WEBVTT - Bloomberg Businessweek Weekend - October 3rd, 2025 0:00:00.880 --> 0:00:05.199 This is Bloomberg Business Week Daily, reporting from the magazine 0:00:05.200 --> 0:00:09.800 that helps global leaders stay ahead with insight on the people, companies, 0:00:09.840 --> 0:00:14.720 and trends shaping today's complex economy. Plus global business finance 0:00:14.760 --> 0:00:18.320 and tech news as it happens. Bloomberg Business Week Daily 0:00:18.600 --> 0:00:22.600 with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:23.720 --> 0:00:26.520 Hi, everyone, welcome to the weekend edition of Bloomberg Business Week. 0:00:26.760 --> 0:00:30.040 A US government shutdown and as a result, a monthly 0:00:30.160 --> 0:00:33.600 jobs report from the government that didn't happen. And catch 0:00:33.640 --> 0:00:35.240 the latest on all of this, just head to the 0:00:35.280 --> 0:00:39.400 Bloomberg or Bloomberg dot Com. Also this week, and from Washington, 0:00:39.479 --> 0:00:42.440 pharma stocks rallying on an announcement from the White House. 0:00:42.640 --> 0:00:45.200 We've got a deep dive into what exactly it means 0:00:45.240 --> 0:00:47.240 for drug companies and for patients. 0:00:47.479 --> 0:00:50.159 And the mobile satellite company who stocks shot up as 0:00:50.200 --> 0:00:53.560 well as it looks to go against Elon and SpaceX. 0:00:54.000 --> 0:00:57.240 Then from Amazon's device overhaul to take on Apple in 0:00:57.280 --> 0:01:01.080 the era of AI and metas latest day eyeglasses, to 0:01:01.200 --> 0:01:05.560 Peloton pumping up prices and Aura's new ceramic ring. What 0:01:05.640 --> 0:01:08.840 you need to know from Bloomberg's Mark German. That and 0:01:09.080 --> 0:01:12.080 the exercise suit that amplifies your muscles by way of 0:01:12.120 --> 0:01:15.440 electric pulses and maybe makes you look like a superhero. 0:01:15.560 --> 0:01:18.320 Yes, indeed, all that to come. We start with earnings 0:01:18.400 --> 0:01:21.320 officially just around the corner, but a few companies getting 0:01:21.400 --> 0:01:25.400 us warmed up, including Carnival Corporation, the world's largest cruise 0:01:25.440 --> 0:01:27.880 operator with a fleet of more than ninety ships and 0:01:27.959 --> 0:01:31.720 brands including Carnival Cruise Line its name, Sake Brand, Holland 0:01:31.760 --> 0:01:35.000 America Lines, Princess Seaborn, and a few more. 0:01:35.280 --> 0:01:37.760 The company a great read on the consumer, on travel, 0:01:37.840 --> 0:01:41.559 and on the economy. Josh Weinstein, President, CEO and chief 0:01:41.560 --> 0:01:44.479 Climate Officer of Carnival Corporation joined us on the day 0:01:44.560 --> 0:01:48.320 the company reported record revenue and raised its full year 0:01:48.360 --> 0:01:52.680 earnings forecast for the third straight quarter. Still, investors weren't impressed. 0:01:53.000 --> 0:01:56.000 We did set a record for demand for our yield, 0:01:56.360 --> 0:01:59.600 and that was across North American brands and European brands, 0:01:59.640 --> 0:02:03.480 both coming in four percent higher year over year, which 0:02:03.520 --> 0:02:07.080 is great consistency. We also saw that that improvement was 0:02:07.160 --> 0:02:10.600 driven both by the ticket pricing and on board spending. 0:02:10.680 --> 0:02:13.480 So all the trends that we have are really quite 0:02:13.520 --> 0:02:17.639 positive and it's all helped lead to thirteen percent ROIIC, 0:02:17.880 --> 0:02:21.840 something we haven't seen since got about twenty years now, 0:02:22.160 --> 0:02:24.920 the highest operating income in EBITDA on a per unit 0:02:24.960 --> 0:02:27.960 basis that we've seen in twenty years, record net income. 