Telecom Italia's Brazil subsidiary TIM Brasil aims to: 1) Increase its market share from around 24% to over 26% through consistent community expansion. 2) Double its voice and data usage to drive revenue growth, with data revenues reaching 26% of service revenues by 2013. 3) Increase network capacity to support growing voice and data traffic while strengthening profitability and cash flow generation over 2011-2013.

1. Telecom Italia
FY10 Results & Plan Update
FRANCO BERNABE’

2. Safe Harbour
These presentations contain statements that constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this
presentation and include statements regarding the intent, belief or current expectations of the customer base,
estimates regarding future growth in the different business lines and the global business, market share, financial
results and other aspects of the activities and situation relating to the Company and the Group.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and
actual results may differ materially from those projected or implied in the forward looking statements as a result of
various factors.
Forward-looking information is based on certain key assumptions which we believe to be reasonable as of the date
hereof, but forward looking information by its nature involves risks and uncertainties, which are outside our control,
and could significantly affect expected results.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the
date of this presentation. Telecom Italia S.p.A. undertakes no obligation to release publicly the results of any
revisions to these forward looking statements which may be made to reflect events and circumstances after the
date of this presentation, including, without limitation, changes in Telecom Italia S.p.A. business or acquisition
strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors
are encouraged to consult the Company's Annual Report on Form 20-F as well as periodic filings made on Form 6-
K, which are on file with the United States Securities and Exchange Commission.
It should also be noted that starting from the year 2010, Telecom Italia reclassified some taxes paid in Brazil of
non-material amount, previously included in “Other operating expenses”, in reduction of “Revenues” and “Other
income” in order to ensure a better comparability and intelligibility of the financial information.
FRANCO BERNABE’

3. Agenda
TI Group 2010 Results
Telecom Italia Plan Update
Italy
Brazil
Argentina
FRANCO BERNABE’

4. TI Group FY10 Key Financial Achievements
Operating Free Cash Flow: 6.2 bln €
(6.6 excluding TIS Settlement, +0.3 bln € YoY)
Focus on Organic Group Ebitda: 11.8 bln € (+0.1% YoY)
Core
Markets: Organic Domestic Ebitda: 9.8 bln € (-2.9% YoY)
Domestic Organic Ebitda Margin: 48.7% (+2.3 p.p. YoY)
& TIM Brasil Ebitda: 1.8 bln € (+16.6% YoY) 2010 DPS
Ebitda Margin: 29.1% (+2.9 p.p. YoY) Ord.: 5.8 €/cents
Brazil
Sav.: 6.9 €/cents
Group Net Income: 3.1 bln €
(+97% YoY, +18.4% YoY on a normalized basis)
NFP Adj.: 31.5 bln € at YE10 (-2.5 bln € vs
YE09)
Financial
Discipline Average Cost of Debt YE10: 5.2% (vs 5.4%
YE09)
Telecom Argentina results are included only in the 4Q 2010. Organic comparison considers Telecom Argentina in 4Q09
FRANCO BERNABE’

5. TI Group: Revenues & Ebitda
Euro mln, %
Reported Revenues Organic Revenues
26,894 27,571 -1,089
-3.8%
28,667 27,578
IVQ +11.2%
IVQ -0.8%
IIIQ 0.0%
IIIQ -4.4%
IIQ -0.5%
IIQ -5.3%
-4.9%
IQ -1.0% IQ
Reported EBITDA Organic EBITDA
42.9%
% on 41.4% % on 41.1%
41.3% +1.8p.p.
Revenues +0.1 p.p. +3M€ Revenues
+297 +0.1% excl. +32
0.3%
11,115
+2.7%
11,412 Headcount 11,785 11,817
reduction
costs
IVQ +3.4%
IVQ +13.5%
IIIQ -2.0%
IIIQ -8.0%
IIQ +3.5%
IIQ -0.4%
IQ +3.2% IQ +0.1%
Telecom Argentina Results are included only in the 4Q 2010 consolidated results Telecom Argentina results are included in the 4Q2010 and for comparison purpose, in
4Q 2009 consolidated results (proforma unadited at the same Exchange Rate).
FRANCO BERNABE’

6. Strong Free Cash Flow Generation
Euro mln, Reported Data
Operating Free Cash Flow Net Cash Flow
Hansenet: 810
+304 Mln 6,602 Normalized
6,298 Bolivia: 71
389 TIS Settlement +1,904 BBned: 47
(*)
Sparkle (428)
2,481
500
-85 Mln 6,213 Reported
577
+1,404 1,981 Normalized
2009 2010 2009 2010
4Q10 2,366 +396 2,762 Argentina
+195M€
(*) 418M€ cash out +10M€ not released funds
FRANCO BERNABE’

