>> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation and the future of technology. i'm emily chang. ahead this hour, i spoke with t-mobile's outspoken ceo about the carrier's latest moves to stand out in the wireless industry. allowing potential customers to test drive an iphone for a week. legere is also getting some attention for harsh words he had four rivals at&t and verizon. will companies one day be able to print human body parts using 3-d printers? 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.

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 t-mobile's 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 three minutes, and in about 107 million people's locations in 15 markets. but what we found was the 6 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 you're 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. -- while us -- wireless services. >> what you're doing is quite impressive. why don't the other carriers do this? >> whether it is no contract or 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

customers that t-mobile has the iphone is very low. this is a chance not only to test drive our network, but test drive the apple iphone 5 s. it begs the question why it was not this way, but tomorrow it will be to the other guy, why don't you do this? >> apple does not usually partner. how did the partnership with apple come about? >> one of the reasons that we are partnering is it is a small update i provide to you. t-mobile is the fastest-growing 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. we have a very good strong and evolving partnership with them. >> amazon just revealed its new smartphones.

at&t is the exclusive carrier. you have not been shy, as usual, about your thoughts. you said, "amazon does not know what they signed up for." tell us what you really think. >> i would love to come back and talk about music freedom, but the observations for me are, i was really excited. i was expecting something big. and i kind of saw an old business model, two-year 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 i'm looking at, except late friday

night. and i'm not sure having my phone to me what i'm looking at is going to help. i don't know. by the way, if it is a great success, then i believe you will be able to buy it unlocked and t-mobile customers can have it. the bigger question is uncarrier five and six. >> let's talk about that. how much do you think this will entice customers to switch to t-mobile, or stay with t-mobile if they are thinking about switching? >> 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.

the 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 unradio. it is a gift to our unlimited customers who already get free streaming. it will be a very big deal. >> unradio, un carrier , you are on a roll with the "un." what is next with the merger and you being in charge of? >> 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 -- >> i'm running out of time. but we are not going to comment on rumors or speculation. i have been candid about the

industry and the importance of this to the wireless consumer. i think consolidation will continue this momentum. >> t-mobile ceo john legere. never minces words, but after that interview, take a listen to what he had to say to the crowd that came to the news unveil. >> 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 doo-wop list that are raping you for every penny you have, if they could -- doo-wop a if they could do something nice for you, they would. the truth is, they hate you. but did he go too far? >> he tweeted sincere apologies to anyone offended last night.

i had a chance to speak with brian greenlee. >> did he go too far? with the word rape 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 t-mobile 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 duopolists. that is code word for at&t and verizon. they have a merger plan with sprint. t-mobile and sprint would like

to merge. what he is saying is, we don't have a chance unless we merge. while he is being all crazy and wearing his pink t-shirt 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. i'm not sure i buy it. >> and he just tweeted, "dear at&t, verizon, and sprint, almost 2000 of your customers have signed up to cheat on you already." when i talk to t-mobile employees, they revere him. he has brought new energy to the company. obviously, they like what they're hearing. can he keep up the rhetoric if he's not the underdog anymore? >> i don't know whether he can or not, but i don't and he's going to need to.

the sec and the justice department has made it clear they like having four major national players 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. that is when you see companies competing on price. it is true of widgets and also wireless carriers. when there are only three -- when t-mobile 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? t-mobile does not just want to 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.

>> cutting costs and selling assets is one thing. can the blackberry boost slumping sales? i speak with the man leading the company turnaround plan, ceo john chen. ♪

>> welcome back. i'm 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 telecom unit at harvard and 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. >> historically 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 2001-11, there was about $250 million a year invested in the market. in 2012-13, roughly $1 billion in each year invested. we are at a 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? >> the way to look at it is not

like a disruptor, but an expander. most people engaging courses made available online are not college students like you and i. they may be unable geographically to access the quality education they want. i think moocs are more 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 environment right now, buber, which i know goldman is a part of, where do you see and what do you think about the word - "bubble"? >> i have been in this market for 20 years and i've 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 companies and the public market 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. there's less focus on the market tone, which you know can change printer medically. 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. medical researchers are creating 3-d printed organs. we look into the potential, next. ♪

>> welcome back. while many investors may be turning off of 3-d printing, doctors aren't. they are investigating whether 3-d printers can construct organs. how soon will doctors be able to perform transplants with 3-d livers or kidneys? >> this sounds crazy but this is the idea. ,ou would take cells from blood 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.

these cells are from this goopy scaffolding that hold it all together. you could eventually produce a bladder, kidney, or liver. this is all still theory at this 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 sci-fi, but it will be reality in the next five years or so. up, john chen joins big talk about his turn them .round plans ♪

