in the Medicare program.



If you do not comply with the accreditation and surety bond requirements and do not submit a voluntary termination, your Medicare billing privileges will be revoked. A revocation will bar you from re-enrolling in Medicare for at least one year after the date of revocation.



Suppliers who do not plan to stay enrolled in Medicare are strongly encouraged to notify their beneficiaries as soon as possible so the beneficiary can find another supplier.



For additional information regarding DMEPOS accreditation or the provisions associated with a surety bond, go to www.cms.hhs.gov/MedicareProviderSupEnroll. Frequently Asked Questions (FAQs) on the surety bond requirement can be found on the NSC’s FAQ page at www.palmettogba.com/nsc.



# # # #





Take Action Now to Prepare for the Medicare Durable Medical Equipment, Prosthetics, Orthotics,

and Supplies (DMEPOS) Competitive Bidding Program!



A Special Edition MLN Matters education article identifying steps suppliers should take in preparation for the DMEPOS Competitive Bidding Program to ensure successful bidder registration is available at http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0915.pdf.



The article highlights specific sections of the CMS-855S, Medicare Enrollment Application, where the accuracy of the Authorized Official information and correspondence mailing address are critical for successful bidder registration. The Centers for Medicare & Medicaid Services (CMS) urges suppliers planning to bid in the 2009 bidding cycle to read this article and make sure their most recent CMS-855S submission is still current and accurate.

~~~~~~~~~~~~~~~~~~~~



2. Healthcare Common Procedure Coding System (HCPCS) Quarterly Update



The Centers for Medicare & Medicaid Services is pleased to announce the scheduled release of modifications to the Healthcare Common Procedure Coding System (HCPCS) code set. These changes have been posted to the HCPCS website at http://www.cms.hhs.gov/HCPCSReleaseCodeSets/02_HCPCS_Quarterly_Update.asp. Changes are effective on the date indicated on the update.

~~~~~~~~~~~~~~~~~~~~



3. Revised National Correct Coding Initiative (NCCI) Edits for Physicians from July 1st



IMPORTANT NOTICE: If you downloaded the National Correct Coding Initiative (NCCI) Edits for Physicians (version number 15.2, effective 7/1/09 – 9/30/09) yesterday or today, please download the files again. Incorrect files were posted for the NCCI Edits for Physicians. The files have been corrected, and can be found at http://www.cms.hhs.gov/NationalCorrectCodInitEd/NCCIEP/list.asp on the CMS website. Thank You.

~~~~~~~~~~~~~~~~~~~~



4. New Ratings for America’s Hospitals Now Available on Hospital Compare Website



Individual Rates Provided on More Than 4,000 Hospitals Nationwide,

New Mortality and Readmission Data Included



Important new information was recently added to the Centers for Medicare & Medicaid Services’ (CMS) Hospital Compare Website that reports how frequently patients return to a hospital after being discharged, a possible indicator of how well the facility did the first time around. The site is www.hospitalcompare.hhs.gov.



On average, 1 in 5 Medicare beneficiaries who are discharged from a hospital today will re-enter the hospital within a month. Reducing the rate of hospital readmissions to improve quality and achieve savings are key components of President Obama’s health care reform agenda.



“The President and Congress have both identified the reduction of readmissions as a target area for health reform,” said HHS Secretary Kathleen Sebelius. “When we reduce readmissions, we improve the quality of care patients receive and cut health care costs.”



For further details, the CMS Fact Sheet on this topic can be found at http://www.cms.hhs.gov/apps/media/press_releases.asp on the CMS Website.

~~~~~~~~~~~~~~~~~~~~



5. And Now A Word About Medicare Preventive Services



Help Keep Your Medicare Patients Healthy This Summer. The Centers for Medicare & Medicaid Services (CMS) is asking the provider community to keep their patients with Medicare healthy by ensuring that they take advantage of Medicare-covered preventive services. Medicare covers a wide array of preventive services for eligible beneficiaries, including cancer screenings, glaucoma screenings, an initial preventive physical examination, and certain immunizations, among others.

What Can You Do?

As a health care professional who provides care to seniors and others with Medicare, you can help protect the health of your Medicare patients by educating them about their risk factors and reminding them of the importance of getting the preventive screenings covered by Medicare.

For More Information

CMS has developed several educational products related to Medicare-covered preventive services, including screenings for various forms of cancer:



o The MLN Preventive Services Educational Products Web Page ~ provides descriptions and ordering information for Medicare Learning Network (MLN) preventive services educational products and resources for health care professionals and their staff. http://www.cms.hhs.gov/MLNProducts/35_PreventiveServices.asp

o Quick Reference Information: Medicare Preventive Services ~ This double-sided chart provides coverage and coding information on Medicare-covered preventive services. http://www.cms.hhs.gov/MLNProducts/downloads/MPS_QuickReferenceChart_1.pdf

o Quick Reference Information: The ABCs of Providing the Initial Preventive Physical Examination (IPPE) ~ This double-sided chart provides a checklist of services included in the IPPE, as well as additional information on the IPPE benefit.

http://www.cms.hhs.gov/MLNProducts/downloads/MPS_QRI_IPPE001a.pdf

o Quick Reference Information: Medicare Part B Immunization Billing This double-sided chart provides coverage and coding information on Medicare-covered immunizations.



Please visit the Medicare Learning Network for more information on these and other Medicare fee-for-service educational products.



Thank you for helping CMS improve the health of patients with Medicare by joining in the effort to educate beneficiaries about the importance of early detection of various diseases by taking advantage of the screenings and other preventive services covered by Medicare.

~~~~~~~~~~~~~~~~~~~~



6. The National Cancer Institute, the Agency for Healthcare Research and Quality (AHRQ), and the Department of Veterans Affairs (VA) Publish Report on Health Care Costing: Data, Methods, Future Directions



The National Cancer Institute (NCI), the Agency for Healthcare Research and Quality (AHRQ), and the Department of Veterans Affairs (VA) are pleased to announce the publication of Health Care Costing: Data, Methods, Future Directions, published July 2009, Volume 47, Issue 7, Supplement 1 in Medical Care. Accurate measurement of health care costs is critical for developing health care budgets, setting priorities for allocating funds, and making health care policy decisions. Estimates of these costs are key inputs to cost-effectiveness analyses and other economic evaluations. The supplement takes a careful look at diverse methodologic issues related to this timely and important topic.



Written by experts in health economics, epidemiology, health services research, and biostatistics, the papers discuss ways to improve and apply health care cost estimation methods and promote research in this area. The supplement was developed by scientists at the NCI, the AHRQ, the VA, and Emory University. It was based on a 2007 workshop sponsored by the NCI and the AHRQ. For more information about the supplement and the workshop, visit http://healthservices.cancer.gov/publications/costing.html.



Requests for one free copy of the supplement may be made to the AHRQ Publications Clearinghouse. Please order by specifying AHRQ publication number OM 09-0079: Medical Care supplement on health care costing. If more than one copy is needed, please describe the reason in your request.

* In the United States, call the toll-free number 800-358-9295, 24 hours a day, 7 days a week.

* Hearing impaired persons may call 888-586-6340 for the TDD service.

* Callers from outside of the United States only should use the telephone number (703) 437-2078.

* Written requests may be sent to: AHRQ Publications Clearinghouse, P.O. Box 8547, Silver Spring, MD 20907-8547.

Electronic requests may be made to: AHRQPubs@ahrq.hhs.gov.

