Overview of Georgia s Customer and Business Service Center Industry 1 Georgia Facilities 1 Employment and Activities 2 Business Lines of Companies 3

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1 Customer and Business Service Centers in Georgia Community and Economic Development Georgia Power August 2005 Georgia Power 2005

2 Table of Contents Cover photo: Janice Copeland Service Consultant Georgia Power s Customer Care Center Overview of Georgia s Customer and Business Service Center Industry 1 Georgia Facilities 1 Employment and Activities 2 Business Lines of Companies 3 Workforce 4 Georgia s Workforce Size and Labor Sources 4 Wage Rates 7 Recruitment Services 8 Training 9 Language Capabilities 13 Taxes 14 Payroll Related Requirements 14 Sales Tax 15 Corporate Income Tax 15 Real and Personal Property (Ad Valorem) Tax 16 Business Environment 17 Regulatory Requirements 17 Electrical Service 17 Telecommunications Infrastructure 19 Security Issues 22 Transportation Accessibility 22 Favorable Climate 23 Incentives 24 Tax Credits 24 Other Incentives 26 Company Location Maps 28 -Map of Non-Metro Atlanta Customer and Business Service Center Locations with 50 or More Employees 28 -Map of Metro Atlanta Customer and Business Service Center Locations with 100 or More Employees 29 Appendix A Higher Education Institutions 30 -Listing of Georgia s Colleges & Universities 30 -Listing of Georgia s Technical Colleges 33

3 Overview of Georgia s Customer and Business Service Center Industry Information Processing Only Both Teleservice & Info. Processing Teleservice Only Metro Atlanta Area Georgia Facilities Georgia s customer and business service center facilities provide the customer contact, information processing and documentation functions required for successful business operations. Activities include both customer interaction by phone or Internet, usually in a call center setting, (teleservice) and data processing such as entry, verification and checking against specified standards (transaction/information processing). Identified facilities of this type in Georgia number 234 and employ 89,900, making them a major contributor to the state s economy. Nearly Georgia Back Office Facility Types 71 percent (165) of these facilities are in the 28-county Atlanta metro area. 63 Number of Facilities 120 Outside Metro Atlanta Area Slightly more than half the Georgia facilities employ persons primarily engaged in teleservice/customer interaction (120). Approximately 27 percent of the facilities (63) have employees involved in both teleservice and information/transaction processing. Another 51 facilities (22 percent) are primarily information and transaction processing centers. The breakdown of types of facilities in the Atlanta metro area is similar to that seen in the statewide numbers. However, outside the Atlanta metro area there is a slightly greater proportion of facilities in teleservice and fewer in strictly transaction/information processing. 1

4 Information Processing Only Both Teleservice & Info. Processing Employment and Activities Over 70 percent of the state s 74,000 workers employed at facilities with Georgia Back Office Facility Employment teleservice activities are in the Atlanta metro area. Facilities with only 15,899 teleservice activities employ nearly 40,000 workers with approximately 30,000 of 34,580 these workers in the Atlanta metro area. Teleservice Only 0 10,000 20,000 30,000 40,000 50,000 Number of Workers 39,504 Another 16,000 workers are employed at facilities doing only information and transaction processing, with 98 percent of these workers in the Atlanta area. Metro Atlanta Area Outside Metro Atlanta Area Georgia Teleservice Facility Activities Other Teleservice 13 Technical Help Desk 25 Marketing/Sales (inc. catalog) 67 Credit (Collection) 23 Customer Service Product Help 10 Reservations Two activities predominate at the 183 facilities with teleservice/customer contact functions. Three-fourths of the facilities (138) provide customer service activities. Marketing/sales activities occur at 67 facilities. Over half (60) of the 114 facilities supplying information/transaction processing services provide sales and/or payments processing Number of Facilities Atlanta Area Outside Atlanta Area Georgia Information Processing Facility Activities Other 17 Claims Processing 37 Claims processing including medical and damage insurance and complaint processing activities as well as financial/tax/accounting information entry activities occur at approximately 35 locations in the state. Sales/Payments Processing 60 Financial/Tax/Accounting Number of Facilities Atlanta Area Outside Atlanta Area 2

5 Travel/Hospitality/Entertainment Transportation/Delivery Services Other-Utilities/Gov't/Membership Orgs. Computer Hardware/Software Banking/Financial/Credit/Tax Georgia Back Office Facilities by Line of Business Telecommunications Retail Sales Manufacturered Goods Insurance Business Services Business Lines of Companies The business lines for the ultimate parent companies of the state s various back office facilities show the diverse nature of these businesses in Georgia Number of Facilities 69 Reflecting the trend by many firms to outsource back office functions to specialized companies, the business services group has the largest number of firms (69). Most offer services to more than one company rather than relying on a single client. The telecommunications Atlanta Area Outside Atlanta Area group is the second largest category with 43 firms. Atlanta s preeminence as a telecommunications center leads many nationally known companies to locate support facilities here. The 32 facilities in the insurance segment confirm Georgia s importance as a processing and support center for many large national-scale companies. 3

6 Workforce Georgia s Workforce Size and Labor Sources Georgia s labor force numbers more than 4.4 million workers including substantial concentrations in the state s 14 metropolitan statistical areas. Metropolitan Area Labor Force Atlanta 2,496,114 Augusta 251,443 Savannah 159,218 Columbus 123,792 Macon 108,521 Athens 97,112 Gainesville 80,493 Albany 73,762 Dalton 64,508 Valdosta 63,437 Warner Robins 60,677 Brunswick 51,755 Rome 49,381 Hinesville 27,288 Source: Bureau of Labor Statistics, May 2005 Georgia s 104 colleges and 13 military bases offer substantial sources of part-time workers. The state s 50 colleges and universities with four-year programs, 20 twoyear colleges and 34 technical colleges offer sources of more than 500,000 part-time workers for the customer services industry. See map on page 6. Enrollment at Georgia Colleges Four-year Institutions 321,571 Two-year Institutions 81,704 Technical Colleges 151,474 Total 554,749 4

