Bringing over $1 billion people online is always sure to be a tall order for any company, but not to Facebook Inc. (NASDAQ:FB)’s CEO, Mark Zuckerberg. The giant social company has formed an alliance with some of the biggest tech companies in the world, with one goal of making internet services available to all the corners of the world. Bloomberg’s Cory Johnson believes that Facebook is pushing to grow its user base in emerging markets after becoming saturated in developed countries.
Facebook Inc. (NASDAQ:FB) new initiative internet.org is not focused on ensuring the network grows its user base, but essentially allow more people to get access to reliable internet service.
“The point traditional network infrastructure to connect the world communities with low population density, isn’t really cost-effective or practical, which is why it has not been done yet. So we are working to develop new technologies that can be more efficient for doing this and to help connect this 15%,” said Mr. Zuckerberg.
Facebook new initiative Internet.org will try to address three main challenges that have always affected the accessibility of internet services in developing countries. The giant social network will try to make internet services cheaper while also ensuring it can be accessed through smartphones. Facebook Inc. (NASDAQ:FB) remains focused on compression technologies as well as other techniques that it believes will allow services to be offered using less bandwidth.
India is one of the emerging markets that Facebook wants to tap into according to Johnson.
“India is growing as fast as any major market. It is already the second biggest market, so they want to see that continue. Google Inc. (NASDAQ:GOOG) of course wants the same thing. When these companies look where growth is going to happen they are running out of places in the developed world to do that, they need more people online to make that happen,” said Mr. Johnson.
Citadel Investment Group, managed by Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).