The Race to Zero for Tech Giants Facebook and Google
Both Facebook and Google are racing to take zero worldwide and to developing countries to grow their services to another one billion or more users. Mobile penetration in emerging markets is booming and mobile phone demand is a lot higher than any for other electronic devices. The opportunity to improve the lives of humans with tech companies is key and zero is the answer.
Facebook’s Growth Plan
Facebook has plans to shell out $19B for the WhatsApp, an instant messaging service to grow the one billion users.
Google’s Growth Plan
Google is launching balloons up into the stratosphere via its “Project Loon” to make internet connectivity available to the billions who don’t have it.
Why a Race?
The places Facebook and Google plan to grow their services to are countries like India, Brazil and Mexico. The reason why Google wants to send balloons into space, and why $19B is a bargain for WhatsApp and will use solar-powered drones for internet connectivity be next? Google, Facebook and other tech giants are all trying to win the race to a massive business opportunity created by the next five billion people coming online, thorough the use of mobile phones.
Are Mobiles Taking Over?
A UN report highlighted that more people in the world today have access to mobile phones than toilets. The rate of mobile penetration in emerging markets is around 70-80% in Southeast Asia and Africa, and some countries exceed this at 90%. There is no wonder that the tech giants are pursuing mobile and internet avenues at a great pace.
Strategies to archive the additional billion users
There are two main strategies tech giants are using to build their networks to reach other balloons and apps. The first strategy is ‘zero rating’ and second ‘consolidated use’. Zero rating refers to drastically reducing the cost of access to their sites and on mobile devices. Today many telecom carriers have deals in place with Facebook providing unlimited free or zero-rate usage of social media.
The idea for zero-rate is to eliminate the cost of data for users, and to cost the user zero dollars to have access to their network. A race also exists to expand relationships with telecoms so users in developing countries will have access to the internet via their mobile phones.
The idea of having consolidated use refers to being able to perform day to day activaties that you would usually perform on the internet, all performed in the one central location - Facebook or Google. If Facebook is the free pass to the internet you will want to try to do every activity possible via Facebook, your free portal. Searching for jobs, communicating with family and friends and other revenue-generating activities can all be delivered without leaving Facebook or Google's mobile sites.