♪ emily: by now, you know his story. the kid who started the social network in his harvard dorm room. he became one of the wealthiest men in the world. but mark zuckerberg may not be done changing the world just yet. since taking facebook public has only made it bigger. using billions to expand his empire into photos, even virtual reality. featuring an epic battle with google, drones, lasers, and stratospheric hot air balloons, all to bring the internet to the

farthest corners of the earth. with billions of new users in the process. our guest today on this special edition of "studio 1.0" is facebook founder and ceo mark zuckerberg. emily: first of all, you are a year and a half into this. tell me your vision. tell me what inspired you to do this. mark: when people are connected, we can just do some great things. we have the opportunity to get access to jobs, education, health, new kinds of communication. we bring people that we care about closer to us. it makes a big difference. the internet is how we connect to the modern world. today, unfortunately, only one third of people have any access to the internet at all. that is round 2.7 billion people. that means two thirds of people in the world don't have access to the internet -- that seems really off to me. they're all of these studies that show in developing countries, more than 20% of gdp

growth is driven by the internet. if we connected one billion more people to the internet, 100 million more jobs would be created and more than that would be lifted out of poverty . there is this deep belief at facebook that technology needs to serve everyone. connectivity cannot just be a privilege for those in the richest countries. connecting everyone in the world is the challenge of our generation. that is why we are happy to play small role in that. emily: what have you tried to compromise on? mark: what we have learned is there are very few barriers to connectivity. the first one is that people do not have any access to a network. it is a technical barrier. even if they had a phone and could pay for data, there was no cell phone tower to have access.

there are projects like satellite and drones that we are working on to help create connectivity in areas where there aren't that today. that is important, but it turns out that is a small part of the problem. only 15% of people are connected are not connected because of a technical barrier. the next barrier is affordability. a lot of people who have access cannot afford to pay for it. the solution is to make it more efficient, make it so the work infrastructure that operators are using is more efficient. the apps consume less data, and there is a lot of work going into that. we made the facebook app on android. i think it uses about five times less data than it used last year. we have made a bunch of these tools open for those to use. it turns out that the biggest hurdle is not technical or

affordability, the social challenge. the majority of people who aren't connected are in range of a network and can afford it, but they actually don't know why they would want to use the internet. it makes sense if you about it. -- if you think about it. if you grew up and it never used the internet or a computer, and someone asks if you want to buy a data plan, your response would be, why would i want a data plan? that ends up being the biggest challenge, and one that we can have the most value by giving people some free basic services by working with operators to help people understand what to use the internet for and an onramp for everyone. emily: facebook is a for-profit company. why call it .org? is this charity? mark: if we were mainly focused on profits, the main thing to do would be to focus on the first billion using our product. the world is not set up equally. the first billion people on

facebook have more money then the rest combined. from a business perspective, it does not make sense to put the emphasis that we do right now in that sense. the reason we take that seriously to connect the world. to some degree you cannot do that if two thirds of the world does not have access to the internet. we just turned 10 is a company and we decided that in the next 10 years, we want to take on some challenges in the world, like helping everyone get online. everyone get online that is important for us and other internet companies. over the long-term it could be good for our company. if you look at a 10, 20, 30 year time line. a lot of these countries and economies will develop, and over time they will be important. most people do not make investments for 30 years down the line. emily: you said a year ago when you spoke with david kirkpatrick that you couldn't construct a short-term model.

by which this becomes profitable. do you have a better idea now? when will this become profitable? mark: no, i don't have a better idea. the reality is that if people cannot afford to pay for data access, then they probably are not big ad markets. it is probably not a place where it will be particularly profitable in the near term. in fact, we will probably lose a bunch of money just because supporting facebook as a service and storing photos costs money. we will probably not offset it by making much. emily: you said connectivity is a human right. you want to do good things. if that is the case, why not get access to the complete internet? why not just a few specific apps? mark: it comes down to the economics of how this works. theurns of that most of internet is consumed by rich media, especially videos. if you look at things like text messages, services like search or wikipedia or health information, that can be delivered for relatively cheap.

