EIB, China may invest in Italy broadband network-CDP

CAPRI, Italy Oct 9 (Reuters) - The European Investment Bank and China Development Bank may invest in a plan to develop a new generation broadband network in Italy, the head of state investment arm Cassa Depositi e Prestiti (CDP) said.

Italy's telecom regulator in July proposed setting up a private-public vehicle to roll out a high-speed broadband network, with funds from both companies and the state.

The project, which would have major implications for Italian telecom operators like Telecom Italia (TLIT.MI), faces several hurdles, including funding, and is being debated. [ID:nL726255]

"In the event of a credible financial and industrial plan it could be possible to bring in investors like the EIB and China Development Bank," CDP's Franco Bassanini said on Friday on the sidelines of a meeting.

Companies like Fastweb FWB.MI (SCMN.VX), Italy's No. 2 telecom player after Telecom Italia, and mobile phone operator Wind, which is owned by Egyptian businessman Naguib Sawiris, have alraedy expressed their interest in the new network.

At Friday's meeting, the telecom regulator's head Corrado Calabro said he hoped the network would be ready in a couple of years.

Any plans for a nationwide high-speed network will cost several billion euros. A report by a government adviser this year suggested a network covering just 25 percent of households would cost 5.4 billion euros ($7.9 billion) over four years. (Additional reporting by Stefano Bernabei; writing by Danilo Masoni)