Facebook Inc cleared another mess but still in jeopardy

Facebook Inc cleared another mess but still in jeopardy

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About 2 years ago Facebook Inc (NASDAQ:FB) dreamed out the Internet.org service. At that time Facebook announced that it aims to provide internet to masses which are devoid of internet. Later on Facebook added Pryte to Internet.org portfolio for supporting it. Since 2014 the service has been launched in many countries. But problem is that Facebook allows only limited number of apps and websites to run through the platform of Internet.org.

Now Facebook announced that it will expand its portfolio of websites and other online services across the Internet.org platform.

The announcement comes as the service is heavily criticized on the basis that it breaks the net neutrality principles as it allows specific sites to visit.

But Facebook’s founder Mark Zuckerberg said it was “not sustainable to offer the whole internet for free”.

“It costs tens of billions of dollars every year to run the internet, and no operator could afford this if everything were free,” he said in an online video posted to Internet.org’s website.

“But it is sustainable to build free basic services that are simpler, use less data and work on all low-end phones.”

Networks operators participate in this project because they believe in future users will pay for wider internet access once they have had a chance to try out the free content on offer.

Since 2014, Zambia, India, Colombia, Guatemala, Tanzania, Kenya, Ghana, the Philippines and Indonesia were among the blessed ones with this service.

The free internet is available to users only through Internet.org’s website, Facebook’s own Android app or the Opera Mini browser.

Up till now, the websites or apps Internet.org offers include Wikipedia encyclopaedia, the Facts for Life health site run by the United Nations Children’s Fund, BBC News, Facebook, Accuweather and a selection of local news and sports results providers.

But now Facebook is making a change in its plans, allowing other websites and online services to tap Internet.org Platform.

“Because of the competitive aspect of Internet.org, if my competitor is on it, I will feel compelled to be on it as well,” said Nikhil Pahwa.

“And all of this data will be available to Facebook and – because of the lack of HTTPS – that data can also be sniffed by telecom operators and by governments.”

Whether Facebook’s new initiative will be able to grab the attention of those partners it will depends upon the mood of public who they vote for.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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