I am under the impression that the IR setting under the 'Remote' option from 'Diagnostics' is to accommodate universal remote controls that use IR (Sofabaton X2, old Prontos, OFA and all others that use IR). The OEM Dish remote (in my case 54.1) still uses RF to control the Dish Hopper 3 is what I have read.
I have had the 'Remote' setting set to 'Infrared On' on for 8.5 years and my universal remotes (Harmony Ultimate One, Sofabaton X2) have always worked perfectly with the Hopper 3. I have included a couple of screen shots showing my settings for the 'Remote' on the Hopper 3. I primarily use my universal IR remotes to launch and shutdown Dish viewing activities and for streaming from my LG smart TV. For hardcore Dish viewing I always use the OEM Dish remote once everything has been turned on via the Sofabaton X2 universal remote.
The problem for me always occurs after powering up my Hopper 3, LG TV and Denon AVR via an 'Activity' sequence and using my Sofabaton X2 universal remote everything turns on as it should. Then after using the OEM Dish remote for a very short period of time (a handful of button presses) the Hopper 3 stops responding to commands from the Sofabaton X2 universal remote.
Then if I launch shutdown activity from the Sofabaton X2 universal remote everything shuts down except the Dish Hopper 3. If I go into 'Devices' on the Sofabaton X2 universal remote and manually press the 'Power Off' button from the display screen the Dish Hopper 3 doesn't respond. The odd thing is that if I manually press the 'Power' button on the front panel of the Dish Hopper 3 it will shut down. At this point the Sofabaton X2 universal remote is able to turn on the Dish Hopper 3, however after using the OEM Dish remote for a few minutes the cycle repeats and the Dish Hopper 3 ignores IR commands.
I have reported this to Dish technical support and
brittanygarden, Dish Technical Support Manager, has been in contact with me via PM and she said that they are aware of the issue and looking into it. She is currently out of the office until Tuesday so I would expect to have an update sometime next week when she is back in the office.
These issues started to occur for me immediately after the firmware on my Dish Hopper 3 was 'upgraded' to version H711 which was sometime around Aug. 10.
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