China Mobile iPhone Deal?: Bloomberg West (12/05)

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Dec. 5 (Bloomberg) -- Full episode of "Bloomberg West." Guests include China Market Research's Shaun Rein, Veracode's Chris Eng and Greylock Partners' Joseph Ansanelli. (Source: Bloomberg)

Live from pier three in san francisco, welcome to the late edition of "bloomberg west," where we look at the technology and media companies shaping our world.

I'm emily chang.

Let's get to the rundown.

Nelson mandel died at the age of 95 and tributes are pouring in around the globe.

We've lost one of the most influential and courageous.

He belongs to the ages.

Mandela served 27 years in prison after convicted of treason with the white minority government.

Three years later, he won the nobel peace prize.

He became the first elected black president.

Once again, mandela has died at 95. we'll have more later in the show.

Meantime, our top tech story, twitter has added the first woman to their board effective immediately.

She was ceo of pearson until last year.

Twitter faced controversy for not having a woman board member.

"there could not be a more exciting time to join." what is the latest?

This was a priority to have thea woman joing the board.

There are a number of things that made her the right candidate . she is smart and a forward thinking person.

Speaking with someone who worked with her, she pushed the envelope on the industry.

The international experience and media experience is helpful for where twitter is now.

There are certainly questions about twitter's business and she can help in those areas.

And emily, you had that great interview on ipo day shedding light on this process.

Here is what he said to you on that day.

It is very important to us not to ask someone to join the board and sign off of registration statements before spending time with the company.

We didn't think itw was respectful.

We'll have women board members.

We regularly talk to candidates abou tit.

-- about it.

Twitter will roll out tailored ads?

We have seen a number of companies do it.

Facebook will track if someone is on a travel site, if they're interested targeting people with a certain ad, they've teamed up with ad technology players to do that.

This is a way facebook could boost revenue.

Twitter has its own language for it.

They'll roll out products to boos thet the financial story.

Instagram made headlines today, a media event rading,eading, you're invited to share a moment with the team.

Many speculate it could do with printing.

Many were sent on paper and others were a block of wood.

For more, i will bring in mark million.

What will it be?

Printing physical goods?

I don't think so.

There were people speculating it might be photo printing.

It strikes me as not a good business for instagram.

What's it going to be?

One of the other rumors is maybe instagram will give instagram.com emails to everybody.

It strikes me as unlikely, too.

Facebook gave everyone facebook.com addresses.

They want to challenge the other messaging companies.

The one that seems more likely -- i think we'll see some time of challenger to snapchat.

They're in negotiations, facebook tried with snapchat and they turned down $3 billion from facebook.

Some sort of private -- sharing instagram?

Why?

The business is built on libraries of data and photos.

They can still collect the data, they just may not retain the photos.

Facebook demonstrated they're interested in this business.

Mark zuckerberg workd on aed on a project of a snapchat clone called poke.

And one of the top executives at facebook, emily white was the c.o.o. and went over to snapchat.

Is the tide turning against instagram?

Yes, emily was running ads.

She brought early advertisers, moving to la to work with snapchat.

Similar to facebook seeing instagram taking off with this new thing.

I think they see that recreated in l.a. thanks.

We'll cover that event in new york and bring you details.

Chinamobil may have sealed ad eal deal with apple.

That's next on bloomberg west.

? this is bloomberg west.

Apple may have reached a deal with chinamobil according to the wall street journal.

It could come within a couple weeks.

China was granted license to operate a 4g network.

Jon erlichman is back from l.a. breaking into the chinese market has been challenging, but the users could be a boost to the company.

Let's bring in managing directer sean rhine.

What's the buzz?

The buzz has been good for apple.

They've been facing challenges.

They saw 300% growth and they're now in single digits.

People are really excited.

If apple can sign the deal, they'll have access to millions.

Only 25% of the customers are using 3g. most are price sensitive using the 2g network.

It will be difficult to convince them to buy apple iphones through a contract.

Let's stay on that point.

Has the trend suggested we'rse seeing consumers move from 3g to higher end phones?

The 2g side, consumers prefer pop up cards and pay as you go.

They don't like to sign for contracts.

The second problem is like in shanghai telecoms, you can't ge tat a contract if you're from another city without paying a huge deposit.

Some other operators have been rolling out data service plans.

Those that decide to sign up are going to them to get the high end smart phones.