7 Military dependent populations from areas around the state s 13 military bases also contribute to the labor supply. See map on page 6 for base locations. Base City # of Military Employees Ft. Benning Columbus 28,659 Ft. Stewart Hinesville 17,005 Ft. Gordon Augusta 8,860 Robins AFB Warner 6,856 Robins Hunter AAF Savannah 5,800 Kings Bay Naval Sub Base Kingsland 5,027 Moody AFB Valdosta 3,715 *Ft. McPherson Atlanta 2,678 Dobbins AFB Marietta 2,210 *Ft. Gillem Atlanta 2,119 *Naval Air Station Marietta Marine Corps Logistics Albany 673 Base *Naval Supply Corps Athens 130 School *Listed for closure by BRAC

8 Georgia s Universities, Colleges, Technical Colleges, and Military Bases Atlanta Area Detail 6

9 Wage Rates Georgia wages for many service center occupations are very competitive with national rates. The workers in Georgia s back office facilities are classified in a variety of occupational categories. Georgia wage levels are very competitive with national averages as reflected in data from the U.S. Bureau of Labor Statistics. Since more than 70 percent of Georgia s back office employment is in the Atlanta metro area, the detailed table below lists those averages as well as statewide and national numbers. Occupational Category Mean Hourly Wage Atlanta Georgia U.S. MSA Advertising Sales Clerks $25.39 $22.83 $23.76 Bill and Account Collectors $14.12 $13.54 $13.95 Billing and Posting Clerks and Machine Operators $14.36 $13.31 $13.50 Brokerage Clerks $13.80 $13.77 $18.15 Computer Operators $18.04 $16.41 $15.79 Computer Support Specialists $20.90 $20.21 $20.97 Counter and Rental Clerks $10.39 $9.64 $10.47 Credit Authorizers, Checkers and Clerks $15.42 $14.52 $15.15 Customer Service Representatives $14.03 $13.39 $14.01 Data Entry Keyers $12.86 $12.02 $11.72 First-Line Supervisors/Managers of Office and $21.06 $19.82 $21.15 Administrative Support Workers General and Operations Managers $41.78 $39.14 $44.24 Insurance Claims and Policy Processing Clerks $17.07 $15.71 $14.70 Interviewers, Except Eligibility and Loan $11.85 $11.35 $11.91 Loan Interviewers and Clerks $14.80 $13.90 $14.75 Order Clerks $13.18 $12.38 $12.85 Sales Representatives, Services, All Other $25.73 $23.94 $25.93 Sales Agents, Insurance $27.34 $23.55 $26.77 Sales Agents-Securities/Commodities/Financial Svcs. $46.07 $43.44 $43.77 Tax Examiners, Collectors, Revenue Agents $20.13 $19.71 $23.18 Telemarketers $11.95 $11.56 $11.29 Travel Agents $14.13 $14.18 $14.25 Source: Occupational Employment and Wage Estimates, U.S. Bureau of Labor Statistics, May

10 Hourly average and entry level wage information for Georgia and the Atlanta metro area is also collected by the Georgia Department of Labor. Occupational Category Atlanta MSA Georgia Entry Average Entry Average Hourly Hourly Hourly Hourly Wage Wage Wage Wage Advertising Sales Clerks $11.69 $22.79 $10.77 $21.03 Bill and Account Collectors $10.45 $13.80 $9.79 $13.26 Billing and Posting Clerks and Machine Operators $10.95 $14.41 $9.58 $13.35 Brokerage Clerks $10.12 $13.59 $10.20 $13.66 Computer Operators $11.49 $17.64 $10.24 $16.19 Computer Support Specialists $13.38 $20.76 $12.73 $19.95 Counter and Rental Clerks $6.87 $10.06 $6.33 $9.33 Credit Authorizers, Checkers and Clerks $10.21 $14.22 $10.06 $13.80 Customer Service Representatives $10.12 $14.18 $9.02 $13.40 Data Entry Keyers $9.56 $12.35 $9.11 $11.67 First-Line Supervisors/Managers of Office and Administrative Support Workers $14.36 $20.95 $13.16 $19.72 General and Operations Managers $22.39 $43.51 $21.19 $40.32 Insurance Claims and Policy Processing Clerks $11.20 $16.34 $10.82 $15.27 Interviewers, Except Eligibility and Loan $8.55 $11.67 $8.44 $11.46 Loan Interviewers and Clerks $11.41 $15.90 $10.61 $14.76 Order Clerks $9.36 $13.26 $8.77 $12.51 Sales Representatives, Services, All Other $13.25 $24.71 $11.17 $22.33 Sales Agents-Securities/Commodities/Finan. Svcs. $16.07 $44.21 $15.12 $40.40 Tax Examiners, Collectors, Revenue Agents $14.59 $20.84 $13.26 $20.45 Telemarketers $7.65 $11.89 $7.52 $11.50 Travel Agents $10.32 $13.91 $10.12 $13.80 Source: Georgia Wage Survey, Occupational Wages as of 1 st Quarter 2004, Georgia Department of Labor, July 2004 Recruitment Services Georgia Department of Labor Assistance Two state programs offer staffing assistance with recruitment, screening and referral of potential workers at no charge. On behalf of any new or existing business or industry, the Georgia Department of Labor (GDOL) will assist with the hiring process through recruitment, screening, referral and provision of office space for individual interviews. Funded through the Federal Unemployment Tax Act (FUTA), GDOL services are provided at no charge to employer or applicant. GeorgiaHire GeorgiaHire is an online way to find college-educated employees with specific qualifications at no cost to the prospective employer. The Georgia Hire system provides employers on-line access to more than 10,000 resumes of current students and alumni from 57 Georgia public 8

