guest: you are right, i agree especially when it comes to the telecom companies. i think there will be a lot of partnerships. when i say war, you know, we know they are going to have to collaborate eventually. none of them have the skills necessary to deliver these kinds of things, but the war comes down to the revenue, which is the point that i focused on in my story, who is going to get rich off of this? we are talking about a lot of money. telecom operators would be wise, probably, to look at the car as another device. another screen that they can package into the cellphone plan. well and good, what does that mean for the car maker who sees that all going off to the telecom company? i think there will have to be some fees paid trip portion of that money going back to the car maker. one thing that you must remember about the car companies in these kinds of situations, if you are truly satisfied with the way that your digital life connects with your car, you are more likely to stick with that car company. not only that, the car company, because there is so much da

if you haven't heard the statistic, if you look back to 1996 -- which i made a reference to the telecom act of '96 -- and you advance forward and say how much money has this industry spent in infrastructure, the industry has spent over $200 billion. cox communication has built out this incredible nationwide broadband platform. and today as you sit around the show and hook at the trends and see the things going on, you're hearing about things like mobility, wi-fi in our customers' lives. we just announced we're doing a metro wi-fi exchange between msos, 150,000 hot spots in the country. no one else provides 150,000 hot spots, and that'll continue to grow. it gives our customers another place they can connect with our company. and while they travel, it gives them a chance to roam and still get that same connectivity. you hear about second screens, and i can talk about that a bit, what services we're bringing to the market relates to second screens. third party partnerships, companies that didn't even exist five years ago. we talked about business services. it's an important part of the sh

is theam concerned about believe it will be a rewrite of the telecom act. it is a very complex business that is changing. it is probably change in the last 30 minutes. those who are making those decisions that will carry understand all of the issues in the business and the variables and the complexity of the business. and to make sure they understand how they are all interdependent. i do not worry but i spend time on it. i wanted them as well well informed as possible. >> would you like to see a rewrite? >> over time. more comprehensive and then piecemeal. we have to the world we live in. i am talking about video but i am going to to broadband. , 60% ofto our customers the content they get is no longer live video content on their tv. ,0% use dvr, a second screen it is being streamed are downloaded. the world has changed. it will continue to china. -- it will continue to change. -- andon talking to pat we been talking to pat esser. when did you get started in this business is mark >> i got started in 1979. i got out of college. i was always passionate about t

in 1996, more recent times, when the telecom act went into effect. in 1997 we were rolling out digital video, background services, residential telephone services, commercial services, and bringing the bundle to the market. the first in the country to start bundling products together, and the customers responded positively. high penetration today and we're able to get into new businesses that others didn't dream about because we got in so early, and we were rewarded for that. >> host: how important is business to business to cox? >> guest: we were early in a company called teleport, where we took the commercial space, and at the same time we were rolling out residential services and the two came together, and we saw this opportunity in the market for small to medium businesses that were being underserved, and we have been focused how to cover that market. and today business services represents a billion-five in revenue to us, a number of new products and services we have developed and are launching as i sit there to serve that marketplace, and we have

we're trying to give them an overview of what is going on in the telecom world and internet world. also we are trying to -- give us a chance, the other members of the committee and even the community at large to hear where these senators are coming from. this is kind of a blank slate. one of the things we talk about in the wireless hearing was spectrum. it seemed like every time -- whatever issue it was we kept coming back to spectrum. obviously that is the name of the game when it comes to wireless services. you have to have adequate spectrum to do this. lots of pieces to this that we talked about. we talked about the fact that the government owns a lot of spectrum right now. some of the intelligence agencies and a few other agencies here and there. and kind of how we make transition -- we may transition some of them off. one of the things we did is we had a classified hearing in the full commerce subcommittee. it was classified with dod and the intelligence agencies and a few more in there to talk about. one problem there is we do not have a great inventory of what they have and h