0:02:28.040 --> 0:02:32.200 So the teams are working hard and delivering over delivering, 0:02:32.240 --> 0:02:33.960 and we'll continue to try to do that. 0:02:34.040 --> 0:02:36.120 We're going to talk about all of that. Stiefel, an 0:02:36.120 --> 0:02:38.359 analyst over at Steple, pointing to a lower than expected 0:02:38.360 --> 0:02:41.240 fourth quarter net yields guidance. It's a measure of the 0:02:41.240 --> 0:02:44.400 amount of revenue you earn per available lower birthday. Are 0:02:44.400 --> 0:02:46.959 you just being conservative with this guidance because it sounds 0:02:47.000 --> 0:02:48.000 like things are going pretty well. 0:02:48.240 --> 0:02:51.320 Yeah, things are going pretty well. It's consistent to what 0:02:51.360 --> 0:02:54.120 we said the guidance would be back in June if 0:02:54.160 --> 0:02:56.200 you backed into what the fourth quarter would be. As 0:02:56.240 --> 0:02:59.560 a matter of fact, we kept the second half overall 0:03:00.000 --> 0:03:02.360 consist in to where we were in December because we 0:03:02.400 --> 0:03:05.000 did experience a lot of volatility over the first half 0:03:05.040 --> 0:03:08.960 of the year given macroeconomic geopolitical events. But what we 0:03:09.000 --> 0:03:11.840 saw is, you know, we've outperformed every single quarter and 0:03:11.880 --> 0:03:13.799 that includes the third quarter, and we're going to work 0:03:13.800 --> 0:03:16.840 hard to try to outperform. Again, we're projecting yields in 0:03:16.880 --> 0:03:19.200 the fourth quarter that demand to be, you know, nicely 0:03:19.240 --> 0:03:21.560 over four percent, just like we ended the third quarter. 0:03:21.639 --> 0:03:24.000 So the trajectory is the trajectory is good. 0:03:24.280 --> 0:03:26.320 I'm Josh, great to have you here, and I'm looking 0:03:26.360 --> 0:03:28.560 at your share price for the year up almost eighteen percent, 0:03:28.639 --> 0:03:32.560 so easily outperforming the broader market. I mean, what's going 0:03:32.600 --> 0:03:34.840 on with the consumer? You guys track the ins and 0:03:34.920 --> 0:03:37.880 outs of it in terms of bookings, what the spend 0:03:38.000 --> 0:03:39.960 is on the ship when they get off the ship. 0:03:40.040 --> 0:03:43.040 So I'm just curious, how do you characterize the consumer 0:03:43.520 --> 0:03:46.880 and who's who's going on who's jumping on board with 0:03:46.920 --> 0:03:47.400 you guys. 0:03:48.400 --> 0:03:51.120 So I'd say the consumer is strong. I think that's 0:03:51.160 --> 0:03:53.320 a pretty consistent word that we've been using for the 0:03:53.320 --> 0:03:56.120 past couple of years. And yes, we do see ebbs 0:03:56.120 --> 0:03:58.680 and flows, and we see gyrations in the backdrop and 0:03:58.680 --> 0:04:01.960 the macroeconomics. But at the end of the day, what 0:04:02.000 --> 0:04:06.560 we have to offer is a very very amazing value 0:04:07.080 --> 0:04:09.800 to what you can get by doing any other type 0:04:09.800 --> 0:04:12.320 of holiday, any other type of vacation, and people pay 0:04:12.360 --> 0:04:14.560 for it. And the great thing is even though they're 0:04:14.560 --> 0:04:18.120 paying more for our experiences than they did last year 0:04:18.160 --> 0:04:20.159 and the year before and the year before that, the 0:04:20.320 --> 0:04:24.919 gap to land based vacations is still huge. And so 0:04:25.279 --> 0:04:28.400 if there is a weakness and pull back in consumer sentiment, 0:04:29.120 --> 0:04:31.719 that bodes very well for us because people are looking 0:04:31.760 --> 0:04:34.680 to stretch their dollar even further and figuring out how 0:04:34.720 --> 0:04:37.080 do I get an amazing holiday because I need one, 0:04:38.080 --> 0:04:42.880 and spend as thoughtfully as I possibly can, and we 0:04:42.920 --> 0:04:45.080 turn up very well when you line us up against 0:04:45.120 --> 0:04:45.760 the alternatives. 0:04:45.800 --> 0:04:47.320 Well, it's cool about talking with you, and I know 0:04:47.360 --> 0:04:49.200 Carnival is your big brand, but I mean you have 0:04:49.320 --> 0:04:52.600 multiple brands, and I know you've consolidated internment in terms 0:04:52.600 --> 0:04:56.480 of some of the groupings. But you talked about positive 0:04:56.600 --> 0:04:59.039 momentum on all of the brands or is there one 0:04:59.040 --> 0:05:02.520 in particular that you're really seeing some standout activity. 