11 and private colleges and universities. For further information about Georgia Hire, see Training Many organizations provide training, re-training and employee development services in Georgia. State-affiliated training programs serve locations throughout the state, while those that are college-affiliated focus on smaller service areas closer to their campuses. Quick Start Georgia Quick Start is a state-funded economic development program that provides training services at no charge to eligible companies. Qualified business operations may include inbound customer contact and information processing centers, selected e-business and telecommunications applications. Retail, outbound telemarketing and debt-collection operations are not eligible for Quick Start services. To qualify for Quick Start services, newly locating or expanding companies must create new jobs in Georgia to support a start-up or business expansion. Georgia Quick Start will design and provide customized preemployment and postemployment training for eligible companies. Since 1967, Quick Start has developed training for thousands of service and manufacturing companies which have expanded or relocated in Georgia. By initiating each project with thorough needs analysis, Quick Start is able to fully customize training to each company s processes, procedures and culture. Training may include core skills such as company orientation programs, customer interaction skills, industry and operations overviews, and business software skills. Quick Start may also develop training for job-specific, technical applications. Additionally, High Performance Leadership and Coaching Skills classes provide essential skills for the company s new supervisors. Quick Start provides both pre-employment and post-employment training programs. Pre-employment training programs may include core skills such as computer operations and provide Quick Start clients with a unique, final opportunity to preview capabilities of potential employees. Companies are under no obligation to offer employment to those who complete pre-employment training. 9

12 Companies that have benefited from Quick Start training programs include the following: Fortune 500 companies as well as smaller operations have used Quick Start training programs to prepare a skilled workforce. AFLAC Inc. American Home Shield Delta Air Lines E*Trade Express Scripts GEICO Direct InterContinental Hotels Philips Medical Systems Randstad REMITCO Ryder Commercial Leasing and Services SITEL Corp. TSYS-Total System Services Inc. WellPoint Georgia s Technical College System To serve the ongoing training and educational needs of Georgia s businesses, Quick Start provides a direct link to the Georgia Department of Technical and Adult Education s (DTAE) network of 34 technical colleges. See map on page 6 for college locations. These colleges provide a wide range of credited and non-credited programs to support service industry workers. This support includes continuing education, customized training, certificate, diploma and degree programs. Of special interest to service companies are the programs in Business and Office Technology, Banking and Finance, Computer Information Systems and Management and Supervisory Development. Certified Workforce Initiative To provide Georgia s service industries with an available, skilled workforce, Georgia s 34 technical colleges offer the Certified Customer Service Specialist technical certificate. This program is offered to those seeking employment with area businesses. In addition, selected high schools are partnering with technical colleges across Georgia to provide this training for senior students. Through the first quarter of 2005, the program has certified more than 9,000 students as customer service specialists. Program tuition is low-cost, and class schedules are highly flexible. Georgia residents may also elect to use the state s HOPE funding options described on page 12 to cover tuition costs. During 158 hours of interactive training and assessment, students learn essential customer service skills. This training includes courses in: 10

13 Service Business Environment: Basic principles of business, quality service, teamwork, professional business language, and the positive work ethic needed to succeed in today s competitive business environment. Georgia s 34 technical colleges have trained over 9,000 Georgians as Certified Customer Service Specialists. Customer Contact Skills: Critical skills required to create positive customer relations in a telephone and face-to-face service environment including listening, positive phrasing, telephone etiquette and call management, critical thinking and problem solving, handling difficult customers, and providing quality service to multicultural customers. Computer Skills: Windows operating system, business software applications (word processing, database, spreadsheet and electronic mail software) and an introduction to e-business support, including Internet access, navigation and communication tools. Business Skills: Business writing, business math, managing change, quality team tools, and multi-tasking skills. Personal Effectiveness: Projecting a positive image, personal wellness, stress management, and job interviewing skills. More information is available at Intellectual Capital Partnership Program (ICAPP) The state sponsored ICAPP effort is the economic development program of the University System of Georgia. Businesses expanding or relocating to Georgia can contact ICAPP to tap into the resources of Georgia s 34 public colleges and universities. The ICAPP Advantage component provides accelerated education for knowledge workers in high demand but short supply. An expedited curriculum designed by the company and the college or university ensures that the company s hiring needs are met. In the past, curricula have been developed in generic categories such as Java programming, Web content and software development, and electrical engineering as well as in specialized skill sets such as transaction processing that are unique to the company. 11

