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Facebook & WhatsApp Deal – Is It a Threat to The Traditional Telecom Service?

February 25, 2014 By Silki Guha

All eyes will be on Facebook & WhatsApp deal to see where it takes both the companies. As for now, Facebook has openly confirmed that it’s not going to use WhatsApp’s interface for any of its future ads. Then what exactly enticed Facebook so much that it decided to finalize this deal and make it as one of the costliest tech deals of the decade? Nobody has a clear answer to that. However, Facebook founder Mark Zuckerberg believes the deal will ensure a faster and better internet connectivity to the consumers at a much better price in the future.

WhatsApp was increasingly becoming the largest threat to Facebook. Although Facebook is a much bigger player than this company, WhatsApp’s incredible improvement and continuous evolution as a tech giant stunned this online networking company. For example, WhatsApp’s one single primitive looking app was able to manage almost half as many active users as Facebook just in five years.

The WhatsApp application lets customers enjoy a free unlimited text messaging service for a year. Even after that, customers have to pay only $1 annually as its subscription fee. Apart from that, customers can use WhatsApp application to send any media file over the phone quickly and uninterruptedly.

WhatsApp has done something which no one ever thought of doing before. To be very precise, WhatsApp has been able to use a technology, which Facebook has been using for quite some time now, at a much bigger scale never seen before. The technology is known as Erlang. It’s a programming language that enables Facebook’s chat messaging service. Feels like Mark Zuckerberg’s futuristic outlook has got one thing very clear – Facebook, with technical know how of WhatsApp, can bring an overwhelming change in the whole worldwide communication network.  As said earlier, Facebook expects to offer a better  internet service to the customers at an affordable price.

This means, Facebook is not after the company only, it’s after the whole telecommunication network. What Facebook’s future holds for it clearly depends on what it does with its apps and how the company uses WhatsApp’s technological expertise. Although the $19 billion deal sounds an enormous amount of money to many analysts, seems like Facebook is not thinking that way.

For Facebook, this deal means much more than its largest tech merger and acquisition. Digital communication is taking a revolutionary turn. Social media companies and e-commerce sites are constantly exploring new opportunities to connect to the consumers. Although Facebook is majorly seen as an online networking company, it’s now equally serious about its messaging service. The company has recently added WhatsApp on board for this reason. However, Facebook’s well thought out aspirations can disrupt only one industry in the long run – telecommunication.

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Filed Under: Facebook News Tagged With: Facebook's Acquisition, WhatsApp

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