WEBVTT - David McCourt on Trends Impacting the Telecom Industry (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh Rio to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Bloomberg twelve hundred to San Francisco,

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<v Speaker 1>Bloomberg nine to the Country six Channel one, and around

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<v Speaker 1>the globe the Bloomberg Radio, Fox and Bloomberg dot Com.

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<v Speaker 1>This is taking Stock. Coming up on taking Stock. He

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<v Speaker 1>has been described as having impeccable credentials as a telecom revolutionary.

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<v Speaker 1>Are you interested in starting your own media network? Well,

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<v Speaker 1>coming up, you're gonna be listening to David McCourt and

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<v Speaker 1>maybe he'll have an answer too. But right now, let's

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<v Speaker 1>get answers from Charlie Coulo in the Bloomberg newsroom for

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<v Speaker 1>the Bloomberg Business Flash, and I thank you pim Fox.

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<v Speaker 1>We've got the down Jones Industrial Average down thirty eight

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<v Speaker 1>points now declining two tenths of one percent, the SMP

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<v Speaker 1>five hundred index holding onto a gain of three points,

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<v Speaker 1>some two tenths of one percent. The SMP are struggling

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<v Speaker 1>to rebound after happing a second to straight weekly retreat.

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<v Speaker 1>Right now, Nestak is up twenty four points, a gain

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<v Speaker 1>of five tenths of one percent. Investors are awaiting a

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<v Speaker 1>final batch of earnings reports, along with further clues on

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<v Speaker 1>the health of the U S economy. Jim Paulson is

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<v Speaker 1>chief investment strategist at Wells Capital Management. I think there'll

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<v Speaker 1>be a couple of hikes yet this year. Um. Yeah,

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<v Speaker 1>that's really predicated on a belief that number one in

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<v Speaker 1>the US economy has probably been growing, continuing to grow

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<v Speaker 1>two to two and a half percenter out notwithstanding all

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<v Speaker 1>the vagarities of you know, up and down of the

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<v Speaker 1>various reports that come out, and on the view that

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<v Speaker 1>I think international data is picking up. Gold is moving,

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<v Speaker 1>Laura now by twenty seven dollars, the ounce to twelve

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<v Speaker 1>sixty six, the drop there of two point two percent.

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<v Speaker 1>And we are brought to you by Vanneck Vector's et

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<v Speaker 1>F S expects more from your munies target tax exempt

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<v Speaker 1>income by maturity and credit quality, all with low cost

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<v Speaker 1>ETFs does advanacked Calm Slash Muni Van Eck access the

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<v Speaker 1>opportunities Lending Club shares plunging today after an internal review

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<v Speaker 1>found of US is tied to the sale of a

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<v Speaker 1>loan and a failure to disclose a personal interest in

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<v Speaker 1>an investment fund, leading to the departure of founder and

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<v Speaker 1>CEO Renaudo Laplanche. Today lending club plunging twenty seven percent.

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<v Speaker 1>J C. Penny says it will start to sell major

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<v Speaker 1>appliances online and expand its rollout of the category to

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<v Speaker 1>nearly five hundred stores, or almost half its stores, this summer.

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<v Speaker 1>This after testing it out in a number of trial markets.

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<v Speaker 1>J C. Penny shares up two point eight percent to

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<v Speaker 1>thirty two on Wall Street. Now will look at some

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<v Speaker 1>of the other stories making news. Charlie, thank you from

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<v Speaker 1>the Bloomberg news roomin Mark Crompton. North Carolina is suing

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<v Speaker 1>the federal government over its so called bathroom Law, which

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<v Speaker 1>limits protections for LGBT citizens. Governor Pat mccruory. We believe

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<v Speaker 1>a court, rather than a fed rural agencies, should tell

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<v Speaker 1>our state, our nation, and employers across the country what

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<v Speaker 1>the law requires. The Justice Department had given North Carolina

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<v Speaker 1>until the end of today to scrap the law or

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<v Speaker 1>risk losing millions in federal funding. Presumptive Republican presidential nominee

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<v Speaker 1>Donald Trump is stepping up his attacks on rival Hillary Clinton.

