to download Telecom Italia Annual Report 2011 - Company Reporting

offers, contractual profile changes, etc. except after regularisation. As a result of the actions taken, by
the end of 2011 only 248 thousand sim-cards are still to be regularised (when regularisation activities
commenced, approximately 5.5 million sim-cards were not correctly associated with an identity
document and, at the beginning of 2011, approximately 723 thousand cards were still to be
regularised).
At December, 31 2011, the investigations of the Milan Public Prosecutor into SIM cards with incorrect
user registrations, previously examined in the Greenfield Project – the results of which were illustrated in
the Annex to the 2010 Corporate Governance and Share Ownership report – and of the phenomenon
also pointed out in the Greenfield Project reported by Deloitte Financial Advisory Services on irregular
postponement of the natural expiry date (13 months after the last top-up or other chargeable post-sales
action) of approximately 2.5 million prepaid SIM cards, continued.
In addition and in relation to a different affair, on March, 21 2012 Telecom Italia was served notice of
the conclusion of the preliminary enquiries pursuant to art. 415 bis of the code of criminal procedure,
from which it emerged that the Company is currently subject to investigation by the Milan Public
Prosecutor pursuant to Legislative Decree 231/2001 for the offences of receiving stolen goods (art.
648 of the penal code) and fraud of which fourteen employees of the so-called "canale etnico" of
Telecom Italia are charged, jointly with several dealers ( to a total of 99 individuals subject to
investigation for having made fake registrations of about 109,000 sim-cards).
Within the sphere of the proceedings in question, the Company as the injured party damaged by such
conduct, had brought an action and subsequent addition in the years 2008 and 2009 providing for the
prompt suspension of the employees involved.
As the injured party Telecom Italia will be bringing a civil action .
c) Commitments and guarantees
Guarantees for 12,617,033 thousand euros, net of back-to-back guarantees received for 196 thousand
euros, by Telecom Italia on behalf of subsidiaries (of which 9,003,787 thousand euros relates to
Telecom Italia Capital, 3,394,199 thousand euros to Telecom Italia Finance, 61,419 thousand euros to
Telecom Italia Media, 57,183 thousand euros to Lan Med Nautilus and 54,799 thousand euros to
Telenergia).
Purchase commitments outstanding at December, 31 2011 amount to 172,000 thousand euros and
refer mainly to commitments on long-term operating lease contracts. There are no sale commitments
outstanding at December, 31 2011.
The Company issued "weak" comfort letters, for a total of 385 thousand euros, on behalf of Telecom
Italia Sparkle North America on vendor financing (for the supply of goods and services).
Guarantees were provided by third parties to Group companies for 3,301,216 thousand euros to
guarantee financing received (2,862,233 thousand euros) and performance under outstanding
contracts (438,983 thousand euros, of which 45,231 thousand euros posted by Assicurazioni Generali).
Among the other guarantees provided by third parties for Telecom Italia S.p.A.’s obligations are two
guarantees in favour of the Ministry of Economic Development for the auction to assign the user rights
for the 800, 1800 and 2600 MHz frequencies. The guarantees amount, respectively, to 37,810
thousand euros (for the commitment undertaken by the Company to build equipment networks
according to eco-sustainability characteristics) and 455,830 thousand euros (for the request to pay
back the total amount owed over a period of 5 years).
Details of the main guarantees received for EIB financing at December 31, 2011 are as follows:
Telecom Italia S.p.A. Separate Financial Statements
Note 22 – Contingent liabilities, other information, commitments and
guarantees
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