0:05:02.760 --> 0:05:05.120 Well, you know, we have a as I said in 0:05:05.120 --> 0:05:07.320 my notes this morning, we have an internal leader board 0:05:07.360 --> 0:05:10.640 obviously with our with our eight world class brands, and 0:05:10.640 --> 0:05:13.640 we encourage the competition and everybody sees who's on top 0:05:13.680 --> 0:05:16.479 and who's marching forward. And you know, the two strongest 0:05:16.480 --> 0:05:18.960 brands on top of our leader board of returns are 0:05:19.000 --> 0:05:22.599 Carnival Cruise Line, which is America's cruise line, and Iida Cruises, 0:05:22.640 --> 0:05:26.240 which is which is the equivalent in Germany. And the 0:05:26.279 --> 0:05:28.360 great thing is as strong as they are and as 0:05:28.440 --> 0:05:30.479 high as they are, they're they're looking over their shoulder 0:05:30.520 --> 0:05:34.359 because everybody is making improvement year over year, and that 0:05:34.440 --> 0:05:38.920 stretches across both North America and Europe as well. And 0:05:39.320 --> 0:05:41.279 the great thing is, despite the fact that we're showing 0:05:41.279 --> 0:05:45.560 so much improvement, only about half of our brands are 0:05:45.560 --> 0:05:48.320 back to where they were in returns since before our 0:05:48.360 --> 0:05:52.400 pause before twenty twenty. Only half of them are at 0:05:52.400 --> 0:05:55.520 their historical peak. So I know the latent demand. They'll 0:05:55.560 --> 0:05:59.440 part of the latent potential that is in our brands, 0:05:59.440 --> 0:06:02.840 and they are marching forward at pace and you can 0:06:02.880 --> 0:06:07.200 see the results on a consolidated basis for the corporation. 0:06:07.360 --> 0:06:07.600 Josh. 0:06:07.640 --> 0:06:09.200 One of the things we always talk about is, and 0:06:09.279 --> 0:06:11.960 we have folks here who are They do one cruise, 0:06:12.000 --> 0:06:14.240 they do another cruise, they do another cruise. And I've 0:06:14.240 --> 0:06:14.680 been on a. 0:06:14.600 --> 0:06:17.240 Carnival ship where I'm talking about Charlie Pah, Yeah I am. 0:06:17.240 --> 0:06:19.040 But I've been on an elevator where I've talked to 0:06:19.080 --> 0:06:21.479 people in the elevator and they're like, yeah, you know, 0:06:21.560 --> 0:06:23.880 this is our tenth cruise or a fifth cruise. I 0:06:23.920 --> 0:06:28.120 am curious what's the mix between new passengers who are 0:06:28.160 --> 0:06:31.280 experienced Carnival for the first time versus those who are 0:06:31.279 --> 0:06:34.480 coming back for a second, third, fourth, fifth, whatever time 0:06:34.640 --> 0:06:35.919 on one of your ships. 0:06:36.279 --> 0:06:39.080 Yeah, so I'll speak holistically and then I can get 0:06:39.080 --> 0:06:41.840 a little bit more specific. But holistically, we got about 0:06:41.839 --> 0:06:44.640 a third of our guests at any one time are 0:06:44.640 --> 0:06:46.680 going to be new to cruise, and the remainder is 0:06:46.720 --> 0:06:48.719 going to be a mix of brand loyalists and those 0:06:48.720 --> 0:06:50.920 who cruise in general, and they might go on various 0:06:50.920 --> 0:06:53.480 brands and they're back on board one of our ships 0:06:53.520 --> 0:06:57.039 one of our brands. It really is dependent on the 0:06:57.080 --> 0:06:59.200 profile of the brand and the cruise because there is 0:06:59.240 --> 0:07:02.559 a huge different in between a three night or quick 0:07:02.600 --> 0:07:05.360 getaway for the weekend out of Miami and going on 0:07:05.360 --> 0:07:07.880 a Quneyard ship for one hundred and twenty night world cruise. 0:07:07.960 --> 0:07:10.000 Josh, I want to have a quick corporate finance question 0:07:10.080 --> 0:07:11.560 with you, because you said something on the call that 0:07:11.880 --> 0:07:13.520 got my interest, and I know a lot of interest 0:07:13.560 --> 0:07:16.680 from investors. Leverage is now down to three point six 0:07:16.760 --> 0:07:19.480 times net debt to ibadah, you'll be able to return 0:07:19.560 --> 0:07:22.280 cash to shareholders when that metric gets to three point 0:07:22.320 --> 0:07:24.920 five percent. Can you get more color here on the 0:07:24.960 --> 0:07:27.040 size and scope of that just thirty seconds, what a 0:07:27.080 --> 0:07:29.520 dividend would look like, what buybacks would look like, and 0:07:29.520 --> 0:07:30.760 when exactly that would happen. 