14 Companies using ICAPP include Georgia locations of Fortune 500 companies: NCR Synovus (Total System Services subsidiary) UPS Proprietary School Programs In addition, a number of proprietary schools offer short-term technical training courses and certification programs for commercially available software applications. Courses range from introductory computer usage to intermediate word processing, spreadsheet and database software training to programs leading to certification in highly specialized areas of technical support. More information on the available courses and search capabilities for finding schools are available on this website: HOPE Grant and HOPE Scholarship Georgia s acclaimed HOPE Scholarship and Grant programs provide tuition assistance for residents. Funded by the Georgia Lottery for Education, HOPE - Helping Outstanding Pupils Educationally - is Georgia s unique program that rewards students hard work with financial assistance in degree, diploma, or certificate programs at any eligible Georgia public or private college, university, or technical college. All Georgia residents are eligible for the HOPE Grant that provides tuition for non-degree certificate or diploma programs of study at Georgia public technical colleges, public colleges or public universities. In addition to tuition, the HOPE Grant covers HOPE-approved mandatory fees and a book allowance of up to $300 per academic year. Full-time enrollment is not required. Georgia residents graduating from high school with a B average or higher are eligible for the HOPE Scholarship. This program provides full undergraduate tuition, approved mandatory fees (such as health and student activity fees) and $300 per semester for books at Georgia s public colleges and universities. Students enrolling in a Georgia private college may be eligible for a $3,000 annual scholarship for tuition and mandatory fees. 12

15 More information on both HOPE programs is available at Language Capabilities A portion of the area s recent rapid population growth has resulted from an influx of residents from foreign locations. In the work force, these residents bring language skills that enhance the service offerings of employers and increase flexibility. The largest non-english language groups in the state are shown below. Georgia s many multilingual residents offer skills to enhance customer service staff flexibility. Language Spoken at Home Georgia Residents (Age 5 and Over) Atlanta MSA Residents (Age 5 and Over) Spanish 477, ,442 Vietnamese 37,406 30,237 African Languages 32,233 29,400 Chinese 26,624 18,322 Korean 24,055 21,734 French 23,503 17,851 German 19,800 12,645 Source: American Community Survey, U.S. Census Bureau, 2003 P034 Language Spoken at Home for the Population 5 Years and Over 13

16 Taxes Businesses in Georgia are subject to a number of state and local taxes. Available credits and exemptions are described in the Incentives section beginning on page 24. Payroll-Related Requirements Unemployment Insurance Unemployment insurance in Georgia is calculated on a wage base of $8,500. The new employer rate is 2.7 percent. After establishing a 36- month history in the state, an employer becomes eligible for the experienced rate. The rate for experienced employers is 2.0 percent. The maximum weekly benefit paid is $300. Workers Compensation Employers with three or more regular employees are required to obtain coverage under the Georgia State Workers Compensation Act by either securing an insurance policy or being self-insured. Georgia s workers compensation insurance rates are lower than in many parts of the country. Workers compensation insurance rates are lower than in many parts of the United States. For the second year in a row, the Work Loss Data Institute has given Georgia an A rating based on OSHA recordable injuries and illnesses data. The state s A rating confirms its position as one of the lowest cost and most efficient in terms of workers compensation. For a clerical classification (8810), an estimated generic average cost in Georgia is $.26/$100 payroll, which could be higher or lower depending on the insurer, the size of the facility, and the insurer s previous experience with the company. Qualified businesses with a Certified Drug Free Work Force Program are entitled to a 7.5 percent credit on premiums. 14

17 Sales Tax The state sales tax of 4 percent has increased only once in the past 30 years. County and municipal local option sales taxes of 1 to 4 percent can raise the rate to a maximum of 8 percent. Sales tax is applicable to local exchange telephone services and cellular telephone services. However, sales tax does not apply to intrastate calls, interstate, WATS, or calls. Annual qualified computer equipment purchases of $15 million or more by high tech companies are exempt from sales tax. Computer equipment exceeding $15 million in value is exempt from sales tax if purchased or leased in one calendar year for use by companies classified as high technology. These classifications include software developers and systems designers, data entry and processing, information retrieval and computer facilities management companies (SICs ). Qualifying equipment includes any individual computer terminal or organized assembly of hardware, including central processing units and related peripheral equipment, and software products including operating systems, library, and maintenance routines. In addition, custom computer software applications uniquely designed to meet the needs of a given business enterprise are not subject to sales tax. Corporate Income Tax State corporate income taxes will be based entirely on gross receipts earned in Georgia by The state s corporate income tax rate of 6 percent has not changed since This tax applies only to the portion of income that is earned in Georgia. Earnings in Georgia have, in the past, been calculated using weightings of gross receipts, property and payroll. Beginning in 2006, the weightings on property and payroll will be phased out. By 2008, the tax calculation will be based entirely on gross receipts earned in Georgia. The corporate income tax can be reduced through credits based on job creation through Georgia s Business Expansion and Support Act (B.E.S.T. Program). See the Incentives section beginning on page 24 for more details. There is no municipal corporate or municipal personal income tax in Georgia. 15

18 Real and Personal Property (Ad Valorem) Tax Taxes on real and tangible personal property are levied by the city, county, school district and state. Georgia s median property tax rate is approximately 1 percent of the property s fair market value. Rates are listed in terms of mills, or dollars for each $1,000 of the property s assessed valuation. In most Georgia locations, assessed valuation is 40 percent of the property s fair market value. Rates applied to the property s fair market value (effective rate) range from one-third of 1 percent of fair market value to 2.5 percent. The median rate in Georgia is about 1 percent. All rates are set at the local level except for the state portion, which is set by Georgia law at 10 cents per $1,000 of fair market value (effective rate). 16

