All this is coming as sprint is preparing for tmobile takeover bid. I spoke with the president and started by asking about the boom in start up growth and how this happened. We added not only 2. 4 million customers this quarter, but 6 million in the last year. 1. 3 million postpaid net adds in 3. 5 million in the year. As you said, we added 12 times as many phone net adds as our nearest competitor. The only reason is that the other two competitors, the calculation is infinity. In an smart people like you cant out that math. It is a vindication that the on Carrier Movement is the right one. It has 20 of runway to go. Once you have our numbers, the Wireless Industry grew in q1. All the growth went to tmobile, so it is a good start. How long can you sustain this . Comedy customers are really that unhappy with their service that they will cut bait and switch to you . Just approaching 50 million customers. Last time i checked, the duopoly has 100 million. We have a long way to go. At t and verizon have been making changes to respond to us. They are temporary. Theyre the same kind of bureaucratic, shortterm trickery. It is just not working. I dont care what they do. I am just focused on making the changes that solve consumer paying points. As you know, there is plenty more. I see any reason why we cant continue this momentum. Color me unimpressed as relates to verizon and at t. I was in the car with an uber driver. He wished he could switch back. He said the coverage does not compare. Was your driver cory . Hes an uber driver now, isnt he . Yesterday we got an approval for the 700 and acquisition from verizon. Our Network Improvement over the past year from zero pops of lte, with the deployment of the 700 megahertz band which will be focused mostly on in building penetration and rural edge coverage, there is line of sight to it. I want to tell you that the improvements in the network were directly correlated to why we had record churn, at one point five percent. Long with moving from 11 share, that suggests that these Network Improvements are working. We will continue to invest. Hopefully, if you send me the name of the driver, we will find out exactly what his issues were. We will solve them. That is what i do every minute of the day on twitter and iphone. I work on individual peoples issues. At is working. That is working. You are still losing money, more money than people thought you would be losing at this point. How long are you willing to continue to do that . Lets put that in perspective. When people say we are losing money, more than people expected, we have shifted our own guidance from what was a range of 5. 7 two 6 billion, we changed it from 5. 65. 8. In q1, the volume of business coming in was huge. Either way, that is a trade off anybody would make, any shareholder would make. It is not sacrificing profitability. This is an acquisition game. The cost per Customer Acquisition that we have is wonderful. We just front end loaded a huge amount. Our mediumterm cash flow is completely intact. Especially with the metro merger going way ahead of schedule on all fronts. Bloomberg is reporting that sprint is planning a formal bid sometime this summer. Youre the leading candidate to run a combined company. When i tweeted this yesterday, you tweeted back at me, and my . Am i . It took approximately seven minutes to get to this. This is seven minutes more than i thought it would very when you same bloomberg reported the story, i think it was actually you. If i could have caught you directly, it wouldve been other than . Consolidation is one path forward for this company. Im not going to comment on any individual talks, but with the growth that we have got in the options we have, consolidation is one good option. Our shareholders and owners would consider any opportunity. Im not privy to any of what you learned. Any individual speculation about me, you know my own opinion of myself. It would be easy for me to comment on that. I do give credit to our deal team for breaking the story. I merely tweeted it. From a competition to, the industry has changed since at t tried to buy tmobile. Youre making tmobile stronger. Doesnt that undermine the argument that at t and verizon are unstoppable dupolists . What were seeing right now is a glimpse. These guys are nervous and restless and trying to figure out what to do. Consumers are celebrating the ability to pit people against each other. Competition is great for america and great for the industry. In order to keep that competition, which is a big goal of the chairman of the fcc, a lot of things have to happen. You have to make sure that the duopolists do not make inappropriate use of their economic rows. Consolidation is usually thought of as one way. Back when at t was a possibility, that was a different game. People were looking at consolidation purely to aggregate spectrum. Right now, tmobile is a thriving, fun entity with a great path forward. When people look at tmobile, we look at our path forward. It is how to take this maverick approach, how to take this on carrier revolution and keep it going. One way to do that is scale and spectrum. His is just one possible theoretical way forward. It is a very different time and environment. Sprintlikehell. One of the things i would do differently with these companies is run them. I would stop all the idiocy of looking at each other and focus in a very humble way on serving customers and solving their needs. All kidding aside, what you just did with some of the s that were used, and i know you are quite avid, social media is nothing more than another way of touching individual customers, listening to them. The difference with me is i listen to them and then i walk in and use that as the strategic input as to how i run my company. It is not mckinsey, it is not pain, it is individual customers time he were to do, creating the on carrier. I would do that in any of these big companies. Frankly, i dont know if those companies are ready to change. Whether it is sprint or at t, or any company, this is what we do. It is