caroline: i'm caroline hyde in new york in for emily chang. this is "bloomberg technology." the trumpet ministration's order on huawei. the u.s. is also considering cutting off american technology to additional chinese tech companies. qualcomm tumbles 10% after a u.s. district judge sides with the trade commission on -- the

trade commission after a case on antimonopoly practices. we will recap the highlights from amazon's shareholder meetings. first, our top story. -- theys after the u.s. u.s. banned devices from huawei, they are considering the same from five other companies. the u.s. blacklist could potentially hobble companies in china. huawei in particular relies on parts and hardware from companies such as google to build and market the mobile phones it ships annually as well as equipment to other international firms. it is a global supply chain issue. bloomberg's sarah mcgregor in washington. sarah, i want to start with you. how much is this ratcheting up tensions, how much is it

expected it would move past just while away -- just huawei? ofthe concerns by the u.s. chinese technologies perhaps violating sanctions laws are using technology to spy in america, this predates the trade wars, the trumpet ministration, but it is all coming at this time when trade talks are essentially at an impasse. xi need like trump and to hash out whether they can come up with a deal when they possibly meet in june. i think the blacklisting of these chinese telecommunications companies at this very moment seems probably very suspicious to china. the u.s. of course says there are two separate tracks. but with very wide-ranging and global impact. i'm reading at the store -- i'm reading a story at the moment saying that these surveillance

giants, two of them, make up basically one third of the global market of video surveillance. all of london's subway systems are made by these chinese made security cameras. you cover google in particular, which is a supplier, how sprawling are the effects? >> if you don't travel that often, you don't necessarily see the name huawei, but if you go to other countries, not just also, but also europe, and other developed countries around the world as well, it is a major brand and it is sort of seen as a global champion for china. they have good technology, the phones work well, they are much cheaper than apple's phones and many phones that other companies make. at this point, it is a very direct attack and one of the few cards in terms of going after these chinese corporate champions that the u.s. can play

in terms of cutting them off from the u.s. market. caroline: how hard a hit is this to google and its focus on the operating system android and its perpetuation globally? it was obviously making it the most used operating system. >> there is the android operating system which is open source and that anyone can use for free, but there are services that google can sell on top. those can't be used by huawei anymore. future phones will have much less functionality if this can't be sorted out. it is true, it is a blow to google. tocourse, google sells hundreds of manufacturers around the world. i wouldn't be surprised if the specific licensees were in the millions of dollars. that is sort of my semi-educated guess. at the end of the day, that's not a lot of money for a company

like google. if you fast-forward, this cold war between china and america advances, and he hopes for a company like google to get deeper into the market, to sell more phones to those hundreds of millions of consumers, it gets dimmer and dimmer. caroline: not just for the likes of google, but also apple, which gets plenty of revenue and plenty of profitability from china. how much is there a worry that we will start to see a chinese consumer boycott or perhaps china itself starting the pushback on seeing some of these goods sold? i guess the more immediate threat is donald trump 's push to try and put tariffs on every item imported from china which of course would hit all iphone, toys, books of sorts of things that come from china. for a company like apple, they lobbied in previous rounds of tariffs to make sure some of their products were left off the

list. they were successful in doing that. they could make the same effort again. but it is the trump administration that is sort of bent on hitting china the hardest way it can possible. there might be a more difficult case for companies like apple to make. i think that is where right now there's a lot of eyes on how it might affect the price of iphones for american consumers. caroline: zte, trump road to the rescue. we we appreciating -- are anticipating any kind of dial back? right now, there is a sanctions case against huawei and the ceo is detained in canada. trump has mused that he might be willing to let the ceo go in

exchange for a trade deal. the z te case last year, when they were able to make a deal and get that company back in business, and basically brought the company to the brink of collapse, that always i think kind of expands the idea that trump may be using this for leverage in the trade talks. i think china probably won't givenoo kindly to that that these two companies are basically the lifeblood of its future economy. it is betting on innovation to become the greatest economic superpower. caroline: we were just talking about how deep this trade war could go. what trump has pushed for is that these would simply change the supply chain, go to vietnam instead of china. huawei has perhaps compared itself, it has stockpiled. how realistic is it that stock -- that supply chains could change in such a way?

