Vodafone revealed in a statement that mobile operators are pressed by Facebook and some other internet content providers to provide subscribers in some markets with special access to their content.
The Chief Executive Officer of Vodafone – Vittorio Colao – announced that he had been asked by Facebooks Chief Operating Officer – Sheryl Sandberg to “zero rate” its content in particular emerging markets during a recent conversation, which in other words means to exclude it from counting towards a subscribers data plan.
Facebook Inc. refused to make any comments on these discussions. As reported by the Financial Times, Mr. Vittorio Colao revealed that he declined this request, because “it does not make any sense… there is no reason why I should give my network capacity for free”.
Currently, Facebook Inc. is seeking to broaden its already considerable presence in emerging markets. The social network has been reported to reach very high invasion levels in both the U.S. and Western Europe. It however has taken into account that customers in developing economies are particularly careful when it comes to the cost of Internet services used on their mobile phones.
Facebook Inc. has already reached agreements with some emerging market carriers to offer free access to its applications and mobile website, often for promotional periods of up to six months. On the other hand, most telecoms companies perceive the deals as a good way to attract customers into using data in the future.
As the Financial Times reported, Vodafones Chief Executive Officer Mr. Colao emphasized on the fact that “every content provider in the world” would like mobile operators to expel their content from data plans due to the fact that “its a great opportunity to push data usage up”. However, Mr. Colao also said that he finds it “conceptually wrong for our business model”. Vodafone is said by its Chief Executive Officer to remain open to other deals, such as for example sponsored or paid-for data that would not count towards a monthly data plan of a certain subscriber.
Facebook Inc.s shares fell by 1.20% in New York on Monday to settle the session at $63.55, marking a one-year change of +122.62%. According to CNN Money, the 40 analysts offering 12-month price forecasts for Facebook Inc. have a median target of $70.00, with a high estimate of $82.00 and a low estimate of $55.00. The median estimate represents a +10.15% increase from the last close.
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