Boston, MA 12/27/2013 (wallstreetpr) – Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG) are rivals in that they are both vying for the ad revenue which is the lifeline of their wealth. However, they are also friends because they share the vision of making Internet accessible to everyone.
Because of this shared vision, the two companies have common ground in which they can easily work together. Top on the agenda of the two companies is to take Internet to every corner of the world and to make it affordable, if not free to everyone. By doing this, Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG) are able to bring more people to their websites and thus earn higher ad revenue.
Low-cost Internet
Just this month, the two companies were reported to be investing heavily in Internet infrastructure which spans global scale. Google Inc (NASDAQ:GOOG) already has more than 100,000 miles of Internet cable networks around the world and is still doing more. Facebook Inc (NASDAQ:FB) already owns more than 6,000 miles of underwater Internet network and it is expanding this covering rapidly.
By owning the world Internet, the two companies can start selling internet to users at discounted prices in which case they will be encouraging more people to visit their platforms and contribute to their ad revenue. Also, by controlling their own bandwidth, Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG) will be able to offer quality service in terms of good connection speed and uptime.
Moreover, given that spending on Internet is one area in which they lose a lot of money, they two companies are expecting that owning Internet will help them reduce their operating cost.
Facebook Inc (NASDAQ:FB) ahead in the game
In terms of bringing more people to its platform, Facebook Inc (NASDAQ:FB) is ahead of Google Inc (NASDAQ:GOOG) on many fronts. The company is entering into deals with carriers, through which it is offering free access to its services and this proved to be very effective in bringing more users to its network.
In February this year, Facebook Inc (NASDAQ:FB) announced a partnership with more than 18 carriers in developing markets and in this November, it joined the carriers’ association just to be an important player in their growth. So far, the company is trying to introduce its free services in the U.S. market as can be seen in its latest deal with T-Mobile US Inc (NYSE:TMUS).
