Univision is joining Fox Television warning that if an upstart online video streaming service is allowed to stay in business, it will seriously consider turning off its free to watch over-the-air programming and go pay cable only.

Univision chairman Haim Saban says if Aereo continues to sell online streaming of its over the air stations, it could be forced to turn off more than 50 local broadcast affiliates, forcing viewers to cable, satellite, or telco pay television to keep watching.

Univision is no longer a small player in American broadcasting. The Spanish language network is now more popular than NBC in the ratings.

Saban says its local affiliates could find themselves off the air if the network abandons them — Univision’s network programming occupies most of the broadcast day, with most local stations airing only local news and a small selection of syndicated programming and program length commercials.

“To serve our community, we need to protect our product and revenue streams and therefore we too are considering all of our options — including converting to pay TV,” Saban said. “With Hispanics watching over-the-air news and entertainment at twice the rate of non-Hispanics, being forced to convert to cable would significantly impact this community.”

The real threat, according to industry analysts, is Aereo’s business model could offer an end run around lucrative retransmission consent fees now demanded by broadcast networks and local television stations. If the cable, satellite, and telco TV industry were to license Aereo’s technology, it could carry broadcast stations for free without paying broadcasters for permission to put their stations on the lineup.

The collateral damage could be felt by more than 13 million American households that have either abandoned pay television, can’t afford the asking price, or don’t have access for other reasons. If the networks make good on their threats, viewers would no longer have access to network programming for free.

Industry observers suggest Fox and Univision are engaged in saber-rattling for the benefit of Washington lawmakers that might be asked to choose sides in the dispute.

Aereo has responded to the industry’s line in the sand by reminding the networks they are violating a long-standing deal they made with Congress in return for access to the public airwaves.

“It’s disappointing to hear that Fox believes that consumers should not be permitted to use an antenna to access free-to-air broadcast television [after promising] that they would broadcast in the public interest and convenience, and that they would remain free-to-air.”

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Bloomberg News reports on the conflict between Aereo and over the air broadcasters and how far both sides are really willing to go.  (5 minutes)

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CNBC’s Julia Boorstein reports on Fox’s assertion Aereo is “pirating their signal” and notes the network may be preparing to convert its over the air free service into a pay channel.  (2 minutes)

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CNBC talks with Aereo founder Chet Kanojia about the court decision to allow Aereo to keep operating. Kanojia also explains how Aereo works for consumers who don’t want to pay for a big cable TV package.  (6 minutes)

AT&T Mobility will acquire 21,000 Corr Wireless subscribers and spectrum owned by the Alabama-based wireless carrier in a private transaction between Corr’s parent company C Spire Wireless and AT&T.

Corr was acquired by Mississippi-based C Spire (formerly Cellular South) in February 2010 as the carrier sought expansion into northeastern Alabama and western Georgia. But Corr’s network has never been upgraded beyond 2G service, and the Corr has traditionally positioned itself as a value priced feature phone provider. As its competitors have moved beyond 3G into 4G service and now pitch mostly smartphones, Corr has fallen behind.

Corr’s coverage area has not been a priority for larger carriers like Verizon Wireless and AT&T. The acquisition, which includes multiple PCS and 700MHz “C-Block” licenses, will bolster AT&T’s weak coverage in the region, which includes Huntsville, Oneonta, Decatur, Cullman, Hartselle, and Arab, Ala.

AT&T is expected to decommission much of Corr’s older equipment and replace it with 4G LTE service.

Customers may not have to immediately upgrade their phones. Corr Wireless, like AT&T, operates a GSM network.

Fox Television’s over the air signal may be scrambled and available “only by subscription” if the courts do not reverse their decision to allow an upstart television streaming service to continue operations while a broadcaster-backed lawsuit works through the legal system.

Aereo has been streaming New York City local stations to area residents that lease a tiny dime-sized antenna and receive the stations via the Internet. Broadcasters consider Aereo an end run around copyright law and retransmission consent fees paid by cable, satellite, and telco-TV operators. With millions in licensing fees at stake, several networks immediately filed suit to force the service to suspend operations.

But the 2nd Circuit Court of Appeals ruled in a 2-1 decision last month that Aereo’s streaming service did not represent a “public performance,” meaning the company was not infringing on the copyrights of broadcasters. Until a final court ruling is made, Aereo can continue operating, the judges ruled.

That decision prompted a hissy fit by News Corporation’s president and chief operating officer, who declared he is considering turning the Fox television network into a subscription-only service, potentially meaning the service would be scrambled and unavailable for free over-the-air in the future.

“Aereo is stealing our signal,” Chase Carey said at the opening of the National Association of Broadcasters’ convention is Las Vegas last night. “If we can’t have our rights properly protected through legal and governmental solutions, we will pursue business solution. One solution would be to take the network and make it a subscription service. We’re not going to sit idly by and let people steal our content.”

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Bloomberg Television explores Fox’s “nuclear option” of scrambling its broadcast outlets and forcing all Americans to pay for its content. (2 minutes)

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CNN Money explains Aereo and its threat to the traditional broadcast retransmission consent fee system that has made over-the-air networks highly profitable with subscriber fees paid by your cable, satellite, or telco-TV provider and passed on to you in the form of higher cable or satellite bills.  (2 minutes)

More than six months after Hurricane Sandy did her handiwork on coastal New York, New Jersey and Connecticut, hundreds of residents are still getting phone bills from Verizon for phone and Internet service they have been without since Halloween.

Most of the outages are around the Ocean Bay development in Far Rockaway, south of Brooklyn.

For thousands of residents, the only regular communication from Verizon every month arrives in the form of a bill.

“I need that phone to make phone calls for an ambulance or long distance or the police department,” Geraldine Jones, president of the development’s tenant association, told the Daily News. “We’re tired of being without our landlines. It’s terrible. They’ve got the nerve to send me a bill every month. I’m frustrated and angry. It’s not fair. It’s not right.”

WNYC Radio reports local politicians are now getting involved in Verizon’s half-year landline outages on Far Rockaway. (1 minute)
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Verizon’s response has mostly been shrugged shoulders and no firm estimate of when service will be repaired.

“Verizon is working closely with the New York City Housing Authority and together we have made good progress in restoring service to residents to of the Ocean Bay apartment complex,” company spokesman Phil Santoro retorted in a statement. “By the end of this month, we will begin restoring service to all those who live in the complex from 54th to 59th streets on our brand new state-of-the-art fiber optic network.”

But that means some of Verizon’s customers will have been without phone service for more than half a year.

“It shouldn’t take six months,” said City Councilman Donovan Richards. “Some of these people don’t have cell phones. They’re elderly. It’s a public safety issue.”

WNYC’s Brian Lehrer Show takes a close look at telecom outages after Hurricane Sandy. (17 minutes)
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At least 11 percent of Time Warner Cable phone customers nationwide are into their second day without phone service due to an unspecified outage.

The problem began at around 3pm EDT on Sunday and temporarily knocked out Internet service in some areas for several minutes. The Internet service came back, but for many the phone service did not.

Time Warner Cable says calls may not be completed successfully and incoming calls may be blocked. Caller ID information has also proven spotty even for customers who still have service, and voicemail access is sporadic. Anecdotal reports from upstate New York residents received by Stop the Cap! report fast busy signals, no dial tone, or blinking lights on the company-supplied MTA.

Some customers regained service late Sunday night while others are slowly getting service restored today.

No automatic credits for interrupted phone service will be issued by Time Warner, but customers can use the company website’s contact form or call their local Time Warner Cable office for service credits.