0:07:31.120 --> 0:07:33.040 Well, what we said on the call is, you know, 0:07:33.080 --> 0:07:34.840 we finally got that line of site to three and 0:07:34.880 --> 0:07:37.320 a half times, and from a pro form of perspective, 0:07:37.360 --> 0:07:39.000 after we do a couple of things that we talked 0:07:39.040 --> 0:07:40.840 about on the call, we expect to get to that 0:07:40.880 --> 0:07:43.280 three and a half times, you know, very early in 0:07:43.320 --> 0:07:46.280 our fiscal twenty twenty six, and that really gives us 0:07:46.280 --> 0:07:50.600 freedom to not only continue to responsibly de lever but 0:07:50.720 --> 0:07:54.120 also start that process of returning cash to shareholders. Having 0:07:54.120 --> 0:07:57.200 a dividend is very important to us. Historically we've been 0:07:57.200 --> 0:08:00.480 a dividend paying company, and we know that that opens 0:08:00.520 --> 0:08:03.600 new doors for investors. It gives ongoing yield, and that's 0:08:03.600 --> 0:08:06.720 a great thing for a company to be able to 0:08:06.760 --> 0:08:10.440 guarantee to its shareholders. So that is really priority one 0:08:10.520 --> 0:08:13.240 after that continuing deleveraging, and that will happen in early 0:08:13.280 --> 0:08:14.120 twenty twenty six. 0:08:14.280 --> 0:08:17.360 That was Josh Weinstein, President, CEO and Chief Climate Officer 0:08:17.480 --> 0:08:18.560 of Carnival Corporation. 0:08:18.880 --> 0:08:22.640 Also happening this week, the AI build out and spend continues. 0:08:23.040 --> 0:08:25.680 Corwe was one of the big stories. Shares of the 0:08:25.680 --> 0:08:28.480 company surged after it signed a deal to supply meta 0:08:28.520 --> 0:08:32.000 platforms with as much as fourteen point two billion dollars 0:08:32.000 --> 0:08:35.800 worth of computing power, underscoring the massive cost of developing 0:08:35.880 --> 0:08:39.840 and running advanced AI models while attracting AI and technology 0:08:39.880 --> 0:08:43.040 investments is something the Kingdom of Bahrain is focused on 0:08:43.160 --> 0:08:46.520 as it continues to diversify its economy away from oil. 0:08:46.840 --> 0:08:49.960 On that we were joined by Her Excellency nor Bent 0:08:50.120 --> 0:08:54.160 d Lee al KULAIF, CEO of the Bahrain Economic Development 0:08:54.200 --> 0:08:58.319 Board and also the Kingdom's Minister of Sustainable Development. Her 0:08:58.360 --> 0:09:02.800 focus bringing investment into Bahrain, including data centers. 0:09:03.120 --> 0:09:06.440 Yeah, absolutely, it's important. I mean it's coming, it's not 0:09:07.400 --> 0:09:11.240 it's already there. So we've had a WS set up 0:09:11.240 --> 0:09:13.640 the first hyperscale data center in the Middle East in 0:09:13.679 --> 0:09:16.400 Battery in a few years back. And again, as I mentioned, 0:09:16.480 --> 0:09:18.360 the reason they chose Betteran is because of the regulation, 0:09:18.400 --> 0:09:21.880 but also the strength of the human capital. You mentioned Oracle, 0:09:21.960 --> 0:09:24.240 but we also have some regional and local investments for 0:09:24.360 --> 0:09:27.679 data centers. So we're definitely seeing growth in that region 0:09:28.160 --> 0:09:30.880 where international companies that wish to use that and take 0:09:30.920 --> 0:09:33.160 advantage could come and plug and play and take advantage 0:09:33.200 --> 0:09:36.040 of the data centers already available. But really because of 0:09:36.080 --> 0:09:39.200 the demand, there's a lot of potential and opportunities for 0:09:39.600 --> 0:09:42.600 companies that still wish to have data centers in the 0:09:42.640 --> 0:09:45.760 region to come also and take advantage of that. 0:09:46.480 --> 0:09:49.160 So I am curious. You said very optimistic. What's the 0:09:49.200 --> 0:09:55.520 biggest pertal obstacle right now in you attracting further investment. 