not just me, it is all of my employees and management team. That is all we are about very we are having a ball doing it. Tmobile ceo and president john leger. The companys days of moving fast and breaking things are over. We will bring all the highlights from facebooks Developers Conference next. Facebook is trying to become an even bigger player in mobile. Among the announcements, an anonymous login feature to let users try apps without giving their information away. Take a listen to Ceo Mark Zuckerberg describe why this feature is so important. If people dont have the tools they need to feel comfortable using your apps, that is bad for them and bad for you. It will prevent people from having good personalized experiences and trying out new things. It also might hurt you and prevent you from getting new potential customers. We need to do everything we can to put people first and give people the tools they need to sign in and trust your apps. Zuckerberg announced plans to make facebook the cross platforms by form. The company also unveiled an Audience Network to help developers make more money. I spoke with our senior west coast correspondent jon erlichman. I started by asking david who also went to f8 who benefits from all these new products. In a way to mother trying to make themselves more boring. He talked about this idea of a stable, mobile platform. It is a very unsexy idea, but one that developers will really welcome. There were scattered cheers for things that ordinary people mightve thought, why would anyone cheer for that . Developers want to get customers, they want to make money for their apps and they want to make it easier to build their apps. Facebook focused on building, growing and monetizing apps. They have second separate they have separate sections for apps. It was a step forward for facebook. Adam, what does this mean for advertisers . Does this mean you guys get less information . Probably not. What it means is that users can feel more comfortable logging into apps. While they may trust they spoke, they may not trust every app that they login with. That doesnt mean facebook doesnt still have information about that person that they can then aggregate and target across those apps are still using facebook. From an advertiser perspective, it doesnt have the big impact, except for the fact that facebook now will have people feeling more comfortable across more apps and logging and more often. He mentioned scattered cheers. How Developers Feel about all of this . To be clear, there is a difference in an audience at an event such as this versus some ipo roadshow or an investor conference. I think there would have been some cheers from the wall Street Community for the business of facebook. The reality is that with facebook, they have had so much success with these highly targeted ads that come through your feed when youre on your phone. They are able to generate a lot of Advertising Money from those ads. A lot of those are ads that get you to download another app. They hate when people complain about having too many ads in that experience. This day is about reaching out to those developers who also have ads in their apps and say they want to partner with you and help make more money. It is important part of the Growth Strategy of facebook. If that means giving up some of the information theyve got to facebook login to cover more territory, so be it very it theyre looking at this to really grow their revenue. This gives facebook even more power as a gatekeeper. David, what do think apple thinks about this . What you think google things about this . Mark mentioned that apple and google are never going to do some of the things that they announced today because a lot of what they did today was oriented towards interoperability for people who have an Android Phone but use an ipad. What happened was, in the web days, there were some basic things that everybody could count on, html, websites work the same no matter what platform you use to them on. The web platform is completely different. There are barriers and barricades all over the place. Facebook was essentially trying to say, were going to break down those barriers. Ultimately, apple and google would prefer a lot of those barriers remain in place. Theyre probably not totally thrilled by it. They would never have done it themselves. What about this Audience Network, this ad exchange, adam. How to put this in context of the biggest player in the room, which is google . I would say facebook is definitely out innovating google right now when it comes to add rod x, particularly in the mobile realm. What about google . Facebook is by combining both. His rapid innovation with the massive reach. Theyre becoming a juggernaut in the advertising space right now. That was john erlichman, adam burke and david kirkpatrick. Up next, twitter Ceo Dick Costolo will answer the question if twitter will ever go mainstream. Dick costolo already thinks it is. Welcome back to the best of bloomberg west. Im emily chang. It is a different story with investors and analysts. After the First QuarterEarnings Report, shares plunged this week. User growth slowed yearoveryear. A lot of people are asking the question if twitter can ever be mainstream. I told their ceo, who thinks twitter is already mainstream. I asked him why. A lot of people think of twitter as a product or just a website. The reality is, twitter is in front of people around the world every day, and it is all over tv. The new nba commissioner had tweets on air during his press conference the whole time. Just a couple days after the oscars, over 3 billion views of tweets just about the oscars on twitter, but all across the web. In print, on air, on the web, in mobile, it is already embedded into the fabric of the culture, not just united states, but the world. In that sense, i already think of it as a mainstream platform. A durable and lasting platform upon which we can build a great system. The revenue story is up. Investors are zeroing in on user growth, which did slow down. But it reacts rate it