>> companies are always about how diverse their supply chains are. the companies have seen this coming. we've been talking about this trade war for months. the chinese side and the american side, the companies have been making sure to find alternate suppliers. i think it is interesting when you think about google with their android software. they have this position where everybody uses android, everyone except for apple. , even if there is a resolution, they recognize how reliant they are on american software so they talk about building their own ecosystem, operating system. if they are able to pull it off, it does kind of chip away at the position that android and google are in, which is kind of the default operating system around the world. caroline: gerrit de vynck and sarah mcgregor, thank you.

meanwhile, google is at risk of another hefty privacy fine under the european union's strict data protection laws. regulators have opened a probe into how the search giant utilizes user data and transactions. ireland's data regulator became the lead authority in january. coming up, qualcomm stock is taking a beating following the latest antitrust ruling. what the decision means following the latest settlement with apple. this is bloomberg. ♪

shares fellalcomm the most in more than two years after it was ruled that they violated antitrust law. they accused the company of

using its dominant position to squeeze licensing fees from struggling competition. the chipmaker says it disagrees with the ruling and will seek an immediate appeal. joining us to discuss is ian king. how much does this go to the very heart basically of what qualcomm's business model is? ian: we are talking billions of dollars of high-margin revenue that come in every year and that money is used to fund an industry-leading rnd effort. if you want to buy a 5g phone right now or perhaps for the rest of the year, you will be buying a qualcomm chip. that puts the company in a good position. caroline: let's get our market perspective today. stacy, your perspective on the severity of the selloff is in line with the severity of the risks of the business model.

>> in theory, yes, although i'm a little surprised at the magnitude. i would have thought, if you were paying attention to the trial itself in january, the idea that they were likely to lose was probably not going to be a surprise. that seemed pretty clear from the tone and mannerisms. i would say that maybe in the wake of the apple settlement, investors were hoping a judge might go easy on them. that does not seem to be the case. what i think i just heard ian will see what happens with the appeal, but the risk is obviously that the fundamental drivers of that business model are at risk. as one of our colleagues wrote, it may reduce payments,yments, chip

customer contracts with apple. will that remain in place or be some sort of standardbearer for what the -- for what it looks like going forward. provisions that ultimately -- that automatically triggered those provisions. we are sure about that. but back to what stacy was saying, the judge, and demanding remedies, says apple has to go back out -- that qualcomm has to go back out there and renegotiate any of its existing agreements which are based upon this bad behavior. so we really don't know yet is really the answer. caroline: it comes at a really interesting time given the pivotal role that qualcomm plays within 5g. the blacklisting of huawei, it all seems to be a pretty opportune moment for potentially and growth inself

the u.s.. do you in any way anticipate government interference in this? the doj had filed a statement of interest a couple of weeks ago. if she found against qualcomm, they were asking for another separate hearing to discuss remedies. the judge basically dismissed that, that the judiciary is independent and she can do what she wants. if they appeal to the ninth circuit, maybe there's another opportunity there for some of the other governmental agencies to weigh in, trump to weigh in. maybe they will find a softer go in the appeal case. it will take a while. caroline: with qualcomm selling office hard as it has, we are still seeing 19 buyers on the

stock, zero cells. are you expecting a sort of bounce back in the share price? don't know. people would have thought in the wake of the apple settlement that the licensing was over with. , theverhangs are now back rest of the story, it is a chip story that doesn't start to play out until 2021, which is a long way from now. we will see if it bounces back. we've done a piece a dozen times over the last few years. it is probably time to sort of revisit that. to understand what is going on, if people one that licensing business to be free to breathe and it no longer is, that is a lot less attractive. yourine: great to get

context, stacy rasgon, and of course ian king from san francisco. it has been two years since the launch of the subscription business model, but is it paying off? this is bloomberg. ♪

techine: the global community flocked to toronto the week to attend one of fastest-growing technology comfort is in america. medium ceo and twitter cofounder took the stage as the keynote speaker. jon erlichman sat down to talk about medium, investment, and beyond meet. >> it is certainly not easy to do, but i think a lot of people -- the new york times, a lot of people thought they were crazy a -- even and said,

medium two years ago, we got a lot of criticism saying that wouldn't work. but i think everyone has accepted two things. one, the ad only model is one that is hard to make work for quality of information. two, people care about the information they consume. i think the challenge now is figuring out how to make that work. i don't think it a work for everybody. you need a lot of critical mass. it is definitely hard. we are happy with what we have seen. >> some people have been looking at the success. a lot of people have been talking about the success of this beyond meet ipo. you guys were obviously early investors. what was your reaction to the stock market debut? it was very gratifying to see the world react. ins is a company we invested

