Transcripts For BLOOMBERG Bloomberg West 20140619 : vimarsan

It is an area of growing research with some Companies Looking into whether printers can make human organs for transplant. We will hear more about the efforts of one company that is already reducing living tissue. Risingckberry shares are after the Company Reported a smaller loss per share and 23 million in net income in the First Quarter. Cost cutting and asset sales helped the smartphone maker, which is still dealing with revenue issues. I will speak with the ceo at the bottom of the hour. Day,r lead story of the tmobile ceo john ledger takes aim at rivals at t and verizon with a new program called an carrier five point know. 5. 0. Carrier hiphop duo macklemore and ryan lewis headlined. The packed house also got to hear about tmobiles Free Trial Program where potential customers will get a free iphone five four week to try out the mobile network. Tmobile is also waiting data charges from Music Services like pandora and spotify. And it is setting up its own music streaming service. I spoke about all of it with tmobiles ceo, john ledger. He announced the availability of wideband lt in 16 markets in the u. S. Already, which gives you up to 150 megs of speed, that is a 90 minute hd video in in about 100, and 7 Million Peoples locations in 15 markets. Was the 6e found billion dollars in media spending that the industry is spending on maps, and a cacophony of crazy messages, makes it hard to come through. What we found by listening to our customers is what they said to us is, hey, we love what youre doing, but we would love a chance to test drive. We are offering a program where we are offering something called the seven night stand and it is the ability to get the iphone 5 s from apple fully loaded and have the experience for week free of charge, no down payment, no cost. We believe that will change the way the industry purchases wildly. What youre doing is quite impressive. Why dont the other carriers do this . Contract ort is no anytime upgrade or International Data roaming, people have artificial barriers in their mind about why it was done the other way. We talked to apple. And by the way, this is great. Apple, the awareness levels by tomers that people will that tmobile has the iphone is very low. This is a chance not only to test drive our network, but test drive the apple iphone five s apple iphone 5 s. It begs the question why it was not this way, but tomorrow it will be to the other guy, why dont you do this . Apple does not usually partner. How did the partnership with apple come about . Clicks one of the reasons that we are partnering is one of the reasons that we are partnering is it is a small update i provide to you. Tmobile is the fastestgrowing Wireless Company that exist. Obviously, apple would like to find a way to be a higher percentage of our business and get the word out. Andave a very good strong evolving partnership with them for the amazon just relieved its new smartphones. At t is the exclusive carrier. You have not been shy or shy, as usual, about your thoughts. You said, amazon does not know what they signed up for. Tell us what you really think. Back andd love to come talk about music freedom, but the observations for me are, i was really excited. I was expecting something big. Oldi kind of saw an business model, twoyear contract, exclusive with at t, a home a phone that was as high as any device in the market. As a prime customer, i thought they would give me a phone, but they gave prime service to the other customers. I did see that the phone will allow you to point at things and it will tell you what you are seeing. For me, i usually know what im looking at, except late friday night. And im not sure having my phone to me what im looking at is going to help. I dont know. Great way, if it is a success, then i believe you will be able to buy it unlocked and tmobile customers can have it. Carrierger question is un five and six. Lets talk about that. How much do you think this will entice customers to switch to tmobile, or stay with tmobile if they are thinking about switching . Clicks here is what i know here is what i know. About 113 Million People stream music on their devices. That is double in a year. On the traffic on this network has gone up sixfold in the last couple of years. It is a big deal. Secondly, i know that the other carriers are just using this as an opportunity to gouge plans. They tell the customers what service to use, and then they charge for every single minute of listening. Pain point is, music freedom needs to be solved. We are providing our customers free streaming, Unlimited Music in the top six or seven services, and then more to follow. And we also work with rhapsody to create what is called un radio. To our unlimited customers who already get free streaming. It will be a very big deal. Radio, un carrier, you are on a roll with the un. What is next with the merger and you being in charge of a . Last time we talked, it took you seven minutes to get to that question. Today, i think you are down to about five. You need a little improvement for the im running out of time. But we are not going to comment on rumors or speculation. Been candid about the industry and the importance of this to the wireless consumer. Willnk consolidation continue this momentum. Tmobile ceo do john legere words, but after that interview, take a listen to what he had to say to the crowd that came to the news unveil. Clicks every time we do something, people do not tell me, hey, that is a great idea. They say, how were you able to do that . The assumption is, these high and mighty doowop list that are raping you for every penny you have, if they could doowop a list that are raping you for every penny you have, if they could do something nice for you, they would. The truth is, they hate you. But did he