comprehensive rewrite of the telecom act? >> was and that are reflective of the current environment which is very different from what existed. >> one court case. the verizon trial. is that important to your business? >> of course. regulatory policy and if estimates, the fear is if we regulate our broadband business in a way that is inconsistent with further investment, that would do a tremendous disservice to our business and american consumers. yes, we are focused on that. the spectrum of auctions is, the. will time warner be involved? >> will be interested observers. we are focused on improving high-speed data experience. generally speaking a month that comes in couple of different forms. we want to make more speed of global to our customers. we deliver as fast as 50 megabits per second. -- in some areas, 100 megabits. to businesses, we deliver speeds that gets into a -- arrange. we are keen tos provide our customers with mobility. the way we go about doing that is a diplomate of wi-fi hotspots. the last year, we have deplo

investigator investors on the hunt have flocked to telecom, utilities. e we about to see a sea change if rates continue to go up? >> i think some of the sea change we've already seen. we saw u tilts get hammered. -- >> and defensives end up good this week. >> just when you think -- >> i don't think -- one thing i don't think going to come out, we're going to taper and shut off the spigot. there are plenty of reasons for them not to. the market will anticipate it. rates will dlim a little bit higher because they'll expect rates to go a little bit higher. so there are some issues. the thing you need to pay attention to is whether or not the fundamental businesses are good. are they actually growing? in many cases they're not. look at staples, it's not a growing sector. >> the telecomp stocks, which we were talking about. >> really stretched in the space. >> they got ludicrous. >> no doubt. i think you have to think with the utilities and reads, they came in 10% over the last month and a half. so they could be setting up for a little bit of opportunity. i kn

another focus is the telecom sector. we have been covering what's been going on with soft bank so we're definitely checking the shares -- share price action not only for soft bank, but also other telecom sector shares, as well, as it finalizes its bid for u.s. carrier, sprint next tele. and sticking with the mow bill phones, also a focus on sony, it's aggressively ramped up its smartphone business really to compete with apple's iphone and samsung electronics. sony has also unveiled its new line of smartphone in shanghai. so that's going to be a bit of a focus, as well. >> and actually, ramin, the data over in the u.s. yesterday seems to have supported the dollar and the fed's argument to begin to wind down its bond-buying program. >> definitely. there was a slew of data yesterday. and you touched on the housing. let's not forget, there was also durable goods orders, which the housing data, of course, topped expectations. but durable goods orders also showed gains. and consumer confidence also rose to its highest level sin

i asked the telecom people to speak of their issues. the top sectors are i.t., finance, telecom, and energy. we have this information out there. the nsa just as a little bit of it. 90% of this lies in the private sector. what we're trying to do is create safe harbor where the sectors can come together with the federal government. with a civilian interface. withcan come together liability protections and antitrust protections and share this information. currently they cannot do it with themselves in the private sector. it has to be a shared relationship. industry driven. are looking at how the executive order is being implemented. that will give us a lots of it is to have oversight hearings on what they are doing wrong, how we can rein in the executive order. ultimately, how we can fix the system. every day that goes by we put americans at risk. i think there is a momentum in the congress. i have been involved in this for over a decade. i've never seen this kind of momentum be war. this of be the time to really get it done. what is not wo

. >> host: so would you be in favor at this point of a comprehensive rewrite of the '96 telecom act? >> guest: yeah, i hesitate to say that, but i think we certainly need to take a fresh look at many of the elements of the telecom act to insure that the provisions that do survive are ones that are reflective of the current environment which certainly is very different from what existed at the time it was written. >> host: one court case i did want to ask you about, the verizon net neutrality court case. is that important to your business? >> guest: oh, yes, certainly. and be when i made reference to insuring that regulatory policy incentivizes investment, the fear always is that if we regulate our broadband business in a way that is inconsistent with further investment, that would do a tremendous disservice not only to our business, but also to american consumers. so, yeah, that's something that we're very focused on. >> host: rob marcus, a couple more questions. >> guest: sure. >> host: the spectrum incentive auctions are coming up in 2014. >> guest: yep. >> host: will time warner ca