19 Business Environment Regulatory Requirements Employment Georgia is an employment-at-will and right-to-work state. Employment laws in Georgia follow federal guidelines, and no state workplace regulation is more restrictive than the corresponding federal mandate. In addition, Georgia is an employment-at-will state. In the absence of a written contract and in compliance with federal employment laws, employers in Georgia are able to exercise their own hiring and dismissal decisions. State law makes no provisions for wrongful discharge. Georgia is also one of 22 right-to-work states. Employers must operate an open shop and hire employees without regard to union affiliation. Requiring an individual to either join or refrain from joining a union as a condition of employment is illegal in Georgia. The state has recently adopted legislation prohibiting local governments from adopting wage and employment benefit mandates. Furthermore, no local government entity may through its purchasing or contracting procedures seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the local government entity. Telephone Monitoring Telephone service monitoring equipment may be used with no consent requirements in Georgia. Telephone service monitoring equipment for business service improvement may be used in Georgia with no consent requirements. A license to monitor must be obtained from the Georgia Public Service Commission. Electrical Service Adequate electrical capacity in the state is assured through a mix of fuel generation sources (coal, nuclear, hydro, and gas/oil). As a member of the Southern Company System, Georgia Power has a planning reserve 17

20 margin target of 15 percent. The System brought an additional 1,600 megawatts of generating capacity online in 2005 to meet increasing demands and is investing in 250 miles of new transmission lines over the next five years. Georgia Power ranks in the top quartile for electric reliability customer satisfaction. Electrical reliability of Georgia Power service ranks with the best in the world. Among larger energy users, Georgia Power ranked in the top quartile nationally for electric reliability customer satisfaction according to a TQS 2004 survey. Georgia Power s enhanced power reliability services include hi-reli dual feed and concrete encased networks in several suburban Atlanta submarkets and network underground in the downtown area. New York For the sixth consecutive year, Southern Company ranked highest in overall customer satisfaction to business customers in the southern U.S. according to the 2005 J.D. Power and Associates Electric Utility Business Customer Satisfaction Study. Electric Rates Rates for electricity services in Georgia are very competitive with those in other states. The average cost for commercial service in 2003 was 6.67 cents per kwh, 20 per cent below the national average. Average Electricity Cost for Commercial Customers Georgia Power offers service throughout the state. Commercial service in 2004 averaged Nevada cents per kwh. Texas Source: Energy Information Administration, Florida 7.13 Arizona 7.09 Georgia 6.67 Many larger new facilities with greater than 900KW connected load are eligible to choose their electric supplier in Georgia, thus encouraging competitive prices. Kansas Cents per KWH Source: Electric Sales and Revenue, Energy Information Administration,

21 Telecommunications Infrastructure Connectivity Atlanta is a national transmission hub for telecommunications systems. Atlanta is a transmission hub for the country s two largest fiber optic trunk routes which link most major population centers in North America. One of the highest traffic routes in the country runs from Atlanta to Washington, DC and cities along the Northeast Corridor, tying to a New Jersey hub where at least 11 lines run to Europe. This route also runs west to Dallas, Los Angeles, and San Francisco where at least ten lines cross the Pacific to Japan and Australia. The second major route runs from Chicago to Atlanta and Miami where it crosses over to the South American market via Brazil. Approximately 38 trunk lines serve Atlanta, 25 of which are owned by BellSouth and 13 of which are owned by long distance carriers. Over 50 inner-city fiber optic trunks have DS3 or greater capacity. Georgia s infrastructure to access the long distance fiber systems is deployed throughout the state. BellSouth, for example, has placed more than 808,000 fiber miles in Georgia. In Atlanta, 95 percent of customers are within 12,000 feet of a fiber connection. Implementation of technologies for rapid transfer of voice, text, data and media has led many telecommunications companies to focus on Georgia and especially Atlanta as a favorable connecting switch point into national backbone systems. Over 3,255 points of presence (POPs) are available at 420 locations statewide. Atlanta is among the top four U.S. cities in number of Internet backbone companies with national access points. Atlanta ranks among the top four U.S. cities in number of Internet backbone companies with national access points. Over 35 major carriers offer service connections at more than 200 POP locations. Many options for Internet services are readily available whether by regular phone line/modem, DSL, cable modem or wireless access at speeds up to 2400 mbps. Georgia has excellent access to wireless services. The entire state, with a few exceptions in remote areas, is accessible by mobile cellular/personal communications services (PCS). Most service offerings are digital. In Atlanta, cellular phone usage is extensive. A recent survey by Intel ranked Atlanta as the 6 th most unwired U.S. city in terms of number of 19

22 access points for connecting to the Internet via Wi-Fi hot spots. And in Athens, BellSouth is implementing a trial deployment of wireless broadband service. Additional available services include EXTender systems, which enable off-premise workers to access corporate voice and data networks over a single phone line and allow Georgia businesses even greater flexibility with employees and office configurations. Reliability Prior to deregulation of telecommunications services in Georgia in 1995, local telephone service in Georgia had been provided by a combination of 34 independent local exchange companies (ILECs) and BellSouth. Today BellSouth still provides local service to 85 percent of Georgians. Significant investment in Georgia s fiber network make the state s telecommunications system one of the most reliable anywhere. Diverse routing between all 180 central offices has made the BellSouth network one of the most reliable anywhere. Statewide, the network averages more than 98 percent self-healing. In metro Atlanta, the interoffice network is 100 percent self-healing. All major BellSouth cable routes automatically switch to alternate routes in case of a cable failure or damage. Major businesses also have the option of redundant routing. BellSouth central offices are equipped with secondary and tertiary backup power using batteries and generators. At least two diverse fibers serve each central office. More than 4,000 SONet rings are in place in Georgia, offering improved security, reliability and self-healing properties. About half of these are in the metro Atlanta area. A number of providers offer this capability. SMARTRing service is also used in metro Atlanta. This technology ensures that in the event of an equipment or facility failure on one of the system s transmission paths, the SMARTRing network will automatically switch to an alternate, whether the interruption occurs in the local loop, interoffice or service central office component of the network. Multiple telecommunications service providers offer cutting-edge service options. Asynchronous Transfer Mode (ATM) service, integrating voice, video, and data over a single local-area network (LAN) or wide-area network (WAN), is available from over 20 providers. Over 10 providers also offer Frame Relay Service for cost-effective high-speed data communications. 20

