• by David Goetzl  @dgoetzl, January 13, 2009

In an effort to capitalize on the coming digital transition to gain subscribers, Cox is offering free cable for up to a year, though the promotion comes with some caveats. Customers will receive only limited basic service--principally just broadcast networks--and they must sign up for Cox's phone offering in order to be eligible.

Households that are unprepared for the digital switchover can sign up for cable service in order to avoid losing reception on Feb. 17. Cable operators view that as an opportunity to add to their customer rolls, since they could provide a confused customer with a relatively easy solution, albeit with a cost.

Cox is offering the free-cable promotion in multiple markets, although with slight differences. For example, in Northern Virginia--where Cox serves the Washington suburbs--the free service is offered for a year; in other markets, the deal is for six months.

The offer is open to new Cox customers only. Digital Phone service in the Northern Virginia market costs $23-plus (including taxes and fees) a month.

Limited basic service does not give customers much more than they will have had before the government-mandated switchover. The menu in Northern Virginia includes only one English-language cable entertainment channel--TBS--along with the broadcast networks, C-Span and three home shopping networks. Spanish-language cable entertainment channel Galavision is also part of the tier.

Last month, Nielsen said some 7.8 million U.S. homes--6.8%--are unprepared for the transition and will lose reception in February if they don't sign up for cable, buy a converter box or take some other action. Among Hispanic homes, the level was 11.5%.

There is the possibility that the Feb. 17 deadline could be postponed as some--including the Obama administration--have expressed concerns, in large part since the government has run out of coupons to help people purchase converter boxes.

Cox is the country's third-largest cable operator, serving some 5.4 million homes.