315-027-8
Facebook’s Internet.org Initiative
Serving the Bottom of the Pyramid?
For use by Helen Deresky. Expiry date 14-Feb-2016
Teaching Note
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
This teaching note was written by Punithavathi Srikant, Amity Research Centers Headquarter,
Bangalore. It was prepared to accompany the Case Facebook’s Internet.org Initiative – Serving the
Bottom of the Pyramid? The case was compiled from published sources.
© 2015, Amity Research Centers Headquarter, Bangalore.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form
or medium whatsoever without the permission of the copyright owner.
Distributed by The Case Centre North America Rest of the world
www.thecasecentre.org t +1 781 239 5884 t +44 (0)1234 750903
case centre All rights reserved f +1 781 239 5885
e
f +44 (0)1234 751125
e
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
Author: Punithavathi Srikant
Facebook’s Internet.org Initiative – Serving the Bottom of the
Pyramid?
Teaching Note
Prerequisite Conceptual Understanding
Identifying Untapped Opportunities for Value Creation, “The Fortune at the Bottom of the
Pyramid”, http://www.csrwire.com/pdf/Prahalad-excerpt-001-022.pdf, June 17th 2004
For use by Helen Deresky. Expiry date 14-Feb-2016
Utilising emerging economies for growth, Sane Vivek and Kshatriya Anil, “Growing with The
Masses–A New Approach to Bottom of The Pyramid”,
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
http://www.sibm.edu/FacultyResearch/pdf/growingmasses.pdf, September 2011
Synopsis of the Case Study
The case, set in 2014, can be used in Post Graduate Business Management courses to teach Strategy
and General Management. Facebook along with other technological companies had started
Internet.org, an initiative to provide network access to millions of people in the developing world.
Since its launch in August 2013, the initiative had brought basic internet facilities to the countries of
Zambia, Paraguay, Indonesia, Kenya, Rwanda and Philippines with active support extended by the
local governments. Mark Zuckerberg (Zuckerberg), Facebook’s founder had realised that future
growth for the company would come from emerging markets alone and had presented his initiative
as a humanitarian effort for the economic betterment of people in those regions. Hailed as well as
criticised by many, the Internet.org initiative did mix business with philanthropy and might create a
monopoly thereby ignoring the principle of net neutrality. Called ‘venture humanitarianism’ and
‘Facebook's gateway drug’, this initiative was criticised as a strategy to rope in more users into
Facebook ecosystem. Against this backdrop, the case study would look into the motives behind the
launch of the novel initiative and examine how it served Facebook’s business interests. While doing
so, it will also analyse whether Internet.org was a canny business move dressed up to sound like
charity to mine the fortunes at the bottom of the pyramid.
Teaching Objectives
The case study helps to understand and analyse:
The significance of a ‘Connected World’
Facebook’s Internet.org Initiative
Motives behind serving the BOP segment.
“© 2015, Amity Research Centers HQ, Bangalore. All rights reserved.”
Page – 1
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
Teaching Plan:
The Teaching Note follows a sequential order as presented in the Suggested Teaching Plan
[Annexure (TN) – I].
Case Analysis
Internet.org: Facebook’s Game Plan
1 Give a brief outline of Facebook’s Internet.org initiative.
I initiated the discussion in the class by asking the students to share their views about the
internet.org initiative of Facebook. Many felt that it was a noble cause perpetuated by Facebook.
But some students were of the view that the initiative was started to further Facebook’s business
interests. On that note, I started analysing Facebook’s internet.org initiative in detail. [Paras 1 –
11 of the Section: “Internet.org: A Facebook Initiative”, of the case study].
Internet.org was started to make internet accessible to everyone in the world.
From Exhibit I of the case study, students identified the technological partners involved in
the initiative.
The Internet.org initiative was primarily a partnership between technological organisations,
nonprofits, local communities and experts, and was intended to bring internet access to two
For use by Helen Deresky. Expiry date 14-Feb-2016
thirds of global population who were not connected.
Educational material supplied by The Case Centre
Partners of Internet.org would work to find innovative business models by developing
Copyright encoded A76HM-JUJ9K-PJMN9I
affordable technology and adopting best practices. The partners would invest in tools and
software to efficiently transmit their data.
Internet connectivity would prove to be a change agent for economic growth in developing
countries and it would usher in prosperity by creating 140 million jobs, uplift the poor and
improve infant mortality rates as net connectivity gave information about health,
employment and local news. [Exhibit (TN) – I].