go too far . What do you think about those comments . Did he go too far . With the word rate, yes, that is a deeply unfunny word. There is something i like about what john legere is doing. He is driving down prices in the telecom industry, and it could not of happened to a nicer industry. One of the things that has happened since tmobile decided they would compete, and they started driving their prices, you have seen average revenue per user dropped all over the industry. It drop for at t, for sprint, and is finally starting to drop for verizon. That is having a really good effect. The problem is, there is another dog whistle in what he said. He said, the doowop lists duopolists. That is code word for at t and sprint. At t and verizon. It is true that tmobile and sprint would like to merge. What he is saying is, we dont have a chance unless we merge. While he is being all crazy and wearing his pink tshirt and talking about macklemore, what he is really talking about is we need to merge. We need to reduce competition to increase, addition. It is a questionable strategy. Im not sure i buy it. Dear he just tweeted, at t, verizon, and sprint, almost 2000 of your customers have signed up to cheat on you already. When i talk to tmobile employees, they revere him. He has brought new energy to the company. Whatusly, they like theyre hearing. Can he keep up the rhetoric if hes not the underdog anymore . Know whether he can or not, but i dont and hes going to need to. The sec and the Justice Department has made it clear they like having four major in the wireless market. That is not an accident. Economist know that around three or four players, usually for, that is when the market is truly competitive. See companiesou competing on price. It is true of widgets and also wireless carriers. When there are only three when tmobile and sprint together have the Spectrum Holdings that the two of them can have come out when they can buy enough spectrum to have as much as at t and verizon do if that comes through, are they going to have to compete on price the way they did before . Or will we see a stasis in the average revenue created per user . Will we see a continued burdening of unfair contract terms . Toobile does not just want make the customer happy, but it wants to make money. A really good way to make money is to go to three players and leave prices where they are. But i asked him if he had any second thoughts i asked him if he had me second thoughts about what he said last night. I have not heard yet from him about that. I will let you know if i do. Coming up, we are waiting for president obama to speak about action in iraq. We will take you to the white house live. Welcome back. Im emily chang. Twitter is pushing further into television, making a deal to buy a company that is working closely with twitter, snappy tv. It is working to distribute video across a number of platforms and Technology Already used widely by many twitter advertisers and media partners. The Goldman Sachs Harvard University Global Education conference is underway. It brings together 600 leaders in education from the public and private sectors. With Companies Like poor sarah, daphne, and annex already disrupting traditional education models, what will we what will be the next big thing in education . I spoke with george from the harvard and at asked him about what he is most excited about in education today. We are excited to be cohosting this with harvard. We have an Extraordinary Group of people. It is a unique conference as Goldman Sachs conferences go, in that it brings together companies, investors, academics, administrators, policymakers, government people. It is a unique group of folks. The recurrent theme from the discussions this morning is the possibility for Technology Disruption in this space, to increase the access, quality, and outcome of education throughout the world. It is a very exciting time in this market. Education, and Education Technology companies have not become huge companies, especially by Public Company market cap. How do you see that goldman focus on education paying off . Well, two things. First, there has been a sea change in the market as far as investor dollars in this market. If you look at the time from 200111, there was about 250 million a year invested in the market. In 201213, roughly 1 billion in each year invested. Ae at about 2 billion rate of 2 billion for this year. It generates returns and create new companies for us. This market has already been quite important and active for us. We have done some 17 transactions in the last 18 months in this area. It has already been a pretty active space for us. You worked with some of the biggest and most powerful Tech Companies in the world, from apple to facebook. Could an education or Education Technology company ever become as big as facebook . If you look at that market opportunity, and thought about the opportunity statistic that i shared earlier, it seems like there is every prospect for the ability to create a very large Market Cap Company in this space. Just the sheer size of the opportunity in the market is larger than those companies you are referencing. I also believe those companies themselves will increasingly become interested in this market and there is a play for large Companies Like that in education over time. Speaking of Online Education Companies Like audacity and corsair a, which are trying to replace traditional courses with online, do you see the potential for Online Education to replace traditional degrees, like a harvard degree for example . Nothe way to look at it is like a disruptor, but an expander. Most people engaging courses e Available Online through are not College Students like you and i. They may be unable geographically to access the quality education they want. Are moreocs expansive in their education