Facebook plucks Pryte for new app data plans in emerging markets
Facebook has acquired a small startup with hopes of changing the way people around the globe access data from their smartphones.
Pryte, a Helsinki-based startup, announced on Tuesday that Facebook has acquired its business for an undisclosed sum. The company said that it was 'delighted' with the acquisition, and that it plans to work with the world's largest social network to 'bring people online in a profitable way.'
Pryte, which was founded just last year and hadn't actually started launching its services across the world, had hopes of changing the way mobile users get data to access apps. Rather than buy data in bulk -- something that people in emerging countries could find cost-prohibitive -- Pryte was working with telecoms to offer by-app data pricing. The idea was to provide enough data for the apps users desired and nothing else. That would bring the cost down and ultimately connect more people to the Web and mobile apps.
At first blush, Pryte's appeal to Facebook might not seem apparent. However, in a statement to CNET, a Facebook spokesperson said that the Pryte team 'will be an exciting addition to Facebook.'
'[The Pryte team's] deep industry experience working with mobile operators aligns closely with the initiatives we pursue with Internet.org, to partner with operators to bring affordable internet access to the next 5 billion people, in a profitable way,' the Facebook spokesperson continued.
Last year, Facebook CEO Mark Zuckerberg announced the formation of a coalition of companies to connect the entire world to the Internet. That effort, dubbed Internet.org, aims at connecting with wireless operators in emerging markets around the world and enhancing their services to provide more Web access to people who currently can't connect to the Internet. Facebook estimates that number at 5 billion people.
When Internet.org launched last year, Zuckerberg said that the effort's focus would be laser-like in its initial phases. He specifically mentioned hopes of reducing the amount of data required to run mobile apps.
Given that, the Pryte deal starts to make sense. Pryte has formed relationships with wireless operators around the world, giving Facebook a jumpstart on its Internet.org efforts. Ultimately, if successful, Pryte's relationships and Facebook's cash could help bring many more people online and increase Facebook's reach around the world.
Terms of the deal between Facebook and Pryte were not announced.
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