Facebook Acquisition of WhatsApp

There’s no doubt that one of Facebook’s primary objectives is to connect the world and acquiring Whats App is key to their strategy. There are multiple companies trying to reach them, but no one has truly been able to do this yet. The five year old mobile application software Whats App definitely made a remarkable impact on the world of Information Technology, especially in mobile messaging. Because of the good start, Whats App has been able to compete favorably against other online messaging applications in the market such as Twitter and Skype. Whats App managed to emerge the most popular mobile messaging application with an estimated 450 million users all over the world.

 There are a many reasons that make Whats App popular with many smartphone users.
Firstly, Whats App utilizes broadband connectivity which enables its users to send texts and multimedia files easily via their cell phones. Moreover, it has amazingly reasonable prices by charging a paltry $1 for a year regardless of the number of texts, pictures, audio and video files a user sends during that period. In addition, Whats App has been able to get a strong hold in new and emerging markets especially in developing countries and in Europe where other online messaging applications have not really made a mark. Therefore, it was not surprising that Facebook, being the big company in the social networking scene, decided to acquire Whats App for a whopping $19 billion. In fact, Facebook’s bid to acquire a mobile messaging application had previously been unsuccessful and therefore it was expected that Facebook’s CEO Mark Zuckerberg would make such a move. Of the $19 billion, Zuckerberg paid $4 billion in cash, $12 billion in Facebook stocks and $3 billion in bonds. This is a huge capital-intensive venture, but the prospects that Facebook will be able to prove itself on the mobile messaging scene are worth the risk.

 Many industry experts have speculated on the real reason for Facebook deciding to acquire Whats App. Some are of the opinion that Facebook needed the pictures that most Whats App users had been sending across this program. Others felt that Zuckerberg needed to make an entrance into the mobile messaging program considering that Facebook’s version of mobile messaging was nothing compared to Whats App. However, after all the excitement has gone down, this was a major boost to Facebook, making it the central pillar for all messaging needs in the market, be it in the social media or mobile messaging frontiers. Furthermore, it is expected that with this acquisition, Whats App’s user database will increase exponentially at a rate of 1 million users everyday , by being under the Facebook wings. In addition, it is expected that Whats App is expected to become absolutely free in future in line with the policies of Facebook usage. In case this happens, mobile messaging users will be the beneficiaries making communication easier and more accessible to a vast majority of users. The only downside, however, is that users of Whats App must have smartphones whereas many mobile users in developing countries in Africa may still be too poor to own smartphones. In future, as smartphones become cheaper and more affordable to these populations, the real impact of this acquisition will be felt across the board.

 Previously, Facebook had also acquired Instagram at $3 billion and it’s apparent that Facebook’s resolve to dominate the online social networking and mobile messaging is firmly on course. This acquisition will definitely propel Facebook’s dominance in the mobile messaging industry as well. 

Case Study

Intro:

In 1991, the Federal Communications Commission (FCC) banned passengers from using their cell phones while on board an airplane that is in flight. The ban was instituted because the FCC suspected that the radio frequency emitted by cell phones could damage an airplane's equipment systems. In complying with this rule, different airlines have instituted different policies about when phones can be turned on and off. In 2005, the FCC announced that it might consider lifting the ban on the use of cell phones on airplanes, with certain restrictions. Lots of debate has surrounded the use of cell phones on airplanes. The primary concern is that cell phones may interfere with the navigation and communication systems of the plane. Numerous airlines have reported disruptions in cabin pressure, compass function, and wireless navigation systems associated with the use of cell phones on board. The FCC is attempting to establish an acceptable threshold of radio frequency emissions, so that cell phones could be used on airplanes without any fear of the navigation system.



Body:

Recently, the FAA loosened its rules for using cellular devices on airplanes. Many airlines now allow you to use tablets and smartphones during take-off and landing as long as they are in airplane mode. It is also considering allowing cell phone calls in the air. To make that possible, airplanes would need to be equipped with specialized miniature base stations called (picocells). Those base stations would relay any cellular signals through satellites or cell towers on the ground that are already set up to work 
with airplanes.

The bad things for using phones in the airplanes are that it interferes with communication and navigation systems, you can be sure that the Department of Homeland Security Would not allow passengers to use their mobile phone or iPad; for fear that they could be used by terrorists. Another reason I found that makes the most sense was the fact that when you make a call, at say 10,000 feet, the signal bounces off multiple available cell towers, rather than one at a time. The frequent switching between cells creates significant overhead on the network and may clog up the networks on the ground, which is why the Federal Communications Commission (FCC) not the Federal Aviation Association (FAA) banned cell uses on planes.• The FCC (and not the FAA) bans the use of cell phones using the common 800-MHz frequency, as well as other wireless devices, because of potential interference with the wireless network on the ground.• A few devices, if left on, may not cause any interference. However the case may be different if 50-100 or more devices are left on, chattering away interfering with the plane communications system. Also there would be no way for the flight crew to easily determine which devices are causing the problem. So best is to restrict usage completely.• If mobile phones are allowed on airplanes, terrorists might use the signal from a cell phone to detonate an on-board bomb.

Conclusion:

At the end, in my opinion I think the (FCC) Federal Communications Commission about banned passengers is successful solution. When you banned anyone use the phone, they will warn next time and also be careful about their sons when they use iPad or iPod. But if there are some airplanes allowed use phones, this is because they will not effect from the signals that come from the electronic device.