we did ts d the telecoms got immuneitty in the bush administration. this is not new and it is needed. companies are putin a impossible position. nemac, i't it time to rethink this? >> yes. >> now we know the extent? >> i agree with scombraup here's why. the governnt stinks because you can't sue e government. but theay the government is writing the law, there is a bill beforehe senate thatf a company passes incorrect information, how do they on on they can be begin muneitty from lawsuits. how do you define that information. the nsa can stor that information five years that you think might be important. india and the middle east and asia and countries putting the onus on gooble and facebook to give or information. how will you stop that if you stop lawsuits from stping the practices. >> rick, none of us like the collusion between the government and private sector, ist suing and giving the customers the right to sue one of the only ways out? >> maybe, but there is something erody is missinghere, its not just the companies deciding to go along with the go

m&a's on the line in the telecom sector. deutschland shares rallying on a bidding war between liberty global and vodafone. >>> and it is d-day for dish in its race for sprint. will a lawsuit over clearwire jeopardize the deal? >>> plus, hedge fund manager dan loeb presses his case for sony, arguing for a partial breakup of the entertainment businesses. he discloses he's raised his stake to up over 7%. >> all right, it's tuesday. we're into "worldwide exchange." plenty to look at today. just keep your eyes on comments from mr. draghi, the ecb looking at deposit rates with an open mind. >>> meantime, syria's topping the agenda at the g-8 meeting in northern ireland, but how does their nearest neighbor view the civil war? we sat down with israeli president shimon peres. >>> protesters swept through brazil yesterday demonstrating against wasteful government spending. is the country fit to host the world cup next year? brazilian stock picks at 10:30. >>> will dish make a dash for sprint? they raised its offer. dish must act before

. >>> kevin johnson said demand from the telecom customers was tracking above historical patttt at the beginning of the quarter. those carriers buy many of the product. and they held up and closed at $18.54. that is a 6.5%. the oil and gas driller more than tripled the dividend today from $15 to $.50 a share. you can bet that shareholders will be pleased to receive it. shares jumped for a while and sold off as the market weakened as the company was off a fraction on close. >>> monsanto called the genetically modified wheat found on a oregon farm as rare occurrence and wonder if sasage may be the cause. japan and china have halted importing the wheat. they have lost 6%. and closed today at $98.91. >> no knives of any size will be ay -- will be allowed on airplanes. the efforts to allow passengers to carry small knives on planes has been dropped. groups representing pilots, flight aten dents and other airline workers fought against this. >> uncle sam, four years after bailing out general motors the treasury will sell another 30 million shares it owns in gm after the markets close thursda

these are essentially billing records that the telecom providers are sharing with nsa. fareed, nsa puts them in a very large database. and then sits and waits until it has a predicate related to terrorism, an arguable proposition that a reasonable man would look at and say, yeah, this is correct to ask that database a question. let me give you a concrete example. we raid a safe house somewhere in yemen. we pick up a cell phone we've never seen before. there's pocket litter in the possession of the individual clearly indicating he's affiliated with al qaeda, he's a terrorist. we take that new phone number and we simply ask that database does this phone number show up in connection with any of the phone numbers, any of the phones events that we have gathered here? and if, for example, a phone number in the bronx kind of raises its hand and says, well yes, i've been in contact with that phone regularly for the past three months, we then get to ask the phone in the bronx who else do you call? and which point, fareed, we're done in terms of what this program authorizes. if w

international patents than many other of their competitors, and this is how they have been able to dominate the telecom industry and beat out erickson as the number one. >> it is so interesting. you talk about the rhetoric that the political, different political cultures of the two countries, it is fascinating to watch. last word for paranoid peter navarro. >> more like outraged peter navarro. ann lives in a very different world than the real world here on this matter because the u.s. does not steal intellectual property from other countries. china excels at stealing intellectual property whether it is weapon system or whether it is google source code or anything in between. they're the biggest threat right now to this country in terms of our long-term economic future and a lot of the reason is because companies like huawei and others steal our stuff. for us to put up with that, it is outrageous as outrageous is the stuff that comes out of ann's mouth on this issue. >> i will loo he have it here and say the chinese government and the chinese foreign ministries and the companies have all said again and