0:09:55.600 --> 0:09:58.280 What's the thing that's difficult in terms of what you do. 0:09:58.880 --> 0:10:02.320 I wouldn't say difficult, but we have to have a 0:10:02.360 --> 0:10:06.120 lot of conversations to explain in the business environment and 0:10:06.160 --> 0:10:09.400 talk about their characteristics what makes us different. But it's 0:10:09.440 --> 0:10:12.200 all very very exciting, so we don't mind that at all. 0:10:12.679 --> 0:10:14.400 And I also do think about, you know, something that's 0:10:14.400 --> 0:10:18.040 certainly been front and set sent front of mind for us, 0:10:18.080 --> 0:10:21.000 excuse me, and certainly coming off the you in General Assembly, 0:10:21.120 --> 0:10:24.560 and you know, watching the turmoil that we've seen in 0:10:24.600 --> 0:10:26.960 the in the in the region, how important is that 0:10:27.080 --> 0:10:29.440 to the folks that you're talking with. It's companies, big 0:10:29.520 --> 0:10:33.079 name companies that we know other investors in terms of investing. 0:10:34.080 --> 0:10:37.840 Obviously not every kingdom or area within the Middle East 0:10:37.920 --> 0:10:40.200 is the same, but you know the turmoil and the 0:10:40.480 --> 0:10:43.160 and certainly the war that we've seen between Israel and Hamas, 0:10:43.520 --> 0:10:48.360 how much of that the political situation sometimes slows things down. 0:10:49.760 --> 0:10:55.400 You absolutely need safety and stability for companies to thrive, 0:10:55.440 --> 0:10:58.199 for the economy to grow, and for us in Betty 0:10:58.360 --> 0:11:00.920 and the region as a whole, We've always advocated for 0:11:01.320 --> 0:11:05.199 a piece, We've always played a part on a regional level, 0:11:05.240 --> 0:11:09.040 on an international level to advocate for a piece and stability, 0:11:09.080 --> 0:11:11.720 and we continue to do that. At the same time, 0:11:11.960 --> 0:11:15.720 the countries are very much focused on their economic strategies, 0:11:15.760 --> 0:11:19.400 economic plans and continue to have conversations with companies and 0:11:19.440 --> 0:11:21.760 for those that have any doubt, we just say come 0:11:21.800 --> 0:11:23.480 and talk to us. We will, we will show you. 0:11:23.559 --> 0:11:26.120 We will explain to you that the current business environment, 0:11:26.440 --> 0:11:28.600 but we are blessed to have to have a very 0:11:28.880 --> 0:11:31.080 stable in it, in a safe business environment. 0:11:31.920 --> 0:11:33.560 I have one last question too, and I'm just curious 0:11:33.559 --> 0:11:36.920 when you do have questions with investors obviously well known companies, 0:11:36.920 --> 0:11:39.000 big companies. I'm sure folks do their homework, but what 0:11:39.080 --> 0:11:42.120 is the thing that you think they don't really understand 0:11:42.400 --> 0:11:45.719 about Bahrain and in terms of the economy and what 0:11:45.720 --> 0:11:46.880 you guys are doing. 0:11:47.960 --> 0:11:51.160 I think how diversified the economy is something probably people 0:11:51.200 --> 0:11:54.480 do not realize and given the journey and we've had 0:11:54.480 --> 0:11:58.400 a long journey off reform, our journey in reform and 0:11:58.679 --> 0:12:01.280 achieving the diversification that we're achieved today with eighty five 0:12:01.320 --> 0:12:04.800 percent of the economy being non oil, with a large 0:12:04.800 --> 0:12:08.040 manufacturing sector in nuge for financial services sector and others as well, 0:12:08.040 --> 0:12:10.600 it's something people do not realize and what that means 0:12:10.640 --> 0:12:13.679 is for years and years, for decades, we've built knowledge 0:12:13.720 --> 0:12:17.440 and know how in our people, in our infrastructure, in 0:12:17.480 --> 0:12:19.680 our regulation and the way we do business and the 0:12:19.679 --> 0:12:22.480 way we work with the private sector as well. So 0:12:22.520 --> 0:12:25.040 that's something that I think always surprises people when we 0:12:25.040 --> 0:12:25.520 talk to them. 0:12:25.760 --> 0:12:29.599 Our thanks to her Excellency or bent Lee al Koulev, 0:12:29.800 --> 0:12:32.839 CEO of the Bobrain Economic Development Board and also the 0:12:32.920 --> 0:12:35.040 Kingdom's Minister of Sustainable Development. 