WEBVTT - Verizon CEO Hans Vestburg Talks Digital Divide

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. It is a joy

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<v Speaker 1>to be alongside global citizen. It is a joy to

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<v Speaker 1>be with you hands not running, not running a five

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<v Speaker 1>k exactly, I'm going to do the painful pun because

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<v Speaker 1>that was a short run, maybe five k. It's a marathon,

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<v Speaker 1>not a sprint. When we're getting to things like closing

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<v Speaker 1>the digital divide, now, I want to understand the scale

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<v Speaker 1>of the problem. Can you articulate just how difficult it

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<v Speaker 1>is right now for people to actually get access.

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<v Speaker 2>So the positive is that the last four or five

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<v Speaker 2>years we've added one billion people more to be diggn included.

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<v Speaker 2>It's roughly five point five billion in the world that

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<v Speaker 2>is having access to internet, but it's two point six

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<v Speaker 2>billion today that still are not connected. And we all

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<v Speaker 2>know being connected to your part of our society. You

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<v Speaker 2>can work, you can get it location, you can get

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<v Speaker 2>digital information. It's so important. So other two point six

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<v Speaker 2>billion people that are not connected on this earth today,

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<v Speaker 2>roughly ninety percent of them are actually covered by broadband

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<v Speaker 2>in some kind of fashion. Ninety percent ninety percent, And

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<v Speaker 2>then you ask me, so why you're OneD ucing it?

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<v Speaker 2>So there are different problems in different countries but basically

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<v Speaker 2>you need to break it down in three things. The

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<v Speaker 2>access to the technology. That has to be some broad

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<v Speaker 2>and there are still four five hundred million people on

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<v Speaker 2>this earth that is outside the grid. And then it's

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<v Speaker 2>roughly and then the second part is affordability. You need

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<v Speaker 2>to be able to afford it. And that's not only

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<v Speaker 2>to have the plan for broadband or wireless. It's so

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<v Speaker 2>have a device in many countries that's very expensive to have.

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<v Speaker 2>And finally it has to be usability. It has to

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<v Speaker 2>be digital education, digital healthcare and other societal important application

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<v Speaker 2>to actually be important for dignitil inclusion. Many all are

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<v Speaker 2>sitting here we think that being digited and included, we

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<v Speaker 2>can we can stream YouTube or something like that. But

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<v Speaker 2>here we talk about it shouldn't matter where you're born,

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<v Speaker 2>where you come from, or where you live. You shall

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<v Speaker 2>have the same chance wherever you come from. And that

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<v Speaker 2>you can have if you digit it included, you can

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<v Speaker 2>apply for a job, you can get the job, all

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<v Speaker 2>of that and you can learn which others that are

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<v Speaker 2>inside the digital divide can do. So that's why the

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<v Speaker 2>two point six billion people is very important to address

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<v Speaker 2>together with the countries and with companies to see that

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<v Speaker 2>we're actually shrinking that.

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<v Speaker 1>When you look at the learning side of the equation.

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<v Speaker 1>I know that's something that Verizon's doing deeply. So you

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<v Speaker 1>already say, look, most people actually have access in some

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<v Speaker 1>way of they've got broadband they could tap into. Why

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<v Speaker 1>are you looking at the education piece in particular, and

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<v Speaker 1>what are you doing about that here in the United States.

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<v Speaker 2>So if you look what Variazon is doing, we have

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<v Speaker 2>cities in Verizon where we connect our business to things

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<v Speaker 2>that are in our society. One of those goals is

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<v Speaker 2>to make ticketing inclusion for ten million students, getting students

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<v Speaker 2>in the toughest areas where there are no connectivity to

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<v Speaker 2>actually be part of it. So we have roughly six

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<v Speaker 2>hundred schools around the country where we have broadband into

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<v Speaker 2>the school, we give them a device, and we give

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<v Speaker 2>them digital stem education, and I have to use them

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<v Speaker 2>all three because then you'll really get to the root

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<v Speaker 2>of it. So far, our commitment over ten years is

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<v Speaker 2>to educate ten million students. We have done seven million

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<v Speaker 2>so far and we're six years left. So we're going

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<v Speaker 2>to do ten million students in the low income areas

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<v Speaker 2>of the United States. Those schools are going to get

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<v Speaker 2>broadband from us, and then I use my employees to

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<v Speaker 2>be volunteers so they are part of the journey as well,

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<v Speaker 2>to educate, maintain equipment, et cetera. So for us, it's

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<v Speaker 2>an ecosystem. But then you ask me, why are we

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<v Speaker 2>doing it? It's my business. My business is doing broadband.

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<v Speaker 2>My business is to get children to understand and use

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<v Speaker 2>digital tools and ultimately they might remember Verizon and then

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<v Speaker 2>they're going to be a customer who.

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<v Speaker 1>Knows are you okay? So it's good business. But do

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<v Speaker 1>your investors get that? Do they see the long term

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<v Speaker 1>benefits rather than you know, margin today, revenue today, profit today.

