(This story corrects the APRIL 13 story to show state's Enel (MILAN:ENEI) stake 25.5 percent, not 30 percent, in the fifth paragraph)
By Stephen Jewkes and Danilo Masoni
MILAN (Reuters) - Italy's biggest utility Enel is considering entering the broadband telecommunications market, three sources close to the matter said on Monday, as the government looks to kick start a 12 billion euro plan to roll out fast networks across the country.
The sources did not disclose a figure, but said it was unlikely debt-laden Enel would put money into laying fibre cables. It could instead provide lines and cabinets from its nation-wide power distribution network as well as technology.
"Enel would make its infrastructure available... to help speed up the process of digitalisation," one of the sources said, asking not to be named because no decision has yet been made.
"Enel could provide its cutting edge digital metering technology," a second source said. Enel is a world leader in smart digital metres which allow customers to monitor and programme their power consumption.
Enel, which is 25.5 percent owned by the state, declined to comment.
Italy's multi-billion euro broadband plan has run into regulatory and governance problems and after months of talks there is still no deal on how to proceed between Rome and Italy's largest phone network Telecom Italia.
Disagreements have raised the possibility that Telecom Italia and Metroweb, a fibre optic network provider partly owned by the state, could end up building rival networks, duplicating costs and slowing down roll out.
Enel entering the ring could potentially be a threat for Telecom Italia especially if rivals such as Vodafone and broadband provider Fastweb joined the project.
Vodafone declined to comment.