0:12:35.240 --> 0:12:38.240 Coming up on Bloomberg BusinessWeek, once doc at Shot up 0:12:38.240 --> 0:12:40.920 this week on news and analyst upgrade and a mission 0:12:40.960 --> 0:12:43.080 to maybe go head ahead with SpaceX. 0:12:43.280 --> 0:12:47.319 The president of AST space Mobile is next. This is Bloomberg. 0:12:50.559 --> 0:12:54.720 This is Bloomberg Business Week Daily with Carol Masser and 0:12:54.800 --> 0:12:57.360 Tim Stenovek on Bloomberg Radio. 0:12:58.280 --> 0:13:00.920 If you think of satellites in space, you often think 0:13:00.920 --> 0:13:04.440 about Elon Musk and SpaceX, and yet there are a 0:13:04.440 --> 0:13:07.600 few other players in the space, among them Ast space Mobile. 0:13:07.880 --> 0:13:10.160 Shares of the company man taking off this week, up 0:13:10.200 --> 0:13:12.600 about two hundred and ten percent year to date. It 0:13:12.679 --> 0:13:15.120 is a nearly twenty three No, it's more than twenty 0:13:15.120 --> 0:13:18.440 three billion dollar market cap. It's a wireless telecom company 0:13:18.440 --> 0:13:22.360 deploying satellites in space to be accessible for smartphones. And 0:13:22.400 --> 0:13:25.520 Barclay's raise the firm's price target to sixty dollars a 0:13:25.600 --> 0:13:28.560 year from thirty seven and keeps an overweight rating on 0:13:28.600 --> 0:13:31.480 the share stock at sixty five and change. Delighted to 0:13:31.480 --> 0:13:34.480 have with us, Scott Wasnwski. He is president of AST 0:13:34.600 --> 0:13:39.280 Space Mobile, as we said, joining us from Boston. So 0:13:39.360 --> 0:13:41.160 great to have you here with us. Scott, You've got 0:13:41.200 --> 0:13:43.520 to be busy. It sounds like you're super busy. If 0:13:43.520 --> 0:13:46.440 I do a search. There's like various press releases coming out. 0:13:47.400 --> 0:13:50.640 You're Bluebirds satellites eight to sixteen. They're in various stages 0:13:50.679 --> 0:13:54.560 of production. My understanding is you guys have plan launches 0:13:54.600 --> 0:13:57.040 every one to two three months on average this year 0:13:57.080 --> 0:13:59.760 and into next year. You're on track to complete forty 0:13:59.800 --> 0:14:02.120 five used to raise by early next year and expect 0:14:02.320 --> 0:14:04.480 forty five to sixty satellites in orbit by the end 0:14:04.480 --> 0:14:06.640 of twenty twenty six. Tell me if I've got it 0:14:06.640 --> 0:14:08.640 all right, and tell us about this build out and 0:14:08.679 --> 0:14:12.000 capabilities and who ultimately is signing up to use it. 0:14:12.600 --> 0:14:15.000 Well, thank you for having us. You know, our company 0:14:15.040 --> 0:14:19.280 is entirely focused on this opportunity of providing wireless access 0:14:19.320 --> 0:14:22.080 from space directly to the phone in your pocket. So 0:14:22.200 --> 0:14:24.680 to do this, we're vertical integrated. We build our own 0:14:24.720 --> 0:14:27.880 satellites as you were just discussing, and we're based in 0:14:27.960 --> 0:14:30.520 Texas here in the United States, and we're partnered with 0:14:30.560 --> 0:14:33.760 over fifty mobile network operators globally. That's how we go 0:14:33.760 --> 0:14:35.920 to market because that's those are the folks who have 0:14:36.640 --> 0:14:39.720 the customers today nearly three billion of them with the 0:14:39.720 --> 0:14:42.800 partners that we have. So we're focused on building this 0:14:42.880 --> 0:14:45.960 network out We have about an eight year history as 0:14:45.960 --> 0:14:48.840 a company. We have over thirty seven hundred patent and 0:14:48.880 --> 0:14:52.400 patent pending claims on developing this new technology. It sounds 0:14:52.440 --> 0:14:55.760 far fetched at first, talking to your regular small phone 0:14:55.760 --> 0:14:58.440 in your pocket from low earth orbit, but that's the 0:14:58.480 --> 0:15:01.520 capability that we have. And this is really important, I 0:15:01.560 --> 0:15:04.720 think for everyone because there's six billion phones out there 0:15:04.720 --> 0:15:07.880 in the world, and as we know, we depend on 0:15:07.880 --> 0:15:10.880 connectivities so much and it's very important that that phone works, 0:15:10.880 --> 0:15:14.400 whether it's convenience, peace of mind, or emergencies, and that's 0:15:14.440 --> 0:15:15.160 what we're focused on. 0:15:15.320 --> 0:15:18.520 Starlink has partnered with T Mobile. You have partnered with 0:15:18.640 --> 0:15:21.400 AT and T and Verizon. What can you tell customers 0:15:21.720 --> 0:15:25.080 about when they can actually expect continuous coverage nationally and 0:15:25.320 --> 0:15:28.720 perhaps even globally as a result of this partnership. 