seven years ago or so. we helped lead the series b and we were inspired by the product, by the entrepreneur, ethan brown, who is currently still the ceo. it is very nice. it is another thing that seemed crazy back then. plant-basedght a protein company going public, it there is a new, win-win technology in the food space that addresses major issues of climate. i think it is exciting. i didn't predict that sort of reaction. >> it does feel like, if we think about a business that you did build and twitter, whether it is facebook or google, what is going on right now, you've got a big tech conference come everyone is excited, but at the

same time you saw leaders come together and think about how we curb hate online. newe feel like we are at a point and how we are evaluating those businesses and what happens to those businesses? >> i think we are at a new point. i don't have a lot of clarity in what is going to happen with social media, for instance. i think there has been a handful of companies that have been dominant players for a long time. it is different from when we were starting to get interested about these companies 10 or 15 years ago, every week there is a new idea and we are going to take a new approach. i think there is a certain state in this to what is going on these days in terms of the companies and i think a lot of people are yearning for a new way to think about things. i think that will come along. caroline: medium ceo and twitter cofounder ev williams.

shareholders rejected a large slate of proposals at the meetings on wednesday. among these included a proposal calling for restricted use of facial recognition technology as well as climate change resolutions supported by over 7000 employees. joining us to discuss from seattle. it can be a bit of a circus. paint the picture for us. you kind of get this smorgasbord of protests outside the shareholder meeting in seattle. last year, there were drag queens performing. this year, there were poop emojis, people dressed in poop emojis costumes. the big distinction this year is that there were dozens of amazon employees and many of them shareholders as well inside the meeting, pushing for climate change inside the shareholder meeting at amazon where usually all of the protests and momentum and stuff is outside.

that was a big distinction this year. a turning point for amazon in the sense that they are usually able to keep employees to be quiet and not be so publicly vocal about change they want to see. caroline: particularly this is surrounding climate change. at one point, several people in the crowd standing up with white t-shirts on. it almost seems as though amazon took a relatively on progressive step by turning it down. but they have made steps to become cleaner and more thoughtful about the environment, right? have made commitments around renewable energy and they are trying to do things around packaging. what their employers are saying is that these little tweaks here and there are not sufficient and that we need to do much more. even though their proposal got voted down, there is something, nearly like 8000 of them have signed this petition now pushing for change and they are vowing to not give up and not go away.

i don't think that this issue is something amazon can simply brush aside. what about the interesting controversy around facial recognition? this is something we have seen outside investors are thought leaders worrying about, particularly the use on the border, for example. there was a vote on that, right? >> there were two proposals around facial recognition software. one was to prohibited sale to law-enforcement agencies and another was to have a broader discussion around potential downsides. amazon's approach seems to be, as long as people are buying it, we are willing to sell it to them. as long as it is a freewheeling market for that stuff, right now, amazon is just ready to sell it to anybody. it will be up to government to step into issue any regulations around its use.

caroline: perhaps it is not surprising that one of the wealthiest men in the world helms over a company that is precapitalist in its viewpoint. changeserms of growing we are seeing at google, facebook, how much do you think amazon will be forced to change as activism grows louder? spencer: that is a great question. one of the things i was asking activists outside, do you feel threatened? many of them don't. the critical mass of them is so big that they feel strength in numbers, they don't see too much downside risk to participate in this issue that is very important to them. let's not forget that the tight labor market gives them a lot of leverage. it was a small handful of people, any big company, whether it is good or not, can find a way to get rid of them. but with thousands of employees in a tight labor market, that

would be very difficult for amazon. caroline: great to get your first take of the amazon shareholder meeting. coming up, the u.s. blacklist of huawei, what it means for an already slowing chinese business? this is bloomberg. ♪

bloombergthis is technology. i'm caroline hyde in new york. the u.s. crackdown on huawei apple's troubled business in china could be even more difficult. aldman sachs estimates that chinese ban on the sale of apple products could cut earnings by 29%. here to discuss it gene munster and bloomberg technology's mark berman. you had a great piece talking about the goldman expectation, the worst-case scenario, but even without a retaliation, could we see a boycott?

how much good trade tensions be hurting chinese business? mark: we think there will be an informal boycott of sorts. -- in america -- and china is not really fond of america right now because of the tariffs and how they impact their economy. when these things happen, you see them latch onto their own brands. huawei is the apple of china. it has been called that many times, people love wally there -- people love huawei there. so if people are going to choose between an apple or a huawei device, they might lean towards what is going on with the impending u.s. ban. caroline: as someone who is running these numbers, we have heard tim cook lame the slowdown the certain extent -- blame slowdown to a certain extent, laying it at the feet of the u.s. and china. how quickly you think this will get to the bottom line for us?