Being big can sometimes be bad if you draw attention to the fact you have so many subscribers.

Chinamobil's market share dropped the last three years.

The competition is fierce.

After the third plenum where the government met, they'll try to stop the dominance.

You may see a potential break up or policies geraedared to move up.

That's why it hasn't done well the last several years.

What can you tell us about demand for home-grown names?

The rise of products like lenovo?

That's a great question.

Apple wa thes the cool product, it was also a major gifting purchase.

Like rolex.

But what we've seen is the high end samsung galaxy line and domestic manufactureres.

They're gaining market share.

Lenovo opened up a test center where people can play with products,. they're cheaper and almost as good in many cases.

I was interviewing banks, and they're buying lenovo phoens tones to give to employees.

As the industry becomes more commoditized.

Always appreciate it.

Sean, joining us.

Emily, over to you.

Speculation microsoft has chosen a ceo successor.

The problem is allen mullaly has a job.

We've heard from him?

It's a problem to be so well liked, as you know.

Please.

Mullaly looks like an answer.

The dot-com buble was -- bubble was at its frothiest.

Looking forward, while mullaly was there, he really turned this around and possibly the worst environment for sales.

An impressive job he did from a different industry and a planning sales structure.

Putting it on solid footing, those are the turn around skill s the boaredd likes.

Let's really analyze -- he didn't dneyeny it.

It's not unequivocal "hell no." you've told me you'd stay till 2014. no change in the plan.

It sounds like the non- denial denial.

A couple months, on the same day they say the plani is not changed.

On the 24th, he told investors we won't comment on speculation.

He seems to be walking back.

Microsoft wants to decide before the end of the year.

Any decision won't happen the week of christmas.

So any big decision will be th e next week or two.

Microsoft stepping up against government surveillance.

Microsoft says it is stepping up in encryption to protect information.

This comes after government intercepting information between centers, but how big a challenge is this?

Cory johnson is in the newsroom with more.

They are trying to make it more transparent.

More on how that is going to work.

I am joined by the vice president of research.

This is interesting to me that the government is in an arms race with a u.s. company.

What is microsoft proposing?

They are proposing a few things.

This is going to be good news for consumers.

You get additional security without having to do anything about it.

The trend has been to increase the amount of places.

This was the trend.

This is really a continuation of the process.

A year ago your facebook was not even encrypted unless you specifically ask for it.

Today it is always encrypted for everyone.

We are seeing it move in that direction.

There is a data in utah where the nsa is opening a physical facility to do the kinds of commuting -- and crippling that has never been seen before.

Is that what we are looking at, the best tech minds of the best tech companies?

Something like that, with the big data centers, the assumption is they are going to be cracking encryption on a large scale.

That is what one microsoft encryption is working against.

The idea of perfect forward secrecy is going to make it difficult.

If i was capturing all your traffic that was encrypted over five years hoping i would ea able to one day crack the key -- one day be able to crack the key, that is something that was possible before.

With this secrecy that is no longer possible.

That makes the impact of cracking any key much less for the consumer.

It makes it more difficult to do.

I understand why microsoft is concerned.

The kind of information they want might he found on facebook.

It is the aggregation of all the information, whether it is e-mail or facebook.

It is all of that metadata put together that creates an overall picture of the individual.

Any data that travels over the internet is subject to eavesdropping by any of the private companies that make up the internet.

This is not ultimately a new problem.

It is something microsoft and google absolutely understand the risk of.

It is something publicly coming up.

It is a bigger problem.

Inc.

You very much.

Just a reminder, tomorrow we will bring you a special bloomberg west.

We will have eggs blues -- exclusive interview with the paypal president and many more.

We will also show you about new touchscreens.

More bloomberg west after this welcome back to bloomberg west.

It we want to update you on the developing story, former south african president and worldwide symbol of freedom nelson mandela has died at the age of 95. tributes are coming in from around the world.

Here is president obama.

Sacrificing his own freedom for the freedom of others.

He transformed south africa and moved all of us.

His journey from a prisoner to a president embodied the promise that human beings and countries can change for the better.

The commitment to transfer power and reconcile with those who jailed him is an example that all humanity should aspire to.

He joined the african national congress and worked to oppose apartheid.

He would be sentenced to life in prison and remained behind bars for 27 years for being released.

