(ATHENS) - Greece wants to invest in a new fibre optic network that will drastically upgrade its broadband and cable television capabilities, the Greek economy and telecoms ministers said on Wednesday.

"We have decided to invest as a country in a modern fibre optic network that will change the daily life of Greek citizens," Economy Minister George Alogoskoufis told a news conference.

The seven-year project estimated to cost 2.1 billion euros (three billion dollars) will provide high-definition TV, video telephony, quicker Internet connections and other high-bandwidth services, Alogoskoufis said.

It will be developed through a public-private partnership and is eligible for funding from the European Investment Bank, he said.

An international tender on the open-access network will be issued in the second half of 2009, Greek Telecoms Minister Costis Hatzidakis said.

The contract involves the construction, maintenance and operation of a dark fibre network for 30 years, Hatzidakis said.

An Internet laggard for years, Greece has laboured to increase the number of high-bandwidth users by slashing subscription prices and improving connections.

Twelve percent of Greeks currently have access to high-speed Internet, Alogoskoufis said, compared to 0.1 percent in 2004.

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