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<v Speaker 1>Trump is taking aim at her husband's presidency and his

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<v Speaker 1>treatment of women. He was impeached and then he lied

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<v Speaker 1>about it. He said nothing happened with Bonnoica Lewinsky, and

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<v Speaker 1>then he said, uh sorry, folks had actually did happen

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<v Speaker 1>and the guy was impeached for Lyne. Speaking at a

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<v Speaker 1>rally in Atlantic City today, Democratic presidential candidate Bernie Sanders

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<v Speaker 1>criticized Trump. That is what we are seeing all over

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<v Speaker 1>this country. The billionaire class, the icons, the Trump's, all

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<v Speaker 1>of these people who want more and more. They're squeezing

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<v Speaker 1>working people Hotter and hottle. At this point, Sanders has

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<v Speaker 1>no mathematical path to the nomination without winning over many

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<v Speaker 1>super delegates already pledged to Hillary Clinton. An inmate who

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<v Speaker 1>escaped from a minimum security prison in New Jersey last

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<v Speaker 1>week was tracked down and taken into custody today. Lacey

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<v Speaker 1>Township police say Arthur Buckle was located near the Garden

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<v Speaker 1>State Parkway. Global News twenty four hours a day, powered

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<v Speaker 1>by our journalists in more than one hundred fifty news

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<v Speaker 1>bureaus around the world. From the Bloomberg News Room, I

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<v Speaker 1>Mark Crumpton, Charlie, and we thank you and again recapping.

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<v Speaker 1>The SMP five index is up three points again of

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<v Speaker 1>two tenths of one percent. I'm Charlie Peloton. That's a

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<v Speaker 1>Bloomberg business flash. You're listening to stock with Kathleen on

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<v Speaker 1>Bluebird Radio. The telecommunications industry, it is not mundane in

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<v Speaker 1>any sense of the word. With the combination of the

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<v Speaker 1>Internet and cable, you have a world wide network that

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<v Speaker 1>brings all of this information, whether it's on the satellite

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<v Speaker 1>or cable or in the air. And to help make

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<v Speaker 1>sense of all of this, we have David McCourt. He

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<v Speaker 1>is the chairman and the chief executive of Granahan McCourt Capital,

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<v Speaker 1>and I want to welcome him to the studio. David,

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<v Speaker 1>thank you very much for being here. Thank you for

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<v Speaker 1>having me him. Now, before you came on, I wanted

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<v Speaker 1>to alert you I was going to ask you about

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<v Speaker 1>your past because I bet most people would not believe

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<v Speaker 1>that you have a first, as I would call it

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<v Speaker 1>in American business, and I'm wondering if you could tell

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<v Speaker 1>people what this first was. Well, thanks him. I've been

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<v Speaker 1>I've been in a media, telcom and technology business for

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<v Speaker 1>a long long time and we have a couple first. Uh.

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<v Speaker 1>Luckily for us, we built the first competitive phone come

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<v Speaker 1>in America, a company called Corporate Communication Network back in

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<v Speaker 1>Boston that was in the eighties. I guess it in

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<v Speaker 1>mid eighties. This is when there was just one phone

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<v Speaker 1>company called A T and T. So there wasn't really um,

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<v Speaker 1>there wasn't the baby bells back then, you know, there

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<v Speaker 1>was just one phone company. So and we we came

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<v Speaker 1>about this because I started out the construction business. In

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<v Speaker 1>the construction business is a tough business because you first

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<v Speaker 1>bid to get the work, and by definition, if ten

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<v Speaker 1>different people are bidding and you have a little bit

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<v Speaker 1>of you, probably it wasn't probably nine people were wrong.

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<v Speaker 1>It was probably you were wrong, right. So you start

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<v Speaker 1>off probably with the wrong price. Then you have to

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<v Speaker 1>fight to do the work, and then you have to

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<v Speaker 1>fight to get paid, and then when it's all over,

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<v Speaker 1>get to startle. You have to start from scratch again.

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<v Speaker 1>So um, one time, UM, we didn't get paid on

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<v Speaker 1>a very very big job, and I told myself, if

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<v Speaker 1>I have to get out of this jam, I'm gonna

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<v Speaker 1>go build a business with the recurring revenue. So we

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<v Speaker 1>built the first competitive phone company in America. And it

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<v Speaker 1>was on a simple premise. Pim I observed that more

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<v Speaker 1>computers were talking to computers and people were talking to people,

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<v Speaker 1>So I said, why not build a purpose built network

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<v Speaker 1>around computers talking to each other rather than try to

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<v Speaker 1>retrofit a voice network. A T and T at that

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<v Speaker 1>time was trying to push data through an old voice network.

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<v Speaker 1>It was a network that Alexander Graham Bell would have recognized.

