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Telecom Italia, given that the judgement of the Court of Cassation considering amendment of the above
judgement is still pending.
In its opposition and appeal for suspension of execution, Telecom Italia argued that it had not been
ordered to pay specific restitution at that time, and hence there was no valid right to execute the
judgement. Accepting this argument, the Rome Court suspended execution.
Gruppo Elitel Telecom S.p.A.
A dispute was recently started by Fallimento Elinet S.p.A. against its former administrators, auditors and
auditing companies as well as against Telecom Italia, in relation to which claims were formulated
regarding the alleged performance by Telecom Italia, of management and co-ordination activities of the
Elitel Group (alternative operator present on the market, in which the Company has never had any type
of interest), allegedly also enacted by playing the card of trade receivables management. The
receiverships of Elitel s.r.l. and of Elitel Telecom S.p.A. (at the time the parent company of the Elitel
Group) were also party to these proceedings.The economic claims advanced by the three receiverships
amount to a total of 282 million euros. Telecom Italia is filing an appearance, fully contesting the
statements of the other party.
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.
The compensation claimed has been quantified as approximately 529 million euros, plus legal interest
and revaluation. The Avvocatura di Stato filed an appearance and submitted a counterclaim for the
same sum. The case, as regards the main claim, is subject to eligibility analysis by the Court, which
declared the inadmissibility of Telecom Italia's main claim (case for damages for manifest breach of
community law pursuant to law 117/88). The Court's decision was however amended by the Court of
Appeal of Rome (after appeal by the Company) which declared Telecom Italia's claim admissible.
Consequently the proceedings will continue on both claims made by Telecom Italia.
The case brought by Telecom Italia to the Consiglio di Stato on January, 15 2011 for revocation of the
judgement that is the object of the proceedings is also still pending.
Mobile Telephony: investigation of Dealers
During 2011 the activities to verify and regularise the prepaid SIM cards which had been activated in
2005-2008 and not correctly associated with a customer identity document continued. The activities
performed led to a reduction of approximately 65% of the "non-compliant" sim-cards compared to the
start of the year.
A new regularization process which involves post-sales blocking of all the remaining cards was
introduced in July and continued until December 2011. Thanks to this solution, the cards subject to
post-sales blocking can no longer perform commercial operations such as top-ups, participation in
Telecom Italia S.p.A. Separate Financial Statements
Note 22 – Contingent liabilities, other information, commitments and
guarantees
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