As I mentioned in yesterday’s post about privacy protection in Africa, the launch of Facebook Zero – their free mobile services offered with more than 50 operators around the world – has some important implications for developing countries. I wanted to consolidate some comments I’ve made elsewhere about this development.

The Impact on Local Innovation

Let’s be blunt: barring some strange vagary, Facebook Zero is going to be a hit. Facebook is already popular in Africa, and in other developing countries, such as Indonesia, we know that usage is overwhelmingly through mobile devices. The success of MXit in South Africa, as well, is strong evidence of the viability of mobile-based social networking, and with free access to 0.facebook.com, the proposition is even stronger.

What does this mean for Africa’s burgeoning technology entrepreneurs? The mobile phone is an exciting, preexisting platform for services and applications. CellBazaar in Bangladesh and M-PESA in Kenya are standout examples of the value that can be created from building new mobile services. Competing with Facebook is going to be very difficult, especially when so many carriers are picking them and giving them the ability to not charge for data usage on 0.facebook.com. To be clear, I’m not opposed to Facebook competing in this regard. They are clearly doing good business.

But in the midst of doing good business, they could cannibalize African jobs. For example, Safaricom, who has not partnered with Facebook, just announced they are working with MXit to bring the South African service to Kenya. Erik Hersman sees this as a missed opportunity for local entrepreneurs. The real problem, though, is that the operators in Africa can choose winners and losers on their proprietary networks. New entrants (the proverbial “next Google or YouTube”) face very steep transaction costs that limit their scale.

A Caveat?

As Prabhas Pokharel of MobileActive points out, though, there is more to this story. Speaking recently at the GSMA World Congress, a Facebook representative showed that when Vodafone in the UK offered one week of free Facebook, not only did data usage shoot up, it stayed up: “the number of people paying and using data plans increased by 20% from the people that tried it.”

No wonder Facebook was able to partner with so many operators: in time, they will phase out the free access and will have convinced more users to sign up for the lucrative data plans. Is this a good thing? As Steve Song and others have argued, mobile usage costs in Africa can be very high. There might be reasons to worry that people are spending money recklessly on mobiles, to the detriment of savings or “better” consumption.

But there could be a silver lining. Data services provide more flexibility and capability. Oftentimes people do not even know their phone is capable of anything more than SMS and voice. If Facebook Zero encourages people to responsibly use the mobile Internet, there will be opportunities for many more entrepreneurs and delivery of richer services.

Facebook Zero as Africa’s Agora?

Steve Song is more bullish on Facebook Zero, despite having well-founded critics of both Facebook and African telcos. He says,

I think the potential for innovation with Facebook Zero is really about people having conversations, exchanging ideas about any and every aspect of their lives. Those conversations will spawn innovations. Right now, Facebook Zero only covers ten countries in Africa but supposing in covers all or most of them. Think of the scope for new ideas to find their way across the continent or across the road.

This is an interesting angle. Though it is starting to change, Africa lacks participatory media. Facebook, despite being used for plenty of inane purposes, does have the potential to encourage both innovative thinking and, perhaps more likely, political activity and awareness.

But, again, I think there are reasons to be pessimistic. Is Facebook really the platform we want for this? For one, it is another intermediary on which pressure can be placed. Even worse, it is an intermediary that does not have a good track record on safeguarding political speech within its bounds (see Rebecca MacKinnon’s recent post on the human rights implications of content moderation and account suspension). Frustratingly, Facebook has also not joined the Global Network Initiative, an effort by corporations and NGOs to promote self expression and privacy in a digital world through corporate best practices. Entering places like Tunisia with Facebook Zero demands thoughtful reflection on a company’s role in facilitating political activity.

So, it is, of course, too early to tell the implications of what was certainly a big week for mobile and development, but for this specific initiative, there are plenty of reasons to be concerned.

[As always, I'm speaking only for myself on this blog.]