~~~~~~~~~~~~~~~~~~~~



7. New Report By HHS' Agency for Healthcare Research and Quality on Genetic Testing Now Available



A new report by HHS' Agency for Healthcare Research and Quality, which found insufficient evidence to conclude that genetic testing for two gene mutations in adults with a history of deep-vein thrombosis (DVT) prevents reoccurrence or improves other outcomes, is now available. The report, a summary of which was published in the June 17, 2009 issue of JAMA, also failed to find any benefit from genetic testing of DVT patients' family members.

The report's authors, who were led by Jodi Segal, M.D., of the AHRQ-supported Johns Hopkins Evidence-based Practice Center in Baltimore, failed to find any studies that directly addressed the effect of genetic testing on patient outcomes, but they found research indicating that keeping patients who have a genetic tendency to develop blood clots on blood-thinning drugs such as warfarin reduces the chance of a future clot. This benefit appears to be similar to that seen in patients who do not have the genetic tendency to develop blood clots but who have a history of clots.

The authors also reviewed the evidence for the accuracy of the testing methods used to identify the FVL and prothrombin G20210A mutations, which can signal continued risk of blood clots. The evidence shows that tests for identifying the mutations have excellent analytic validity and that nearly all laboratories report accurate results.

AHRQ's report, Outcomes of Genetic Testing in Adults with a History of Venous Thromboembolism, is available at http://www.ahrq.gov/clinic/tp/fvltp.htm.

~~~~~~~~~~~~~~~~~~~~



8. New from the Medicare Learning Network



· The publication titled ICD-10-CM/PCS Myths & Facts (June 2009), which presents correct information in response to some myths regarding the ICD-10-Clinical Modification/Procedure Coding System, is now available in downloadable format from the Centers for Medicare & Medicaid Services Medicare Learning Network at http://www.cms.hhs.gov/MLNProducts/downloads/ICD-10Mappingfctsht.pdf .



· The Second in Series: General Equivalence Mappings – ICD-9-CM to and from ICD-10-CM and ICD-10-PCS Fact Sheet (May 2009), which provides basic information about the General Equivalence Mappings (GEM) including possible users of the GEMs, why the GEMs are needed, and how the GEMs files are formatted as well as Reimbursement Mappings information, is now available in print format from the Centers for Medicare & Medicaid Services Medicare Learning Network. To place your order, visit http://www.cms.hhs.gov/MLNGenInfo/ , scroll down to “Related Links Inside CMS” and select “MLN Product Ordering Page.”



· The revised Inpatient Psychiatric Facility Prospective Payment System Fact Sheet (May 2009), which provides general information about the Inpatient Psychiatric Facility Prospective Payment System (IPF PPS), how payment rates are set, and the Rate Year 2010 update to the IPF PPS, is now available in print format from the Centers for Medicare & Medicaid Services Medicare Learning Network. To place your order, visit http://www.cms.hhs.gov/MLNGenInfo/ , scroll down to “Related Links Inside CMS” and select “MLN Product Ordering Page.”



· The revised Clinical Laboratory Improvement Amendment (CLIA) Brochure, which contains information and links to a variety of CLIA resources including: CLIA regulations, CLIA enrollment, CLIA certificates, CLIA fee schedules, CLIA-approved accrediting organizations and CLIA State and Regional offices, is now available in downloadable format from the Centers for Medicare & Medicaid Services Medicare Learning Network at: http://www.cms.hhs.gov/MLNProducts/downloads/CLIABrochure.pdf .

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9. Extra Help for Beneficiaries Paying for Prescription Drugs



Do You Know Someone Who Is Having Trouble Paying For Prescription Drugs?

Medicare Can Help!



If an individual has limited income and resources, they may qualify for extra help from Medicare. It could be worth over $3,300 in savings on prescription drug costs per year.
Encourage people with Medicare to file for Extra Help online: https://s044a90.ssa.gov/apps6z/i1020/main.html or by calling Social Security at 1-800-772-1213 to apply over the phone.
State Health Insurance Information Program (SHIP) offices can assist with the application. Find contact information for a local SHIP Counselor at http://www.medicare.gov/contacts/static/allStateContacts.asp or by calling
1-800-MEDICARE.

~~~~~~~~~~~~~~~~~~~~







Lucretia James

Division for Medicare Health Plans Operations
Centers for Medicare & Medicaid Services
Region VIII
1600 Broadway, Suite 700
Denver, CO 80202
(303) 844-1568
lucretia.james@cms.hhs.gov

North Dakota Ecomomic Outlook

Recent Performance. North Dakota has
fallen into recession, but the extent of the
downturn is remarkably mild. A boom in
energy production, exploration and development
in the region surrounding Bismarck in
previous years is helping limit the severity
of the downturn. A strong financial services
industry and stable household balance sheets
are also helping to shield the state from more
severe job losses. Construction is recovering
from its recent lull, and the state’s strong fiscal
position is supporting hiring in the public
sector. Moreover, private service industries
remain on an even keel, supported by strong
income gains in recent years. ND’s unemployment
rate is 5 percentage points below the
national average.
Labor market. ND’s labor market has undergone
minimal erosion thus far, but additional
slack will develop in the near term as manufacturing
unwinds. The unemployment rate
has climbed a little more than 1 percentage
point since December, with reduced demand
for the state’s manufactured goods placing
related workers on the dole. Both initial and
continuing claims for unemployment insurance
rose considerably in the first quarter.
On balance, ND’s labor market will remain
in much better shape than nationally as the
state boasts the lowest jobless rate in the nation.
Forward-looking measures of the labor
market signal the worst of the downturn may
be over, as initial unemployment claims have
begun to retract. Although layoffs will moderate,
the unemployment rate is expected to
increase further in the near term, cresting at
5.5% in the second quarter of 2010, well below
the 10% seen nationwide.
Trade. The decline in foreign demand for
the state’s manufactured wares will weigh
on trade-related industries over the next several
months. Canada, the destination of over
50% of the state’s exports, is mired in recession.
The depreciation of the Canadian dollar
against the U.S. dollar is also hurting demand
for ND’s manufactured goods and services.
Demand for various state products, especially
farm machinery, has largely dissipated;
industrial production has fallen to its lowest
level since the late 1990s. Reduced demand
for manufactured goods will cause transportation
and warehousing to retract some of
the substantial gains made over the past few
years. Recovery in manufacturing and transportation
is not expected to materialize until
global demand strengthens in 2010.
Oil outlook. Weakened demand for oil distillates
in the near term will curb the feverish
pace of oil-related activity seen over the
past two years. The price of oil has fallen
measurably from its summer 2008 peak,
causing a commensurate decline in rig
counts. The price of oil is expected to average
below $70 per barrel for the duration of
this year and average $75 per barrel in 2010.
Low prices will make it difficult for producers
to justify adding more rigs, sidelining a
rebound in energy-related industries until a
sustained global recovery lifts the price of
oil. This is not expected to occur until the
latter half of 2010.
The North Dakota economy will contract
in the near term, as lower commodity
prices weigh on income growth and
reduced business investment globally induces
layoffs in manufacturing and other
export-related industries. Longer term,
low business costs will lessen the outflow
of manufacturing jobs, but the industry
will contribute little to income growth,
leading to reduced spending on local services.
Therefore, as the nation begins its
recovery, ND will fall into a slower, more
sustainable pace of expansion. Growth in
ND will lag the national average over the
extended forecast horizon.
Glenn Wingard
June 2009
STRENGTHS
Location makes it a major U.S.-Canada trade
corridor.
Major producer of several important
agricultural commodities.
Strong capacity for fuel production.
WEAKNESSES
Large, slow-growing rural population.
Lacks strong economic growth drivers, outside
of energy and agriculture.
UPSIDE
New trade pacts bolster export growth.
Signifi cant new oil production from the Bakken
formation.
DOWNSIDE
Tight labor markets hinder economic growth.
Energy prices fall more than expected,
adversely impacting energy-related
investment.
 