sequentially. Why do you think there is this disconnect between what ucs the promise of twitter and wall street . Two things. In answer to your first comment, ultimately, were going to be judged on our financial results. When we talked about ipo, i told you we have a lot of work to do. We know we need to do in service to taking that mainstream understanding of twitter as part of the culture of the world and helping those people understand the value of logging in to and getting that additional benefit. We have a lot of work to do that we started on. I love the early progress we have made that started to show Great Results in q1, but needs to continue the rest of the year, building on the things we have done to make it easier to use, to bridge that gap between awareness and engagement. Is a something specific about twitter . Do think the response would be different if he took it off the Earnings Report . The results are strong. Why do think youre focusing on this one number . It is incumbent on me, the ceo, to help the rest of the world understand the value of the broader platform. We have aliens of views about an event in just 48 hours. We look at other mainstream platforms, you can pick youtube as an example, the bigger content networks on you to get billions of views over the course of a month. If you are an advertiser today and you come to twitters ad exchange, we can get your advertisement in front of over one billion ios and Android Users today. Thousands of mobile applications. If you have a cell phone in your pocket or a smart phone in your pocket, fire up one of the apps today and you will see a twitter add. It is incumbent on us to articulate the story of just how big the broader platform is good it is so much bigger than the website or the application. You have made a lot of product changes. I am actually really liking it, the ability i was a little apprehensive when you change the product. Youre always worried about how people will respond. I am liking it. What else can you do . You have done so much, what else can you do . The kind of things you described, making twitter more visually engaging, helping people see the most valuable content on the page, are exactly the kinds of things you described about the profile page. Ringing that to the rest of the product, making it more visually engaging, bringing the content forward and pushing the scaffolding of twitter and the language of twitter that is opaque for the new users who come to it, pushing that to the background. Allowing users to mark tweets as highly significant. The kinds of changes were making that are showing Great Results, we need to thread those into the entirety of the product and then hopefully we will see continued Great Results. How much experimentation are you doing at a daily basis . I hear google say theyre doing thousands of experiments on any given day. How much do you play around with stuff . There are well over 100 experiments running in each of those apps. So hundreds. The beauty of that framework that we have worked on over the past 1824 months now is the speed with which it allows us to run more and more experiments and get data from those that we can compare to a control group and see if the experiment is working or not. The faster we can move on those things, the faster we can change the product and service user. In part two of our interview, i asked him about the recent poaching of a ceo. Youre watching the best of bloomberg west. This is the second part of my interview with twitter Ceo Dick Costolo. Take a listen. He will be working with me on Consumer Products. He was the director of products for google maps. Has a great Consumer Product scale on both the ios and android platform. He has been ceo of a startup. I love the entrepreneurial spirit he will be able to amplify that already exists in our Consumer Product group. He will come in and work with ali and i. It will bring an entrepreneurial spirit to the team. He will come up with his own ideas that we will let him run with. To be fully engaged with twitter, you really have to tweet. The majority of users on twitter tweet. Thereve been some third Strange Party reports that have gotten it wrong. The majority of users of twitter tweet. As we scale it and continue to grow, we have 14 million new users in the First Quarter, it will likely be the case that more of those users will come to the platform and be just consumers. That is fine. He made no distinction as to whether someone does or does not have to be a twitter. Our marketers want to reach active users and it does not matter if their consumers and producers. I read you call this the global town square. You called the companion expressed to what is happening in your world. Others have said it is like a democratized newswire. Does it matter . I am glad you asked that question. The thing i like about the companion experience as to what is happening in your world is it crisply let you know what to build for the product and in service to our users. I love the metaphor of the global town square. I dont think it is as good as informing the product and design team what they should build for the users. The companion experience to what is happening in your world is a more crisp definition. Messaging apps are hot. He went to enhance the ability to move between public and private messaging. I would like to never have one ever again in my life. What do you mean by that . What would it look like . When i talk about direct messaging in twitter, i am talking about public conversations on twitter. Twitter is entirely public realtime conversation. There are frequently public conversations that you would like to grab hold of and take in to mode with a friend. Look at what these people are talking about. Being able to move fluidly between that public conversation and a private conversation is something we will make simpler. In terms of the bigger picture, we know that the class of 2013 tech stocks are being reevaluated. The nasdaq is down. How much do you Pay Attention to what is going on in the market environment . Ho