0:15:29.760 --> 0:15:33.040 Right, And so we actually have investment from about six 0:15:33.120 --> 0:15:35.600 different mobile network operators around the world, as well as 0:15:35.640 --> 0:15:38.320 American Tower, who's the largest tower company in the world. 0:15:38.440 --> 0:15:41.120 In Google and so in the United States. Yes, like 0:15:41.120 --> 0:15:43.080 you said, we're partnered with AT and T and Verizon, 0:15:43.120 --> 0:15:47.240 both investors, and it's very important for us to have 0:15:47.280 --> 0:15:50.320 that close relationship because the way, we've built a company, 0:15:50.520 --> 0:15:55.240 our services built purpose built for the mobile phone in 0:15:55.240 --> 0:15:57.960 your pocket, so that it just works. And the key 0:15:57.960 --> 0:16:00.240 there is to be deeply integrated with the operator and 0:16:00.320 --> 0:16:02.520 solve the operator's problem so they can deliver value to 0:16:02.560 --> 0:16:07.560 their customers. So we're organized today around getting service out 0:16:07.760 --> 0:16:11.400 next year, and we're currently have about five satellites in orbit. 0:16:11.440 --> 0:16:14.400 We just announced our plans to deliver number six and 0:16:14.440 --> 0:16:17.280 seven to the launch pad and as you said earlier, 0:16:17.360 --> 0:16:19.320 we're looking to put up forty five to sixty by 0:16:19.320 --> 0:16:21.840 the end of next year. And so this capability is 0:16:22.120 --> 0:16:24.680 very important in the United States but also around the world. 0:16:24.800 --> 0:16:27.840 Well, tell us like who you anticipate or who are 0:16:28.360 --> 0:16:32.320 right now your biggest customers. I'm curious about commercial, residential, 0:16:32.400 --> 0:16:34.840 and I'm also curious about government. 0:16:37.320 --> 0:16:40.240 Well, that's right. And the important thing about our company 0:16:40.240 --> 0:16:42.280 too is you know, space has historically been a bit 0:16:42.280 --> 0:16:44.440 of a niche. You know, if you live in a 0:16:44.480 --> 0:16:46.480 rural area or if you're on a plane and you 0:16:46.520 --> 0:16:49.480 want connectivity, there are nice little markets there. But this 0:16:49.560 --> 0:16:51.880 is about going to the mass market. The six billion 0:16:52.160 --> 0:16:55.160 mobile phones in the world, and so that goes for 0:16:55.200 --> 0:16:57.400 people who live, work, and travel go in and out 0:16:57.400 --> 0:16:59.800 of coverage who have greater ability to pay and want 0:16:59.800 --> 0:17:02.560 that convenience, as well as people who live perhaps in 0:17:02.600 --> 0:17:05.040 rural areas who don't have good connectivity or are one 0:17:05.119 --> 0:17:06.879 to pay a little bit more a month to have 0:17:06.960 --> 0:17:09.600 cellular broadband. Again, this is not a text service. This 0:17:09.680 --> 0:17:12.320 is a cellular broadband service that we'll be selling. So 0:17:12.440 --> 0:17:16.760 that's our US and really developed economy story. When you 0:17:16.760 --> 0:17:20.120 go around the world, there's many countries though, where there's 0:17:20.160 --> 0:17:23.840 over two billion people today who don't have good three 0:17:23.880 --> 0:17:26.040 G or better service on their phones. That means two 0:17:26.080 --> 0:17:29.920 G or nothing, and so market by market, our services 0:17:30.200 --> 0:17:34.240 valuable to the users and the operators who support those 0:17:34.359 --> 0:17:37.280 end users. And then you mentioned US government. That's been 0:17:37.320 --> 0:17:39.680 a relatively new ad to our story in the last 0:17:39.720 --> 0:17:43.159 two years, but given the defense