NTL is advising former customers that it will write off arrears owed for unpaid bills if they come back to the cable firm, writes Jamie Smyth, Technology Reporter.

The firm is making the offer following a six-month campaign to clean up its debts, a strategy which resulted in about 25,000 customers being cut off by NTL.

During this campaign NTL contracted two Irish debt-collecting agencies to target customers who had failed to pay their bills.

The new offer to write off former customers' arrears is being introduced to compete with satellite company Sky, which is offering free connection and other inducements to former customers.

It is understood that NTL is also changing its strategy to offset the potential challenge from a new free digital terrestrial television service planned to start in the autumn this year.

Details about the proposed new digital service, which will be offered by RTÉ in Dublin on a trial basis, are not known. But the Government said recently it is targeting a September launch for a digital TV service that is free.

NTL is believed to be concerned about the impact that a free service could have on its own subscriber base in Dublin and wants to sign up customers before the service is available.

To avail of NTL's free connection offer, former customers must agree to pay their bi-monthly bill by direct debit and take the service for a minimum of 12 months.

NTL's standard monthly fee for a basic television package is €18 per month while its basic digital package costs €30 per month.

Letters sent to former customers over the past week says: "Whatever the reason for this loss of connection, we would very much like to see if there is anything we can do to get this address reconnected."

An NTL spokeswoman said the company had not changed its strategy on bad debts and would continue to operate a strict credit control policy.