Exhibit (TN) – I
Internet Connectivity Drives Economic Growth
Source: “Value of connectivity Economic and social benefits of expanding internet access”, https://fbcdn-
dragon-a.akamaihd.net/hphotos-ak-ash3/t39.2365/851546_1398036020459876_1878998841_n.pdf,
February 2014
Page – 2
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
From Exhibit II of the case study, students found how internet.org had benefitted Zambian
population.
While in Philippines, it had increased the subscriber base by 25%.
In Paraguay, 3 million people got connected, while the user base and their access to daily
data had increased by 50%.
Positive results were found in the countries of Indonesia, Tanzania and Kenya.
In Rwanda, through Social EDU initiative students got access to online learning.
In a developing country like India, internet.org was planning to tap lucrative rural regions
where barriers like educational and cultural factors had proved to be challenging for net
connectivity. So internet.org had collaborated with Unilever to reach the vast rural
population of India.
Facebook in collaboration with other partners was developing technology to overcome the
challenges of connecting people in the developing world.
Facebook’s connectivity lab would use drones, radios, free space optics with technological
expertise from NASA to meet the challenges of connecting the world.
The connectivity lab’s simulated conditions would help them to test their products and
technology to that of the conditions existed in developing markets, so as to optimise their
For use by Helen Deresky. Expiry date 14-Feb-2016
services offered.
From Annexure I of the case study, students found the issues and challenges involved in
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
connecting internet globally.
Students realised how internet connectivity would improve the economic wellbeing of
people in developing countries.
Then, the class furthered their discussion on how internet.org had brought in positive changes in
the developing world.
Facebook’s Two Faces!
2 Discuss the impact of Internet.org in emerging economies of the world.
The class discussed in detail how internet.org had impacted positively in emerging economies of
the world. [Paras 1, 2 and 7 of the Section: “A Solace for Emerging Economies or a Canny
Business Move?”, of the case study].
Facebook founder Mark Zuckerberg had predicted that the internet.org initiative would
empower the people of the emerging economies to decide what type of government they
wanted, gave them access to healthcare and connected families that were miles apart.
From Exhibit III, students understood the various barriers that inhibited internet connectivity
to all.
From Exhibit IV of the case study, students found the impact of internet.org in developing
countries.
o Internet connectivity in developing countries would increase the productivity by 25%,
create nearly 140 million jobs and would increase the GDP by $2.2 trillion.
In India, improved connectivity would be made possible by offering regional language
content.
Page – 3
Facebook’s Internet.org Initiative
Serving the Bottom of the Pyramid?
For use by Helen Deresky. Expiry date 14-Feb-2016
Teaching Note
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
This teaching note was written by Punithavathi Srikant, Amity Research Centers Headquarter,
Bangalore. It was prepared to accompany the Case Facebook’s Internet.org Initiative – Serving the
Bottom of the Pyramid? The case was compiled from published sources.
© 2015, Amity Research Centers Headquarter, Bangalore.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form
or medium whatsoever without the permission of the copyright owner.
Distributed by The Case Centre North America Rest of the world
www.thecasecentre.org t +1 781 239 5884 t +44 (0)1234 750903
case centre All rights reserved f +1 781 239 5885
e
f +44 (0)1234 751125
e
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
Author: Punithavathi Srikant
Facebook’s Internet.org Initiative – Serving the Bottom of the
Pyramid?
Teaching Note
Prerequisite Conceptual Understanding
Identifying Untapped Opportunities for Value Creation, “The Fortune at the Bottom of the
Pyramid”, http://www.csrwire.com/pdf/Prahalad-excerpt-001-022.pdf, June 17th 2004
For use by Helen Deresky. Expiry date 14-Feb-2016
Utilising emerging economies for growth, Sane Vivek and Kshatriya Anil, “Growing with The
Masses–A New Approach to Bottom of The Pyramid”,
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
http://www.sibm.edu/FacultyResearch/pdf/growingmasses.pdf, September 2011
Synopsis of the Case Study
The case, set in 2014, can be used in Post Graduate Business Management courses to teach Strategy
and General Management. Facebook along with other technological companies had started
Internet.org, an initiative to provide network access to millions of people in the developing world.
Since its launch in August 2013, the initiative had brought basic internet facilities to the countries of
Zambia, Paraguay, Indonesia, Kenya, Rwanda and Philippines with active support extended by the
local governments. Mark Zuckerberg (Zuckerberg), Facebook’s founder had realised that future
growth for the company would come from emerging markets alone and had presented his initiative
as a humanitarian effort for the economic betterment of people in those regions. Hailed as well as
criticised by many, the Internet.org initiative did mix business with philanthropy and might create a
monopoly thereby ignoring the principle of net neutrality. Called ‘venture humanitarianism’ and
‘Facebook's gateway drug’, this initiative was criticised as a strategy to rope in more users into
Facebook ecosystem. Against this backdrop, the case study would look into the motives behind the
launch of the novel initiative and examine how it served Facebook’s business interests. While doing
so, it will also analyse whether Internet.org was a canny business move dressed up to sound like
charity to mine the fortunes at the bottom of the pyramid.