>> you are watching "bloomberg west" where we focus on the future of technology and business. i'm emily chang. oracle says it is the largest cloud company in the world that is not pleasing investors. they were hit hard after reporting forth quarter results. to threee tumbled 4% point $7 million -- $3.7 million. they cap for a big chunk of oracle revenue. from oracle transition to the cloud to blackberry turnaround plans, blackberry posting

first-quarter earnings today. the cost-cutting efforts are starting to pay off. net income rose to $23 million as the company sold assets. blackberry still has major challenges on the sales side. .evenue fell 69% i sat down with john chen. >> when i was talking about 80-20, i will stay with that. one interesting thing is that everybody wanted to hang onto these numbers. we are getting a refined state. ison't want to say anything 100% but we are fine. we are a viable company. we have strong balance sheets. we are starting focus on growth. gives you doubts at this point? >> we are all right. the world could change. the market to change. i have been in business long

enough to say nothing is 100%. you will jinx yourself. again, i don't able to focus on the 20. i want people to focus on the fact that we are comfortable about the viability of the company going forward. you sell the numbers. we could talk about those. we are in good shape now. >> you are aiming to get to $100 million in revenue. walk us through or that is going to come from. >> i believe that we have a good handle on monetization plans. let's talk about bbm. the most secure messaging system. the monetization plans are in three buckets. one is the enterprise function. we released one, highly

encrypted data messaging between two users in enterprise. then there is a lot of new features and functionality that will come out in that vein. voice and data like. then there is the mobile payment. areprobably know that we the system running in indonesia that is going well there. we just entered an agreement with in stream my canadian mobile payment system. our infrastructure. that is another aspect of it. bucket has to do with the consumer space. we have a lot of channels. they are great for advertising. i have agency.

we had a couple of early successes already in that part. the virtual groups included finger -- figures. there are different buckets. depending on what area of the world we are in, we have the ability to monetize everything together. we can get to 100 million. >> you made it clear that library is going to continue selling smartphones for now. you are going to turn into a software company. how long will you keep the selling harbor? >> if i make money on phones, i will sell it forever. you of the reason is when would like us do an end in security provider, in the mobile world, our phones are a gate we have security.

we encrypted it differently. secure devices. nothe internet of things, everything needs to be like a phone you and i think of today. it might be a divisive emitting signals and data, collecting data and acting on it. on the divisive and of the equation i believe we are going to be there a long time. makepends on whether i can money on it. they are able to get close to even. we used to lose money on phones. now we are getting there. you will need a couple more quarters. when that happens, i will be in the phone business. it is the first gateway of encryption. i got a question on twitter. someone wanted me to ask why partner with a neutered amazon

app store rather than google play. the amazon app store has 240,000 apps very google play has more than one million. amazon and us have a lot of things in common. especially they like our base. and, we work well together. explain going to everything but amazon is a good partner today. it helps us to address one of the major needs of mine. i need apps. consumer, somer are prosumer. i need that. i don't have enough volume or money. spreading resources then. this way it will help me to focus on building enterprise space.

my resources should be plenty now. and amazon mahogany build a base amazon willmer. -- help build the base of the consumer. there is a bunch of reasons for that. we have been talking for a while. it is a great thing that we did it. lice last question. use a blackberry is not for sale. what could change that? >> it is a standard answer. i run a public company. i do this for shareholders. what could change that if somebody would have to put a number on the table where all my shareholders cheered and my members feel proud of and my customers don't get negatively affected. i have a duty to take a look at such offers. one. am not seeking should one come i have to look at it. >> you have to look at it but

you don't want to sell. how strongly would you actually an sitter? >> at this point, no. it would depend on how strong the offer is. if you offered $100 a share i would call you back. >> there you have it. $100 a share. techospitals, wearable could be more than a fitness craze. how one medical center is using high-tech trackers to improve nurse efficiency. ♪

back.come we turn to our wiring the world series. this week we're looking at how tech is shaping the future of health care.

boosting patient satisfaction. nurses wear small tracking devices called radio frequency id tags. the hospital using big data software to follow the trackers accreting map of where nurses travel throughout their unit. i sat down with celebration held performance director ashley stemmons. i asked her why the hospital decided to implement the tracking system. automatedas nothing to understand what was happening with our care teams throughout their ships. to look at the workflow pattern and how that correlated to the outcome. we added the technology to pass thet how do we leverage with our care team to meet the needs of our patients. it is doing more with less and going to a quality experience base health care versus volume. looking tot we are

do with this. to understand how it works anyway that we haven't been able to in the past. >> how big a problem for you having with patient wait times? >> it wasn't so much but the wait times. we have made an emergency department. be of major menace improvement in terms of wait times there. we average less than 30 minutes. it was more used on the inpatient side. once you're admitted to the side, to understand what is happening to you in that state. >> how did you design and choose the software that is helping you to do this? >> we looked at a few different companies and am a whim he started to narrow down who we wanted to partner with, we needed to know they would be agile and innovate the technology and are faced with the other technologies existing.

