The order of WhatsApp by Facebook for $19 million caused a significant ruckus in the tech industry. Since the deal has gone through – after getting acceptance from the European Commission and the FTC – most people are expecting the changes that Facebook will make to the WhatsApp service.
While privacy sensitive and painful consumers may be nervous about any potential changes, it’s expected that Facebook may have some options at heart to produce revenue from the acquisition. While the organization reported that VoIP functions could start in the 2nd quarter of 2014, it overlooked the deadline. Although Apple and Bing have beaten it to the punch with VoIP, there is undoubtedly that WhatsApp may however start VoIP contacting some time in the future.
As of this moment, communications on the WhatsApp software are whatsapp sticker restricted to listed consumers only. Once VoIP contacting is introduced, the organization may possibly provide bundles of communications or minutes to enable discussions with non-WhatsApp consumers as well. With countless consumers giving billions of communications, this kind of move could bolster market share and merge WhatsApp’s place as the most popular message application across numerous markets.
While WhatsApp has always maintained that it may remain a connection software and not just a material distribution one, Facebook may possibly plan to incorporate payments within the service. Competitors like Kakao Talk and WeChat produce revenue by offering stickers and other micro-transaction payment models. Facebook may possibly soon provide that feature for WhatsApp consumers as well.
Beyond such old-fashioned organization types, Facebook might have options to put WhatsApp as an MVNO. What would that entail? WhatsApp has already experimented with this specific substitute in Germany by partnering with E-Plus, a cellular operator. E-Plus and WhatsApp have introduced a prepaid Simulator card with WhatsApp personalisation which includes unrestricted communications through the service. Customers do not need to cover WhatsApp data application and may deliver communications even though they have no contacting credit left. Inturn, E-Plus could benefit by attracting consumers from competitor carriers.
Although margins are razor thin for MVNOs, WhatsApp may control such partners to register new consumers and grow quicker compared to competition. This might be specially helpful for Facebook in markets where it has observed gradual growth such as for example in Germany or amongst young and more privacy aware consumers. At least for the present time, WhatsApp consumers appear to confidence the service far a lot more than they do Facebook. If it creates the right movements, WhatsApp could prove to become a tremendous strategic order for Facebook.