23 BellSouth CrisisLink service protects vital phone service by automatically redirecting calls during peak periods or if disaster strikes. In addition, BellSouth Business Assurance SM portfolio provides individual products and services with inherent business continuity/disaster recovery (BC/DR) characteristics such as diverse routing, redundant circuitry, automatic switching and firewall protection. Georgia s Large Toll-Free Calling Area Atlanta s toll-free calling area is the world s largest and covers over 1.5 million households. Atlanta is at the center of the world s largest toll-free calling area. The area encompasses 7,162 square miles and includes four area codes (404, 770, 678, and 470). It covers all or part of 32 Georgia counties and over 1.5 million households. Georgia Area Codes Companies operating extensive telephone customer services in the Atlanta area are able to take advantage of considerable savings by locating within the toll-free calling area. One company estimated it was saving nearly $400,000 annually in number charges with an Atlanta area location. Parts of Georgia beyond the Atlanta toll-free area are served by five additional area codes. Atlanta Toll-free Calling Area 770/678/ Rome 770/678/ 470 Columbus 706/762 Atlanta 404 Albany 229 Valdosta Athens Macon 478 Augusta Savannah 912 Brunswick 21

24 Security Issues State government officials as well as a number of Georgia s local law enforcement agencies are well experienced in handling security issues such as crowd control and traffic management in an efficient manner. Georgia has a successful history of hosting a number of events with large attendance such as the 1988 Democratic National Convention, 1996 Summer Olympic Games, 2000 Super Bowl, and 2004 G-8 Summit. Transportation Accessibility Georgia has a long history as a transportation connection center for locations in the Southeast and more recently in the nation and for international destinations. Airline connections from Georgia to U.S. and international destinations are unrivaled. With over 2,600 daily departures and arrivals, Hartsfield-Jackson Atlanta International Airport is the world s busiest. Twenty-seven carriers offer passenger service, and an additional 15 all-cargo airlines operate from this hub. Direct flights are available to 40 international destinations in 29 countries. In anticipation of increased air traffic, Hartsfield-Jackson s $5.5 billion improvement plan includes completion of a fifth runway in 2006, addition of a new international terminal in 2009 and other service and support enhancements. Eight other passenger service airports and 106 public use airports provide air service throughout the state. Georgia locations have highway access to the northeast, midwest, southeast and Florida in two drive-time days. Interstate highway access from Georgia to the rest of the U.S. is outstanding. Four major interstates (I-20, I-75, I-85 and I-95) cross the state with three of these intersecting near downtown Atlanta. Within two drive-time days, one can reach 79 percent of the nation s largest consumer markets. Georgia s extensive road system is well maintained. Pavement conditions of the state s rural and urban interstates ranked number one in a 2005 study of state highway systems by the University of North Carolina. 22

25 Favorable Climate The state s climate and protected coastal exposure favor negligible weather-related business disruptions, continuous work operations and an uninterrupted work schedule. Georgia s mild climate minimizes the threat of weather-related business interruptions. Due to its latitude and proximity to the warm waters of the Gulf of Mexico and Atlantic Ocean, the state experiences warm humid summers and short mild winters. Average winter temperatures range from 41 in the north to about 56 on the lower east coast. Snowfall is of no significance in most of the state. In the Atlanta area, normal annual snowfall is two inches for the entire season. Although summer and fall weather conditions may bring hurricanes to some parts of the Southeast, Georgia s sheltered coastline protects it from significant storm damage. Utilities and infrastructure systems operate with minimal disruption. Since 1900 the state has suffered no direct or major Category 4 or 5 hurricane strikes and only five of the lowest Category 1 and 2 hits. 23

26 Incentives A number of incentive offerings give customer contact and information processing facilities the opportunity to reduce expenses and improve profit margins. Tax Credits Georgia s County Tier System The Tier System dictates credit amounts and application for the following incentives: - Job Tax Credit - Job Tax Credit Bonus - Telephone Services Discount Each year, the Georgia Department of Community Affairs ranks Georgia counties based on economic factors and categorizes them into tiers. Tier 1 counties are the most economically challenged. The tier ranking determines the amount of tax credit against Georgia corporate income tax businesses locating in that county will be entitled to receive, the minimum number of jobs they must create and other program requirements and benefits. Tax credit* per new job Minimum number of new jobs Limit on use of job tax credit against income tax liability Payroll withholding * Add $500 if county participates in Joint Development Authority Tier 1 Tier 2 Tier 3 Tier 4 $3,500 $2,500 $1,250 $ % 100% 50% 50% Yes No No No Job Tax Credit Companies that increase employment in Georgia qualify for a job tax credit against state corporate income tax liability when the following conditions are met: - the business entity is engaged in manufacturing, warehousing and distribution, processing, telecommunications, research and development, or tourism; - minimum thresholds for new job creation are met; - the jobs pay in excess of the lowest annual average wage rate in any Georgia county as determined by the Georgia Department of Labor, currently $15,444 per year, and - the employer makes health care coverage available. Credits range from $750 - $4,000 per job per year for five years. Unused credits may be carried forward for ten years from the year they are earned. 24