because of the presumption of innocence. france telecomme into orange as the first of july. ross. >> the whole of france telecom's -- >> france telecom will become orange. until now, orange was the name -- yes, orange was the name for the mobile phone services. but now all the group will be named orange. >> orange uk start-up. >> reporter: yeah. >> all of france telecom is going to take a name that was conjured up for a british company. i'm just saying. >> reporter: it's sexier. hello, france telecom sounds like a very '80s company. >> they could have called it ft. oh, no, hang on. see, british telecom became bt. >> reporter: yeah. >> i just think it's interesting they're dropping the word "france." >> reporter: yeah, but orange was a sexy name. you know, they invested so much in communication into the orange name that now they want probably to capitalize on that name. so it makes sense to change. >> i find that notable. thanks for that, stefan. >>> still to come, more on the man who claims he's the source behind the leaks on the u.s. gove

a newly disclosed court order shows the telecom giant verizon is handing over the telephone records of millions of subscribers to the u.s. government without individual warrants. the guardian of london reports the fbi obtained a three and half -- three months surveillance mandate from the foreign intelligence surveillance court in april. it compels verizon to provide the national security agency with the metadata of all of its subscribers' phone calls, who they spoke to, where and what time the made the call, and for how long. in a statement, the aclu to announce the program as "beyond orwellian, "adding -- will have more on the story after the headlines. a u.s. soldier accused of massacring 16 afghan civilians last year has pleaded guilty to murder and other charges, thereby avoiding execution. on wednesday, staff sergeant robert bales formally amended to killing nine children and seven adults during a nighttime attack on two kandahar province villages in march 2012. defense attorneys say bales may have suffered a traumatic brain injury and post-traumatic stress disorder from four tou

i met with the telecom people yesterday to talk about their issues. the top sectors are i.t., finance,gy here's the bottom line. with the information out there. nsa has a little bit of it. it is foreign intelligence. dhs has a little bit and so does the fbi. most of it in the private sector with the critical infrastructure. what we're trying to do is create a safe harbor for the sectors can come together with the federal government with a civilian interface. a civilian interface with the private sector which is groups like that so they can come together with protection and antitrust protection and share this information across sector lines. currently, they cannot shared the information with each other in the private sector. it has to be a shared relationship, industry driven. we are moving forward. we are looking at how the executive is being implemented. impetus toive us have oversight hearings of what they are doing wrong and how to rein in the executive order. and ultimately, how we can fix the system. every day that goes by that we do not pass the

have other orders that they're issuing other than just this kind for the service providers or the telecoms so let's talk about the nine internet companies that said that they are part of this this prison program should americans really be surprised at this but i'm not that's for sure. but i would point out that. the n.s.a. had deployed naris devices in it's in court documents submitted by mark klein documenting the n.s.a. room in the file in the san francisco bay t.n.t. building where they had naris devices in a splitter that basically duplicated the fiber optic lines and would send him down to pass all the information went down two directions one of them went to the nearest devices in the n.s.a. room and so those nevers devices could take everything off that fiber optic line. which meant they could get one nearest insite device can do ten gigabits a second which meant it could reassemble a quarter and a million and a half and a quarter one thousand character e-mails a second and that's the kind of input they would get from one device now i'm sure they have multiple devices that multiple s

. >> what is important with the business. 1996 was an example of the telecom act went into effect. in 1997, we were rolling out digital video and broadband services. commercial services and bringing bundled to the market. with the first to start bundling problem -- press. we have high penetration today. web been able to get into new businesses that others cannot jury about because we got there so early. >> everybody understands that sports and live sports is a sweet spot in media

have other orders that they're issuing other than just this kind for the service providers or the telecoms so let's talk about the nine internet companies that said that they are part of this this prison program should americans really be surprised at this but i'm not that's for sure. but i would point out that. the n.s.a. had deployed naris devices and it's in court documents submitted by mark klein documenting the n.s.a. room in the in the san francisco bay t.n.t. building where they had naris devices in a splitter that basically duplicated the fiber optic lines and would send him down to pass all the information went down two directions one of them went to the nearest devices in the n.s.a. room and so those nervous devices could take everything off that fiber optic line. which meant they could get one nearest insite device can do ten gigabits a second which meant it could reassemble a quarter and a million and a half and a quarter one thousand character e-mails a second and that's the kind of input they would get from one device now i'm sure they have multiple devices that multiple site

