Seeing Beyond The Hubris Of Facebook’s Free Basics Fiasco

Comment

Image Credits:

Vivek Wadhwa

Contributor

Vivek Wadhwa is an academic, entrepreneur, and author who holds appointments at Stanford, Duke, and Singularity University.

More posts from Vivek Wadhwa

At the moment, Facebook is being compared to the treacherous East India Company, and director Marc Andreessen is being accused of being anti-Indian, a racist, and worse.

It wouldn’t surprise me if Indian activists launch a “Quit India” movement to expel Facebook from India, modeled on Mahatma Gandhi’s efforts against the British in 1942. All of this is because of a failed effort by Facebook to provide Internet access to the poor.

Facebook’s intentions were good, but where Andreessen and Mark Zuckerberg went wrong was in their misunderstanding of the culture and values of the people they were trying to help.

India suffered nearly two centuries of subjugation by its British masters, and, in this era, it saw its treasures pillaged, its economy decimated, and its cultural values suppressed.  People became second-class citizens in their own country; they had to suffer untold humiliation and sacrifice their lives.  It takes generations to recover from such trauma.

That is why Andreessen’s tweet “Anti-colonialism has been economically catastrophic for the Indian people for decades. Why stop now?” created such an uproar.  The damage was so great that Zuckerberg felt compelled to disown the comments of his own board member in a public statement.

Knowing Andreessen, I don’t believe that his intent was in any way to condone colonialism.  He was just being his aloof and playfully combative self, criticizing the Indian government for its decision to disallow Facebook’s Free Basics Internet giveaway.

Andreessen is one of the most open, inclusive, and accessible of the tech moguls. He readily endorsed my book, Immigrant Exodus, when I asked him to and has been a strong proponent of skilled immigration.  In his venture-capital firm, Andreessen Horowitz, you find many Indians, Chinese, and other nationalities at all levels.  I have battled him on issues such as the jobless future that technology is creating, challenged his firm to add more women to leadership positions, and questioned the ethics of having investors on competing tech companies’ boards.

In Silicon Valley, you can have such public spats with people you hold in high regard.  You can be blunt and abrasive.  But you can’t do this across borders as Andreessen inadvertently did—or impose your values on them as Zuckerberg tried.

Facebook’s Free Basics was an ill-conceived effort to bring Internet access to the poor in India.  It created a walled garden in which Facebook and the Indian telecom providers selected which websites people could visit.   Rather than being able to do Google searches and explore the web as we are able to, users of Free Basics would find that Facebook was the center of their virtual universe and would experience only what it allowed them to.

Free Basics

Facebook didn’t seem to understand that what is limiting the growth of the Internet in India isn’t the cost of data access, which is relatively cheap, but the affordability of computers and smartphones.  When the poor save up to buy these, they want to be able to surf the web as western users do: viewing music videos, visiting a broad range of websites, and downloading games and entertainment apps. Indian farmers can already get weather information on their cellphones and on TV; they don’t want to be limited to visiting the health and education sites that Facebook directs them to.

Furthermore, there are hundreds of languages in India.  How could Facebook possibly curate the right sites for them to visit in all of these? And what about the majority of poor people who can’t read or write, how will they watch videos to learn these?I know from speaking to the Facebook team and exchanging emails with Mark Zuckerberg and Sheryl Sandberg that Facebook’s intentions were good.  It wasn’t trying to exploit the poor or gain an unfair competitive advantage.

The Free Basics project originated from an idea that Zuckerberg had about connecting the next 5 billion people.  He documented this in a paper titled Is Connectivity A Human Right?

The paper’s thesis was that data access is more expensive than smartphones.  He wrote that in the U.S. “an iPhone with a typical two-year data plan costs about $2,000, where about $500–600 of that is the phone and ~$1,500 is the data”.  Therefore, the key was to make Internet access affordable by making it more efficient to deliver data and improving the efficiency of apps to less data.

What Zuckerberg and his U.S. team didn’t understand was that in India you can buy computer tablets and smartphones for as little as $50, and that 100MB of data—which is more than a Free Basics user will consume in a month—costs much less than a dollar.  So the entire basis of the paper was flawed.  And then there was a complete lack of understanding of the language, and of the cultural issues, and of the distrust of foreign corporations bearing gifts.

The problem in Silicon Valley is one of ignorance of the problems and ways of the world.  The Valley lives in its own bubble and is cut off from the real world. There is no way that Zuckerberg and Andreessen can understand the suffering of the people in the developing world without actually being there.

Over the next five years, half a billion Indians and another two billion people in the developing world are going to be coming on line.  This will be without Facebook’s help—because the costs of computers and smartphones are dropping exponentially.  As this occurs, the market for Silicon Valley’s innovations will explode.