7. Net Income Evolution
Euro mln; reported data
% on Revenues
11.3%
11,412 (5,599) 5.9%
Sofora Fair Value Revaluation +266
FY09 FY10
Brazilian tax asset ∼+700
(1,686)
4,127 (548)
(7) (451) 3,121
EBITDA Deprec. / Net Interest & Income Taxes Net Income Minorities Net Income
Reported Amortiz.* Net Income Before Taxes of assets 2010
/Equity & Disc.Ops. disposed
Δ vs.
FY +2.7% -0.4% -21.7% +23.6% -51.1% n.m. n.m. +97.4%
2009
+18.4% on a normalized basis (2010 headcount reduction costs, Sofora FV,
Brazilian Tax Asset and other non recurring impacts; 2009 HNS GW writedown and
* Including gains/losses of non current assets realization other non recurring impacts)
FRANCO BERNABE’

8. Net Debt Dynamics
Euro mln, Reported Data
EBITDA (11.412)
CAPEX +4.583
Δ WC & Others +616*
Operating FCF (6.213)
33,949 (6,213)
+1,392 +1,093 (607) 31,468
+1,854
Cash Financial Expenses +1,903
Financial Accruals (49)
(2,481)
2009YE Operating Cash Financial Cash Taxes Dividends Other 2010YE
Adjusted FCF Expenses/ Impacts Adjusted
Financial
Accruals
2008YE (577) 1Q09
34,526 (6,298) +2,019 +2,301 +1,050 +351 33,949
Δ vs. 09 +85 (165) (909) +43 (958)
* Including TIS Settlement
FRANCO BERNABE’

9. Agenda
TI Group 2010 Results
Telecom Italia Plan Update
Italy
Brazil
Argentina
FRANCO BERNABE’

10. 2008 – 2010: We Built a Solid Company
Efficient & Lean Flexible
Italy Enhanced
Focus on Free Cash
Core Flow
-4€bln -4.5€bln
Markets Generation 2007 2010 2007 2010
Brazil Domestic
Net Debt
Cash Cost
Today
TI
is more:
% Int’l Customer
No M&A for Deleverage Revenues Satisfaction
Geographic Expansion
&
Capital +10pp
Strengthen +4%
Discipline
Non-Core Assets
Balance 2007 2010 2007 2010
Disposal Sheet International Customer
Driven
FRANCO BERNABE’

11. 2011-13 – TI’s Strategic Priorities
Strengthen Our Assets
leveraging on: Italy Generate
Sustainable Growth
in Shareholder
Remuneration
Efficiency Flexibility
Enhance
Brazil Free Cash Flow
Generation
Innovation
Complete the
Deleverage Program
Latam
Footprint
Customer
Centric
Argentina
FRANCO BERNABE’

12. Agenda
TI Group 2010 Results
Telecom Italia Plan Update
Italy
Brazil
Argentina
FRANCO BERNABE’

13. Italy: Improve Revenues Trend…
Drivers Actions & Goals
Fixed Mobile
mln lines
Protect the Value of the Voice ~35
15.4 >14.0 31
Defend Protect Market Shares
Traditional Increase “Value For Money” avoiding
aggressiveness on pricing
Services % % bundle
Exploit the knowledge of the Customer flat/semiflat
>40%
offers ∼30%
2010 2013 2010 2013
Fixed BB Access Mobile BB User
Lever on QoS to sustain price premium mln lines
Push on innovation through Super Internet: ADSL at
Strengthen 10Mbps/100Mbps
7.2 6.3
x2
BB Experience Boost on Mobile Internet & Smartphone
ADSL as new applications enabler for new bundled
2010 2013 2010 2013
product offers
ICT Revenues Cloud Computing
Launch of Home Gateway and content € bn on ICT Rev.
enrichment: TV programs, MUSIC, gaming, Cagr ‘10-’13
Develop
Double Digit
betting
0,8
Innovative OTT Services
Services Cloud Computing
Smart Cities, Health & Digital Burocracy 2010 2013 2010 2013
FRANCO BERNABE’

14. Italy: …Continuing to Protect Profitability & FCF Generation
Domestic Cash Cost Reduction Plan
18%
€ bln, Organic 64% 18%
56% Capex
44% Opex
~67% Cash Cost on
Revenues ~64%
13.4
-1.0
_ Efficiency
Continued processes assessment towards
the Lean Organization
Opex Rationalize Control of discretionary costs
Leverage on Scale Efficiency
Capex Optimization
Focused Commercial Investment
Selective deployment of NGAN
Capex Reduce
Roll out of NG wireless access
Core Network Delayering
Cloud and SOA IT Architectures
FRANCO BERNABE’

