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Greece -DELAN
During 2009, the company Carothers Ltd., acting as successor of Delan Cellular Services SA (“Delan”),
started judicial proceedings for the compensation of damages, both precautionary and on the merits,
against Wind Hellas (the new corporate name of TIM Hellas, the Greek subsidiary sold by the Telecom
Italia Group in 2005) before the Greek courts.
Wind Hellas in turn summoned Telecom Italia International to appear, as guarantor, allegedly on the
basis of the indemnification obligations contained in the stock purchase agreement for the sale of the
Greek subsidiary. The hearing for the pleading of both the case started by Carothers Ltd. against Wind
Hellas and the case started by Wind Hellas against Telecom Italia International on the basis of the
alleged indemnity obligations contained in the aforementioned stock purchase agreement was held on
June 1, 2011. The outcome of the hearing is still unknown.
During 2010 Wind Hellas also summoned Telecom Italia International to appear as a third party in
further judicial proceedings started in 2006 by Wind Hellas against what was at the time Delan (now
Carothers), to challenge the validity of the arbitration clause contained in the agreement between such
two parties, as well as to verify the absence of liability for the damages of Wind Hellas.
Germany – AOL arbitration
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In October 2011 Telecom Italia, TIDE and AOL signed a settlement agreement for the termination, free of
any payment by the Group, of arbitration proceedings brought by AOL LLC and AOL Europe Sarl for
reimboursement of damages exceeding 2 million euros and regarding the AOL’s broadband activities in
Germany. In December 2011 the Arbitration Panel declared the termination of the proceedings.
Germany – Telefónica arbitration
On February 23, 2012, Telecom Italia and Telecom Italia Deutschland Holding GmbH (“TIDE”) entered
into a settlement with Telefónica Germany, aimed at preventing a potential litigation related to
compensation claims proposed by Telefónica in connection with the share purchase agreement for the
sale of the holding in HanseNet, signed by the Group in 2009, as well as resolving the arbitration started
in 2011 by Telefónica against Telecom Italia and TIDE. On the basis of such agreement, a capital
amount of approximately 40 million euros formerly deposited in escrow was withdrawn by Telecom Italia,
while approximately 4.5 million euros were paid to Telefónica and approximately 16 million euros are
kept in escrow to cover certain potential future liabilities. In such framework Telefónica has withdrawn
the aforementioned request for arbitration.
b) Other information
Dispute concerning the concession charge for 1998
Telecom Italia has issued proceedings against the Presidenza del Consiglio dei Ministri (the office of the
Prime Minister) before the Rome Court for compensation of the damage caused by the Italian State
through appeal judgement no.7506/09 by the Consiglio di Stato (Council of State) that, in the view of
the Company, violates the principles of current European community law.
The main claim which the proceedings are founded on is based on community jurisprudence that
recognises the right to assert the responsibility of the State in relation to violation of rights recognised in
community law and injured by a judgement that has become definitive, in respect of which no other
remedy may be applied. The aforementioned judgement of the Council of State definitively denied the
right of Telecom Italia to restitution of the concession charge for 1998 (totalling 386 million euros for
Telecom Italia and 143 million euros for Tim, plus interest), already rejected by the Lazio regional
administrative court despite the favourable and binding opinion of the European Court of Justice on 23
February 2008 concerning the conflict between EC Directive 97/13 on general authorisations and
individual licences in the telecommunications services industry, and the national regulations that had
deferred, for 1998, the obligation to pay the fee payable by telecommunications concession holders,
despite the intervening deregulation process. The Company then proposed an alternative compensation
claim, within the sphere of the same proceedings, for tort pursuant to art. 2043 of the Italian Civil Code.
Telecom Italia Group
Consolidated Financial Statements
Note 24 – Contingent liabilities, other information,
commitments and guarantees
249