The FCC is preparing to pay about 1,000 TV stations and cable operators $1 billion dollars to subsidize necessary expenses to change over-the-air channels to make room for cell phone companies.

The channel changes are a result of a now-complete spectrum auction that will reallocate part of the UHF TV dial for use by cell phone companies for wireless broadband. Part of the auction proceeds will be used to reimburse TV stations and cable operators for the expenses associated with changing channel positions and equipment needed to receive those signals.

The move will significantly compress the UHF TV dial, requiring viewers to rescan their local channel lineups in what the industry is calling a “repack” of stations to closer dial positions. When complete, the UHF TV band will shrink from channels 14-51 to 14-36. Channels 38-51 are being reallocated to the wireless industry (channel 37 remains reserved for radio astronomy use only).

Some stations will need to buy a new antenna or transmitter, others may require interim or larger facilities to manage the change. The National Association of Broadcasters complains the FCC is not allocating enough money to cover what it estimates will eventually cost TV station owners $2.139 billion. TV tower rigging crews, who climb antenna towers and perform installation and maintenance services, are booked well in advance and are charging prices consistent with the urgent need to prepare for the biggest TV transition since the switch to digital broadcasting.

Because nobody is certain exactly how much the free TV repack and transition will eventually cost, the FCC intends to partly reimburse commercial stations about 52% of their costs (62% for non-commercial stations) during the first round of funding. Another $750 million is expected to be allocated for the second round of funding to cover the rest.

The agency also intends to scrutinize receipts to make certain stations are not dipping into the fund to help pay for the forthcoming transition to ATSC 3.0 broadcasting, which will eventually make current TV sets and some station equipment functionally obsolete. TV stations can only recoup expenses directly related to the repack. The FCC suspects as repack deadlines near, TV tower rigging crews could raise prices further and take a bigger percentage of the fund than station owners may realize. If costs rise out of proportion to what is now deemed reasonable, some stations may face out-of-pocket expenses the FCC will not reimburse if the fund is exhausted.

The FCC did not account for cell companies stepping in and directly assisting TV stations to vacate their existing channel positions faster than the FCC initially planned. T-Mobile, which won a large number of licenses that cannot be used until certain TV stations make channel changes, is reaching agreements with stations directly, offering incentives to move faster. In New York City, an agreement between FOX and T-Mobile will save the FCC fund almost $80 million. FOX-owned stations WWOR and WNYW will move their transmitters from the Empire State Building to One World Trade Center, allowing them to switch channel positions and make room for T-Mobile more than a year ahead of schedule.

When the repack is complete, viewers watching over-the-air will need to rescan their televisions to find their local stations once again.

A Public Service Announcement from the FCC explains the “rescanning” process to keep or receive new digital over-the-air stations. (1 minute)

Members of IBEW Local 3 have been on strike for about seven months. (Image: IBEW Local 3)

Charter Communications is suing the International Brotherhood of Electrical Workers Local 3 alleging its striking members are responsible for repeated acts of vandalism and sabotage of Charter’s cable service Spectrum in the New York City area.

The lawsuit, filed last week in Manhattan Supreme Court, claims union members have cut or damaged cables and other property at least 125 times since the union went out on strike in March.

“The sabotage was done purely out of maliciousness,” Charter’s attorneys allege in the lawsuit. “The saboteurs clearly knew the optimal locations where they could quickly cut cable lines to multiple customers without being harmed or observed, suggesting they are cable technicians who work for Charter.”

A Charter spokesman said the company filed the suit to get union members to stop damaging its equipment.

Union members suggest Charter brings no hard evidence to the table about who is responsible. Union officials have repeatedly denied involvement and have urged those responsible to stop, noting it risks turning Spectrum customers against the union.

Meanwhile, a powerful New York City lobbying firm appears to be getting rich representing Charter Communications while also representing three of the cable company’s biggest critics in City Hall, including New York City Mayor Bill deBlasio.

The Daily News reports the MirRam Group represents the mayor, City Council Speaker Melissa Mark-Viverito and Public Advocate Letitia James. James has been a client since 2013 while Mayor deBlasio hired the company in April to assist him with his re-election campaign. The lobbying firm has collected $150,000 from Charter and its predecessor Time Warner Cable in the last 12 months.