27 Corporate Headquarters* Tax Credit Levels by Tier Tier Wage Requirements Credit per job Companies locating in specially designated less developed census tracts may be eligible to take job tax credits equal to those taken by companies locating in tier 1 counties ($3,500 per job when five or more full-time jobs are created). Currently, certain tracts in Bibb, Chatham, Clayton, DeKalb, Dougherty, Fulton, Muscogee, Richmond and Twiggs counties are designated as less developed. Job Tax Credit Bonus Existing Georgia companies that increase employment in Georgia qualify for a job tax credit bonus against state corporate income tax liability when they satisfy all requirements necessary for the previously outlined Job Tax Credit. The credit amount is $500 per qualified job regardless of location. Credits must be used only in year two after the job is created provided the job is maintained. The credits may be used with existing job tax credits. Corporate Headquarters Tax Credit When a company relocates its headquarters to Georgia or establishes headquarters in Georgia, the company may be eligible for this credit if within one year after it first withholds wages, it - employs at least 50 persons in qualifying new full-time jobs in prequalified headquarters functions*, and - invests at least $1 million in facilities. The company must meet minimum wage requirements based on the tier status of the location in order for a job to be classified as Duration 1 > county average wage rate $2,500 5 years 2 105% of county average $2,500 5 years 3 110% of county average $2,500 5 years 4 115% of county average $2,500 5 years All 200% of county average $5,000 5 years Source: Georgia Department of Economic Development, Georgia s Business Development Incentives publication *Headquarters functions are defined as those functions involving financial, personnel, administrative, legal, planning or similar business functions performed by headquarters staff employees. qualifying. A summary of wage thresholds by county tier is shown in the table to the left. If unused credits remain after 100 percent of a given tax year's liability has been off-set, then the excess credits can be applied against future payroll withholding. Credits can be earned for qualifying jobs created within seven years of eligibility. A company may be able to take advantage of credits created by headquarters of subsidiary units as well. Taking the HQ incentive for a particular job precludes the company from claiming the Job Tax Credit for the same job. However, jobs at headquarters that do not meet the headquarters wage threshold or headquarters definition for this credit may still be eligible for the Job Tax Credit. 25

28 Retraining Tax Credit Georgia offers income tax credits to offset the costs of retraining employees who are affected by the implementation of new equipment or new technology. An eligible business enterprise may be granted tax credits against Georgia state corporate income tax liability equal to one half of the direct cost of retraining, up to $500 per approved training program per year for each full-time employee who successfully completes the program. Eligible costs include employee wages and reasonable travel during the retraining as well as other direct training costs. These credits may not exceed 50 percent of income tax liability in a given year. Child care and mass transit tax credits provide employer incentives to offer employee benefits of particular interest to service workers. Child Care Tax Credit Businesses that make available employer-provided or employer-sponsored child care for employees may take a corporate income tax credit annually for 75 percent of the qualifying cost. Qualified Child Care Property Tax Credit Employers placing qualified child care property into service may take credit for 100 percent of the tangible personal property and real property cost. The credit may be applied against corporate income tax liability at 10 percent of the cost per year for 10 years. Mass Transit Tax Credit Employers may take a tax credit of $25 per employee per year against state corporate income tax for funding or partially funding employees use of mass transit. Other Incentives Telephone Services Discount (Tiers 1 & 2): BellSouth offers incentives in the less developed tier 1 and tier 2 counties. A 100 percent waiver of telephone service deposits and connection/installation charges and a one-year 50 percent discount (tier 1) or 30 percent discount (tier 2) on monthly recurring charges is available on all BellSouth tariffed items (excluding WATS, Message Rate Service, and Optional Calling Plans). A recent addition to this offer allows census tracts within an MSA that have been designated by the state as less developed census areas to qualify for tier 1 level discounts. 26

29 Postsecondary Grant and Scholarship Program (HOPE) See information about tuition assistance opportunities for training offered through Georgia s Helping Outstanding Pupils Educationally (HOPE) programs on page 12. Recruitment Services See information about employee recruitment assistance and resources on page 8. 27

30 Company Location Maps Non-Metro Atlanta Customer and Business Service Center Locations with 50 or More Employees Note: Number indicates number of operations in that location. Source: Georgia Power Customer and Business Service Center Database,

31 Metro Atlanta Customer and Business Service Center Locations with 100 or More Employees Source: Georgia Power Customer and Business Service Center Database,

32 Appendix A - Higher Education Institutions Listing of Georgia s Colleges & Universities Type of Institution University Four-Year College Two-Year College Name County City Enrollment Abraham Baldwin Agricultural College Tift Tifton 4,353 Agnes Scott College DeKalb Decatur 1,027 Albany State University Dougherty Albany 4,396 American Intercontinental University Fulton Atlanta 1,465 Andrew College Randolph Cuthbert 439 Argosy University Fulton Atlanta 929 Armstrong Atlantic State University Chatham Savannah 8,845 Art Institute of Atlanta Fulton Atlanta 3,494 Atlanta Christian College Fulton East Point 458 Atlanta College of Art Fulton Atlanta 374 Atlanta Metropolitan College Fulton Atlanta 3,151 Augusta State University Richmond Augusta 7,993 Bainbridge College Decatur Bainbridge 3,336 Bauder College Fulton Atlanta 457 Berry College Floyd Rome 2,793 Brenau University Hall Gainesville 2,783 Brewton-Parker College Montgomery Mt. Vernon 1,920 Clark Atlanta University Fulton Atlanta 5,409 Clayton State University Clayton Morrow 7,687 Coastal Georgia Community College Glynn Brunswick 4,003 Coastal Georgia Community College Camden Kingsland N.A. Columbus State University Muscogee Columbus 8,849 Covenant College Dade Lookout Mt. 1,291 30

