Competition after at t are the offered the credits to more users. The Company Behind the worlds for bitcoin, atm launching in taiwan. How does a bitcoin atm even work . First, the lead, google is joining forces with carmakers to start the open automotive alliance, to Customize Software for use as an information entertainment system. A number of different carmakers have signed up. Gm, audi. The chipmaker is nvidia. At the be a big scene Consumer Electronics show this year, this week. The managing director of free low advisors is with us today. Joining us by skype, john leonard, professor of Mechanical Engineering at m. I. T. And an expert on connected cars. How, exactly, would this work . The alliance between google and the carmakers . They are basically trying to get android on the dashboard . It has been said to me that the dashboard is the fourth screen. If you have your laptop, your , thereion, your computer is this thing where you could view things in your car that you would normally view at your laptop or your desk. Your favorite apps, the music you like to listen to, all in one place . Like your phone on your dashboard . One of the key things is the data coming from the car, so potential for things like map information and the state of the car. There is the whole question of how this interfaces with the straka driving and perhaps self driving cars one day. It is clear that there are a lot of opportunities here to connect data sources from the car into the mobile infrastructure. Speaking during this conversation, unfortunately i do not drive a tesla, so the mapping system is behind. Trying to connect my phone to my dashboard. Why are apps so behind . Is this really going to help . This has been historical, they design the cars five years ahead of the market. The technology is always lacking. Especially with what comes down to smartphones and ipads. Car manufacturers have always been behind the times with expensive Navigation Systems that were not as good as something that you could essentially get on your smart phone, so there has always been this pressure for Car Manufacturers to do this, but they really want to control the relationship with the driver, not something that google is that interested in sharing. Talkviously i want to about apple, googles biggest rival. Last year they announced in june that the ios mobile operating system would be compatible with cars. Different manufacturers have been working to make this a reality. We are starting to see connected cars really hitting the road. Can you compare with what apple has done with what google is trying to do . Is one more ahead than the other . I do not have a strong sense that one is ahead of the other. One thing i would watch closely, ford has a system that creates easy interface through android. I think that the potential for the alliance is this idea of broad dissemination across different cars, sort of an exciting vision. But it is hard to say what the relative status is. To anotherings me point. You mentioned that ford has its own set of apps, so to chevrolet as well, part of gm. Gm is now a partner with google. Apple is doing things with automakers and partnering with google. Is this going to be a disintegrated experience . A disparate experience . Or can they find this find a way to make this a solid and oneied experience, mark . Of the battles that has been going on for a number of years that will continue, i do not think this will change, is who controlling the User Experience and relationship with the driver. Maple, primarily, is in the as this. Matt business. Map business. They want to drive that model. Which is a very disruptive Business Model from what some of the other people in their might want to do. Maps,y spaces, especially is coming in to disrupt the Business Model. There is a certain amount of risk for these incumbents on a Business Model basis. There you are looking at their driverless car, which has yet to hit the road. What about samsung . They are announcing this week the samsung connected home, one at to connect your devices. Your devices in your home. Samsung has relied on android and google. Where does this leave samsung and all of this . To decrease their reliance on android, can they get in the cars . A great question. One of the objectives here, i do not know how specifically i can answer, but there is this notion about how long you keep a car versus how long you keep the phone. When your phone becomes obsolete, you can plug it right in. Scenario is open competition, where players like samsung could, by having the best phone, be in cars and be connected. One last question. We talked for a long time about how long it takes to connect the car to the road for the average consumer. Mark, how far out is this, really . How long before average people have a car that works with their phone, their life, essentially . That is the thing. Things are coming closer. Carmakers, years ago, they kind of cracked on their demand to control the Center Console and started bringing in people like google and others, who have better experience. I think that will be the thing that accelerates. You have got to get the hardware in the car, which might last for 13 years, with software that evolves every six months. That is the challenge. I think we are a couple of years out. It will be evolving. But i think it will clearly get there in the next three years. We say that this may or may not be the year, so we may definitely be right. Thank you both for joining us today on bloomberg west. Gether company trying to into cars is pandora. Pandora, the streaming revenue streaming radio company, selling advertisements that only people in their cars can hear. This creates a new revenue stream for pandora. Shares are up the highest percentage in four months on this news. I want to bring in andy, a Bloomberg News reporter who covers pandora, in on this story. Why were they not doing this already . They had one advertising platform for all devices. You would basically log into your account and you would be able to hear the same advertisement at