15. Italy: Capex 2011-13 Plan
Total Capex Highlights
€ Bn, % 3.1 Cum ‘11-13 ~8.7 bln€ Network Platforms:
~3.0
Towards UBB in Wired and Wireless
access
79% 82%
Optimization and de-layering in the
Transport and Core Network
Service Platform:
Focus on Cloud Architectures and
21% 18% Content Delivery Networks
NG network intelligence for Customer
and Context Aware Services
BB & Ultra Wired and Wireless
Wired Access Wireless Access Transport
20 Mbps Availability Multistandard band Cash Costs/Petabytes
on ADSL SW defines Nodes 2,500
Nodes with high speed
Backhauling
1,500
50/100 Mbps
Availability on FTTX
ADSL Evolution (IP DSLAM, DSM, Vectoring) Multistandard and SW defined Access Nodes Petabytes
Selective Deployment of Fiber (GPON with FTTH and (80% of existing Nodes)
FTTC architectures) High Speed Backhauling (>70% existing Nodes) Introduction of Full Packet Transport and replacement
Launch of first commercial trials LTE in 2013 of legacy technologies (PDH, ATM, SDH)
FRANCO BERNABE’

16. Italy: NGAN Deployment
Drivers Actions & Goals
FTTH Home Passed
mln
FTTH GPON in the main 13 Cities
TI Stand Alone FTTC GPON in 27 cities
~0.5 x5
Plan Low Capex per unit through the existing “Socrate”
Infrastructures
Main Regulatory Steps
2010-2011 Plan Horizon
New Draft NGAN Regulation under public consultation
Expected
Regulatory Geographical segmentation of bitstream offer Public
consultation approval of TI
Supportive
Risk premium introduction Regulatory
Framework on
NGAN
commercial
fiber offer
framework
for NGN
guidelines investment
Projects
Public Investment in Passive Infrastructures
(Ducts, Dark Fiber) Trentino
Project
PPP Projects Key Role of TI
Subsidiarity vs TI’s plan Lombardia
Project
Technological Architectures Neutrality
FRANCO BERNABE’

17. Agenda
TI Group 2010 Results
Telecom Italia Plan Update
Italy
Brazil
Argentina
FRANCO BERNABE’

18. Brazil: Fully Exploit the Pure Mobile “Infrastructured” Approach
Drivers Actions & Goals
Increase Size
∼24% 25% ∼26%
Consistent community expansion Market
Share >70
Consolidate TIM as the 2nd mobile operator in 58
Size the Brazilian market (>25% value share) Customer
41
51
Base
Market Share: from ~24% YE09 @ ~26% YE13
2009
2009 2010
2010 2011
2011 2012 2013
2013
Revenues Growth: the Key Driver
Usage Data Revenues
Keeping the pace of top line growth Min/month % on Service 26%
Revenues Drive FMS: doubling voice MOU vs 2010
Revenues
Growth Doubling VAS participation on Total Service
2x
12%
13% 2x
Revenues
2009 2010 2013
Profitabilty & Capex Trend
Increase network capacity to support voice
Bln R$
and data >4.5
4.2 Cum’11-13
Enhance 3G full coverage OFCF:
>6 Bln R$
Strengthening property trasmission
Value Creation 2.8 ∼2.9
Efficiency in Go-2-Market (low subsidy)
Improve Profitability and Cash Generation
FRANCO BERNABE’

19. Agenda
TI Group 2010 Results
Telecom Italia Plan Update
Italy
Brazil
Argentina
FRANCO BERNABE’

20. Argentina: Further Growth Opportunity
Drivers Actions & Goals
Increase Customer Base
Fixed Business: Consolidate M/S on fixed Fixed BB Mobile*
access and strong increase in BB lines Mln lines Cagr ‘10-’13 Mln lines
Cagr ‘10-’13
+7% +5%
Size 1.4 16.3
Mobile Business: steady churn reduction
and sound acquisitions in postpaid &
mobile BB segments
2010 2013 2010 2013
BB ARPU Mobile Service Revenues
ARS/month ARS Bn
Bundling offers to increase loyalty and ARPU Cagr ‘10-’13 Cagr ‘10-’13
+14% +19%
Revenues Boost innovative services both on fixed and
76 8.5
mobile business
Growth Double digit growth on Interactive VAS through
Smartphone leadership
2010 2013 2010 2013
Profitability & Capex Trend
Capex growth to support BB and Mobile ARS Bln, Organic
development >5.5 Cum’11-13
4.8
Enhance Strong focus on high margin services and OFCF:
>7 Bln ARS
products
Value Creation 2.6 ∼3.2
Solid FCF Generation
Capital structure optimization
* Argentinean Operations only
FRANCO BERNABE’