we ended up choosing stanley healthcare realty trust case platformse on those -- based on those platforms. what is the cost? as heavyst, it is not as you would think. overall their solution is based on the license. annually andou pay you have however many users of the license that you choose. it is not an exorbitant cost. it is not managing it where you have to look at resources you want to allocate as an organization to day-to-day management function of the system versus just purchasing the license. you gather from this? beeneally what we have able to try to understand and learn is what is the best

practice work of the care team? what does that look like on a 12 hour shift or three day period? what is the right make some time that the patient charting the other things we know the team has to do? what does that do in terms of getting us the experience we want our patients to have. we know the health care is moving forward towards outcomes and experience. we cannot say it is time to the measures we have lose -- learned in the past to dictate how we staff our units. with the information we are learning that old-school message -- measures are no longer relevant. the timeo understand they are spending with us so we can care for their whole person before they leave us. >> do you see opportunities to apply the technology to medicines other parts of the industry?

>> absolutely. it is relevant throughout the industry. it gives you real-time visibility into all of your resources. industry fornother a long time. it is just now really being innovative and health care. it is relevant and tracking regular beds and people. u2 trackingg last patients as well so we can understand the touch points along the care journey. simmons andashley celebration health. while the u.s. company behind films like the social network wants to go public in hong kong. relatively media ceo tells us why they are looking overseas, next. ♪

>> welcome back.

toativity media is planning go public. the company known for backing films like "the social network" is totfish, the goal create an ipo within 12-18 months. jon asked about relativity's new tv show. is a contest. he put together a group of top floor and up this -- philanthropists, each episode will be around some social entrepreneur philosophy. if their sector is solving hunger, the entire show will be around bringing in social

entrepreneurs who have come up with a solution for that world problem. then in the grant we will give dollarssode a million a way to make the idea into a reality. >> you just got back from china. at the end of the day you're bringing more content to the chinese market. your exporting to the rest of the world. how come? >> china is a place i have been going since working in 2005-2006. i shot my first movie there. we partnered up with the government to help take their , cultivatee in china that content, make the content more worldwide. there is so much content being made in china. we announce the deal with the largest broadcaster in china.

in realityic television. prolific in sports and fashion. iny made a large investment our company, which is also a good validation of the chinese government and chinese businesses. but also for us to start growing fashion,vision, sports. the things we do in the united releaseand continue to our movies successfully. more and more each year, it is nice being the only one there. >> and recent comments you made it clear that an ipo is something that you are looking towards now. what is the timeframe to think about in terms of accomplishing that goal? six months? 12 months? can give an exact number on that. banker,an say is our we're been very lucky to have jeffrey. we have worked with all of them. we are on our pre-ipo roadshow

right now. we are in the process of setting up the proper capital raised to go public. >> with the process you you are going through with jeffries, as you raise money, what is the goal? couple fold. we want to make sure that our 100% well-capitalized to take it vantage of the market opportunities we have. as you and i have talked about on a few occasions, most people think of it as a film studio. that is 30% of our business. our business is tech focused and content focus. we're are the largest supplier of reality tv. we have the most sports content, fashion content. the purpose of the ipo is so that our company can be liquid and had the capability on a

liquid basis of growing up the same speed as other companies. if there are acquisitions we would like to make the tech sector, we have a liquid stock to do that. whacks you have hinted that possibly you could see years of listing on the new york and in hong kong. a we consider ourselves chinese company and a u.s. company. we have a subsidiary there. we are listed where businesses and focus is. banker,cbc bank as our we did a public signing ceremony , it speaks well to having the support from the chinese economy and government to do a deal. >> let's talk film. at the end of the day it is all about film. earth to echo, the movie math behind it is the relativity the approach. >> the movie is about a $30 million movie.

and look make it feel like a 100 million dollar movie. we are proud of it. meets "stand by me." for the bwestime byte. we focus on one number that tells a whole lot. here withertson is us. he covers cyber security for bloomberg. but do you have? >> 4.5 billion. the number, the money the u.s. is going to spend on cyber warfare operations. it is a huge number. >> more than usual? >> the numbers are only going up. these are the numbers you think of with the attack on the iranian nuclear facility. it is a large number and increasing. it is less than google makes in a month.

it is a big number. arehat are the people who using this money, what are they doing? >> people at the nsa, the dod, they develop exploits per that is what cyber warfare is. weaknesses that you can write software programs for the exploit them. it is what they do. >> in a gala where they are dubbed -- any idea where they are devoting resources? >> china and iran are on top. russia of course now. those are the actors you can think of. a lot of potential in china. >> 4.5 billion. thank you. thank you all for watching this west." of "bloomberg ♪

>> welcome to money clip where we tie together money news. amazon fired the latest shot with a fire phone. meanwhile, chile shows little passion on the field and off. and out the door, the board of american apparel cuts loose its controversial ceo. google glasses going into the operating room. that's part of our wiring the world series. finally, a $1000 haircut. i'm not kidding.