access. One thing you have seen with harvard and others beginning to dip their toe in this area. I have to ask you about the buber,ment right now, which i know goldman is a part of, where do you see and what do you think about the word e . Uble bubbl i have been in this market for 20 years and ive seen its ups and downs. I have never been more excited about the prospect for companies to create change and value in our society. To the extent there is some breakaway outcome in this space, in some ways it is not surprising, given the company impacts on the world around us. There will always be ups and downs in this market, but the fundamentals are so compelling in technology today. No wonder companies are creating this much value out there. But how do you see some of the turmoil happening in tech marketes and the public impacting private companies on the choice whether to go a book or to sell m a activity . I think one of the things that characterizes the Great Companies that we get a chance to take public is that they are much more focused on their life as a Public Company as a journey, as a process, and less singularly focused on the ipo as an event. It is really about the timing of taking the the company public, and what advantages can be gained by taking the company public. Theres less focus on the market tone, which you know can change printer medically. What i see pretty dramatically. I see in the companies i deal with is more focus on creating value and less focus on what is going on in the market day today. George lee, Goldman Sachs cochairman of the global tech media and banking investment group. While we are waiting for president obama to speak, he is scheduled to speak on a rock and the options the u. S. May take to help iraqs government quiet this swelling insurgency in a come backcountry. We in that country. We will bring you his or marks life. Remarks live. Welcome back. We are waiting for president obama to take a podium at the white house. Andill be speaking on iraq, we will take you there live as soon as it happens. But first, we returned to our wiring the world series. Parts are not just for cars or airplanes. You may someday find them in your body. Medical Research Companies are investigating whether 3d printers can construct human organs. Company has already produced living tissue that it plans to sell to drug makers to test new products. House the how soon will doctors be able to perform transplants for kidney or liver . Shannon, how far off is a . And how does it work echo how far off is it . And how does it work . You take stem cells from blood and put them in a petri dish. And then you grow enough cells were you can put them in a printer cartridge, or the type of cartridge where they use to print out parts and let it print away. This goopy are from scaffolding that hold it all together. You could eventually produce a bladder, kidney, or liver. Thisis all still theory at point. We are probably years away from someone actually being able to go to their doctor and get a replacement organ. But we are getting a lot closer than a couple of years ago when i first started looking into this. We actually have bladders that were artificially grown in labs and have been implanted in patients and tested and studied. We are moving closer. I know it sounds like scifi, but it will be reality in the next five years or so. Fascinating. Shannon pettypiece, our Bloomberg News health reporter. A story we will continue to follow. Thank you. We will have the president speaking at the white house live when that happens. You are watching bloomberg west where we focus on the future of technology and business. Im emily chang. Firstquarter earnings for blackberry show that the costcutting efforts are starting to pay off. However blackberry still has major challenges on the sales side with revenue falling 69 in the first in the First Quarter to 966 million. Me to talk about their turnaround efforts is blackberry ceo john thain. Actually, we will have to hold the phone for a moment. I have to get over to new york to where president obama is about to speak at the white house. Mark halperin in new york right now. Good afternoon. Hear frome to president obama in the briefing room, expecting to hear his statement about u. S. Efforts in iraq. Our colleague at the White House Point out this is unusual. Barack obama got elected in part talking about getting out of iraq. I think the scene down there is a little surreal, especially for those who have covered president bush and both of those administrations. Got so farsaid, he publicly on the promise of getting out of this country. And now on the tail end of his administration, and being forced by events on the ground to get ready to commit some degree of force to the events spiraling out of control. With whiteident met house leaders and briefed them. Hes is meeting with the full National Security team exploring military and security options. There is clearly not happiness in the white house with the current leadership in the Iraqi Government. Here isnd gentlemen, the president. I just met with my National Security team to discuss the situation in iraq. We have been meeting regularly to review the situation. The terrorist organization that operates in iraq and syria made advances inside iraq. As i said last week, it poses a threat to the iraqi people, to the region, and to u. S. Interests. I wanted to give you an update on how we are responding. First, we are working to secure our embassy and personnel inside iraq. As president , i have no greater priority than the safety of our men and women serving overseas. I have taken some steps to relocate some of our embassy personnel. And weve sent reinforcements to better secure our facilities. Second, at my direction we have significantly increased our intelligence, surveillance, and reconnaissance assets to have a b