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<v Speaker 1>It was just twisted copper pier and their version of

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<v Speaker 1>an innovative solution was something called dial up Internet Access

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<v Speaker 1>if you remember that, and that's a data product through

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<v Speaker 1>a voice network. So we built a data product through

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<v Speaker 1>a data network. And luckily for us, you could ride

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<v Speaker 1>voice virtually free right through that network. So you could

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<v Speaker 1>put video virtually three free right through that network. Did

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<v Speaker 1>no matter what one is zero you wanted to put

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<v Speaker 1>through it was just a laser blinking right, so you

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<v Speaker 1>could put anything through it. So we built that company

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<v Speaker 1>and then we merge it to a little into a

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<v Speaker 1>little startup called MFS in Chicago that was owned by

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<v Speaker 1>the PD Keyword Company, and then we went public and

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<v Speaker 1>then we sold UM the whole thing for fourteen billion

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<v Speaker 1>dollars to to World Calm. And then, luckily for me,

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<v Speaker 1>I call it my World Calm stock. I bought a

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<v Speaker 1>putt and sold the call the same day. UM, which

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<v Speaker 1>at the time to find the Wall Street General called

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<v Speaker 1>a exotic financial transaction. It wasn't really that exotic, but

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<v Speaker 1>it seemed at the time. So yeah, that was a

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<v Speaker 1>long time ago. Tell us what you're doing today, because

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<v Speaker 1>I want to give you the time to do So

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<v Speaker 1>what what what are you doing today? What are you

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<v Speaker 1>working on? Well, the most recent thing is something that

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<v Speaker 1>we we just announced today. Actually, we just announced a

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<v Speaker 1>joint venture with King Abdullah Zaz Center for Science and Technology,

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<v Speaker 1>which is the biggest center for science and technology in

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<v Speaker 1>the world that's in READD in Saudi Arabia, and we're gonna,

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<v Speaker 1>uh we fall in the joint venture to design and

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<v Speaker 1>build very very sophisticated high to put satellite equipment UM

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<v Speaker 1>for the entire world. We're going to design to manufacturer

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<v Speaker 1>it in the region. I had bought three satellite companies

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<v Speaker 1>in the past and put them together, and I observed

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<v Speaker 1>a couple of things that one of my reduct was

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<v Speaker 1>going to the Middle East, so why not be where

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<v Speaker 1>where the product was going? And the number one costs

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<v Speaker 1>of running those factories was power and a fuel is

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<v Speaker 1>cheap over there. The number two costs was real estate.

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<v Speaker 1>Real estate is cheap over there. Number three costs was

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<v Speaker 1>something called SMC which the petroleum based product that's cheap

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<v Speaker 1>over there. And fourth was logistics that was my next

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<v Speaker 1>biggest cost. And six my product was going to the region.

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<v Speaker 1>I said, why not partner up with someone UM and

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<v Speaker 1>build something in the region and UM Saudi just recently

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<v Speaker 1>announced the vision, which is they want to be UM

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<v Speaker 1>less dependent on the rest of the world. That the

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<v Speaker 1>third largest purchasure of defense equipment in the world, they

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<v Speaker 1>don't have the defense industry. UM, We're gonna sell our

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<v Speaker 1>products to the defense industry. It's all high tech calms

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<v Speaker 1>equipment UM. So it fits in with their their initiative,

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<v Speaker 1>fits in with what we like to do. Pay him

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<v Speaker 1>everything we do. It has either we enter a market

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<v Speaker 1>where it's a technological change, a regulatory change, or consumer

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<v Speaker 1>behavioral change taking place, and we like that because UM

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<v Speaker 1>there's always people richer and smarter and better capitalized in US.

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<v Speaker 1>But we think that we we believe that we think

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<v Speaker 1>clearly when there's a lot of change. So if this

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<v Speaker 1>technological change or regulatory change or consumer behavioral change going on,

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<v Speaker 1>that's what we like to be. And with this big

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<v Speaker 1>Saddi twenty thirty initiative. That's a lot of change. Thank

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<v Speaker 1>you very much for spending time and sharing this with us.

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<v Speaker 1>David McCourt look forward to having you in the future

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<v Speaker 1>of taking Stock. David McCord is the chairman of the

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<v Speaker 1>chief executive of Granahan McCourt Capital. You're listening to taking Stock,

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<v Speaker 1>I'm pim Fox coming up a look at Crispy Cree,

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<v Speaker 1>Bloombertay king Stock is brought to by Benzel Busch Motorcar

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