it can often consume less than 1% of the overall infrastructure. if you are thinking about building something to be offered for free, it needs to be cheap. we basically figured out a series of services that people can be offered that will still be profitable to the operator. the model that we consider this to be the most similar to is 911 in the u.s. even if you do not have a phone plan, you can always i will 911 -- dial 911 and if there is a fire or a crime, you can get basic health. we think the internet should have something like this as well. even if you do not have a data plan, you should have access to basic health information, basic communication tools. and it will vary from country to country. when we launched in zambia -- in there, hiv is a big issue. so one of the free services the government and folks wanted to include were services you can learn about hiv and different aspects of maternal health.

different places will have different tools. emily: we have spoken to top at executives who have wanted to expand to developing markets. they are excited to advertise through internet.org. how does that benefit users? mark: we need to work out a model with governments and local partners that is profitable for them to make sure they can keep growing the internet. we found out in some of these countries -- the philippines -- indonesia. zambia and now kenya. you offer a little bit of the internet for free, and as more people start accessing the internet, more people start paying for data. once they understand what they would use the internet for, then people would understand why they would pay for data. the operators make more money. it becomes more profitable and

then they can reinvested to make better infrastructure. that ends up being very important. a lot of what we have focused on for the last couple of years is how he can build a model that is sustainable for everyone and delivers free internet to people. originally we thought working with other partners would work. but now we think we have a sustainable model that is working in multiple countries now and there are a lot of countries are coming online and operators are coming to us. i expect to see a lot over the next year. emily: does that mean no advertising? mark: i don't think it is necessary to subsidize and make this a cheap model. emily: four facebook specifically? mark: in most of these countries there is not a big ad market yet. it is not that we won't do it eventually, but right now what we need to do is to -- we are focused a lot on the quality of the ads. doing that in the developed world -- the u.s., in asia, europe, it is going to be the biggest driver of profitability,

not trying to make add markets out of countries just coming to online. emily: once you get people connected, once you have the power to reach them, how do you use that power? mark: do you mean us -- emily: i am talking about facebook. mark: for us, it is all about enabling people. we worked with airtel in zambia to rollout a suite of basic services. within weeks we heard amazing stories coming in of people using the internet. and expectant mother using the internet for the first time to look up safety and health information for how to raise her child. a poultry farmer using facebook, setting up a page to sell multiple times more chickens than he has sold before. a university student using wikipedia to look up the information and save money on books that she needed for an exam. it's pretty crazy. within weeks, these experiences

come back. that is what we are here to do. the internet is a big enabler that connects people to the modern economy. if we can help do that, that is amazing. emily: what is the likelihood internet.org can get you back into china? ♪

emily: what kind of data are you gathering about these users, and how do you use that data? mark: it is not that different from how people use facebook normally. the biggest thing we had to do to make internet.org work is to connect with different operators in this country to make it easy to buy data when they want to do more things. for example, you may be browsing facebook and see a link to news or see a video you want to watch. you know that is rich media, so it is not covered for free. we can make it so if you tap on it, you can pay and it is good for everyone. it lets them discover why they would want to consume content on the internet.

it makes it so that airtell and our partners can continue investing and make a broader internet for everyone. and he gets more people online. emily: google is working on google fiber. what you think about their approach to connecting the world? mark: the thing is connecting everyone is going to be something that no single company can do by themselves. i am really glad that they and a lot of other countries are working on this. internet.org is a partnership between many companies and nonprofits and governments. there are companies that are doing things that are separate. there is a lot of technology that needs to be developed in order to tackle all three of those major barriers that talked about -- technical, affordability, and social.

i am very positive on it. emily: have you had any talks with google about partnering with them? would you ever party with google? mark: our folks have been talking to them. when we launched in zambia, google was one of the services in the suite. that is valuable, because in addition to health services and education and jobs and different government services, people need to search and find information. whether we work with google or others on that, that is an important thing. i would love to work with google, they are a great search product. emily: bill gates has criticized project loon. "when you are dying of malaria, i suppose you look up at see the balloon and i'm not sure how you are -- how it will help you pick "p -- help you. how do you respond to that? mark: bill and i have had a few conversations about this. i think the reality is that people need a lot of things in

order to have a good life. health is certainly important. we have done a number of things at facebook to improve global health. i am excited to do more there, too. the reality is that it is not an either/or. people need to be healthy and have the internet as a backbone to connect them to the economy. the internet creates jobs, it facilitates health. for example, in the most recent ebola outbreak, i asked folks who were involved in containing the outbreak what can we do to help. the number one thing they said is to help get conductivity. they need to wire up these ebola treatment units to coordinate response so that people can count those who have come into contact with ebola. it ends up being important. i am certainly not here saying that connectivity is more important than health -- that would be ridiculous. i hope we can improve all of these things over time.