gene: i agree 100% with what mark is saying about the boycott apple campaign that will definitely start in china. i want to put to rest some fears thend trade tariffs from chinese, putting that on apple products like what goldman was talking about. i think that is unlikely. we have recently spoke with former u.s. trade officials, and i think what is most important here is the people who understand the intimate workings of how things progress do not know how this is going to play out, but one thing that has been reiterated to me is that apple is an important part of that partner for china. -- partner for china. about 3 million jobs are impacted on mainland china. captures thet headlines about the terrace, it is unlikely that it will happen. caroline: an interesting perspective. mark, from what you are seeing, hasnow that huawei

already preempted this. they have ensured that they have been stockpiling. has apple been looking at in some ways changing its supply chain? can it? it is such a juggernaut, and china is so important. mark: if apple were to shake things up in terms of its supply chain, it would take five to 10 years for a full transition. apple's manufacturing in china is not as popping iphones out of china through foxconn and shipping them out elsewhere in the world, all the way to the united states and elsewhere. it is this vast network of suppliers, not just china, but taiwan, korea, other parts of asia, some stuff comes from the u.s., europe -- pretty much all over the world, that is sourced and funneled into china or final assembly. it is more than one factory or one city in china to build these things. it is a vast array, and all those moving pieces ready much

are going to make it impossible for any significant changes in the near term to occur. caroline: there is potentially some silver lining, just maybe, and it is the element that google's android operation system is going to be hit, by not being able to do business with huawei. this there a way that international demand outside of china could a cup apple smartphones if the higher end of hit?ei is mark: for sure. in the u.s., apple is the strongest provider, but in china we see a proliferation of chinese brands. in europe, huawei has a strong stronghold there. .hey are 20%, 25% of the market if android is going to go away, it will make those devices less appealing to consumers, and some customers will look for other devices. if you are in europe, you might

not be going for the chinese brands, but something more like an iphone. from that perspective, apple has a lot of positivity there. i just do not think it will move the needle. to gene's point earlier about what the impact to apple will be , you will see some of the negative impacts to apple in china, but you might see the positive impact happening in europe and other regions. so it is possible that it will even out. caroline: are there going to be that are for apple able to offset the weakness that we see in china? good point.as a there are some opportunities, but i want to net this out. what is going on in china is a net negative, but not nearly as negative i think as people are expecting. if i was to try to put this in its most pointed terms, mainland business% of their might be impacted a few percent. they might pick up 1% part of the country.

think of this as a 1% to 2% had d, but not awin large risk. 2%.line: 1% to gene munster, you are sticking with us, along with mark gurman. passengers will finally be able to tap their credit cards at special turnstiles, and be this ceo al kelly spoke to emma chandra about the pay service in new york. perspective, we get people in the habit of using their card. they will use it for getting their coffee, for paying for their dry cleaning, it will get them into the habit of using it. cash is expensive, it is a hassle to carry, you have to go to the atm to get it. if you are using your card, it is the best way to go. emma: so this is about using cash less, using your card more.

absolutely. it is an important initiative to make sure people are using the card, which is a secure way to go rather than using cash and carrying a lot of cash. emma: what is the definition of success for tap and pay? let's look a year into the future. : if users are aware, the number of cards are up, the number of users are growing, the concept of cap and pay is taking off. it is not about absolute numbers , it is about momentum. emma: could you give us a specific number, perhaps? al: we expect to have half of the nda rolled out in maybe a year or more. card by this time. but it is not how many cards, it is how people are using them. aroline: up next, tesla

seeing some bearish sentiment. gene munster joins us with more ahead. ♪

caroline: twitter has been experimenting with advertising, increasing the frequency of ads and adjusting the target ing. this comes at a time when the monthly user base has been shrinking. let's talk tesla. shares falling for a sixth day in a row, trading at its lowest level since december 2016. this as any group lowered the price target to $191, highlighting -- citigroup lowered the price target to $191, highlighting lingering demand. trudellster and craig

joining us in new york. right, i am looking -- craig, i am looking at recommendations on tesla. it is a fascinating chart, because it has not increased in terms of the red barometer on the graph. what has plummeted is the price on the yellow line. look how much the share price has declined in tesla. you are looking at the 12 month price target and it is not keeping pace with that. do you anticipate it catching up at some point? craig: i think the spread in the chart suggests for all the piling on we have seen for the past few days, we have some more to go. there are folks on the street that are still too high with stock, and it is problematic, given what the citigroup analyst said this morning, that sentiment is a real problem right now. the real concern that he flagged and that morgan stanley flagged, core has flagged, all the analysts who have stepped up