and space backdrop in 0:17:43.160 --> 0:17:46.000 the United States, this is something that's been front and 0:17:46.000 --> 0:17:47.920 center for US for the last two years, and we're 0:17:47.920 --> 0:17:50.760 already providing services to the US government for a more bit. 0:17:51.080 --> 0:17:54.120 So, Scott, you probably know this little company called SpaceX 0:17:54.440 --> 0:17:56.959 that is out there and I'm just curious. They did 0:17:56.960 --> 0:17:59.080 a deal with Echo Star. They became the first company 0:17:59.160 --> 0:18:02.639 to a mask control of the satellite constellations in outer space, 0:18:03.320 --> 0:18:05.880 the launch infrastructures to deliver them there, and the potential 0:18:05.920 --> 0:18:08.679 for direct connections with mobile devices on the ground. So 0:18:09.440 --> 0:18:12.640 there's SpaceX. There are kind of the big behemoth there, 0:18:13.000 --> 0:18:15.640 the big player. There's you guys, there's Amazon dot Com 0:18:15.760 --> 0:18:18.919 is global stock in the race for ubiquitous covers. How 0:18:18.960 --> 0:18:22.280 do you plan to compete with starlink, which already has 0:18:22.320 --> 0:18:24.200 thousands of satellites in orbit. 0:18:26.000 --> 0:18:28.320 Right, and I think for the lame and it's important 0:18:28.320 --> 0:18:31.040 to distinguish between service to a dish that you might 0:18:31.080 --> 0:18:33.919 put on your house or on a car or on 0:18:33.960 --> 0:18:36.439 a plane, and then the phone in your pocket. Right, 0:18:36.480 --> 0:18:38.280 we all have Wi Fi at home, and then we 0:18:38.320 --> 0:18:39.560 have a cell phone for when we're on the go. 0:18:40.080 --> 0:18:42.440 So this is a market, the cellular market from space 0:18:42.480 --> 0:18:45.800 that's brand new. You've seen some players start to enter it, 0:18:45.840 --> 0:18:49.480 including Apple and Starlink, but we've been at this for 0:18:49.520 --> 0:18:52.800 about eight years. This solution is tailor made, purpose built 0:18:52.840 --> 0:18:55.080 for this solution. This is not an add on news 0:18:55.080 --> 0:18:57.520 service for us. This is all we do and that's 0:18:57.520 --> 0:19:00.080 why we've been able to garner such incredible support from 0:19:00.200 --> 0:19:03.199 network operators globally, like like at and T and Verizon 0:19:03.200 --> 0:19:06.600 in the US, Votaphone in Europe, racketin Mobile in Japan, 0:19:06.920 --> 0:19:11.119 Bell Canada who we just announced cellular broadband testing in 0:19:11.160 --> 0:19:14.200 from Canada today with who's also an investor in US. 0:19:14.520 --> 0:19:17.760 So these are capabilities that have been developed with the 0:19:17.840 --> 0:19:21.320 network operator in mind. We are focused on making their 0:19:21.320 --> 0:19:23.240 network better so that they can deliver the value to 0:19:23.240 --> 0:19:23.639 the customer. 0:19:23.640 --> 0:19:27.120 Are you not saying that you're competing with SpaceX and Starlink, 0:19:27.119 --> 0:19:28.639 that you're completely different businesses. 0:19:30.520 --> 0:19:33.880 Well, we plan to go after the cellular user through 0:19:33.920 --> 0:19:37.480 the mobile network operator. They also have a strategy, as 0:19:37.520 --> 0:19:41.080 you said, that they're pursuing. But this is a market 0:19:41.119 --> 0:19:43.320 that we think is big. It's gonna be worth tens 0:19:43.320 --> 0:19:45.760 of billions of dollars. There's six billion phones out of 0:19:45.800 --> 0:19:47.359 there that out in the world to go in and 0:19:47.359 --> 0:19:49.440 out of coverage, and all of us know that feeling 0:19:49.480 --> 0:19:52.199 when we don't have a signal, it's you're helpless, and 0:19:52.280 --> 0:19:55.119 so we think that and all of our over fifty 0:19:55.160 --> 0:19:58.080 network operator partners think that this is something that really 0:19:58.200 --> 0:20:01.119 enhances the value of the cellul other plan that almost 0:20:01.200 --> 0:20:03.720 all of us have, certainly in the United States, and 0:20:03.800 --> 0:20:04.600 so that is a strategy. 0:20:04.680 --> 0:20:05.000 That's good. 0:20:05.040 --> 0:20:07.199