Cox is First US Cable Carrier to Start Mobile Phone Service

Cox Communications is becoming the first US cable company to offer a mobile phone service as it looks to challenge incumbents AT&T and Verizon Wireless by bundling wireless handsets with Web and TV.

Cox is starting its consumer mobile service in three markets -- Orange County, California; Omaha, Nebraska; and Hampton Roads, Virginia. The third-biggest U.S. cable operator is taking on phone carriers AT&T and Verizon, which are expanding onto cable companies' turf with TV services. Cox will market its mobile plans as "Unbelievably Fair," giving money back for unused minutes and tying in free Cox TV, Internet, or landline upgrades. Cox said in May about 24 percent of its customers said they are willing to switch to its mobile service. Cox will use Sprint Nextel Corp.'s 3G network for its wireless service, and is also building its own network.