Facebook Connectivity Investment To Stimulate Economic Growth

Facebook is making efforts to get people connected to the internet to generate more than USD 200 Billion in economic growth over the next five years. The social networking giant has created an active investment in Sub-Saharan Africa, ASEAN countries, and Latin America. 

The internet’s significance is the most reliable, affordable resource, which is now acting as a new means of living during this pandemic. Yet, there are 3.5 billion people who remain unconnected. Closing the digital platform is necessary to ensure access to information, education, and healthcare facilities. 

Facebook, over the years, has invested in infrastructure and partnership to address the barriers to connectivity. Three reports commissioned to examine the impact of the investment in Sub- Saharan Africa, Association of Southeast Asian Nations, and Latin America. 

According to the analysis done by Mason, Facebook has invested in Sub-Saharan Africa and ASEAN, which will deliver economic benefits of over USD 57-70 Billion over the next five years. At the same time, NERA Economic Consulting estimates that the investment by Facebook in Latin America generates an average of USD 27 billion/year to eventually create about 178,000 new jobs.

The economic value gets generated through Facebook’s investment in submarine cables, edge network, and Open Transport Networks, which provides fiber backhaul. It improves the quality of access network and service delivery, enhances the network operators which extend coverage, improves performance, and reduces costs.

Through Facebook investment, economic value will be generated in bulk in submarine cable, edge network and Open Transport Network, which gives fiber backhaul to improve quality access to network and service delivery. 

Submarine Cables

The investment made in submarine cable augments the supply of international bandwidth, reducing cost for ISP, and providing more connectivity. 

In Latin America, Facebook is a part of a consortium deploying the Malbec cable between Brazil and Argentina, which eventually doubles Argentina’s international capacity. It improves reliability and reduces the cost for ISPs. NERA estimates the wire, which increases internet penetration in Argentina by 6% and 3% in Brazil. Facebook has invested in the APG cable and Southeast Asia Japan cable. Also, there are three new Transpacific cables planned for the next few years.

Edge Networks

Edge Network infrastructure includes the point of presence and has co-located local caches that support economic development, allowing operators access to Facebook content. Disconnects the international connectivity and transit cost for operators and improves experiences.

Even across Sub-Saharan Africa and ASEAN countries, the investment made by google in edge networks and international capacity altogether. That provides internet traffic increase by 9%, whereas in Latin America, the edge network investment is expected to reduce the cost of global connectivity by about USD 440 Million per year.

Open Transport Networks

Open Transport Networks (OTNx) is one such investment made by Facebook that deploys fiber infrastructure for backhaul for network operators. OTNx initiates spur economic development by improving the quality and affordability of services and allowing more people to get online.

The deployment made by Facebook through OTNx in Indonesia, Uganda, Nigeria, and South Africa, which is expected to bring 900,000 people online and initiate over $6 billion in GDP between 2020 to 2024.

The deployments which will happen in Uganda and Nigeria have enabled an extension of 3G/4g coverage over 4 million people. The estimated number of people, be it 700,000 in Uganda or 300,000 in Nigeria, got online earlier without investment and created an economic impact of about $4 billion between 2020 to 2024.

No one-size can fit all, but these investments focus on building block strategy, expanding and improving global connectivity, and closing the digital divide.