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<v Speaker 2>I think that when you go away from the acronyms

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<v Speaker 2>that everybody talks about and talk about what you're doing

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<v Speaker 2>that is part of your business, everybody understands it because

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<v Speaker 2>there are many acronyms ESD, D and I and all

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<v Speaker 2>of that talk about what you're doing and why that

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<v Speaker 2>is connecting to your business. For me to get broadland,

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<v Speaker 2>to get you to use our service and then educate

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<v Speaker 2>THEMSELM with STEM, they might even end up working for me.

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<v Speaker 2>And we have been onto this Verizonal Innovative Learning for

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<v Speaker 2>more than ten years and we keep all the school

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<v Speaker 2>We continue with them and many of the shielding has

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<v Speaker 2>started with us in the first and second grade. They

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<v Speaker 2>are now actually have graduated and they're out in the

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<v Speaker 2>work life and they will always remember how they get

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<v Speaker 2>their part of being in digitally included. So for us,

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<v Speaker 2>this is a is an ecosystem that is so important

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<v Speaker 2>for us, for our business, for being even more prosperous.

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<v Speaker 1>Can I just take a step back and for a moment,

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<v Speaker 1>as two Europeans who've come to the US, how can

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<v Speaker 1>you hear? Why are we here? Well, because it's the

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<v Speaker 1>biggest economy in the world. Yes, and there are ten

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<v Speaker 1>million children that need to be educated in stem by

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<v Speaker 1>you in the biggest economy in the world. What is

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<v Speaker 1>the US government doing about affordable connectivity? Because all I

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<v Speaker 1>can see is actually they're pulling back on some of

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<v Speaker 1>the funding for it.

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<v Speaker 2>So historically and now we're coming into a little more

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<v Speaker 2>complicated Historically, US or still have ACP, which is affordable

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<v Speaker 2>connectivity plans, meaning that low income families can get a

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<v Speaker 2>subsidy to get broad band or wireless connectivity. Now there's

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<v Speaker 2>a discussion in the compress if they're going to vote

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<v Speaker 2>about again, but I have talked to many governments and

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<v Speaker 2>there are different challenges in different countries. But doing subsidy

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<v Speaker 2>for low income families to getting connected is so important

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<v Speaker 2>because they can be partners, they can apply for on job,

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<v Speaker 2>they can work remotely when we are so many remote

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<v Speaker 2>works today, customer care et cetera, and other works that

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<v Speaker 2>you can do consultancy, et cetera. So being part of

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<v Speaker 2>that and having access to that makes it you can grow,

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<v Speaker 2>you be part of our society. It's so important for

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<v Speaker 2>the whole country for GDP growth and all of that.

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<v Speaker 1>I mean yes, and for me that still needs to

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<v Speaker 1>resonate so much that we're even talking about children here

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<v Speaker 1>in the United States that need corporate philanthropy to be

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<v Speaker 1>able to learn, to earn, and to be able to

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<v Speaker 1>afford affordable devices. Where have you seen the most tangible

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<v Speaker 1>benefits You've talked about how you're getting out there ten

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<v Speaker 1>million children, how already has some of the impact that

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<v Speaker 1>you've thought about the digital divide already come to bear

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<v Speaker 1>for productivity even here in the US.

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<v Speaker 2>I think here in the US, I mean I think

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<v Speaker 2>in the whole world. I mean we saw coming off

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<v Speaker 2>from COVID. I think that nobody could say that being

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<v Speaker 2>connected is not important. You cann't do your work. You

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<v Speaker 2>can get the information you needed to be connected. And

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<v Speaker 2>that is not in us, it's all the world. All

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<v Speaker 2>around the world. We saw countries like India flourishing to

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<v Speaker 2>setting the digital Vivie very high up to see that

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<v Speaker 2>they're connecting. They got their COVID subsidies, to families, to

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<v Speaker 2>mobile phones, see things we never thought can happen. But

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<v Speaker 2>that triggered the whole world to think differently. And I

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<v Speaker 2>usually say that the twenty first century infrastructure, that's mobility

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<v Speaker 2>broadening cloud because then you can bring down the coast

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<v Speaker 2>and you can reach any person on this earth that

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<v Speaker 2>want to be part of our society.

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<v Speaker 1>Why is it your calling? You have you ever since

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<v Speaker 1>you've been in the world of telecoms, thought this is

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<v Speaker 1>just something that is impossible to ignore? Or does it

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<v Speaker 1>become worse and worse the more we've become seeing education

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<v Speaker 1>necessary through technology, healthcare necessary through technology.

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<v Speaker 2>I think it started probably some fifteen twenty years ago.

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<v Speaker 2>I worked with the MDGs for the younger generation, that

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<v Speaker 2>was the Millennium Development Goals that was before the STDs,

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<v Speaker 2>and I went to Africa many times, and I connected

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<v Speaker 2>villages and I remember vividly when I went to a theopia,

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<v Speaker 2>for example, and we turned on internet in the community,

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<v Speaker 2>the share how positive, how happy they were, and how

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<v Speaker 2>thankful we are now part of our society. We can

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<v Speaker 2>now get information what als it started there. Then I've

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<v Speaker 2>been been my long life mission to see that whatever

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<v Speaker 2>I can you do from the platform I have and

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<v Speaker 2>from the company I'm running, still with the technology and

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<v Speaker 2>still with the business and strategy we have, I'm going

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<v Speaker 2>to do everything to see that can close the digital divide.

