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Indian PM Narendra Modi’s reelection spells more frustration for US tech giants

Amazon and Walmart’s problems in India look set to continue after Narendra Modi, the biggest force to embrace the country’s politics in decades, led his Hindu nationalist Bharatiya Janata Party to a historic landslide re-election on Thursday, reaffirming his popularity in the eyes of the world’s largest democracy.

The re-election, which gives Modi’s government another five years in power, will in many ways chart the path of India’s burgeoning startup ecosystem, as well as the local play of Silicon Valley companies that have grown increasingly wary of recent policy changes.

At stake is also the future of India’s internet, the second largest in the world. With more than 550 million internet users, the nation has emerged as one of the last great growth markets for Silicon Valley companies. Google, Facebook, and Amazon count India as one of their largest and fastest growing markets. And until late 2016, they enjoyed great dynamics with the Indian government.

But in recent years, New Delhi has ordered more internet shutdowns than ever before and puzzled many over crackdowns on sometimes legitimate websites. To top that, the government recently proposed a law that would require any intermediary — telecom operators, messaging apps, and social media services among others — with more than 5 million users to introduce a number of changes to how they operate in the nation. More on this shortly.

Growing tension

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Facebook launches Express Wi-Fi app for its local-operated hotspots

Facebook wants you to pay for internet. This week TechCrunch was tipped off that Facebook had quietly launched an Express Wi-Fi Android app in the Google Play store that lets users buy data packs and find nearby hotspots as part of Facebook’s distributed Wi-Fi network. The company’s Express Wi-Fi program is live in five developing countries that see local business owners operating Wi-Fi hotspots where people can pay to access higher-speed bandwidth via local telecoms instead of paying steep prices for slow cellular data connections.

Previously, Express Wi-Fi users had to dig out a mobile website, or directly download an app from a telecom that required reconfiguring a phone’s settings. There wasn’t any way to look up where hotspots were located. The new Google Play app can be downloaded the normal way. It’s now live in Indonesia with bandwidth from telecom partner D-Net, and in Kenya through Surf. The app can also tell if a user’s Wi-Fi is turned on to help with set up, and they can file reports to Facebook about connectivity or retailer issues.

The launch signals Facebook expanding its pursuit of developing world audiences that first need internet access before they can become lucrative Facebook users. Unlike its much-criticized zero-rating program called Free Basics (formerly Internet.org), Express Wi-Fi offers a full, unrestricted version of the web for a price instead of only low-bandwidth services approved by Facebook. This strategy could help it achieve its mission of getting more disconnected people in the developing world online without the net neutrality concerns. Making Express Wi-Fi an actual business might save Facebook from backlash about it masking a user growth driver inside a philanthropic initiative.

Facebook confirmed the launch to TechCrunch, with a spokesperson telling us, “Facebook is releasing the Express Wi-Fi app in the Google Play store to give people another simple and secure way to access fast, affordable internet through their local Express Wi-Fi hotspots.” Sensor Tower first tipped us off to the app.

Weak or expensive connectivity is a huge barrier to Facebook deepening its popularity in the developing world at a time when it’s reaching saturation or even shrinking in some developed world nations. Facebook saw its first user loss ever in the U.S. and Canada region in Q4, with daily active users decreasing by 700,000 in part because of News Feed changes that reduced the presence of engagement-drawing viral videos.

Facebook needs user growth more than ever, and the developing world is where it can find it. That’s why it’s developing advanced technologies like the Aquila solar drone and satellites that can beam down connectivity. It’s also working with telecoms that use microwave towers to beam backhaul bandwidth to its Express Wi-Fi units.

Monetizing the international market has been a big focus for the company. It’s launched new region-specific and low-bandwidth ad units like click-to-missed-call and slideshows. It’s paid off. From 2012 to 2016, average revenue per user grew 4X in the Rest of World region. And that revenue grows even faster when people can load Facebook quickly and cheaply thanks to strong Wi-Fi access. The more accessible Facebook makes this program, the more it could see those internet users turn into social networkers.

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President Obama calls for diversity efforts and openness with Mark Zuckerberg at GES

US President Barack Obama speaks at the Global Entrepreneurship Summit at Stanford University in Palo Alto, California on June 24, 2016.        (Photo: MANDEL NGAN/AFP/Getty Images) President Barack Obama praised tech companies’ efforts to improve diversity in their workforces and called for governments around the world to embrace openness and transparency today at the Global Entrepreneurship Summit.
Obama encouraged companies to continue hiring workers from diverse backgrounds, citing tech companies’ diversity reports as a step in the right direction. The… Read More

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Building a brand-new Internet

Colorful wooden building blocks. Selective focus We do not possess the ability to read the future, and yet we can predict with a high level of certainty that we will see more major cybersecurity incidents in 2016 and 2017. The world’s cybersecurity capability is not able to advance in line with the growing vulnerabilities. Incremental security changes will not work. We need disruptive innovation. Read More

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Outernet Joins The Space Race For Internet Accessibility

5479393514_43080079c2_o The space race to launch satellites providing internet coverage to the roughly 4 billion people living in unconnected or nominally connected communities around the world is no longer just the purview of billionaire moguls and the world’s biggest Internet companies. Read More

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Zuck Says “Sure”, Facebook Would Love To Work With Google On Global Internet Access

Internet.org Connecting the world doesn’t have to be a cutthroat competition, Mark Zuckerberg signalled on stage at Mobile World Congress earlier today When asked if Facebook’s Internet.org access initiative would consider working with Google’s Project Loon, he said “Sure. When we launched the Internet.org app in Zambia with our operator partner there…one of the apps we launched… Read More

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Opera Adds Free Apps To Its Android Data Savings App Opera Max

14692097377_70ca426cad_k Last year mobile browser company Opera launched Opera Max, a data-compressing Android app that let users save money on their mobile data. Now, to drive more usage of the product, Opera is adding another feature to Max: apps you can use for free. App Pass, as the service is called, is aimed first at users in emerging markets, where smartphone adoption is booming, but the average smartphone… Read More

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Facebook’s Internet.org Works With Carriers To Speed Up Networks, Indonesia First

zuckerberg indonesia Facebook has long been promoting the the idea of free, zero-rated mobile services in emerging countries to drive more Facebook (and wider mobile data) usage. Now, its Internet.org initiative has crafted another way to promote growth: by working with directly with carriers to analyse and fix their networks, with a recent trial in Indonesia — the fourth-biggest country for… Read More

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Internet.org Offers $1M Prize For Apps That Make People In India Want The Web

Screen Shot 2014-10-09 at 11.09.28 AM “A recent survey that we did shows that 69% of people in India who are not connected, if you ask them why they’re not connected, what they say is that they don’t know why the Internet would useful for them”, Mark Zuckerberg explained today at the Internet.org summit in New Delhi. That’s why Internet.org is launching a contest to build apps that convince Indian… Read More

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