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Monday, June 15, 2015

Facebook Change WhatsApp

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While privacy sensitive users may be apprehensive about any potential changes, it is inevitable that Facebook will have some designs in mind to generate revenue from the acquisition. Although the company announced that VoIP features would launch in the second quarter of 2014, it missed the deadline. Although Apple & Google have beaten it to the punch with VoIP, there is no doubt that WhatsApp will still launch VoIP calling sometime in the future.
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The acquisition of WhatsApp by Facebook for $19 billion caused a ruckus in the tech industry. Now that the deal has gone through - after getting approval from the European Commission & the FTC - everyone is anticipating the changes that Facebook might make to the WhatsApp service.

As of now, messages on the WhatsApp platform are limited to registered users only. One time VoIP calling is introduced, the company may offer bundles of messages or minutes to enable conversations with non-WhatsApp users as well. With millions of users sending billions of messages, such a move would bolster market share & consolidate WhatsApp's position as the most popular messaging app across multiple markets.

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Although WhatsApp has always maintained that it will stay a communication platform & not a content distribution, Facebook may intend to integrate payments within the service. Competitors like Kakao Talk & WeChat generate revenue by selling stickers & other micro-transaction payment models. Facebook may soon offer this feature for WhatsApp users as well.

Although margins are razor narrow for MVNOs, WhatsApp can leverage such partnerships to sign up new users & grow faster than the competition. This might be helpful for Facebook in markets where it's seen slow growth such as in Germany or amongst more youthful & more privacy conscious consumers. At least for now, WhatsApp users appear to trust the service far over they do Facebook. If it makes the right moves, WhatsApp could turn out to be an fabulous strategic acquisition for Facebook.

Beyond such traditional business models, Facebook may have designs to position WhatsApp as an MVNO. What would that entail? WhatsApp has already experimented with this alternative in Germany by partnering with E-Plus, a cellular operator. E-Plus & WhatsApp have launched a prepaid Sim card with WhatsApp branding which includes limitless messages through the service. Users do not must pay for WhatsApp knowledge usage & can send messages even in the event that they have no calling credit left. In return, E-Plus would benefit by attracting users from rival carriers.

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