14
3
2nd quintile
1st quintile
0.39%
86%
Aa2 U.S. ND
95
100
105
110
115
120
125
130
135
140
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Forecast
-10 -8 -6 -4 -2 0 2 4 6 8
Government
Other Services
Leisure & Hospitality
Edu & Health Svcs
Prof & Business Svcs
Financial Activities
Information
Trans/Utilities
Trade
Manufacturing
Construction
Total
% change year ago, 3 mo. MA
4.0
-1.3
1.3
1.4
-2.0
0.7
-2.7
5.6
0.2
-6.5
-1.0
1.0
2002 2003 2004 2005 2006 2007 2008 Indicators 2009 2010 2011 2012 2013
18.8 19.9 20.0 20.9 21.1 22.6 24.3 Gross state product (C$B) 24.6 25.1 26.1 27.4 28.4
330 333 338 345 352 358 367 Total employment (000) 365 364 371 380 389
-0.1 0.8 1.6 2.0 2.2 1.7 2.4 % change -0.6 -0.1 1.8 2.5 2.3
3.5 3.6 3.5 3.4 3.2 3.1 3.2 Unemployment rate 5.0 5.5 4.7 3.4 2.6
1.7 8.6 2.6 7.6 2.3 12.2 9.6 Personal income growth 0.5 3.4 4.1 4.5 5.0
634 633 636 635 636 638 641 Population (000) 645 647 650 653 657
-3.9 -2.0 1.9 -3.0 -1.4 -1.9 0.1 Net migration (000) -0.4 -1.1 -1.1 0.1 -0.4
1,793 2,344 2,521 2,367 2,297 2,194 1,888 Single-family permits 461 1,060 1,746 2,303 2,432
1,472 1,377 1,512 1,671 1,232 1,166 945 Multifamily permits 1,216 1,410 1,425 1,739 2,038
180.5 190.0 203.8 220.5 236.0 249.9 259.6 House price index (1980Q1 = 100) 263.3 259.7 262.6 270.8 279.2
1,954 3,296 1,949 2,041 1,974 2,311 1,741 Mortgage originations ($M) 1,958 1,768 1,718 1,817 1,912
27.9 26.9 28.3 25.8 25.1 26.8 25.7 New vehicle registrations (000) 17.6 19.9 23.6 27.0 28.3
1,958 2,188 2,203 3,444 711 1,147 1,307 Personal bankruptcies 1,693 2,273 2,279 2,042 1,960
EMPLOYMENT MIGRATION FLOWS
HOUSE PRICES MERCHANDISE TRADE
EMPLOYMENT AND INDUSTRY STRUCTURE
INCOME TAX DISTRIBUTION
INCOME
INDUSTRIAL
DIVERSITY
EMPLOYMENT
VOLATILITY DUE TO
U.S. FLUCTUATIONS
EMPLOYMENT
VOLATILITY
TOP EMPLOYERS INDUSTRY EMPLOYMENT
Sector U.S.
Construction
Manufacturing
Durable
Nondurable
Transport/Utilities
Wholesale Trade
Retail Trade
Information
Financial Activities
Prof. & Business Services
Education & Health Services
Leisure & Hosp. Services
Other Services
Government
Percent of total employment, 2008
LOCATION QUOTIENTS
5 Highest at 3-digit NAICS Level
Sources: IRS (top), 2007; Census Bureau, 2008
Source: FHFA, 1987Q1=100, NSA Source: BOC - Foreign Trade Division, 2008 Source: Internal Revenue Service, 2006
2008 Source: Moody’s Economy.com, 2008
Sources: Census, 2008 (household), BEA, 2008 (per capita)
Least Diverse
Most Diverse (U.S.)
Not due to U.S. Due to U.S.
Public
Moody’s Economy.com • www.economy.com • help@economy.com • Précis STATE • June 2009
5.3%
9.8%
63.1%
36.9%
3.7%
4.4%
11.2%
2.2%
5.9%
13.0%
13.8%
9.8%
4.0%
16.4%
Location
NAICS Industry Quotient
ND
5.7%
7.2%
68.6%
31.4%
4.1%
5.4%
11.8%
2.0%
5.5%
8.2%
14.2%
9.1%
4.2%
20.7%
Exports by Destination
Country Exports Share Total
Millions $ Exports %
World ...........................2,759.7................. 100.0
Canada .....................1,416.0................... 51.3
Mexico .........................198.7..................... 7.2
Russian Federation ......147.1..................... 5.3
Belgium ..........................94.9..................... 3.4
Germany ........................94.0..................... 3.4
Exports by Commodity
Commodity Exports Share Total
Millions $ Exports %
World ...........................2,759.7................. 100.0
Machinery ex elec. ....1,183.0................... 42.9
Agricultural products ....611.5................... 22.2
Transportation equip. ...230.4..................... 8.3
Food & kind. prod. .......216.9..................... 7.9
Oil & gas ......................208.1..................... 7.5
0.00
0.20
0.40
0.60
0.80
1.00
0.59
0%
20%
40%
60%
80%
100%
54%
ND U.S.
64
100
0
500
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2005 2006 2007 2008
Net Migration, ND
ND U.S.
50
100
150
200
250
300
87 89 92 95 98 00 03 06 09
Median Household Per Capita
ND U.S.
47,205 50,233 39,321 39,751
Federal ...................................................... 9,567
State ........................................................ 23,208
Local ....................................................... 43,250
> 200K
1.7%
100K-200K
5.7%
75K-10 0K
8.1%
50K-75K
14.8%
< 50K
69.8%
Into North Dakota Number
of Migrants
Minnesota 5,093
South Dakota 1,181
Montana 918
Texas 828
California 781
Colorado 539
Washington 498
Wisconsin 459
Florida 436
Arizona 417
Total Inmigration 17,599
From North Dakota
Minnesota 5,585
South Dakota 1,267
Texas 976
Montana 845
Colorado 714
California 689
Arizona 643
Florida 563
Washington 552
Wisconsin 388
Total Outmigration 19,093
Net Migration -1,494
University of North Dakota 6,240
Minot Air Force Base 5,146
MeritCare Health System 3,691
Altru Health System 3,250
Grand Forks Air Force Base 2,430
Medcenter One Health Systems 2,200
North Dakota State University 2,127
St. Alexius Medical Center 2,001
Microsoft Business Solutions 1,245
Bobcat/Ingersoll-Rand (Melroe Manufacturing) 1,006
Hugo’s 900
LM Glassfi ber 883
MDU Resources Group, Inc. 822
U.S. Bank Service Center 770
Noridian/Blue Cross Blue Shield 719
Wal-Mart Stores, Inc. 700
Case New Holland Corporation 672
James A. Haley Veterans Hospital 655
Aetna, Inc. 635
Phoenix International Corporation 597
Sources: Combined lists and Moody’s Economy.com, 2008
213 Support Activities for Mining 4.71
486 Pipeline Transportation 2.79
212 Mining (except Oil and Gas) 2.51
221 Utilities 2.11
333 Machinery Manuf. 2.02
Moody’s Economy.com • www.economy.com • help@economy.com • Précis STATE • June 2009
North Dakota
Hiring among the state’s industries was relatively robust last
year. ND only recently fell into recession because of the downturn
in commodity prices and weakness in manufacturing related to
falling demand for the state’s durable goods. ND’s industrial
employment diffusion index extended its decline through the
first quarter of 2009, as job losses among supporting services
accompanied declines in energy-related and manufacturing
industries. Still, job losses in the first quarter were not as pervasive
as they were nationally.
ND has made considerable income gains over the past several
years, but this trend will not persist. A favorable labor market,
combined with record high oil prices and farm commodity prices,
pushed income growth to be double the U.S. average in both 2007
and 2008. In fact, per capita income nearly closed the gap that it
has held with respect to the U.S. since early 1980s last year. Strong
income growth will cease this year, however; commodity prices
have fallen from their record peaks, and wage and salary growth
is already slowing as the labor market weakens.
Manufacturing has not been immune to the global decline in
demand for durables, and a near-term rebound is not imminent.
ND’s primary export destination, Canada, is in severe recession.
Therefore, demand for ND’s products has weakened greatly,
spurring job losses among manufacturers. Bobcat, which has
plants located in Sargent County and Bismarck, has announced
the layoffs of 250 employees. John Deere is also eliminating 90
jobs at its Valley City facility. To date, manufacturing employment
has contracted by 5%, but with the global economy not expected to
begin recovery until later this year or early in 2010, manufacturers
are expected to trim payrolls well into next year.
ND’s housing market is faring much better than others, but
it is not immune to consumer pessimism and tightened lending
standards. While house prices are tumbling nationally, prices in
every major market of ND are still appreciating. The rates of price
appreciation are slowing, however, as home sales are falling. The
decline stems from of a combination of factors, including low
consumer confidence because of rising unemployment, tightened
lending standards, and more recently, an increase in mortgage
interest rates. Reduced sales are not only affecting prices, but they
are also limiting new residential investment.
Existing-house price index, % change year ago (R)
Permits, ths (L)
0
1
2
3
0
2
4
6
8
10
04 05 06 07 08 09
Tight Lending Standards Crimp Housing Demand
Single-family; Sources: Moody's Economy.com, Fiserv, FHFA
North Dakota U.S.
10
20
30
40
50
60
70
80
07 08 09
North Dakota Firms Are Hiring
Industrial employment diffusion index
Source: Moody's Economy.com
North Dakota U.S.
24
26
28
30
32
34
36
38
40
00 01 02 03 04 05 06 07 08
North Dakota's Income Gap Closing
Per capita income, $ ths
Source: Moody's Economy.com
Manufacturing employment, ths (R)
Industrial production, index, 2002=100 (L)
96
98
100
102
104
106
108
110
112
23
24
25
26
27
00 01 02 03 04 05 06 07 08 09
Manufacturing Hit Hard by Global Recession
Source: Moody's Economy.com
Moody’s Economy.com • www.economy.com • help@economy.com • Précis STATE • June 2009
©

