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AT&T Says It Continued to Grow Despite Giving Promotions the Boot

A second carrier warns that there will be fewer wireless deals in the future.

AT&T ended the year with more phone and internet subscribers, according to results from the last fiscal quarter.

The Dallas telecom company reported its earnings on Wednesday, noting 656,000 postpaid net phone additions in the fourth quarter, a metric used by the industry as shorthand for success and dependable revenue. AT&T said it gained customers even though it had less generous phone promotions and deals than its competitors.

Despite inflation and worries surrounding a recession, AT&T CEO John Stankey was cautiously optimistic about the company’s forecast for the year.

«The good news is, I think we’re through the worst of it,» Stankey said on a conference call, though he noted that geopolitical disruption could be a swing factor changing the carrier’s 2023 outlook.

The results come at a time when wireless carriers are tightening their belts through layoffs and pulling back on the kind of promotions and freebies they once offered to lure in new customers. On Tuesday, Verizon also said it was moving away from aggressive promotions even if meant short-term losses. Consumers can expect to see fewer wireless deals going forward.

AT&T also ended the year by surpassing its goal of covering 130 million people with its midband 5G, with the telecom company hitting the 150 million mark. Midband spectrum runs on a frequency of 5G that brings wider coverage and higher speeds to more places. The spectrum was mostly in its C-band frequency range, which AT&T paid $27 billion to acquire in 2021 and started rolling out last year. AT&T wasn’t clear about whether this number includes the 3.45 GHz frequencies of 5G midband that the carrier paid $9.1 billion to acquire a year ago. The carrier set a new target to cover 200 million people with midband 5G by the end of 2023.

AT&T lost 13,000 net prepaid phone subscribers in the last quarter, including customers for AT&T’s Cricket brand that rivals T-Mobile’s Metro and Verizon’s new Total affordable prepaid offerings.

The carrier posted 280,000 broadband fiber net additions, noting that its fiber customers now outnumber customers with older DSL and other internet services. AT&T touched on its Gigapower fiber joint venture with private equity company BlackRock Alternatives, announced just before the end of 2022, which Stankey likened to an opportunity in the early race for wireless phone service. The venture aims to harness government subsidies to deploy multi-gig fiber in new areas to reach 1.5 million customers.

«The possibility to help close the digital divide and focus on access to affordable high-speed internet is a top priority of AT&T,» Stankey said.

The carrier acknowledged that it will have a new offering this year for fixed wireless, an internet frontier that AT&T effectively ceded to Verizon and T-Mobile in the early days of 5G. In the past, AT&T has confirmed it won’t expand into fixed wireless except on rare occasions to meet specific business needs. So long as fixed wireless delivers less bandwidth than fiber, AT&T isn’t excited about it as an alternative to wired broadband, Stankey said, noting any deployment would have a narrow niche where fiber can’t easily reach.

«I don’t see [fixed wireless] place long-term in dense metropolitan areas, and I don’t see it in reasonably well-populated suburban areas,» Stankey said.

AT&T reported revenues of $31.3 billion, which is around the revenue for the same period last year and slightly under the $31.39 billion expected. The carrier reported 61 cents of adjusted earnings per share, which was better than the 57 cents earned per share expected by analysts polled by Yahoo Finance.

At the start of the new year, AT&T expects wireless revenue growth of 4% and broadband revenue growth of 5% through 2023. The carrier noted it expects to spend around the same for capital expenditures this year, which hit a record $24 billion in 2022 due to expanding midband 5G and fiber rollouts.

AT&T’s stock was up a tenth of a percent to $19.18 in after-hours trading.

Technologies

Today’s NYT Mini Crossword Answers for Tuesday, Oct. 14

Here are the answers for The New York Times Mini Crossword for Oct. 14.

Looking for the most recent Mini Crossword answer? Click here for today’s Mini Crossword hints, as well as our daily answers and hints for The New York Times Wordle, Strands, Connections and Connections: Sports Edition puzzles.