a computer or a smart phone, that they had on you. With so many cars able to be builtin with pandora, they have a much broader base, 4 Million People who use pandora in their car on a monthly basis. That is the reason they can now take the big audience and monetize it, taking it out to advertisers who are looking for this valuable demographic. If you are selling gasoline, if you are selling movie tickets, if you are selling cars or car insurance, this is a valuable demographic for you. Does this give pandora an edge over traditional radio . Absolutely. Traditional media original radio has one message that they send over a demographic area. Think about new york, the Radio Station sends an advertisement that is heard by 4 Million People or 5 Million People, but so much of that is received by people who are not necessarily interested. In this case, pandora can say that we have a listener who lives in this zip code, is male and driving a car. We know three valuable pieces of information about him and as an advertiser you now have much more resonance, which is extremely valuable. Are we talkingey about . How big is it . It is huge. This has been a top priority for pandora. What they want to do is go after that 15 billion per year that advertisers spend on local radio. To get into that market, they have to be in the car. According to pandora, over half of all radio listening happens in the car, which makes perfect sense. A format that has not been eaten away by the internet, yet. Built intondora is so many cars, nine out of 10 of vehicles in the United States come builtin with pandora. There is a high likelihood that if you are buying a car this year, pandora is builtin. Giving them a huge opportunity to go after that 18 million. We will be watching. Andy, thank you. Coming up, our experts, will step chat need a lawyer . They do not need a lawyer, but maybe a lobbyist . Will those snap chat problems disappear . Back to bloomberg west. Snap chat has hired a lobbying firm for the first time. The firm read by run by. Eather podesta this comes after they faced a Security Breach where the user names and phone numbers of 4. 6 million members were posted online. Tmobile is striking back, striking a deal with verizon to swap a lot of money for a lot of catchup. 2. 4 billion in cash. Is of their biggest problems their network capacity, they are making a lot of strong moves to get subscribers to come over. This in part after at t has been trying to beat tmobile at its own game, last week offering customers 450 in credit to jump over from tmobile. I want to bring in our editor at large, cory johnson. Not surprisingly, the tmobile ceo has been tweeting furiously about all of this. Calling out the ceo of at t directly. Why would verizon do something to help tmobile . I have been covering telecom and technology for along time and i find spectrum deals hard to understand, which is why i am lucky that christina is helping me now. Helping tmobile right now . They are helping themselves. This is spectrum that they were not using anyway and they are trying to unload it. They have not found a buyer to pay for this spectrum, this was buyer and seller coming together on price at the end of the day. Cashber, to . 4 billion in is going to verizon, but t mobile will be giving verizon some very valuable spectrum that they want to build out their lte network. This is crucial. From the standpoint of tmobile, they are getting that low band spectrum that goes far and can asetrate office walls and well. The 700 megahertz spectrum, not to geek out, it lets them do the things that they have tried to do with data. For tmobileble because why . Exactly. Credibleing to be a competitor to Verizon Wireless and at t, which has been tough as number three. Trying to be a more credible competitor in an environment where people are streaming videos for hours at a time, gobbling up bandwidth. Number two, it could make it more attractive down the line for the likes of sprint, which has a lot of money and backing from softbank. If they can make themselves attractive, the two of them combined although the technologies are different, it. Ill be difficult it is in fact concentrated spectrum. What is interesting is yes, it makes a deal more attractive, but if they can have more , they need a better business. Is like a nice byproduct of this, if they decide to go down that road, but as emily pointed out, tmobile has been very aggressive, calling themselves the uncarrier toproviding Services Customers without longterm contracts that give consumers so upset. At the end of the day they are billing themselves differently from the current options. Thend then there was profile from business week couple of weeks ago. Make sure you include me in that. I will. I never forget you. On. K you for coming thank you. John leger will be right here later this week. Looking forward to it very much. Up, the worlds first bitcoin atm. Yes, there is such a thing. Welcome back to bloomberg west. I am emily chang. We are talking about the first Global Bitcoin atm that is expanding into hong kong and taiwan. The first one was in vancouver back in october. I want to bring in our editor in new york today who is in on this. I do not understand. Can you print this . I thought it was a virtual currency. One of the problems of bitcoin is the availability. Was it available to . Joining me by skied from Los Angeles Las vegas, i am trying not to be a kneejerk skeptic, so ignore how my knee jerks, talk about this for bitcoin. The think it increases accessibility of the currency. Our goal as a company is to make bitcoin truly accessible to the masses. That is what this machine does. The easiest way for people to buy and sell bitcoin for cash. In terms of cash, is this because of the i dont know, volatility of the price of bitcoin . Is exchanging it for cash a moment of cashing in on a bet because the volatility is so extreme . That is one of the most difficult things about this being an excepted currency, the value changes so rapidly. Indeed. We do protect against that. , you are not0 bill