North Dakota Council on Information Technology - Information

2009-11 IT procurement opportunities:
The 2009 legislative session has wrapped up and state agencies are busy gearing up for the 2009-11 biennium, which begins July 1. According to the ND Information Technology Department (ITD), the state’s sound financial condition allowed the legislature to fund many IT projects. The department says that while it may take a little work and due diligence, vendors looking to do business with the state should find many opportunities in the next biennium.

While it would be ideal to be able to list the approved agency IT projects that came out of the session, ITD says it is not that simple. Each agency submitted its 2009-11 IT plan in July 2008, which means it projected 12-36 months out. With the ever-changing advancements in technology, this is a very difficult feat. This is why the process provides flexibility allowing agencies to adjust their plans as the biennium unfolds to ensure they are meeting the current needs of the citizens of North Dakota.

So, what are the best methods of identifying current and future procurement opportunities?

1. Review the statewide IT plan. The plan breaks down IT projects by agency. Although some unexpected changes may occur, these plans are an accurate outline of the technology projects occurring over the 2009-11 biennium.

2. Make sure you are registered on the ND State Procurement Bidders List. Special attention needs to be given to the commodity codes your business is registered under. These are used when an agency is looking for a vendor pool. There currently are 246 major codes, each with numerous sub-codes, so careful review is encouraged to make sure you are registered under the appropriate categories. Once registered in the Bidders List, you will receive notice of procurement opportunities within the commodity codes you have selected.

3. Once identified, aggressively pursue these contracts as you would any other.

If you have questions regarding the statewide IT plan, contact Jeff Swank, IT business analyst with the ND Information Technology Department, at 701-328-1994. Questions surrounding the ND State Procurement Bidders List can be addressed by the ND State Procurement Office at 701-328-2773.
IT Career Awareness Program begins implementation:
Wade Kadrmas of Bismarck began his position as the ND IT Career Awareness Program Coordinator June 1. He is responsible for implementing ITCND’s statewide IT Career Awareness Program with the objective of informing 7-12 grade students, their parents and educators of the state’s IT career opportunities in an effort to secure a workforce into the future.

Kadrmas was hired by the ND Department of Career and Technical Education, ITCND’s partner in implementing the program. He has a bachelor’s degree in business education with an emphasis in computer science. Prior to this position, he was the technology coordinator and IT instructor at Bismarck’s St. Mary’s High School.

Kadrmas can be contacted at 701-328-3178 or by e-mail. Learn more about the IT Career Awareness Program here.
ITCND reaches out to colleges and universities:
As part of its IT Career Awareness Program, ITCND has recently shared the results of its 2008 IT Workforce Needs Assessment with ND colleges and universities. This is an effort to partner with the state’s postsecondary educational institutions to ensure IT workforce needs are met into the future.

The results of the assessment have been presented to the presidents of North Dakota’s two-year colleges, the North Dakota State College of Science and MinotStateUniversity, IT department advisory boards and at a Rasmussen IT event in Fargo. A letter, the 2009 State of the IT Industry Guide and a North Dakota IT industry fact sheet have been sent to all North Dakota colleges and universities encouraging their continuation of IT-related degree programs.