Today’s Mini Crossword has an odd vertical shape, with an extra Across clue, and only four Down clues. The clues are not terribly difficult, but one or two could be tricky. Read on if you need the answers. And if you could use some hints and guidance for daily solving, check out our Mini Crossword tips.

If you’re looking for today’s Wordle, Connections, Connections: Sports Edition and Strands answers, you can visit CNET’s NYT puzzle hints page.

Read more: Tips and Tricks for Solving The New York Times Mini Crossword

Let’s get to those Mini Crossword clues and answers.

Mini across clues and answers

1A clue: Smokes, informally
Answer: CIGS

5A clue: «Don’t have ___, man!» (Bart Simpson catchphrase)
Answer: ACOW

6A clue: What the vehicle in «lane one» of this crossword is winning?
Answer: RACE

7A clue: Pitt of Hollywood
Answer: BRAD

8A clue: «Yeah, whatever»
Answer: SURE

9A clue: Rd. crossers
Answer: STS

Mini down clues and answers

1D clue: Things to «load» before a marathon
Answer: CARBS

2D clue: Mythical figure who inspired the idiom «fly too close to the sun»
Answer: ICARUS

3D clue: Zoomer around a small track
Answer: GOCART

4D clue: Neighbors of Norwegians
Answer: SWEDES

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New California Law Wants Companion Chatbots to Tell Kids to Take Breaks

Gov. Gavin Newsom signed the new requirements on AI companions into law on Monday.

AI companion chatbots will have to remind users in California that they’re not human under a new law signed Monday by Gov. Gavin Newsom.

The law, SB 243, also requires companion chatbot companies to maintain protocols for identifying and addressing cases in which users express suicidal ideation or self-harm. For users under 18, chatbots will have to provide a notification at least every three hours that reminds users to take a break and that the bot is not human.

It’s one of several bills Newsom has signed in recent weeks dealing with social media, artificial intelligence and other consumer technology issues. Another bill signed Monday, AB 56, requires warning labels on social media platforms, similar to those required for tobacco products. Last week, Newsom signed measures requiring internet browsers to make it easy for people to tell websites they don’t want them to sell their data and banning loud advertisements on streaming platforms. 

AI companion chatbots have drawn particular scrutiny from lawmakers and regulators in recent months. The Federal Trade Commission launched an investigation into several companies in response to complaints by consumer groups and parents that the bots were harming children’s mental health. OpenAI introduced new parental controls and other guardrails in its popular ChatGPT platform after the company was sued by parents who allege ChatGPT contributed to their teen son’s suicide. 

«We’ve seen some truly horrific and tragic examples of young people harmed by unregulated tech, and we won’t stand by while companies continue without necessary limits and accountability,» Newsom said in a statement.


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One AI companion developer, Replika, told CNET that it already has protocols to detect self-harm as required by the new law, and that it is working with regulators and others to comply with requirements and protect consumers. 

«As one of the pioneers in AI companionship, we recognize our profound responsibility to lead on safety,» Replika’s Minju Song said in an emailed statement. Song said Replika uses content-filtering systems, community guidelines and safety systems that refer users to crisis resources when needed.

Read more: Using AI as a Therapist? Why Professionals Say You Should Think Again

A Character.ai spokesperson said the company «welcomes working with regulators and lawmakers as they develop regulations and legislation for this emerging space, and will comply with laws, including SB 243.» OpenAI spokesperson Jamie Radice called the bill a «meaningful move forward» for AI safety. «By setting clear guardrails, California is helping shape a more responsible approach to AI development and deployment across the country,» Radice said in an email.

One bill Newsom has yet to sign, AB 1064, would go further by prohibiting developers from making companion chatbots available to children unless the AI companion is «not foreseeably capable of» encouraging harmful activities or engaging in sexually explicit interactions, among other things. 

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