really speculating on what you are putting in. It is just the final price you are buying. We took that into a lot of consideration when we developed the software for the machine, which integrates with online exchanges. What we do is we sell the coins to operators all around the globe. We have had huge interest. We also make sure the software protects the operators and takes away the risk when it comes to the selling and buying a bitcoins for customers. How much bitcoin does your company or you have in your reserves to manage this process of, essentially, for couple of minutes, you are lending or and owning the risk . Again, what we are doing, we are operators. These guys look in their exchange account. They are not even Holding Bitcoin or speculating on the price. They are owning their exchange account. We are connected. This is a pretty exciting Patent Pending technology we have developed. How many will be rolled out . We have already received wires for well over 50 machines. We will be fully global by the end of march. 50 is a lot really fast. The demand has been absolutely incredible. Launched in vancouver on october 29, we have had over one a 100 inquiries around the globe. Call after this i have a from tel aviv and after that, jerusalem. And then after that, south america, mexico. It is unbelievable how global this company will be very quickly. Interesting. Thank you very much. Past the hour . S time for on the markets. Julie hyman, whats up . Crisis is the first time we have seen a trio of declines in the market on the first session of the year since 2005. It is a little bit unusual. The pullback being sparked after the worst an estimated Economic Data coming in worse than estimated, pushing the major averages down. That said, we are not down by much. Watching the Solar Industry today. Goldman sachs, talking about solar city being upgraded to a by, apparently because of the exposure to the rooftop industry, installing panels on peoples rooftops. Solar was downgraded at goldman, analysts saying that they are not looking at fundamentals, particularly prospects for expansion being megawatts, which is what they expressed concern about. We will be back on the markets in 30 minutes. More bloomberg west, next. Early edition of bloomberg west. You can also catch us at our later time. Now, for your top headlines. The coldest air in nearly two decades is heated hitting the eastern half of the country. A hard freeze warning extends as far south as florida, the weather has also caused the travel might mayor. Jet lou Just Announced that they are suspending operations out of boston and new york to catch up after all of these delays. Angela merkel has been told to rest after fracturing her ankle in a skiing accident. She has canceled a number of appointments and will be doing most of her work from home over the coming weeks. Waitingeme court is back into the gay marriage debate, putting gay marriages in utah on hold. The hold is temporary as they appeal the Lower Court Ruling that the ban on gay marriage violates the constitution. Oh, one more thing, go nine or is. The 49ers, beating green bay in green bay, where temperatures were five degrees at kickoff. Windchill was 10 degrees below zero, while a lack of ticket sales threaten the television blackout in local markets, but luckily the game wound up selling out. Stadiums need to compete without home viewing experiences, which are always much warmer. Savvy. Ome more tech the 49ers may have the right idea. Lets take a sneak peak at the new stadium here in silicon valley. 69,000 fans. I get crazy excited about it. 170 luxury suites. 1. 3 billion. We are talking about a world class stadium. 49ers are upping their game, getting ready to move to what is being billed as the most tech savvy stadium in the country. Free wifi . Check. Game day application . Check. Fantasy full ball updates . Check. This is our outdoor hd video board. Players on the field will look up and see who is chasing them, no doubt. The 49ers may have lost their last super bowl, but their new home has already won the bid to host the 2016 super bowl. This is the chance from the bay area to show the we are not just the tech center, we are a sports and Media Entertainment center. He should know. Small bands of people can band together and fundamentally change the world. Most nfl stadiums cannot compete with the highdefinition experience you now get watching football at home. The new 49ers stadium is in santa clara, 49 miles south of san francisco, deep in silicon valley. Meaning they have to woo the smartphone set. A special game day out, with features like instant replay, even concessions, right in your pocket. Can we deliver food, beverage, and merchandise to every one of the 7000 people in the stadium . We are working on it. Imagine a cashless, ticketless experience where you do not even have to bring your wallet. There are dozens of software systems. Pointofsale, ticketing, fan inventory. Sometimes you cannot get a photo or your instagram, or in some cases not even make a phone call because the lines are tied up or the bandwidth is not there. To a new wifi network, fans will be able to update statuses, photos, and tweet with ease. No one is more pumped than the players. I cannot wait. I have dreamed about this stadium. I think i will make the drive for that. In other football news, prices for super bowl commercials, just announcing a whopping 4 million for 30 seconds of airtime. Cory is in new york. Alex sherman is also there. First of all, i just have to say that beyonce, if this was entertainment last year, this is bruno mars, not quite the same thing. It could be between those, honestly. [laughter] 4 million . Really . That is a lot of money for 30 seconds. You have this massive disbursement of lauds, little sites like twitter, and the small voices that are pushing a much bigger presence in the media, but you still have these big tent full of vents getting bigger, like the super bowl, the oscars, and these really big events that are the really only way to reach these massmarket at these