Teaching Objectives
The case study helps to understand and analyse:
The significance of a ‘Connected World’
Facebook’s Internet.org Initiative
Motives behind serving the BOP segment.
“© 2015, Amity Research Centers HQ, Bangalore. All rights reserved.”
Page – 1
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
Teaching Plan:
The Teaching Note follows a sequential order as presented in the Suggested Teaching Plan
[Annexure (TN) – I].
Case Analysis
Internet.org: Facebook’s Game Plan
1 Give a brief outline of Facebook’s Internet.org initiative.
I initiated the discussion in the class by asking the students to share their views about the
internet.org initiative of Facebook. Many felt that it was a noble cause perpetuated by Facebook.
But some students were of the view that the initiative was started to further Facebook’s business
interests. On that note, I started analysing Facebook’s internet.org initiative in detail. [Paras 1 –
11 of the Section: “Internet.org: A Facebook Initiative”, of the case study].
Internet.org was started to make internet accessible to everyone in the world.
From Exhibit I of the case study, students identified the technological partners involved in
the initiative.
The Internet.org initiative was primarily a partnership between technological organisations,
nonprofits, local communities and experts, and was intended to bring internet access to two
For use by Helen Deresky. Expiry date 14-Feb-2016
thirds of global population who were not connected.
Educational material supplied by The Case Centre
Partners of Internet.org would work to find innovative business models by developing
Copyright encoded A76HM-JUJ9K-PJMN9I
affordable technology and adopting best practices. The partners would invest in tools and
software to efficiently transmit their data.
Internet connectivity would prove to be a change agent for economic growth in developing
countries and it would usher in prosperity by creating 140 million jobs, uplift the poor and
improve infant mortality rates as net connectivity gave information about health,
employment and local news. [Exhibit (TN) – I].
Exhibit (TN) – I
Internet Connectivity Drives Economic Growth
Source: “Value of connectivity Economic and social benefits of expanding internet access”, https://fbcdn-
dragon-a.akamaihd.net/hphotos-ak-ash3/t39.2365/851546_1398036020459876_1878998841_n.pdf,
February 2014
Page – 2
, 315-027-8
Facebook’s Internet.org Initiative – Serving the Bottom of the Pyramid?
From Exhibit II of the case study, students found how internet.org had benefitted Zambian
population.
While in Philippines, it had increased the subscriber base by 25%.
In Paraguay, 3 million people got connected, while the user base and their access to daily
data had increased by 50%.
Positive results were found in the countries of Indonesia, Tanzania and Kenya.
In Rwanda, through Social EDU initiative students got access to online learning.
In a developing country like India, internet.org was planning to tap lucrative rural regions
where barriers like educational and cultural factors had proved to be challenging for net
connectivity. So internet.org had collaborated with Unilever to reach the vast rural
population of India.
Facebook in collaboration with other partners was developing technology to overcome the
challenges of connecting people in the developing world.
Facebook’s connectivity lab would use drones, radios, free space optics with technological
expertise from NASA to meet the challenges of connecting the world.
The connectivity lab’s simulated conditions would help them to test their products and
technology to that of the conditions existed in developing markets, so as to optimise their
For use by Helen Deresky. Expiry date 14-Feb-2016
services offered.
From Annexure I of the case study, students found the issues and challenges involved in
Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I
connecting internet globally.
Students realised how internet connectivity would improve the economic wellbeing of
people in developing countries.
Then, the class furthered their discussion on how internet.org had brought in positive changes in
the developing world.
Facebook’s Two Faces!
2 Discuss the impact of Internet.org in emerging economies of the world.
The class discussed in detail how internet.org had impacted positively in emerging economies of
the world. [Paras 1, 2 and 7 of the Section: “A Solace for Emerging Economies or a Canny
Business Move?”, of the case study].
Facebook founder Mark Zuckerberg had predicted that the internet.org initiative would
empower the people of the emerging economies to decide what type of government they
wanted, gave them access to healthcare and connected families that were miles apart.
From Exhibit III, students understood the various barriers that inhibited internet connectivity
to all.
From Exhibit IV of the case study, students found the impact of internet.org in developing
countries.
o Internet connectivity in developing countries would increase the productivity by 25%,
create nearly 140 million jobs and would increase the GDP by $2.2 trillion.
In India, improved connectivity would be made possible by offering regional language
content.
Page – 3
