Issue No. 89: Postmates is killing the drive thru, Birkenstock is out, Six brilliant blogs, and Jet.com’s retention problem

Last Word: Facebook’s Trojan Horse?

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Facebook’s test was successful and now, remote areas will begin to see the fruits of the internet’s labor. And of course, Facebook will reach more users than ever. But I dug a bit deeper into this amazing new innovation and I did the math. In short, I converted the areas of the top 150 largest cities in the United States into diameter and then each’s radius. There are only four cities in America with radii of more than 50 miles. Each of those four cities are in Alaska. Why does this matter? Who needs wired internet from the existing industry when we all use Wi-fi anyway? The existing cable and phone provider industries could face further disruption and well, so could Google’s Fiber program.

There are two “if’s” to consider. IF Zuck’s carbon fiber plane can withstand the forces of flight at 60,000 to 90,000 feet (where no commercial flying objects roam) for an extended period of time and IF the provided internet is capable of speeds comparable to today’s standard. Then, we may be looking at a new competitor to the broadband industry. This, just as Comcast, Charter, Cox Communications, and the rest of the cable industry has finally begun to offset cable subscription losses by emphasizing increased broadband packages to support our growing streaming habits.

Facebook’s internet provider drone network could drive revenue by servicing paying, wireless clients across much of America with just 150 of the planes that they’ve just tested. While the project started off as a way to address the next one billion Facebook users, it may have interesting competitive effects here at home. Surely, AT&T, Verizon, T-Mobile, Cox, and Comcast know this. What an amazing feat for their team of engineers.

See more of the issue here.

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