By Anne Cullen

Law360 (April 21, 2020, 10:17 PM EDT) -- After AT&T warned lawmakers that its DirecTV subscribers would soon lose distant network channels unless expiring satellite rules are extended, the National Association of Broadcasters blasted the warning as a "callous decision" at a time when viewers need news the most.

At the center of the latest dustup between AT&T and the prominent trade group is a looming May 31 expiration date that Congress imposed on satellite providers last year, mandating they either keep providing subscribers in unserved areas with distant networks — like ABC, CBS, FOX and NBC — or connect those viewers to local TV stations.

Lawmakers handed down the deadline as part of their decision not to renew the Satellite Television Extension and Localism Act Reauthorization, or STELAR, which had allowed satellite operators to get those distant signals at blanket license rates without having to negotiate with TV stations.

However, AT&T wrote to Capitol Hill on Monday complaining that broadcasters haven't made the transition easy, and the telecom said it is preparing notifications to roughly 11,000 rural DirecTV subscribers that these major networks may soon be out of reach, according to Multichannel News, which obtained a copy of the letter.

"Nothing prevents broadcasters from agreeing to authorize satellite providers to carry distant signals on a temporary basis to ensure no interruption of critical news and information and to allow time for a smoother transition for already-anxious consumers," AT&T reportedly wrote. "To date, they have been unwilling to do so."

The telecom added that Congress can "avoid having customers deal with these issues during this pandemic by delaying the new law's June 1 effective date until January 1, 2021," according to Multichannel News.

The National Association of Broadcasters quickly fired back at AT&T's warning, as the trade group has consistently argued that AT&T should be negotiating with local networks instead of trying to continue feeding New York and Los Angeles news programming to rural markets in Kentucky, Montana and other far-away states.

AT&T's decision not to make agreements with the local providers is dangerous, the group said.

"The latest advocacy from AT&T makes clear it has never intended to provide local TV station signals to those viewers receiving network broadcast programming from thousands of miles away," Dennis Wharton, the trade group's executive vice president of communications, wrote in a statement on Tuesday.

"This callous decision jeopardizes the safety of viewers in 'unserved' markets at a time when news and life-saving information from local sources are more important than ever," Wharton said.

This week's exchange marks the latest bout between the two sides over satellite laws, as they engaged in an ad war ahead of lawmakers' decision on STELAR last year.

AT&T flashed alerts on DirecTV subscribers' screens in September advising that viewers will lose the distant networks if STELAR isn't renewed. However, the National Association of Broadcasters' President Gordon Smith panned the alerts as "scare tactic messages" that he said were "disingenuous at best, and deceptive at worst."

The group's subsequent Facebook ad campaign aiming to drum up support for the expiration drew a public rebuke from the American Television Alliance, which represents AT&T, as well as other heavy-hitters like Charter Communications and Dish.

The social media campaign advised that communities would lose out on local stations if the law is re-upped, however, the alliance blasted the ads as deceptive. 

A spokesperson for AT&T declined to comment.

--Editing by Nicole Bleier.

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