If you serve on an advisory board for a ND college or university, you are encouraged to share the results of the assessment with them. Information is available at the ITCND website. If you would like additional information, contact Deana Wiese, ITCND executive director, at 701-355-4458.
IT making the news:
Prairie Business explains how regional employment, including IT, shows strength despite the nation’s recession. View the complete article here.
Interim legislative studies selected:
The ND Legislative Council recently prioritized the studies to be conducted during the 2009-10 interim. IT-related studies selected include:
· SB 2018 – Study technology-based entrepreneurship and economic development best practices
· SB 2018 – Study the state’s system for addressing workforce needs through a workforce system initiative
· SB 2038 – Study the means by which the North Dakota University System can further contribute to developing and attracting the human capital to meet North Dakota’s economic and workforce needs
· SB 2390 – Study the establishment and development of certified technology parks
· SCR 4002 – Study the state’s workforce system, the feasibility and desirability of enacting legislation to address the issues identified in the 2007-08 interim Workforce Committee’s consultant’s report, and the implementation of workforce initiatives enacted by the 61st Legislative Assembly

A complete listing of interim legislative studies can be found at the ND Legislative Council website.
IT resource materials available:
The following materials have been developed by ITCND and are available to the membership for reference. These materials feature statistics on the IT industry in North Dakota and may be used as tools for the media, resources for education and classroom visits, and as general handouts.
· 2009 State of the IT Industry Guide – Features information on infrastructure, workforce, trends and economic impact on the state.
· North Dakota’s IT Industry at a Glance – Offers a snapshot view of the IT industry.
· IT-related Degree Programs in North Dakota – Highlights the computer and IT programs offered at North Dakota University System colleges and universities.
· IT Competency Model – Outlines the skills necessary for IT careers.
· IT Tops Hot Jobs in North Dakota – Summarizes Job Service North Dakota’s 2008 “Hot Jobs” and focuses on the IT jobs that topped the list.

View all of the above documents on the ITCND website.
Member Bits & Bytes:
BEK Communications – Steele, ND

BEK Communications is a leader in residential communications services and business solutions and is a member-owned cooperative committed to delivering cutting-edge, advanced services and technologies to its customers. It has been providing innovative technologies for telephone, Internet and TV and highly responsive local support to its membership in Burleigh, Emmons, Kidder, Logan, McLean and McIntosh counties since 1952. BEK also maintains two subsidiaries – BEK Business Solutions and BEK Sports Network. BEK Business Solutions offers a full line of products and services for office phones, computer networks, Internet connections, security, infrastructure implementation, cabling and more. BEK Sports Network is a fully functional broadcast company that produces live sporting events, sports shows and general interest shows.

Future opportunities for BEK Communications and the IT industry in the state: BEK Communications sees future opportunities in three primary areas.
1. Work-from-home opportunities: Approximately 20 percent of BEK’s broadband customers derive household income using their high speed Internet connection. In a more rural-based community, there aren’t as many career opportunities. BEK continues to search for and help deliver work-from-home opportunities for its members.
2. BEK Sports growth: BEK Sports continues to expand. It began by delivering live sporting events to the homes of BEKTV subscribers in south-central North Dakota and expanded by partnering with other North Dakota telephone cooperatives/companies to deliver several state-wide games. This partnership continued to grow quickly, and today, BEK Sports consists of three networks in one, with the potential for future growth.
3. Increase its Internet penetration: BEK’s Internet speeds in fiber-based areas are at 12 Mbps, which is among the best in the state. Currently, 100 percent of BEK’s customers are broadband capable. However, just over 50 percent of BEK’s customers are BEK Internet subscribers.

Current challenges facing BEK Communications and the IT industry in the state: Fiber to the home is the technology that will bring BEK’s services to customers well into the future. However, as a small cooperative, BEK Communications faces the challenge of delivering fiber to the homes to the remaining 40 percent of its subscriber base (currently, approximately 60 percent of BEK’s members have fiber-to-the-home). The cost of fiber-construction becomes a huge burden on a small, member-based company. Along with the initial cost of placing new facilities, it also can be expensive maintaining and servicing these subscribers on a daily basis. BEK’s total territory covers more than 6,000 square miles.


Learn more about BEK Communications here or contact Derrick Bulawa at 701-475-2361 for more information.

If you are interested in having your business featured in an upcoming "Member Bits & Bytes," e-mail ITCND. Requests will be honored on a first-come, first-served basis.







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Facebook

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Facebook, Inc.
Type Private
Founded Cambridge, Massachusetts
(February 4, 2004)[1]
Headquarters Palo Alto, California
Dublin, Ireland (international headquarters for Europe, Africa, Middle East)
Key people Mark Zuckerberg, Founder and CEO
Dustin Moskovitz, Co-founder
Sheryl Sandberg, COO
Matt Cohler, VP of Product Management
Chris Hughes, Co-founder
Revenue ▲ 300 million USD (2008 est.)[2]
Employees 700 (November 2008)[3]
Website www.facebook.com
Type of site Social network service
Advertising Banner ads, referral marketing
Registration Required
Available in Afrikaans, Arabic, Bengali, Bulgarian, Catalan, Chinese (simplified), Chinese (Hong Kong), Chinese (Taiwan), Croatian, Czech, Danish, Dutch, English (UK), English (US), English (Pirate), Filipino, Finnish, French (Canada), French (France), German, Greek, Hebrew, Hindi, Hungarian, Icelandic, Indonesian, Italian, Japanese, Korean, Lithuanian, Macedonian, Malay, Malayalam, Norwegian (Bokmål), Polish, Portuguese (Brazil), Portuguese (Europe), Punjabi, Romanian, Russian, Serbian, Slovak, Slovene, Spanish, Spanish (Castile), Swedish, Tamil, Telugu, Thai, Turkish, Vietnamese, Welsh
Launched February 2004
Facebook is a free-access social networking website that is operated and privately owned by Facebook, Inc.[1] Users can join networks organized by city, workplace, school, and region to connect and interact with other people. People can also add friends and send them messages, and update their personal profiles to notify friends about themselves. The website's name stems from the colloquial name of a book given to incoming students at Zuckerberg's high school alma mater, Phillips Exeter Academy. The book shows the faces and names of the school's students and faculty.

Mark Zuckerberg founded Facebook with fellow computer science major students and his roommates Dustin Moskovitz and Chris Hughes while he was a student at Harvard University.[4] Website membership was initially limited to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League, and Stanford University. It later expanded further to include any university student, then high school students, and, finally, to anyone aged 13 and over. The website currently has more than 200 million active users worldwide.[5]

Facebook has met with some controversy over the past few years. It has been blocked intermittently in several countries including Syria[6] and Iran,[7] although Iran later unblocked Facebook in 2009.[8] It has also been banned at many places of work to discourage employees from wasting time using the service.[9] Privacy has also been an issue, and it has been compromised several times. Facebook is also facing several lawsuits from a number of Zuckerberg's former classmates, who claim that Facebook had stolen their source code and other intellectual property.

