Everyone wished to make life easier for their consumers, but it seemed that Facebook might have made a mistake. Some said that acquiring WhatsApp was a mistake. With Comcast trying to acquire Time Warner Cable, it was a wonder what anyone was thinking. At least that was what some people in Asia, India, and the Far East were wondering.
The problem for Facebook was, as with any company was that they were in the business to make money. It was a question as to how that was to have been done without using ads, the goal of WhatsApp or charging higher fees and keeping their subscribers.
As written in one of the articles read by me, this $19 billion dollar purchase, usage of this app had major competition in the Asian market none of the messaging apps dominated the market like Tencent Holdings Ltd's WeChat, LINE and KakaoTalk offered more services, from icons and games to the ability to have bought items and other services. LINE and the others are very different to WhatsApp because they were more usable with the business models they applicable to.
While this app was mostly used in places like- India, Kenya, Nigeria, South Africa, Brazil and Mexico: it had leveled off in Indonesia mainly because users changed their SIM card a lot and they lost the link to their account. Facebook hoped that by linking with WhatsApp, they were able to have access to other places in China which was closed to them. People liked this service because it was as close to free as they were going to get at .99. Also like Facebook, mostly geared toward teens, that market was as fickle as their less than five-minute attention spans. Enticing people that had accounts to keep using them and signing up new members was the key.
Even though the CEO of WhatsApp said they wouldn’t use ads on their app, there were ways around it. Both Yahoo, Google, and Facebook used third-party sponsored ads on their sites geared toward the persons likes or interests. This could backfire because of the teen market and other cost conscious people around the globe. Ads wouldn’t have gone well because they were tricky when snuck in. If the parent company tried implementing higher costs per year, they would have lost customers to other competition.
1 Thessalonians 5:17 (KVJ) said:
17 Pray without ceasing
To be perfectly honest, there wouldn’t have been any text messages sent overseas without the use of WhatsApp. My mobile to mobile calling and text messaging were unlimited so long as they were in the United States. Without the global calling plan, my bill went up more than double for a 30 minute call to Africa. The company had a reduced rate of 88 cents per text if they went overseas in spite of having 100 a month free through AT&T, while my friend in Africa paid up to $2.50 per text.
Frankly, seeing the major mobile carriers loose some of their customers to the cheaper services like Whatsapp didn’t phase me in the least. If they were fairer to their customers, losing a chunk like $33 billion of the market wouldn’t have hurt as much. My smart phone didn’t come without a $30 data plan and a two-year contract. They nickel and dime me with the charges on my land line as it was. It was a shame something like this would make some these mobile carriers take a serious look at what they offered and had them reduce their international texting fees or add them to an existing package like Verizon did last week. It was my prayer that Facebook knew what they were doing when purchasing this chat service.