to raise concern about this name is demand. this is a company that was having real production problems last year. this year's big story is deliveries and them not being able to sell as many model three's at elon musk suggested there was demand up therefore. the model s and model x are a little long in the tooth and very expensive, and that is causing real problems for deliveries and what has everybody sort of freaking out about this company right now. caroline: morgan stanley saying in a way, they are too early to the party. we have not seen demand for ev catch-up. they are saturating the market. do you agree with that? you think demand will play towards tesla's strengths? will, and it is important to stress that i am a believer in tesla. i think they will turn the corner and capture what will be a juicy growth curve around the electrification of the vehicles, we are at 1% to 2% today globally, and eventually that will be 100%.

but 2019 will be a difficult year. the demand question is quite critical. they will miss their numbers, everyone knows that, but i want to focus on what has happened in the last three weeks around the story. the stock is down 27%, 24% since may 5, when trump tweeted 25% tariffs. there has been a downturn in this stock based on what has happened in the past few weeks. analysts have largely not changed their opinion. why the stock has dropped is ultimately, this gets back to demand. the china piece is now more in question. i think there is risk. i think this is different than apple. i think of tesla's are te -- if teslas are tar iffed going into china, that is expected to be a quarter sales for this

year. getting down to 12%, that is a morerati miss. investors are getting comfortable with the china risk that had thrown the stock into a tales been more recently. caroline: i am looking at a new adam posted by dana hull, jones from morgan stanley saying tesla is no longer seen as a growth story, it is seen as a reduced credit and restructuring story. gene: in the near term, i don't know. in the next three to six months, i don't know. it could be a difficult year. the stock could trade lower during that time. this is not a distressed top story.- distressed stock there is so much emotion around people who are following this, the emotion, from there is electrification, an autonomy peace that are very important. with all of its laws, i think this is not a distressed company. think this is i

not a distressed company. an extra probably get two or three years of runway, which is essentially the revised estimates now. the stress means you are at risk of going out of business in the nest year, and that is not tesla. caroline: craig, your perspective on the equation? talking to a needham analyst yesterday who was talking about how some of the safety records on autonomy makes it unfathomable that we are going to get the robo-taxis in the next year or so. what is your perspective? craig: you heard gene talk about the concern of china. the other one that i will throw out there that has also come into play and helped fuel the selling is this issue of another in tesla, involving autopilot, where the ntsb came out with a preliminary report last week that was very similar

to an incident a couple of years ago with the model s, where a roadtruck was crossing the and the tesla did not pick up on it, and a person was killed. elon musk has sort of tried to take people's attention away from demand and the delivery issues that the company has been having and talk about this future of robo-taxis, and he is really undercut in terms of being able to make the case that we are on the verge of this robo-taxis future when it is a ,ase of deja vu all over again someone tragically dying in an incident involving autopilot. caroline: gene, very quickly, does elon have to be more transparent? needs to bethink he more judicious about what he says and set better expectations at the core. it is unlikely we are going to soon, soanytime

whatever he says, dial that back by about 40%. caroline: gene munster and craig trudell, we thank you. up next, cisco ceo chuck robbins that he is not worried about the upcoming tariffs or the huawei them on 5 -- huawei ban on five g technology. this is bloomberg. ♪

caroline: since the u.s. ban on huawei, many are wondering what the impact will be on 5g technology. with robinson sat down carol massar and jason kelly to find out if the ban could slow the progress of technology. chuck: about eight months, when all of this began, our teams proactively started thinking about this, and we have three parts of our strategy around this. one, we will continue to dialogue with the administration to try to influence the outcome. second, we will optimize our supply chain, because we have a globally distributed supply chain that we have the capacity to move things around on on a regular basis, and our team does that as part of doing business.