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<v Speaker 1>Let's talk about not just the digital divide here in

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<v Speaker 1>the US, but there's a digital divide globally. And that's

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<v Speaker 1>something that you, in particular, have tried to harness, tried

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<v Speaker 1>to focus on, trying to reduce and what you've got

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<v Speaker 1>an eye on one billion people? Can you talk us

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<v Speaker 1>through it?

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<v Speaker 2>Yeah. So we came out from that COVID and I

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<v Speaker 2>felt that now it's time for me to do something

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<v Speaker 2>greater on the global basis. I decided to get with

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<v Speaker 2>World Economic Forum to set up a program over five

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<v Speaker 2>years to see that we connect one billion people more.

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<v Speaker 2>That started in the beginning of twenty one and what

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<v Speaker 2>it's all about. Is that not only getting broadband. As

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<v Speaker 2>I said, it was about broadband, but it was either

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<v Speaker 2>to be digital, education, healthcare, or financially included digitally because

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<v Speaker 2>that was three things were so important coming out of COVID.

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<v Speaker 2>So the only way we would count the new editions

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<v Speaker 2>was actually if they are into that, and today we

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<v Speaker 2>basically have one hundred and thirty seven countries being part

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<v Speaker 2>of it, one hundred and sixty different champions doing commitments.

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<v Speaker 2>My commitment is or Verizon's commitment is a ten million

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<v Speaker 2>student that we're committing and every company or government being

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<v Speaker 2>part of it, they are committing to it. So that's

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<v Speaker 2>how it started. We are now have three hundred and

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<v Speaker 2>twenty different programs around the world. We're twenty three hundred

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<v Speaker 2>and twenty I think that's a number. And we have

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<v Speaker 2>passed seven hundred and eighty four million people in less

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<v Speaker 2>than two and a half year that has been included.

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<v Speaker 1>Can we just yeah, seven hundred and eighty four million

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<v Speaker 1>in two and a half years. Okay, so I'm playing

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<v Speaker 1>Devil's advocate greenwashing. Yeah, tell me how you measure this? No?

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<v Speaker 2>So, yeah, so we did. That was one of the

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<v Speaker 2>first things. So we have actually a team. We have

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<v Speaker 2>an auditing team from a very reputable audited in firm

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<v Speaker 2>auditing all the commitments done by governments or by the companies,

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<v Speaker 2>whatever they're committing, and that they're they're succeeding with the result.

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<v Speaker 2>We're quarterly reporting and we do an annual report. We

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<v Speaker 2>are on a second report because we started twenty one,

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<v Speaker 2>twenty twenty second twenty year, twenty two was the second year,

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<v Speaker 2>and then twenty three and twenty four and then as said,

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<v Speaker 2>the goal is one billion, we're on seven eighty four.

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<v Speaker 2>I think we're going to be ahead of the five

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<v Speaker 2>years by.

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<v Speaker 1>The two point six billion you said came.

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<v Speaker 2>So this is part of the two point six billion

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<v Speaker 2>that we're shrinking. The two point six billion.

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<v Speaker 1>And how if you're sat in this audient right now

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<v Speaker 1>you're feeling pretty inspired by you going out there sticking

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<v Speaker 1>your neckout on a one billion target, how can they help?

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<v Speaker 2>I think that any organization, any structure that is actually

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<v Speaker 2>having part of the strategy to see that we're including

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<v Speaker 2>people digitally on this earth can be part of it.

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<v Speaker 2>And the beauty of it it has to be sort

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<v Speaker 2>of private public because you cannot solve it yourself. I

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<v Speaker 2>mean usually building networks to ninety nine percent is private capital.

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<v Speaker 2>It's guys like me building networks. When it comes to affordability,

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<v Speaker 2>it actually work together with governments. If you're going to

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<v Speaker 2>subsidize on all of that and then to create sort

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<v Speaker 2>of usability healthcare, education, or financial inclusion digitally, mainly that's

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<v Speaker 2>owned by governments, So you have to do it crossover.

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<v Speaker 2>If not, you're not going to succeed. So anyone that

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<v Speaker 2>is working with those type of things and think that

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<v Speaker 2>they can help and have an organization that commit, they're

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<v Speaker 2>welcome to join the Edison Alliance that we're running in

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<v Speaker 2>order to see that we bridge that gap and reduce

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<v Speaker 2>it with one billion in less than five years.

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<v Speaker 1>And let's tackle the full two point six billion. Hands.

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<v Speaker 1>It's an inspiration. Thank you very much. Keep up with

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<v Speaker 1>a running, keep up with the marathon.

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<v Speaker 2>Thank you.

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<v Speaker 1>We appreciate it all so much