BARTIROMO: What are your plans for that money? A lot of people say, `Look, the company's doing well. Growth is still continuing very strongly, global in particular. Why not pay a dividend out? Why not buy back stock?

Dr. SCHMIDT: We love watching that cash sit in a well-managed bank and not get lost.

BARTIROMO: So you could categorically rule out, no dividend coming?

Dr. SCHMIDT: Well, first this: We never rule anything out. But right now we're happy to let the cash accumulate. The cash represents a strategic option for the future. As you know, we had the luxury of entering the wireless auction. And we did not win the auction, but our financial resources allowed us to credibly and seriously enter an auction for 4.65 billion. Couldn't have done that without the cash.

BARTIROMO: What did you get out of that, though, Eric?

Dr. SCHMIDT: Well, from a corporate perspective, we participated in something important. From a consumer perspective, we know that our participation helped in making sure that the networks remained open. So consumers get choices. What's better than that?

BARTIROMO: Yeah, and the FCC was happy about that.

Mobile. A lot of people say mobility is where it's at. You've said, actually, I've heard you on conference calls saying that this is one of the big priorities for the company. How do you envision this? Tell me what you're looking for.

Dr. SCHMIDT: First place, everyone I know, everyone you know carries a mobile phone. And it's true in every country.

BARTIROMO: And I'm not carrying my PC, by the way.

Dr. SCHMIDT: And most people in most developed countries have a roughly 100 percent coverage of mobile phones. So it really is a tremendous phenomenon. Over the next three or four years, there'll be more than another billion or so mobile phones added. Eventually our numbers indicate that there'll be five or so billion mobile phones in a world of six billion or so. People, this is a phenomenon. It's an unprecedented reach, even greater than, for example, television, or even electricity in some cases. So that's a platform that we can exploit. Our mobile phone, both search traffic as well as advertising is growing very rapidly, and we think people will do more and more interesting things in mobile phones. And, I mean, small phones, big phones, big screens, things that don't look like a phone, things which are mobile.

Furthermore, the telecommunications industry is helping because they're deploying billions of dollars of literally excess data capacity so these things will have fast networks wherever I go. One of the greatest things for me is whenever I fly somewhere, I open up and I open up my iPhone or my BlackBerry, and, boom, there's everything in my world as I've landed in a country I've never been in. It's a remarkable achievement.

BARTIROMO: Yeah. What needs to happen before we actually get to that world that you're talking about? In other words, do we need to see the providers create different screens? I mean, do you need a larger screen to access some of this data? How do we get there?

Dr. SCHMIDT: Well, one of the problems is we haven't figured out a way to change finger sizes. We just haven't...

BARTIROMO: Right.

Dr. SCHMIDT: There's no solution to that.

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