that is just what they do. the third was if we can't mitigate it, we will obviously pass through pricing. and our teams did an amazing job over the last eight months and actually put us in a position where the latest 25% had a pretty nominal effect from a pricing perspective that we had to pass through, because they did such a good job of optimizing our supply chain. carol: is this more difficult, though, the longer it goes on? chuck: my concern is if we move to the next phase, the concern is not for the impact on us, our concern is more on the macro and what it does to the customer's overall sentiment. jason: what are you hearing from your customers at this point? now, if we listen to earnings calls and interviews with your peers, they are starting to think about it and talk about it in a little more meaningful way. chuck: i have heard the same thing you are hearing. we have seen some of the retail discussions that have happened over the last couple of weeks. so i think that the reality of companies' inability to optimize

supply chain, for whatever reason -- there are various reasons that they can't -- is becoming a bigger issue. either thect on company or the consumer is going to have a drag on the market if we do not do something. carol: you have talked about diversifying your supply chain, and i assume you have been doing that for some time. how much of your supply chain, chuck, is still in china? chuck: we actually operate in 10 different countries around the world, and we don't go into specifics, because on any given day, it could be any number. but we have -- suffice to say, the amount that is coming into the u.s. that is subject to tariffs is nominal, because that's what we talk about at the end of the day. our teams do this as part of their jobs. they do this on a regular basis based on risk mitigation, where are component suppliers, the most cost-effective ways to get components into our supply chain.

there is an element of tax, and all of that comes into play as we think about how we lineup our supply chain. jason: you talked about trade, we have also talked a lot about huawei, and one of the implications everyone is wondering about is 5g. what impact is that now, in the short-term? how much do you worry that 5g deployment could be derailed or slowed by these actions? chuck: i actually don't worry about that. i think there are multiple suppliers around the world that provide macro radio technology. that is what we are talking about. and then once you get off the macro radio, we provide most all the technology in the core networks for our customers. i think there are plenty of good alternatives out there, and i think the bigger issue, when we think about 5g and the deployments are the cost of capital to build out these networks, the cost that our customers are having to face to buy spectrum, the regulatory environment, and what is the reality of the business model

that they can build to get the roi on the investments they have to make to get there? that is what we have to be working on. carol: there has a lot written about, because of the ban on huawei, it presents or creates an incredible opportunity for the likes of you and others, i have seen a number of about $5 billion in global markets. asyou see that ban on huawei an opportunity for cisco? chuck: it is hard to say, because we focus on innovation and working with our customers. and our customers in the large telcos and the large carriers around the world, they all tend to have multi-vendor strategies to begin with, so it is difficult to ascertain when they increase volume with one versus the other. what is the cause of that? they typically wouldn't tell us anyway. carol: right. chuck: because they would not want to give us any negotiating power. carol: i do think about 5g. you know this world so well in terms of the potential for it, and if huawei is locked out of

that market -- i mean, once you start to create these networks and you are locked out as part of the supply chain, it is hard to change, bring in a different supplier. i do wonder about the longer this goes on, does it create more of an opportunity for you guys? because huawei is kind of pushed to the side. chuck: whatever the reasons are that a customer makes a franchise decision -- because they do make franchise decisions -- the big carriers have always done this, the large-scale -- the large web scale providers. they make architectural franchise decisions, and if you don't get into those, and this happens to us as well, you are basically waiting for the next architectural transition for you to have an entry point. and you know, i have talked publicly about how we missed a couple of early waves in the web scale providers, now we are having to work our way back in. carol: right. chuck: and i think that is a fact of dealing in the space with these providers. so whether it is a security issue or whether it is a technology issue, if you miss a wave, you have to wait for the next one.

carol: how long are those waves? they areually somewhere, five to 10 years. pretty big. carol: you will be locked out for a while. jason: and when you think about 5g, i feel like when we talk to folks like you, we are talking about a massive leap forward in terms of the types of services, the things we as consumers and businesses will be able to do. help us understand what 5g looks like in our everyday lives. chuck: think about where you are today and what you can do with your mobile device versus what you could do 15 years ago. i mean, we take it all for granted today, but the capabilities we have in our pockets on these devices are just monumentally different. and this is no different. you are going to see a step change. and this one is exponentially even better than what we felt over the last decade or so. so when you talk about speeds of 4, 5, 6, 8, 10 times -- the

early use cases, i think, will be my 18-year-old son putting his phone in the middle of the table and having eight of his friends around, and they are playing real-time gaming with that serving as a hotspot. but we should be able to deliver real-time health care in rural areas in ways we have not been able to. getting speeds out into these environments because we can do it over spectrum as opposed to having to pull fiber and running terrestrial circuits. hopefully it will change the economics for our carriers on a global basis. delivering education into the rural parts of numeral countries. there are lots of use cases. -- rural parts of oral countries. ruralal parts of countries. caroline: we would like to let you know we are livestreaming on twitter. and be sure to follow our breaking news network two, it is at tictoc on twitter.

live from new york, this is bloomberg. ♪

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