Want a free man, he was able to negotiate an end to apartheid rule and become the first elected black president of south africa and a global icon for reconciliation.

Nelson mandela is the subject of the latest film that hit theaters this weekend.

I am joined with more . harvey weinstein has put out a statement on its passing.

One of the privileges of making movies is immortalizing those that have had a profound impact on humanity.

I was fortunate to have been immersed in his story and legacy.

Some of the material has been made available to high school students.

I started by asking why the goal of this project was to do more than just make a movie.

It is about bipartisanship.

People working together.

This movie inspires me to do things i never would have done.

I would have gone against david coke and the koch brothers.

I invited them to a screening and said let's put down our weapons and try to lead this country the right way and we can work this stuff out.

Forgive us for our trespasses and try to work.

Don't get me wrong.

I don't make mooring movies or educational films.

It plays like an action movie and has a great love story to boot.

That this was someone you knew, was it more passionate to get behind this film?

Yes, and i knew we could do things like keep some of his flaws.

This is nelson mandela.

He hit his first wife and he regrets it to this day.

He was a bit of a womanizer and regrets it to this day.

All of it is in there so you can see a human being.

He is not a saint.

This is a story about how somebody gets to that place who can do so much good and inspire others.

A lot of contenders in the mix.

Easier said than done.

You make it look pretty easy.

What is that process like?

You tried to drive yourself and the people you work with.

I just think that for us, the awards are a way of giving publicity to movies that deserve it.

Movies are going to open, comic book movies.

Hunger games is really good.

People will flock to that.

I understand that.

It is a way of putting light on films that maybe aren't as commercial.

I will put this movie against any other movie.

You can hear a pin drop in this movie.

It is inspirational.

President obama and the first lady have seen this movie.

Colin powell is in this movie.

Does it help for a partnership like this when people in washington are also very aware of the film?

Of course it helps, but we need to teach washington some lessons about how you actually create movies and fight for what's right in a way that has long-term opportunity for quality and democracy.

Underlying this great action love story is a message not only about leadership, but how you move into a direction of a country coming together.

We had john mccain and hillary clinton on the same stage.

Republicans and a very famous democrat.

You can see that the movie brought them together.

That is what we will walk out of here with.

The kids will see this movie and learn something about leadership.

He for gave those people.

He walked out and for gave so he could build for the future.

That is what we have to do as a country.

Forget we've had these political wars and start fresh.

Emily?

We will be right back with more after this break.

? welcome back to bloomberg west.

The house has passed a bill to reform the nation's patent system.

The bill makes it easier for businesses to fight back against patent trolls and makes fighting patent lawsuits less expensive.

The senate is expected to take up a similar bill later this month.

Shares fell nearly six percent today after technical glitches at the new battlefield for game.

Layers report that the game sometimes crashes and there have been online connection issues.

Early halting work on other projects until those problems are fixed.

Raising an additional $50 million of funding, the additional cash means it is valued at half a billion dollars.

The company plans to use the money for international expansion.

It helps companies make sense of big data and it just got some more capital to do it.

It raised $12 million in new funding led by partners.

For more on how the data platform works, i want to bring in a partner.

The bar is five.

It is a phenomenal team.

A renowned professor, just a database, a data guru.

It is not your typical entrepreneur.

You do tend to see people that are a little bit more experienced starting companies.

But honestly, there have been a lot of great examples of people coming from academia to start companies.

It was actually a great place to look for really great ideas.

A lot has been said about big data but we are waiting to see the value of big data.

Everyone talks a lot about big data and people are excited about it.

The problem that they are trying to solve is people are storing more and more information, but it is hard for technical people to access that data and bring it to a format that you and i can use.

Give me an example.

Going from all of this information to something simple.

I think we're familiar with what facebook does.

A typical modern airplane creates 500 gigabytes of data.

Would you want to do is provide the people actually doing the business the ability to see that information.

An example might be somebody on the consumer analytics side helping us understand what they are doing.

In the case of an airplane, it might be someone dealing with the efficiency of an engine.

They want to be able to pull that data from the flight, but the problem is there is a lot of variety and it tends to be very messy.

There are not a lot of engineers.

What they try to do is make it so that people like you and i can access this data.

One of the other problems is people spend 80% of the time just gathering the data.

This data is typically very messy.

It has a form and a structure which is not very clean.

They do spend 80% of their time just in preparation.