A February 2009 Compete.com study has ranked Facebook as the most used social network by worldwide monthly active users, followed by MySpace.[10]

Contents [hide]
1 History
2 Financials
3 Website
3.1 Features
3.2 Platform
3.3 iPhone App
4 Reception
4.1 Use by courts
4.2 Criticism
4.2.1 Beacon
4.2.2 Privacy
4.2.3 Pro-mafia groups' case
4.2.4 Phishing
5 Litigation
5.1 ConnectU
5.2 StudiVZ
5.3 Grant Raphael
5.4 Adam Guerbuez
5.5 Alessandro Del Piero
6 See also
7 References
8 External links



History

The Facebook on February 12, 2004The advent of Facebook came about as a spin-off of a Harvard University version of Hot or Not called Facemash.[11] Mark Zuckerberg, while attending Harvard as a sophomore, concocted Facemash on October 28, 2003. Zuckerberg was blogging about a girl and trying to think of something to do to get her off his mind.[12] According to The Harvard Crimson, Facemash "used photos compiled from the online facebooks of nine Houses, placing two next to each other at a time and asking users to choose the 'hotter' person." To accomplish this, Zuckerberg hacked into the protected areas of Harvard's computer network and copied the house's private dormitory ID images. "Perhaps Harvard will squelch it for legal reasons without realizing its value as a venture that could possibly be expanded to other schools (maybe even ones with good-looking people ... )," Zuckerberg wrote in his personal blog. "But one thing is certain, and it’s that I’m a jerk for making this site. Oh well. Someone had to do it eventually ... "[13] The site was quickly forwarded to several campus group list-servers but was shut down a few days later by the Harvard administration. Zuckerberg was charged by the administration with breach of security, violating copyrights and violating individual privacy and faced expulsion, but ultimately the charges were dropped.[14]

The following semester, Zuckerberg founded "The Facebook", originally located at thefacebook.com, on February 4, 2004.[15] “Everyone’s been talking a lot about a universal face book within Harvard,” Zuckerberg told The Harvard Crimson. “I think it’s kind of silly that it would take the University a couple of years to get around to it. I can do it better than they can, and I can do it in a week.”[16] Membership was initially restricted to students of Harvard College, and within the first month, more than half the undergraduate population at Harvard was registered on the service.[17] Eduardo Saverin (business aspects), Dustin Moskovitz (programmer), Andrew McCollum (graphic artist), and Chris Hughes soon joined Zuckerberg to help promote the website. In March 2004, Facebook expanded to Stanford, Columbia, and Yale.[18] This expansion continued when it opened to all Ivy League and Boston area schools, and gradually most universities in Canada and the United States.[19] Facebook incorporated in the summer of 2004 and the entrepreneur Sean Parker, who had been informally advising Zuckerberg, became the company's president.[20] In June 2004, Facebook moved its base of operations to Palo Alto, California.[18] The company dropped The from its name after purchasing the domain name facebook.com in 2005 for $200,000.[21]

Facebook launched a high school version in September 2005, which Zuckerberg called the next logical step.[22] At that time, high school networks required an invitation to join.[23] Facebook later expanded membership eligibility to employees of several companies, including Apple Inc. and Microsoft.[24] Facebook was then opened on September 26, 2006 to everyone of ages 13 and older with a valid e-mail address.[25][26] In October 2008, Facebook announced that it was to set up its international headquarters in Dublin, Ireland.[27]


Financials

Entrance to Facebook's current headquarters in the Stanford Research Park, Palo Alto, California
Another view of Facebook's current headquartersFacebook received its first investment of US$500,000 in June 2004 from PayPal co-founder Peter Thiel.[28] This was followed a year later by $12.7 million in venture capital from Accel Partners, and then $27.5 million more from Greylock Partners.[28][29] A leaked cash flow statement showed that during the 2005 fiscal year, Facebook had a net loss of $3.63 million.[30]

With the sale of social networking website MySpace to News Corp on July 19, 2005, rumors surfaced about the possible sale of Facebook to a larger media company.[31] Zuckerberg had already said he did not want to sell the company, and denied rumors to the contrary.[32] On March 28, 2006, BusinessWeek reported that a potential acquisition of Facebook was under negotiation. Facebook reportedly declined an offer of $750 million from an unknown bidder, and it was rumored the asking price rose as high as $2 billion.[33]

In September 2006, serious talks between Facebook and Yahoo! took place concerning acquisition of Facebook, with prices reaching as high as $1 billion.[34] Thiel, by then a board member of Facebook, indicated that Facebook's internal valuation was around $8 billion based on their projected revenues of $1 billion by 2015, comparable to Viacom's MTV brand, a company with a shared target demographic audience.[35]

On July 17, 2007, Zuckerberg said that selling Facebook was unlikely because he wanted to keep it independent, saying "We're not really looking to sell the company... We're not looking to IPO anytime soon. It's just not the core focus of the company."[36]

In September 2007, Microsoft approached Facebook, proposing an investment in return for a 5% stake in the company, offering an estimated $300–500 million.[37] That month, other companies, including Google, expressed interest in buying a portion of Facebook.[38]

On October 24, 2007 Microsoft announced that it had purchased a 1.6% share of Facebook for $240 million, giving Facebook a total implied value of around $15 billion.[39] However, Microsoft bought preferred stock that carried special rights, such as "liquidation preferences" that meant Microsoft would get paid before common stockholders if the company is sold. Microsoft's purchase also included rights to place international ads on Facebook.[40]

In November 2007, Hong Kong billionaire Li Ka-shing invested $60 million in Facebook.[41]

In August 2008, BusinessWeek reported that private sales by employees, as well as purchases by venture capital firms, had and were being done at share prices that put the company's total valuation at between $3.75 billion and $5 billion.[40]

In October 2008, Zuckerberg said "I don't think social networks can be monetized in the same way that search did... In three years from now we have to figure out what the optimum model is. But that is not our primary focus today."[42]


Website

Facebook's homepage features a login form on the top right for existing users and a registration form directly underneath for new visitors.Users can choose fan pages according to their interests to connect and interact with other strangers.[43] Users can set their profiles on private as to prevent acquaintances from contacting them. Users can also set their profiles on public.[44] This allows close friends to send messages and add the user as a friend. It lets users update their personal profiles to notify their close friends about themselves. They can also join networks organized by city, workplace, school, and region to connect and interact with their close friends.[45] Public profiles also allow any stranger or acquaintance to contact the user which results in lack of privacy. Public profiles can be blocked by any user but private profiles cannot.

The website is free to users and generates revenue from advertising including banner ads.[46] Users can create profiles including photos and lists of personal interests, exchange private or public messages, and join groups of friends.[47] By default, the viewing of detailed profile data is restricted to users from the same network and "reasonable community limitations".[48]

Microsoft is Facebook's exclusive partner for serving banner advertising,[49] and as such Facebook only serves advertisements that exist in Microsoft's advertisement inventory. According to comScore, an internet marketing research company, Facebook collects as much data from its visitors as Google and Microsoft, but considerably less than Yahoo!.[50]


Features
Main article: Facebook features
This article may be too long to comfortably read and navigate. Please consider splitting content into sub-articles and using this article for a summary of the key points of the subject.