>> well it was because they started collecting billing data from the telecoms. the one that was initially participating was at&t and they were given 200 million records of u.s. citizens talking to other u.s. citizens. that allowed you to reconstruct their entire calling community therefore you would know who is doing what with whom. so you could begin to reconstruct the tea party, any kind of organization you want. and then begin to see who is central to that organization or not and target those accordingly. >> steve, how valuable is this information, first of all in it's collection? and how damaging is it that edward snowden has revealed the -- at least the parameters of the program? >> well, my assumption is that the data is extremely valuable in the work that the intelligence community is trying to do but it's not entirely their decision to make about what scope they have to gather and pursue leads here in the united states. that's something that is completely dependent upon what the judicial branch of government says and what the legislative branch says in ex

legal turned out to be illegal and they passed a law to retroactively authorize that and immunize the telecoms and then now again yet again we have a new president and congress saying it's legal nothing to worry about and it's breaking two major federal laws in the fourth amendment of the constitution and obama's also said multiple times that congressional oversight is americans only chance to really understand if spine or that they aren't being spied on sorry but but just on how can we assure that congressional oversight will happen if the fight is the courts completely secret if the people being briefed are happening in secret and they're sworn to secrecy and they can't tell anyone what's going on we can't record is no substitute for real article three court it operates completely in secret it hears only one side of the case and rubber stamps everything last year is an example it approved nearly two thousand applications and rejected zero and in terms of congress the intel committees are briefed but then there are gagged and that's why you have people like white and you are all making crypti

the necessity to get that kind of equipment in there to restore the grid, the water system, for the telecom it is something we are still struggling with and we are working with on a daily basis. >> thank you, mr. brig. >> every exercise i've been involved with, managing information and communication is easily no. 1 or 2 on the list. in the heat of an event, information is flowing in, there's usually no shortage of information rtion it's translating that to something credible that is the challenge. usually 50 percent of that information is wrong and untimely. before a unified command is established and you have various city departments or regional groups that are working together before the unified command has been established, coordinating field work in 4 counties is usually awkward. until that central message gets pushed down and all the groups are rowing together, the field, when you are dealing with the geegraphy we are dealing with in the bay area, that field coordination is always difficult in the first few hours. >> thank you. mr. angelus. >> verizon wireless, every time we get involv

legal turned out to be illegal and they passed a law to retroactively authorize that and immunize the telecoms and then now again yet again we have a new president and congress saying it's legal nothing to worry about and it's breaking two major federal laws in the fourth amendment of the constitution and obama's also said multiple times that congressional oversight is americans only chance to really understand if spine or that they aren't being spied on sorry but but just on how can we assure that congressional oversight will happen if the fight is the courts completely secret if the people being briefed are happening in secret and they're sworn to secrecy and. can't tell anyone what's going on we can't record is no substitute for a real article three court it operates completely in secret it hears only one side of the case and rubber stamps everything last year is an example it approved nearly two thousand applications and rejected zero and in terms of congress the intel committees are briefed but then there are gagged and that's why you have people like white and you're all making cryptic s

and indeed, they're the ones that really did the most. telecom, huh? yeah, consumer staples, health care, utilities, all the leaders on the week. i put up reits as an interest rate sensitive sector. they've done better in the last day and a half, but still to the downside. how about what else happened today? how about those declines in the bonds. no turnaround there. there's the big kahuna in the etf space for bonds. this is the total bond index, agg moving down again. that's down about 4%. that's a lot. a lot of money came out of bond funds this week. about $9 billion according to lipper. that too down about 4% in the last month. a lot of people talking about it. still not big rotation out of bonds into stocks, but we're starting to see some money come out of that. how about for the week? hey, you want to talk about a rally in the united states. rook at this compared to how we did for the rest of the world, maria. s&p up on the week, but germany, brazil, and notably japan all to the downside. maria, have a good weekend. >> and to you, bob. thanks so mu