As you may have heard, Facebook recently purchased mobile messaging app WhatsApp for just $19 billion. Now they plan to add voice calling services to what has so far been a text-exclusive application.
The move pushes the social media giant closer to another core operation of smartphones: moving into the voice call space in addition to messaging puts Facebook at behind of most communication technologies people use. Users have fled the service in droves since the Facebook acquisition, searching for alternatives for various reasons.
Voice calls through WhatsApp to other users will be free. This news came at the Mobile World Congress, which also saw the unveiling of Samsung's Galaxy S5 smartphone.
Facebook founder Mark Zuckerberg defended the price of the WhatsApp buyout at the mobile conference stating, "I actually think that by itself it's worth more than 19 billion. Even just independently, I think it's a good bet." He might turn out to be right, but he should look into what else he could've bought with that money. Perhaps in aircraft carrier, or colony on Mars?
The Facebook buyout is, in addition to helping the social media company achieve its goals, meant to help WhatsApp grow since it can focus just on attracting new users.
Telecom companies are not likely to appreciate the new voice feature or that WhatsApp will continue to take users, as free messaging and calling undermine their profits. Telecom corporations maintain that there is an unfair advantage to companies like Facebook and Google using their networks to connect customers with video, text, and voice messaging because they're not subject to the same regulations.
Texting alone is worth about $120 billion in revenue (just ~6.3 WhatsApps!) to Telecom companies based on last year's numbers. Facebook has positioned itself as a potential partner for network companies, not opponents. It remains to be seen what impact free calling will have on their bottom lines, but it is pretty clear the current regulations were created for a different time, and some sorting out needs to be done in the new communications landscape.
Source: Reuters