The media often compares Facebook to MySpace, but one significant difference between the two websites is the level of customization.[51] MySpace allows users to decorate their profiles using HTML and Cascading Style Sheets (CSS), while Facebook only allows plain text.[52]

Facebook has a number of features with which users may interact. They include the Wall, a space on every user's profile page that allows friends to post messages for the user to see,[53] Pokes, which allows users to send a virtual "poke" to each other (a notification that tells a user that they have been poked),[54] Photos, where users can upload albums and photos,[55] and Status, which allows users to inform their friends of their whereabouts and actions.[56] A user's Wall is visible to anyone who is able to see that user's profile, depending on privacy settings. In July 2007, Facebook began allowing users to post attachments to the Wall, whereas the Wall was previously limited to textual content only.[53]

Over time, Facebook has added several new features to its website. On September 6, 2006, a News Feed was announced, which appears on every user's homepage and highlights information including profile changes, upcoming events, and birthdays of the user's friends.[57] Initially, the News Feed caused dissatisfaction among Facebook users; some complained it was too cluttered and full of undesired information, while others were concerned it made it too easy for other people to track down individual activities (such as changes in relationship status, events, and conversations with other users).[58] In response to this dissatisfaction, Zuckerberg issued an apology for the site's failure to include appropriate customizable privacy features. Since then, users have been able to control what types of information are shared automatically with friends. Users are now able to prevent friends from seeing updates about certain types of activities, including profile changes, Wall posts, and newly added friends.[59]

One of the most popular applications on Facebook is the Photos application, where users can upload albums and photos.[60] Facebook allows users to upload an unlimited number of photos, compared with other image hosting services such as Photobucket and Flickr, which apply limits to the number of photos that a user is allowed to upload. In the past, all users were limited to 60 photos per album. However, some users report that they are able to create albums with a new limit of 200 photos. It remains unclear why some members have a 200-photo limit while others do not.[61][62][63] Privacy settings can be set for individual albums, limiting the groups of users that can see an album. For example, the privacy of an album can be set so that only the user's friends can see the album, while the privacy of another album can be set so that all Facebook users can see it. Another feature of the Photos applications is the ability to "tag", or label users in a photo. For instance, if a photo contains a user's friend, then the user can tag the friend in the photo. This sends a notification to the friend that they have been tagged, and provides them a link to see the photo.[64]

Facebook Notes was introduced on August 22, 2006, a blogging feature that allowed tags and embeddable images. Users were later able to import blogs from Xanga, LiveJournal, Blogger, and other blogging services.[25] During the week of April 7, 2008, Facebook released a Comet-based[65] instant messaging application called "Chat" to several networks,[66] which allows users to communicate with friends and is similar in functionality to desktop-based instant messengers.

Facebook launched Gifts on February 8, 2007, which allows users to send virtual gifts to their friends that appear on the recipient's profile. Gifts cost $1.00 each to purchase, and a personalized message can be attached to each gift.[67][68] On May 14, 2007, Facebook launched Marketplace, which lets users post free classified ads.[69] Marketplace has been compared to Craigslist by CNET, which points out that the major difference between the two is that listings posted by a user on Marketplace are only seen by users that are in the same network as that user, whereas listings posted on Craigslist can be seen by anyone.[70]

On July 20, 2008, Facebook introduced "Facebook Beta", a significant redesign of its user interface on selected networks. The Mini-Feed and Wall were consolidated, profiles were separated into tabbed sections, and an effort was made to create a "cleaner" look.[71] After initially giving users a choice to switch, Facebook began migrating all users to the new version beginning September, 2008.[72]

On December 11, 2008, it was announced that Facebook is testing out a new simpler signup process.[73] On June 13, 2009, Facebook introduced a 'usernames' feature, whereby pages can be linked with simpler URLs such as http://www.facebook.com/facebook, as opposed to http://www.facebook.com/profile.php?id=20531316728.[74]


Platform
This article may need to be updated. Please update this article to reflect recent events or newly available information, and remove this template when finished. Please see the talk page for more information.

Facebook mobile graphical user interface
Facebook's former headquarters in downtown Palo Alto, CaliforniaFacebook launched the Facebook Platform on May 24, 2007, providing a framework for software developers to create applications that interact with core Facebook features.[75][76] A markup language called Facebook Markup Language was introduced simultaneously; it is used to customize the "look and feel" of applications that developers create. Using the Platform, Facebook launched several new applications,[75][76] including Gifts, allowing users to send virtual gifts to each other, Marketplace, allowing users to post free classified ads, Events, giving users a method of informing their friends about upcoming events, and Video, letting users share homemade videos with one another.[77][78]

Applications that have been created on the Platform include chess and Scrabble, which both allow users to play games with their friends.[79][80] These games are asynchronous, meaning that a user's moves are saved on the website, allowing the next move to be made at any time rather than immediately after the previous move.[81]

By November 3, 2007, seven thousand applications had been developed on the Facebook Platform, with another hundred created every day.[82] By the second annual f8 developers conference on July 23, 2008, the number of applications had grown to 33,000,[83] and the number of registered developers had exceeded 400,000.[84]

Within a few months of launching the Facebook Platform, issues arose regarding "application spam", which involves Facebook applications "spamming" users to request it be installed.[85] Application spam has been considered one of the possible causes to the drop in visitors to Facebook starting from the beginning of 2008, when its growth had fallen from December 2007 to January 2008, its first drop since its launch in 2004.

Facebook Connect was announced for the Xbox 360 and Nintendo DSi on June 1st at E3[86].


iPhone App
Facebook iPhone website was launched August 2007 and as of July 2008 over 1.5 million people use it regularly.[87] A free application for the iPhone and iPod Touch named "Facebook for iPhone" was launched July 2008.[87]


Reception
According to comScore, Facebook is the leading social networking site based on monthly unique visitors, having overtaken main competitor MySpace in April 2008.[88] ComScore reports that Facebook attracted 132.1 million unique visitors in June 2008, compared to MySpace, which attracted 117.6 million.[89]

According to Alexa, the website's ranking among all websites increased from 60th to 7th in terms of worldwide traffic, from September 2006 to September 2007, and is currently 5th.[90] Quantcast ranks the website 15th in US in terms of traffic,[91] and Compete.com ranks it 14th in US.[92] The website is the most popular for uploading photos, with 14 million uploaded daily.[93]

Facebook is the most popular social networking site in several English-speaking countries, including Canada[94] and the United Kingdom.[95] However, in the United States, it has 60 million users compared to MySpace's 73 million.[96] The website has won awards such as placement into the "Top 100 Classic Websites" by PC Magazine in 2007,[97] and winning the "People's Voice Award" from the Webby Awards in 2008.[98] In a 2006 study conducted by Student Monitor, a New Jersey-based company specializing in research concerning the college student market, Facebook was named the second most popular thing among undergraduates, tied with beer and only ranked lower than the iPod.[99]


Use by courts
In December 2008, the Supreme Court of the Australian Capital Territory ruled that Facebook is a valid protocol to serve court notices to defendants. It is believed to be the world's first legal judgement that defines a summons posted on Facebook as legally binding.[100]

In March 2009, the New Zealand High Court associate justice David Glendall allowed for the serving of legal papers on Craig Axe by the company Axe Market Garden via Facebook.[101]


Criticism
Main article: Criticism of Facebook
See also: Use of social network websites in investigations
Facebook has met with some controversy over the past few years. In October 2005, the University of New Mexico blocked access to Facebook from its campus computers and networks.[102] It cited a violation of the university's Acceptable Use Policy for abusing computer resources as the reason, stating the website forces use of the university's credentials for activity not related to the university. The school later unblocked Facebook after the website rectified the situation by displaying a notice on the login page stating the credentials used on the website are separate from the ones used for their school accounts.[103] The Ontario government also blocked access to Facebook for its employees in May 2007, stating the website was "not directly related to the workplace".[104]

