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Facebook Zero Helps Ideas Multiply at the Bottom of the Pyramid

I am still frankly gobstopped by Facebook’s announcement.  I vaguely caught the news of Facebook Zero but assumed it was just another mobile interface to Facebook.  It was only when I read Erik Hersman’s post about it that I got the whole story.  Not only have they launched a very lightweight mobile interface to Facebook but they have done something only a company the size of Facebook could… they’ve made it free.

They’ve negotiated deals with over 50 mobile operators around the world to make access for Facebook Zero free. Even as we speak MTN have announced that they plans to expand Facebook Zero from the eight countries they have launched in to all of the territories they operate in. This is huge.  As Erik says… this is game changing.

Why is that?  Why is this so amazing?  Because access to communication is not just about increased efficiencies, better access to market information, etc; it’s about innovation.  But innovation only happens when the cost of failure is so low that people keep trying things even though they fail.  And that’s what Facebook Zero is… a zero-pain failure environment for the bottom of the pyramid.

And why is that important?  Because connectedness has transformed the world into a place of serious unpredictability. And the best plan by the brightest minds in the world is doomed to failure because the world is so unpredictable.  Nicholas Taleb, author of The Black Swan, argues that trial and error is the only way to cope with an uncertain world.  He says “we are a lot better at doing outside the box than thinking outside the box”. He goes even further than that saying:

This is my mission for the rest of my life: figure out how to build a society in which people can make mistakes that are inconsequential. Want to encourage small mistakes, a discovery; an option.

But don’t just Taleb’s word for it.  Here’s what Yochai Benkler, author of The Wealth of Networks has to say:

[The] basic driver of what makes the net so innovative, creative, and fast-moving is the low cost of effective action: experimentation, adaptation, failure–very cheap. [The] model of innovation is not the long-term R&D lab in three organizations that are the major players and which one of them wins, but rather tens of thousands, millions, of experiments that are very cheap to try out and cheap to prototype and then implement and then fail and try again.

Not to mention Clay Shirky (apologies for recycling this quotation, it’s just too good not to):

You need a very low cost of experimentation, right? If things are expensive to try people will hold back from trying them and they’ll spend all their time trying not to fail. If the cost of experimentation falls though, and I mean falls precipitously, then people will spend a lot of time experimenting, and instead of not failing, the goal becomes to fail informatively to learn something from the things you tried.

and finally Matt Ridley, author of the recently published “The Rational Optimist: How Prosperity Evolves, who comes up with the beautiful meme of innovation being like “ideas having sex”.  He says:

Evidence suggests that cultural evolution depends on exchange and trade to bring together ideas in much the same way that genetic evolution depends on sex to spread genetic mutations, or in the case of bacteria, on horizontal gene transfer. When starved of access to a large “collective brain” by isolation from trade and exchange, people may experience not just less innovation, but even regress. The capacity for ideas to have sex on the Internet is likely to accelerate cultural evolution still further.

If you can share ideas with friends on Facebook Zero, form groups, propagate memes, then you have an innovation medium that has been custom designed for the bottom of the pyramid.

The irony is that I despise Facebook.  I hate the way they’ve been eroding the privacy settings on my account and I fear what they are doing with my personal information.  But hey, I hate rapacious mobile operators too but they were/are game-changers too.  Facebook is problematic, no question, but the opportunity that they are creating for people who can’t generally afford access trumps those issues hands down.

Erik points out in his post that the mobile operators are laughing all the way to the bank on this deal.  That may be true but I predict they won’t be laughing for very long.  How long will a company like Facebook put up with the costs they are being charged before they decide to do something about.  This is a trojan horse inside the walled garden of the mobile operators.

Finally, what rankles with me is that Google, who have been in Africa for over two years, and in spite of being told (gratuitous “I told you so” available here), have missed the boat on the whole cost of access issue.  Usage of their innovative SMS project in Uganda plummeted as soon as the operators started charging for the SMSes.  To paraphrase Bill Clinton, “It’s the cost of access, stupid!” and Facebook have figured this out.  All is not lost though. There is still a chance for Google to do this for voice in Africa.  Operators are standing by.