The newspaper reports the terms of the contract require MirRam Group to promote Charter’s business with ‘key public officials’ in city and state government, including monitoring legislative developments that could impact on the cable company in New York. The lobbying firm is also required to “promote Charter’s public policy interests” and is not supposed to “represent other clients on matters adverse to or in conflict with” the cable company’s goals.

Charter Communications will have 30 days to fix alleged problems affecting Lexington, Ky.’s cable subscribers or the company could face fines of $500 a day for each violation.

The Lexington-Fayette Urban County Council voted to put the resolution on its agenda for tonight’s meeting, and it is expected to pass.

The city is exasperated over Spectrum’s failure to allow customers to speak to supervisors, not allowing customers to return cable equipment by mail, and for charging customers for services they did not order.

“Because of the volume of complaints we have received, we have decided to go forward with this next step,” General Services Commissioner Geoff Reed told the Lexington Herald-Leader.

The complaints began pouring into city offices shortly after Charter Communications’ Spectrum replaced Time Warner Cable.

Because of federal deregulation, local authorities have little say over cable company rates or services and no say at all over internet service. But the city can hold the cable company accountable to its video service franchise agreement. If Charter fails to correct the alleged deficiencies, the county council can order an administrative hearing and fine the company up to $500 a day per violation.

WWOR advertises itself as My 9, but the station actually transmits over UHF channel 38 and will move to channel 25 early next year.

T-Mobile today announced a partnership with FOX Television Stations to hasten channel relocation to make room for the wireless carrier’s expansion of wireless service in the 600MHz spectrum it won at auction.

As part of the agreement, FOX-owned WWOR-TV in Secaucus, N.J., will vacate its current digital UHF channel 38 in early 2018, over a year sooner than originally planned. The station will move to UHF channel 25, but most viewers will still find the channel on virtual channel 9. T-Mobile will then bring new cell service online in metropolitan New York where WWOR’s signal used to be.

T-Mobile is aggressively trying to bring its valued 600MHz spectrum online as quickly as possible because it offers the carrier and its customers expanded coverage and better reception in indoor locations. Although the FCC has set an August 2019 deadline for stations to vacate and move their channels to make way for improved cell service, T-Mobile is offering incentives to get broadcasters to make the move well before that deadline.

Earlier this year, PBS and America’s Public Television Stations announced a similar partnership with T-Mobile. The wireless carrier has offered to pay the costs for a significant number of rural TV translators to move to new channel positions to make room for T-Mobile’s cell expansion.

“We’re committed to working with broadcasters across the country to clear 600MHz spectrum, so we can preserve programming and bring increased wireless choice and competition across the country,” said Neville Ray, chief technology officer at T-Mobile.

Working with the low power television outlets is a win-win solution for T-Mobile and the stations, because some budget-constrained stations may be required to change channel positions at least twice. There are concerns that the diminishing UHF TV dial may not have room to accommodate every TV station that wants to remain on the air.

Countless legacy Charter Communications customers in communities that have been served by the company long before it acquired Time Warner Cable and Bright House Networks spent much of Sunday without service due to a software or firmware failure with one or more of their backbone routers.

The company confirmed a widespread outage in California and the southeastern U.S. on Sunday and anecdotal reports from customers complaining about the outage indicate it affected customers the most in Texas, Tennessee, Georgia, Louisiana and South Carolina.

The outage did not seem to impact most of Charter’s acquired customers from Time Warner Cable and Bright House, which apparently still operate on different networks, which is why many Californians that live in areas formerly served by Time Warner Cable did not experience the outage while legacy Charter customers did.

Charter confirmed affected customers will not be getting automatic service credits for the outage. Customers must request a credit by phone or using online chat.

Customers were not impressed.

My bill keeps going up & service continually gets worse. 7 days in Sept we’ve had no internet service, 3 days no TV.

— Vickie Allen (@saltygirl454) October 2, 2017

We are still working to resolve the service outage affecting Southeastern States and parts of Texas, California, and Louisiana. Thank you.

— Ask Spectrum (@Ask_Spectrum) October 1, 2017

There is a known routing issue. I asked if you rebooted the equipment as for some customers are coming back onlin… https://t.co/ziTRqxWrjK

— Ask Spectrum (@Ask_Spectrum) October 2, 2017