Facebook and Google's Race To Zero

theodp (442580) writes "As Facebook and Google battle to bring the Internet to remote locations, Alicia Levine takes an interesting look at the dual strategy of Zero Rating and Consolidated Use employed by Google's FreeZone and Facebook's 0.facebook.com, websites which offer free access to certain Google and Facebook services via partnerships with mobile operators around the world. By reducing the cost to the user to zero, Levine explains, the tech giants not only get the chance to capture billions of new eyeballs to view ads in emerging markets, they also get the chance to effectively become "The Internet" in those markets. "If I told you that Facebook's strategy was to become the next Prodigy or AOL, you'd take me for crazy," writes Levine. "But, to a certain degree, that's exactly what they're trying to do. In places where zero-rating for Facebook or Google is the key to accessing the Internet, they are the Internet. And people have started to do every normal activity we would do on the Internet through those two portals because it costs them zero. This is consolidated use. If Facebook is my free pass to the Internet, I'm going to try to do every activity possible via Facebook so that it's free." The race to zero presents more than just a business opportunity, adds Levine — it also presents a chance for tech companies to improve lives. And if Google and Facebook fall short on that count, well, at least there's still Wikipedia Zero."

Not crazy, but obvious

[rasmusbr]

"If I told you that Facebook's strategy was to become the next Prodigy or AOL, you'd take me for crazy,"

That's not crazy, that's obvious. You're approximately the millionth pundit on the ball with regards to Facebook's strategy.