On January 1, 2008, a memorial group on Facebook posted the identity of murdered Toronto teenager Stefanie Rengel, whose family had not yet given the Toronto Police Service their consent to release her name to the media, as well as the identities of her accused killers — despite the fact that under Canada's Youth Criminal Justice Act, it is illegal to publish the name of an underage criminal.[105] While police and Facebook staff attempted to comply with the privacy regulations by deleting posts mentioning her name, they noted it was difficult to effectively police individual users who repeatedly republished the deleted information.[106]

Due to the open nature of Facebook, several countries have banned access to it including Syria and Iran.[107][108] The Syrian government cited the ban was on the premise that the website promoted attacks on authorities.[107][109] The government also feared Israeli infiltration of Syrian social networks on Facebook.[107] Facebook was also used by Syrian citizens to criticize the government, and public criticism of the Syrian government is punishable by imprisonment.[107] In Iran, the website was banned because of fears that opposition movements were being organized on the website; although access has since been reinstated.[108]

On February 5, 2008, Fouad Mourtada, a citizen of Morocco, was arrested for the alleged creation of a faked Facebook profile of Prince Moulay Rachid of Morocco.[110][111][112][113][114][115][116]


Beacon
Main article: Facebook Beacon
Facebook announced Facebook Beacon on November 7, 2007, a marketing initiative that allows websites to publish a user's activities to their Facebook profile as "Social Ads" and promote products.[117] When launching Beacon, Facebook stated "no personally identifiable information is shared with an advertiser in creating a Social Ad", and that "Facebook users will only see Social Ads to the extent their friends are sharing information with them."[118] After Facebook was criticized for collecting more user information for advertisers than was previously stated, Zuckerberg publicly apologized on December 5, 2007 for the way Facebook launched Beacon, saying, "The problem with our initial approach of making it an opt-out system instead of opt-in was that if someone forgot to decline to share something, Beacon still went ahead and shared it with their friends."[119][120]


Privacy
Several concerns have emerged regarding the use of Facebook as a means of surveillance and data mining.[121] Two MIT students were able to download over 70,000 Facebook profiles from four schools (MIT, New York University, the University of Oklahoma, and Harvard University) using an automated shell script, as part of a research project on Facebook privacy published on December 14, 2005.[122] The possibility of data mining remains open, as evidenced in May 2008, when the BBC technology program "Click" demonstrated that personal details of Facebook users and their friends could be stolen by submitting malicious applications.[123]

Privacy proponents have criticized the site's privacy agreement, which states: "We may use information about you that we collect from other sources, including but not limited to newspapers and Internet sources such as blogs, instant messaging services, Facebook Platform developers and other users of Facebook, to supplement your profile."[124] Another clause that received criticism concerned Facebook's right to sell a user's data to private companies, stating: "We may share your information with third parties, including responsible companies with which we have a relationship."[125] This concern was addressed by Facebook spokesman Chris Hughes who said, "Simply put, we have never provided our users' information to third party companies, nor do we intend to."[126]

Concerns have also been raised regarding the difficulty of deleting user accounts. Previously, Facebook only allowed users to "deactivate" their accounts so that their profile was no longer visible. However, any information the user had entered into the website and on their profile remained on the website's servers. This outraged many users who wished to remove their accounts permanently, citing reasons such as the inability to erase "embarrassing or overly-personal online profiles from their student days as they entered the job market, for fear employers would locate the profiles".[127] Facebook changed its account deletion policies on February 29, 2008, allowing users to contact the website to request that their accounts be permanently deleted.[128] On May 7, 2009 it was revealed by the New York Times that a bug allowed personal e-mail addresses of Facebook users to be easily accessible. The bug was fixed "within hours of it being reported to us" [129]


Pro-mafia groups' case
In Italy, the discovery of pro-mafia groups[130] caused an alert in the country[131][132][133] and brought the government, after a short debate,[134] to rapidly issue a law which will force ISPs to deny access to entire sites in case of refused removal of illegal contents; the removal can be requested by a prosecutor in any case there is a suspicion that criminal speech (apology or incitement to crime) is published on a website. The amendment was passed by the Senate on February 5, 2008, and now needs to be passed unchanged[135] by the Chamber of Deputies to become immediately effective.

Facebook and other websites, Google included,[136] criticized the amendment emphasizing the eventual effects on the freedom of speech of those users who do not violate any law.


Phishing
In May 2009, Facebook users all over the world suffered a massive phishing campaign, launched by Russian hackers from servers in Latvia and China, that led to thousands of accounts being hijacked.[137] Facebook was criticized for its late reaction to this issue and the fact that initially it merely tried to block the attack, rather than notifying users of the situation.


Litigation

ConnectU
Main article: Criticism of Facebook#Connectu.com lawsuit
In 2004 ConnectU, a company founded by classmates of Zuckerberg, filed a lawsuit against Facebook, claiming that Zuckerberg had broken an oral contract for them to build the Facebook site, copied their idea,[138] and used source code that belonged to them.[139][140][141][142] The parties reached a confidential settlement agreement in February 2008.[143] In 2008 they attempted unsuccessfully to rescind the settlement, claiming that Facebook had understated its valuation in connection with its settlement negotiations.[144][145][146][147][148] Despite the confidentiality agreement, a law firm that represented ConnectU inadvertently disclosed the $65 million settlement amount.[149]


StudiVZ
On July 18, 2008, Facebook sued StudiVZ in a California federal court, alleging that StudiVZ copied its look, feel, features and services. StudiVZ denied the claims, and asked for declaratory judgment at the District Court in Stuttgart, Germany.[150]


Grant Raphael
On July 24, 2008 the High Court in London ordered Grant Raphael to pay GBP £22,000 (about USD $31,500 at the February 2009 exchange rate) for breach of privacy and libel. Raphael had posted a fake Facebook page purporting to be that of a former schoolfriend and business colleague, Mathew Firsht, with whom Raphael had fallen out in 2000. The fake page claimed that Firsht was homosexual and untrustworthy. The case is believed to be the first successful invasion of privacy and defamation verdict against someone over an entry on a social networking site.[151][152][153][154][155][156]


Adam Guerbuez
Facebook won a lawsuit against Canadian Adam Guerbuez, of Montreal, worth $873 million. Guerbuez had spammed the website with various advertisements including penis enhancements and marijuana. Guerbuez founded Atlantis Blue Capital.[157]


Alessandro Del Piero
On February 9, 2009 it was reported that Juventus football (soccer) player Alessandro Del Piero was suing Facebook over a fake profile bearing his name that links to Nazi propaganda sites. The Italian footballer was said to be aggrieved that the bogus account, which carries his picture, implies neo-Nazi sympathies. Del Piero stated he's never had a Facebook profile.[158]


See also
Companies portal
MySpace
Facebook features
Criticism of Facebook
Facebook Beacon

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External links
Look up facebook in Wiktionary, the free dictionary.
Wikinews has news involving Facebook:
Bloggers investigate social networking websites
News services and World Wide Web companies increase Farsi services after Iranian presidential election

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Official website
2009 Facebook Demographics and Statistics Report
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