Two Cheers for Facebook (NASDAQ:FB)’s African Satellite Internet Access,But Not Three


Usually we see the technology giants as always making huge profits and working to expand their business activities but it is good to see when these giant corporations contribute something worth doing to the society, even if their main objective is to earn more revenue. This is what the multinational corporate technology giant Facebook (NASDAQ:FB) has decided to do, by providing free basic internet access to different parts of Africa which have been left far behind in the race for development.

It’s good news and gets two cheers but not three, because of what they have planned. In February Mr. Mark Zuckerberg made an announcement at the biggest conference of the corporation in which he urged the African authorities to help them in providing the basic dial tone for internet access, to enable people in getting access to basic internet services like Wikipedia to increase the basic literacy level and to help students. He also declared to give free Facebook (NASDAQ:FB) access that could bring jobs to the people.

They would also be helpful in spreading virtual literacy and will start the trend of mobile internet interest among the general local inhabitants. However this project includes a big cost as well. It appears that Facebook (NASDAQ:FB) is doing this for the general welfare of the people, but why would Facebook (NASDAQ:FB) want to increase its network if doesn’t want to gain any revenues from this project. However Facebook (NASDAQ:FB) is giving a different and a pretty unique answer here.

It is already in talks with the international satellite service provider Avanti over a trailblazing project to provide absolutely free internet services across the remote parts of Africa. Avanti already has two broadband satellites positioned over Africa providing internet services, now it plans to add two more to enhance its capabilities and coverage. It provides internet by using high frequency radio waves linked to a satellite and a base station, which then converts the projected signals into a wifi network.

Along with rivalry, competition brings great blessings as well. It encourages people to try different businesses causing the businesses to test new market ideas which leads them towards productionof enhanced products and services. However there aren’t any good statistics available on increase in growth of mobile broadbands but there are some good statistics regarding availability of regional landline telephone networks which would show what impacts this project will bring to under developed places of Africa.

One study showed that with a 10% increase in population,would bring a 0.5% increase in the GDP of a country. In the long run such huge projects can bring massive positive changes in the under developed poverty stricken places of Africa. The expected impact of broadband to the local countries is not clear yet but we can estimate that the change would be similar to that of the mobile phone. This is the reason why Facebook (NASDAQ:FB) should get two cheers instead of three. It does intend to bring a morality based literacy change in the region but at the same time also wants to expand its Global connectivity network.