If Silicon Valley can learn the ways of the world and market to them in the same way that large corporations already do, by adapting their products and being culturally sensitive, it will reap huge dividends.  If not, it will be excluded from economies larger than the United States’ and see itself sidelined.

More TechCrunch

For Mark Zuckerberg’s fortieth birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted recreation of his childhood bedroom.…

Mark Zuckerberg’s makeover: midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats; unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Beslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in the town, and it’s from Instagram…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android

A hacker listed the data allegedly breached from Samco on a known cybercrime forum.

Hacker claims theft of India’s Samco account data

A top European privacy watchdog is investigating following the recent breaches of Dell customers’ personal information, TechCrunch has learned.  Ireland’s Data Protection Commission (DPC) deputy commissioner Graham Doyle confirmed to…

Ireland privacy watchdog confirms Dell data breach investigation

Ampere and Qualcomm aren’t the most obvious of partners. Both, after all, offer Arm-based chips for running data center servers (though Qualcomm’s largest market remains mobile). But as the two…

Ampere teams up with Qualcomm to launch an Arm-based AI server

At Google’s I/O developer conference, the company made its case to developers — and to some extent, consumers — why its bets on AI are ahead of rivals. At the…

Google I/O was an AI evolution, not a revolution

TechCrunch Disrupt has always been the ultimate convergence point for all things startup and tech. In the bustling world of innovation, it serves as the “big top” tent, where entrepreneurs,…

Meet the Magnificent Six: A tour of the stages at Disrupt 2024

There’s apparently a lot of demand for an on-demand handyperson. Khosla Ventures and Pear VC have just tripled down on their investment in Honey Homes, which offers up a dedicated…

Khosla Ventures, Pear VC triple down on Honey Homes, a smart way to hire a handyman

TikTok is testing the ability for users to upload 60-minute videos, the company confirmed to TechCrunch on Thursday. The feature is available to a limited group of users in select…

TikTok tests 60-minute video uploads as it continues to take on YouTube

Flock Safety is a multibillion-dollar startup that’s got eyes everywhere. As of Wednesday, with the company’s new Solar Condor cameras, those eyes are solar-powered and using wireless 5G networks to…

Flock Safety’s solar-powered cameras could make surveillance more widespread

Since he was very young, Bar Mor knew that he would inevitably do something with real estate. His family was involved in all types of real estate projects, from ground-up…

Agora raises $34M Series B to keep building the Carta for real estate

Poshmark, the social commerce site that lets people buy and sell new and used items to each other, launched a paid marketing tool on Thursday, giving sellers the ability to…

Poshmark’s ‘Promoted Closet’ tool lets sellers boost all their listings at once

Google is launching a Gemini add-on for educational institutes through Google Workspace.

Google adds Gemini to its Education suite

More money for the generative AI boom: Y Combinator-backed developer infrastructure startup Recall.ai announced Thursday it has raised a $10 million Series A funding round, bringing its total raised to over…

YC-backed Recall.ai gets $10M Series A to help companies use virtual meeting data

Engineers Adam Keating and Jeremy Andrews were tired of using spreadsheets and screenshots to collab with teammates — so they launched a startup, CoLab, to build a better way. The…

CoLab’s collaborative tools for engineers line up $21M in new funding

Reddit announced on Wednesday that it is reintroducing its awards system after shutting down the program last year. The company said that most of the mechanisms related to awards will…

Reddit reintroduces its awards system

Sigma Computing, a startup building a range of data analytics and business intelligence tools, has raised $200 million in a fresh VC round.

Sigma is building a suite of collaborative data analytics tools

European Union enforcers of the bloc’s online governance regime, the Digital Services Act (DSA), said Thursday they’re closely monitoring disinformation campaigns on the Elon Musk-owned social network X (formerly Twitter)…

EU ‘closely’ monitoring X in wake of Fico shooting as DSA disinfo probe rumbles on

Wind is the largest source of renewable energy in the U.S., according to the U.S. Energy Information Administration, but wind farms come with an environmental cost as wind turbines can…

Spoor uses AI to save birds from wind turbines

The key to taking on legacy players in the financial technology industry may be to go where they have not gone before. That’s what Chicago-based Aeropay is doing. The provider…

Cannabis industry and gaming payments startup Aeropay is now offering an alternative to Mastercard and Visa

Facebook and Instagram are under formal investigation in the European Union over child protection concerns, the Commission announced Thursday. The proceedings follow a raft of requests for information to parent…

EU opens child safety probes of Facebook and Instagram, citing addictive design concerns