Mark Zuckerberg (Facebook) (Feb 2014)

Mark Zuckerberg (Facebook Co-founder) – Mobile World Congress (Feb 2014)

Chapters

00:00:08 Internet.org: Mark Zuckerberg's Vision for Global Connectivity

00:04:42 Internet Connectivity as a Critical Global Challenge

00:11:26 Connecting the Next Billion: Expanding Internet Access through Free Basic Services

Results from Partnerships:
Globe and Tigo, partners in Paraguay and the Philippines respectively, have experienced significant growth in data usage and internet users since collaborating with Facebook. Globe’s data users increased by 50%, while Tigo’s daily data users grew by 70%.

Business Model and Sustainability:
Facebook’s goal is to bring the next 2-3 billion people online who currently lack access, despite having 3G or 2G coverage in their areas. The key challenge is convincing people to spend their limited disposable income on internet access. Offering free or low-cost access to familiar services like Facebook and WhatsApp serves as an on-ramp, introducing users to the benefits of internet connectivity. This gateway effect leads to increased consumption of other services and apps, generating revenue for both Facebook and its carrier partners.

Partnerships and Expansion:
Facebook is seeking additional carrier partners to expand its Internet.org program. The goal is to find three to five committed partners for a year-long collaboration to refine and scale the business model. The aim is to demonstrate the full potential of the program and develop a systematic rollout plan for interested carriers.

Monetary Benefits for Facebook:
While Internet.org may not generate immediate profits, Facebook believes it is an important initiative aligned with its long-term mission of connecting the world. The company acknowledges that ad markets in developing countries are not yet robust enough to make the program profitable in the short term.

Zuckerberg’s Vision and Motivation:
Zuckerberg’s motivation for Internet.org stems from his belief in the transformative power of social networking and internet connectivity. He believes that connecting people globally will ultimately benefit everyone, including businesses like Facebook. Zuckerberg’s vision is to create a sustainable model where providing free basic services leads to increased usage and revenue generation, enabling further investment in internet infrastructure.

00:20:44 Closing the Connectivity Gap: Facebook and Internet.org's Mission to Connect the

Internet Access for All:
Mark Zuckerberg envisions a future where basic internet services, such as Wikipedia and weather information, are accessible to everyone, not just those with streaming services like Netflix.

Long-Term Goal:
Zuckerberg aims to connect billions more people to the internet within the next five to ten years, contributing to the Internet.org vision of a globally connected world.

WhatsApp Acquisition:
The $19 billion acquisition of WhatsApp was driven by the belief that it could become a valuable asset, potentially monetizing at a level similar to other messaging apps like Kakao, Line, and WeChat. Integrating WhatsApp with Facebook allows the company to focus on connecting more people rather than solely developing a business model.

Free Basic Services:
Zuckerberg believes that carriers can benefit from a model where they offer basic services for free, attracting more subscribers and increasing connectivity. The choice of which services to include in the basic package is left to the carriers, but Facebook’s aim is to demonstrate the advantages of an open-access approach.

Achieving Affordability:

Zuckerberg outlines three pillars for achieving affordability:
1. Decreasing the overall cost of internet infrastructure through open-source initiatives, policy work, and reducing spectrum licensing fees.
2. Minimizing data usage through optimizations and compression technologies, such as the Onavo acquisition and the SnapTube platform.
3. Increasing revenue through upsells and subscriptions, such as offering data plans for accessing content beyond the basic services package.

WhatsApp’s Potential:
Zuckerberg acknowledges that while WhatsApp may not become as valuable as projected, he believes it has the potential to be a significant business, especially considering the monetization success of other messaging apps.

Internet.org Founding Partners:
Internet.org collaborates with companies like Ericsson, Qualcomm, Samsung, and MediaTek to make smartphones more affordable and improve internet delivery efficiency.

Data Efficiency Progress:
Zuckerberg highlights that the Facebook app’s average daily data usage has been reduced from 14 megabytes to 2 megabytes, with plans to further optimize it to 1 megabyte without compromising the user experience.

Client-Side Compression:
The acquisition of Onavo enables client-side compression, allowing users to save up to 50% of their data costs by routing their internet traffic through Onavo’s servers.

00:30:17 Using Tech Collaboratively to Increase Global Internet Accessibility

00:41:33 Strategies for Expanding Internet.org to China and Other Large Populations

Abstract

Bridging the Digital Divide: Zuckerberg’s Vision and Facebook’s Strategies

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In an era where digital connectivity is pivotal, Facebook’s initiatives, spearheaded by Mark Zuckerberg, are revolutionizing global internet access. The staggering $19 billion acquisition of WhatsApp underscores Facebook’s commitment to connecting a billion-plus people. This move aligns with Zuckerberg’s broader vision, embodied in Internet.org, which seeks to provide affordable internet access worldwide. This article delves into the strategic pillars of this vision, encompassing WhatsApp’s potential, the principles of Internet.org, the challenges of data consumption, and the collaborative approach with various stakeholders to achieve global connectivity.

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Facebook’s WhatsApp Acquisition: A Milestone in Global Connectivity

Facebook’s acquisition of WhatsApp for $19 billion is not just a business transaction but a strategic move towards global connectivity. WhatsApp’s immense popularity and engagement levels indicate its potential to connect over a billion people, a milestone that aligns perfectly with Zuckerberg’s vision of a connected world. The synergy between Facebook and WhatsApp is expected to foster innovative business models, potentially through advertising or subscription services, focusing on essential services like messaging, Wikipedia, and weather information. WhatsApp’s global reach and its focus on providing a seamless messaging experience resonated with Zuckerberg’s vision of connecting people across borders. The acquisition marked a significant step towards realizing this vision, aligning with Facebook’s broader mission of making the world more open and connected.