12 thoughts on “Facebook Zero Helps Ideas Multiply at the Bottom of the Pyramid”

  1. Steve, I really don’t think Facebook Zero is good for innovation in anything but, perhaps, a round about way.

    For one, I’m worried that the real trojan horse here is Facebook accumulating more users, only to screw them on privacy: http://blurringborders.com/2010/05/20/will-africans-have-a-say-on-privacy/

    But as to whether or not 0.facebook.com is going to bring about the low-cost innovation that you point to… how is that? The mobile version is not a platform, you can’t build fb apps that are accessible via it; apps are only accessible on the full version of the site.

    Sure, people can share some information. Maybe we’ll have more flash mob behavior, but I’m not sure that is severely constrained right now by cost.

    Instead, I think this has *raised* the cost of innovation. Data is, obviously, a big part of the future of mobile innovation in Africa. It’s more flexible, capable, etc. But by striking this deal (and Safaricom + MXit, too) it is clear that operators in Africa are not opening themselves up to be platforms. They are picking winners. The transaction costs of negotiating with 50 operators or even just with one are ENORMOUS. Small-time innovators cannot do it. Now that operators are invested in these deals, they are not going to welcome the next guy who wants to try something out that may not work.

    I see this as analogous to a non-neutral net where big guys get preferential treatment. This is not the innovative future we want.

  2. Oh, the one way I think this could be useful is if spillover effects arise – if users stark realizing that data services are rich and valuable, then they may pursue other ones and a market may be created. However, I think the cost determinant will be so high that they’ll stick to Zuckerberg’s creation.

  3. Steve, 0.facebook.com, from all reports I’ve read about, is a fairly watered down service, and won’t be that amazing for increasing innovation, really. I fully agree with costs and innovation, but innovation requires generative platforms, and 0.facebook.com doesn’t score that high on generativity IMHO.
    Why I do agree it is a *BFD* is that it will increase the number of mobile web users. (see http://twitpic.com/1pqhi9 for what happened with Vodafone UK)
    And the big danger, to me, is that all these new mobile customers will have facebook as their first experience. And given facebook’s track record for listening to its users / privacy etc., thats simply not a good thing.

  4. Hi Kevin. I think you have a valid point about privacy and I think that Facebook Zero (or Twitter for that matter) would be a very dangerous tool to use for political purposes. Having said that, when I refer to innovation, I am not talking about phone apps (although I am not excluding them either), I am talking more about the free flow of ideas. With Facebook Zero users can “update their status, view their News Feed, like or comment on posts, send and reply to messages, or write on their friends’ Wall just as they do on Facebook.com.” That alone is enormously powerful. Facebook is not my favourite platform by a country mile but if you can do all that for free on your phone, then I think we are talking about a game-changer on this continent. At a minimum we are talking about a free messaging platform that transcends borders and connects you globally.

  5. Hey Prabhas. I can see where my thinking differs from yours and Kevin’s. You are both legitimately concerned about the Internet and maintaining an open environment for innovation on the Internet and by extension mobile phones. 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.

  6. Steve, I think you have a fair point about the possibility to create a networked public sphere (buzz words FTW!), but I don’t know that it is worth celebrating. Facebook is far from the entity we want mediating that. Introducing another intermediary, especially one so centralized, increases the opportunity for limiting speech and surveillance. Even more, Facebook has not (as far as I know) even shown an interest in promoting human rights or joining initiatives like the Global Network Initiative.

    There will certainly be positives (I think what Prabhas points to about boosting data usage could very well be one) but I’m not sure if they’ll outweigh the reasons to be worried.

  7. not that worried about privacy,

    but thinking that moves like this

    define and stabilize bottom-of-the-pyramid

    as much as they address it.

    does the so-called bottom get invited here to use passively, or to build?
    how will the line between the two be modified through moves like this?

    sure i d love to get surprised, but …

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