The big goal is to say, let's flip that over.

We think it will unleash a lot of insight and information.

Who are the clients.

E the product launches in quarter one.

It is all large enterprises.

April storing lots of data, everything from manufacturing to health care and financial services.

Anyone storing lots and lots of data.

You have joined with the likes of david.

Where are you going to focus?

No pressure.

Gridlock is an incredible ferment.

We have a great consumer team.

As well as james, john, and simon.

Big shoes to fill.

My focuses is primarily on the enterprise side, focusing on things like trifecta and things like machine data.

As well as the number of things on security.

What is the future of big data?

Does it become bigger data?

If you look 30 or 40 years ago, all major applications like oracle, we're seeing a massive shift to how they are storing the data.

I think you will see a big change.

The key thing you're going to see is people upgrading and doing analysis much more in a real-time fashion.

People want to get the insights immediately.

If something happens with i.t. infrastructure, i want to know immediately.

It is operating much more of a real-time fashion.

We are counting on you to find the companies that will make all this work.

Thank you for joining us on "bloomberg west." he is the chairman of the mobile security firm where my husband works.

Join us for a special bloomberg west tomorrow broadcasting with some of the biggest names.

The storefronts touchscreens, ticket retail sites and much more.

Do not miss it on the inside ebay special edition tomorrow.

Twitter is teaming up with deutsche telekom to get its messages on your smartphone home screen next on "bloomberg west." you can also watch us streaming on your tablet, phone, or bloomberg.com.

? welcome back to bloomberg west.

Nelson mandela served for five years as south africa's first black president after his african national congress party helped end apartheid in 1994. here is a look back at his life.

A free man taking his first steps.

From prisoner to president.

His 1990 release from jail signaled the end of south africa's racist party of apartheid.

It would go on to become the country's first truly democratically elected leader.

The faithful to the public of south africa.

Born in a small village to a local chief, he was one of 13 children and the first member of his family to attend school.

In the 40s, he began opposing the white minorities policy of apartheid.

At first, he was inspired by gandhi's approach of nonviolent resistance.

But as white south africa became more aggressive, so did he.

As the head of the armed wing of the african national congress, he led violent sabotage attacks and was arrested and tried in 1962. he would spend 27 years in jail.

But he was never forgotten.

Eventually, international and internal pressure led the president to announce apartheid would be dismantled and mandela would walk free.

Rather than seek richard duchenne, he reached out to his former oppressors and tried to heal a divided nation.

He and the president shared the nobel peace prize.

We want them to feel safe.

We appreciate the contribution they have made.

He voted for the first time in 1994 with millions of his fellow south africans.

He became a statesman, an international icon.

For south africa, he was the symbol of a country that he wanted to be.

Despite struggles with poverty, racism, and aids.

Many will remember mandela celebrating south africa's place on the world stage as it hosted the 2010 soccer world cup.

A simple tribute, his place in south africa's heart.

Thank you for our dignity.

It is time for the bwest byte , one number that tells a whole lot.

An important number today.

27, nelson mandela in prison for 27 years.

It is hard to imagine that he could emerge such a forgiving leader.

It is worth noting there was a lot of pressure in the u.s.. there was a lot of business and a lot of investment in south africa and a lot of pressure from u.s. corporations to take their operations out of south africa and take investment out of pension funds.

It was one of the things that helped lead to his freedom.

It sounds like he was quite the inspiration to president obama.

He was the first black president of south africa and obama the first black president of the united states.

Given the timing to listen to your interview, the human story of nelson mandela?

The event that they did here in los angeles to a bunch of high school students, they're using so much material from the film to teach the story of mandela, he told the story about an event which was on his behalf in the states with a bunch of celebrities in attendance.

He told this story to the various actors saying, thank you for your films.

One of the things that he would do with his years in prison, we would get together once a week and have a laugh watching various films.

I want to say thankful -- thank you to you.

That was one moment i remember recently from what weinstein had to say.

The movie is sort of getting mixed reviews.

You wonder if this is going to change anything.

He said that this is not necessarily meant to be a story that has no rough edges.

He obviously had his ups and downs and i wanted to show all of that.

Nelson mandela passing today at the age of 95. iq all for watching this edition of "bloomberg west." we will see you tomorrow and you don't want to miss "inside ebay" tomorrow.

?

This text has been automatically generated. It may not be 100% accurate.

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