The $19 billion acquisition of WhatsApp was driven by the belief that it could become a valuable asset, potentially monetizing at a level similar to other messaging apps like Kakao, Line, and WeChat. Integrating WhatsApp with Facebook allows the company to focus on connecting more people rather than solely developing a business model.

The Vision and Mission of Internet.org

Internet.org, a brainchild of Zuckerberg, is pivotal in Facebook’s strategy to connect the world. With only a third of the global population having internet access and slower-than-expected growth rates, Internet.org’s mission is to make internet services more affordable and accessible. Zuckerberg’s passion for this initiative is evident as he prioritizes it over traditional Silicon Valley engagements, addressing its significance at forums like the Mobile World Congress. The project aims to offer basic internet services, often text-based and low-bandwidth, for free or at a minimal cost, serving as gateways to broader content and encouraging data consumption.

Internet Access for All: Zuckerberg envisions a future where basic internet services, such as Wikipedia and weather information, are accessible to everyone, not just those with streaming services like Netflix. Zuckerberg aims to connect billions more people to the internet within the next five to ten years, contributing to the Internet.org vision of a globally connected world.

Tackling the Challenges of Data Consumption and Efficiency

Facebook’s collaboration with entities like Ericsson and Onavo exemplifies its commitment to reducing data consumption and enhancing user experience, especially in low-bandwidth regions. By optimizing its apps to use less data and working with partners to develop affordable smartphones, Facebook is addressing the main barrier to internet access: the high cost of data plans. Additionally, the company is focusing on three pillars of efficiency: reducing internet delivery costs, minimizing data usage, and increasing upsell and revenue generation efficiency.

To address the challenge of data affordability, Internet.org collaborates with mobile operators to offer low-cost data plans and develops technologies that reduce the amount of data required to access basic internet services. It also works with smartphone manufacturers to create affordable devices that can access the internet efficiently. By making internet access more affordable and accessible, Internet.org aims to bridge the digital divide and empower people with the tools they need to improve their lives.

Zuckerberg outlines three pillars for achieving affordability:

1. Decreasing the overall cost of internet infrastructure through open-source initiatives, policy work, and reducing spectrum licensing fees.

2. Minimizing data usage through optimizations and compression technologies, such as the Onavo acquisition and the SnapTube platform.

3. Increasing revenue through upsells and subscriptions, such as offering data plans for accessing content beyond the basic services package.

Empathy and Collaboration: The Cornerstones of Internet.org

Zuckerberg’s approach to global internet access is not just technological but also empathetic and collaborative. By experiencing the challenges of using apps in low-bandwidth environments, Facebook employees develop a deeper understanding of the needs in emerging markets, driving them to improve data efficiency. Internet.org stands as a coalition involving infrastructure providers, carriers, developers, governments, and NGOs, underlining that no single entity can achieve global internet access alone.

Collaboration and Innovation in Connecting the Planet: The goal of Internet.org is to efficiently deliver internet access to underserved regions. Facebook views itself as a convener and systems integrator, collaborating with various stakeholders to achieve this goal. Empathy for the user experience in diverse regions is essential for app developers to create efficient data-saving features. The NSA revelations impacted trust in American internet companies, but the subsequent industry collaboration has been beneficial. Literacy plays a crucial role in connecting people, and partnerships with NGOs and governments are critical for success. WhatsApp’s data policy will not change post-acquisition; it will continue to operate autonomously within the Facebook ecosystem.

Upholding Privacy and Trust Amidst Expansion

In the wake of NSA revelations eroding trust in American internet companies, Zuckerberg acknowledges the need for more transparency and accountability from governments. He assures that WhatsApp’s data policy will remain unchanged post-acquisition, emphasizing its commitment to user privacy and operational autonomy.

Facebook recognizes the importance of trust and privacy in its efforts to connect the world. It acknowledges the concerns raised by the NSA revelations and is committed to protecting user data and privacy. Facebook has implemented strong security measures to safeguard user information and has a clear privacy policy that outlines how it collects, uses, and shares data. By prioritizing privacy and transparency, Facebook aims to build trust with its users and create a safe and secure online environment.

Facing Global Challenges and Leveraging Public-Private Partnerships

Connecting populous countries like China and India, with limited internet access, presents specific challenges. Zuckerberg highlights the importance of public-private partnerships and the collaboration with NGOs and governments to expand internet access. These partnerships are crucial in replicating Internet.org’s model in different regions, fostering local company participation.

Internet.org recognizes the challenges of expanding internet access in populous countries like China and India. It acknowledges the need for collaboration with local governments and NGOs to understand the specific needs and challenges of these regions. By working together, Internet.org can tailor its solutions to meet the unique requirements of each country and ensure that everyone has the opportunity to benefit from internet connectivity.

The Future of Global Connectivity

In conclusion, Facebook’s strategies, led by Zuckerberg’s vision, signify a transformative era in global connectivity. The acquisition of WhatsApp and the initiatives under Internet.org are monumental steps towards making internet access universal, efficient, and affordable. While challenges remain, the collaborative and empathetic approach adopted by Facebook, along with its focus on privacy and efficiency, sets a blueprint for bridging the digital divide and connecting the world in unprecedented ways.

Notes by: Rogue_Atom

Mark Zuckerberg (Facebook Co-founder) – Mobile World Congress (Feb 2014)

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