33 Georgia s Colleges & Universities (continued) Name County City Enrollment Dalton State College Whitfield Dalton 5,661 Darton College Dougherty Albany 5,388 DeVry University DeKalb Decatur 8,120 East Georgia College Emanuel Swainsboro 1,994 Embry-Riddle Aeronautical University Cobb Marietta 2,000 Emmanuel College Franklin Franklin Spings 837 Emory University DeKalb Atlanta 12,573 Fort Valley State University Peach Fort Valley 3,038 Gainesville College Hall Gainesville 7,023 Georgia College & State University Baldwin Milledgeville 6,958 Georgia Highlands College Floyd Rome 4,712 Georgia Institute of Technology Fulton Atlanta 18,787 Georgia Institute of Technology Chatham Savannah N.A. Georgia Military College Baldwin Milledgeville 4,500 Georgia Perimeter College DeKalb Decatur 29,251 Georgia Perimeter College Gwinnett Lawrenceville N.A. Georgia Southern University Bulloch Statesboro 18,088 Georgia Southwestern State University Sumter Americus 3,065 Georgia State University Fulton Atlanta 34,558 Georgia State University Fulton Alpharetta N.A. Gordon College Lamar Barnesville 4,368 Kennesaw State University Cobb Kennesaw 22,046 LaGrange College Troup LaGrange 1,205 Life University Cobb Marietta 2,520 Macon State College Bibb Macon 7,635 Medical College of Georgia Richmond Augusta 2,723 Mercer University DeKalb Atlanta 2,095 Mercer University Bibb Macon 7,200 Middle Georgia College Bleckley Cochran 3,384 Morehouse College Fulton Atlanta 2,986 North Georgia College & State University Lumpkin Dahlonega 5,413 Oglethorpe University DeKalb Atlanta 1,361 Oxford College of Emory University Newton Oxford N.A. 31

34 Georgia s Colleges & Universities (continued) Name County City Enrollment Paine College Richmond Augusta 1,135 Piedmont College Habersham Demorest 2,622 Reinhardt College Cherokee Waleska 1,294 Savannah College of Art & Design Chatham Savannah 6,597 Savannah State University Chatham Savannah 3,262 Shorter College Floyd Rome 2,798 South University Chatham Savannah 1,222 South Georgia College Coffee Douglas 1,938 Southern Polytechnic State University Cobb Marietta 4,845 Southern Polytechnic State University Gwinnett Lawrenceville N.A. Spelman College Fulton Atlanta 2,192 State University of West Georgia Carroll Carrollton 12,467 Thomas University Thomas Thomasville 911 Toccoa Falls College Stephens Toccoa Falls 951 Truett McConnell College White Cleveland 1,662 University of Georgia Clarke Athens 38,863 University of Georgia Gwinnett Lawrenceville N.A. Valdosta State University Lowndes Valdosta 12,538 Waycross College Ware Waycross 1,500 Wesleyan College Bibb Macon 835 Young Harris College Towns Young Harris 672 N.A. Not Available Source: IPEDS Peer Analysis System, National Center for Education Statistics, U.S. Department of Education, 2003; University System of Georgia, 2004; and School Websites 32

35 Listing of Georgia s Technical Colleges Type of Institution Technical College Type Name County City Enrollment Albany Technical College Dougherty Albany 5,597 Altamaha Technical College Wayne Jesup 2,125 Appalachian Technical College Pickens Jasper 1,667 Athens Area Technical College Clarke Athens 6,273 Atlanta Technical College Fulton Atlanta 6,132 Augusta Technical College Richmond Augusta 7,039 Central Georgia Technical College Bibb Macon 9,331 Chattahoochee Technical College Cobb Marietta 10,373 Columbus Technical College Muscogee Columbus 6,795 Coosa Valley Technical College Floyd Rome 5,156 DeKalb Technical College DeKalb Clarkston 8,364 East Central Technical College Ben Hill Fitzgerald 2,668 Flint River Technical College Upson Thomaston 1,865 Georgia Aviation and Technical College Dodge Eastman 358 Griffin Technical College Spalding Griffin 6,006 Gwinnett Technical College Gwinnett Lawrenceville 7,412 Heart of Georgia Technical College Laurens Dublin 2,755 Lanier Technical College Hall Oakwood 5,282 Middle Georgia Technical College Houston Warner Robins 4,974 Moultrie Area Technical College Colquitt Moultrie 3,303 North Georgia Technical College Habersham Clarkesville 3,173 North Metro Technical College Bartow Acworth 3,313 Northwestern Technical College Walker Rock Spring 3,902 Ogeechee Technical College Bulloch Statesboro 3,554 Okefenokee Technical College Ware Waycross 3,601 Sandersville Regional Technical College Washington Sandersville 1,610 Savannah Technical College Chatham Savannah 6,734 South Georgia Technical College Sumter Americus 2,699 Southeastern Technical College Toombs Vidalia 2,315 Southwest Georgia Technical College Thomas Thomasville 2,878 Swainsboro Technical College Emanuel Swainsboro 1,477 Valdosta Technical College Lowndes Valdosta 4,427 West Central Technical College Carroll Carrollton 4,728 West Georgia Technical College Troup LaGrange 3,588 Source: Georgia Department of Technical and Adult Education,