emily: we have been getting some notes from zambia, i believe it was something like 200,000 new facebook users. but 300 people using everything else. i wonder how people care about the free basic services compared to facebook. mark: it is one of the big services people want to use. one of the reasons people get online in a developing country is to connect with people. messaging services like whatsapp and facebook messenger are some of the most important services that people want to use. to some degree, it is not that surprising, but i think more people are using these other services. emily: messenger is part of the suite as well. will whatsapp be part of the internet.org suite as well? mark: some countries have a 911, others have health and crime.

some have more things in it than the u.s. does. in each country, the government and local operators will need to figure out what services they want to include. emily: google has android. how do you overcome not having the hardware? not having android? mark: our strategy is to build things people want to use. facebook is the most used app. whatsapp and messenger and instagram are some of the next most used apps. at some level, as long as we are building services that people really want to use and help them, it is not a big of a deal. it is certainly stressful that we think we can help them more or deliver our services better if we had more partnerships. but it is not something i am that stressed about at this point. because as long as we stay focused on building our own stuff, that is the right thing

to stay focused on, not worrying about what others are going to do. emily: you said you hoped for more than one billion people by 2020. do you think you can get there? ♪

♪ emily: so drones and lasers -- you have a whole line working on this. when will facebook drones and lasers be ready for launch? mark: we will be testing some in the near future. i would be mistaken if i gave you an exact date. that is one of the big technical barriers. there are a lot of people who do not live in range of a network. drones and satellites and laser communication is one way to do it. microwave communication is another. they will be the solutions for providing connectivity to people where there are no existing cell

phone towers or infrastructure. emily: facebook is going to be ramping up spending -- how much is going to go to internet.org? and these efforts with the jabber. and where you were working in all this other kind of technology? mark: we are investing a bunch in this. emily: we were talking about china -- your mandarin has gotten good. what are the chances that internet.org can get facebook back into china? mark: that is not our priority right now. right now there are countries that read justice and they connectivity is a national priority. a lot of people in our country use facebook. if there was a way to work together to do that. in malaysia, i was meeting with one of the government leaders there. making it so that everyone and their country is connected is one of their top priorities.

similar in indonesia and india as well. it makes sense for us to prioritize countries that are reaching us proactively. emily: how will you judge that this has been a success? 10 years ago, your vision was to get one billion people on facebook. people thought that was so audacious. if that is not audacious, what is it? mark: the goal is to make it so that a person can walk into a store in any developing country, buy a phone, and get access to free, basic internet services. and that is a priority for everyone around the world. once we make sure this system is working in every country, that is step one. step two is making people use it. that is its own challenge. the internet is one of the best ways to teach people about resources. a secondary goal is to make it

so that this is a profitable thing for the whole international operator community. because that is how you make this sustainable. this can't be something that is just charity for these operators around the world. this will work if providing free basic services actually ends up being a way to get more paying customers and people online. then they can spend more money to invest and build faster networks to reach more people. the signs we have from the early countries that we are in suggest that both of those will be true. that is what i look forward to most. if we can make it so that free basic services are available and 100 or more countries, and one billion or more people can get connected in these countries, it is a huge win for all these people who have access to information on jobs, health information, and communication tools they did not have before. emily: you thinking get more than a billion people by 2020?

mark: we will see. emily: thank you very much mark. ♪

[baseball crowd noise] ♪ ♪ [x1 chime] ♪ ♪ [crowd cheers] oh! i can't believe it! [cheering] hi, grandma! ♪

stephanie: stan druckenmiller has one of the best track records in the history of investing. matthew is going on the record with me for an exclusive interview. what he is worried about, what he is betting on, and where does he see the markets heading. find out straight ahead on this special edition of "encore." druckenmiller: why does the economy need holding up now? it would be remarkable to me if the run in the euro is over. there is good debt growth and there's bad debt growth. stephanie: welcome to bloomberg "encore," i am stephanie ruhle. it is hard to find anyone who has amassed more insight in investing. he spent years working under george soros.