Bond Telecom Italia 7.721% ( US87927VAV09 ) in USD

Telecom Italia

88.81 % ⇌

Italy

US87927VAV09 ( in USD )

7.721% per year ( payment 2 times a year)

03/06/2038

Prospectus brochure of the bond Telecom Italia US87927VAV09 en USD 7.721%, maturity 03/06/2038

2 000 USD

1 000 000 000 USD

87927VAV0

B+ ( Highly speculative )

B1 ( Highly speculative )

04/06/2024 ( In 37 days )

The Bond issued by Telecom Italia ( Italy ) , in USD, with the ISIN code US87927VAV09, pays a coupon of 7.721% per year.
The coupons are paid 2 times per year and the Bond maturity is 03/06/2038

The Bond issued by Telecom Italia ( Italy ) , in USD, with the ISIN code US87927VAV09, was rated B1 ( Highly speculative ) by Moody's credit rating agency.

The Bond issued by Telecom Italia ( Italy ) , in USD, with the ISIN code US87927VAV09, was rated B+ ( Highly speculative ) by Standard & Poor's ( S&P ) credit rating agency.

LISTING PROSPECTUS
TELECOM ITALIA CAPITAL
(Incorporated with limited liability under the
laws of the Grand Duchy of Luxembourg)
__________
$1,000,000,000 6.999% Guaranteed Senior Notes due 2018
$1,000,000,000 7.721% Guaranteed Senior Notes due 2038
Guaranteed on a senior, unsecured basis by
TELECOM ITALIA S.p.A.
(Incorporated with limited liability under the laws of the Republic of Italy)
__________
Interest on the 2018 notes and the 2038 notes will be paid on June 4 and December 4 of each year, beginning on December 4, 2008. The 2018 notes will
mature on June 4, 2018 and the 2038 notes will mature on June 4, 2038.
Telecom Italia Capital, a société anonyme, or TI Capital, and Telecom Italia S.p.A., or Telecom Italia, may redeem some or all of the notes at any time on
and after January 5, 2010 at the redemption prices described in this listing prospectus. The notes may also be redeemed at 100% of their principal amount in
whole but not in part upon the occurrence of certain tax events described in this listing prospectus.
The notes are unsecured obligations and rank equally with TI Capital's other unsecured senior indebtedness. The notes are fully, unconditionally and
irrevocably guaranteed by Telecom Italia. The guarantees rank equally in right of payment with all of Telecom Italia's senior unsecured indebtedness. The notes
have been issued in minimum denominations of $2,000 and integral multiples of $1,000.
This listing prospectus (the "listing prospectus") will be used to make an application to trade the notes on the regulated market and to list the notes on the
official list of the Luxembourg Stock Exchange. The regulated market of the Luxembourg Stock Exchange is a regulated market of financial assets in
accordance with Directive 2004/39/EC of the European Commission. This listing prospectus constitutes a Prospectus under Article 5.4 of European
Commission Directive 2003/71/EC (the "Prospectus Directive").
__________
The notes may not be held by persons in the Republic of Italy or in any jurisdiction where holding the notes is not permitted.
__________
Investing in the notes involves risks that are described in the "Risk Factors" section beginning on page 10 of this
listing prospectus.
__________
Per 2018 Note
Total
Per 2038 Note
Total
Public Offering Price

100%
$1,000,000,000

100%
$1,000,000,000

Underwriting Discount

0.450%
$4,500,000

0.875%
$8,750,000

Proceeds, before expenses, to
Telecom Italia Capital

99.550%
$995,500,000

99.125%
$991,250,000

__________
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this listing prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The notes were delivered in book-entry form only through The Depository Trust Company and its participants including Euroclear Bank S.A./N.V., as
operator of the Euroclear System, and Clearstream Banking, société anonyme Luxembourg, on June 4, 2008 and are expected to be issued as listed securities on
August 6, 2008.
___________
Joint Bookrunners
GOLDMAN, SACHS & CO.

JPMORGAN
LEHMAN BROTHERS

MERRILL LYNCH & CO.
The date of this listing prospectus is August 6, 2008.

CERTAIN DEFINED TERMS
In this listing prospectus, references to the "Issuer" and "TI Capital" refer to Telecom Italia Capital. References to
the "Guarantor" and "Telecom Italia" refer to Telecom Italia S.p.A. References to "we", "us" and "our" refer to Telecom
Italia Capital or, if the context so requires, also to Telecom Italia S.p.A. and, if the context so requires, its consolidated
subsidiaries (including TI Capital). References to "Telecom Italia Group" refer to Telecom Italia S.p.A. and its consolidated
subsidiaries (including TI Capital). References to "Old Telecom Italia" refer to Telecom Italia S.p.A. and its consolidated
subsidiaries as they existed immediately prior to August 4, 2003, the effective date of the merger (the "Merger") between
Olivetti S.p.A. ("Olivetti") and Old Telecom Italia.
PERSONS RESPONSIBLE
TI Capital and Telecom Italia accept responsibility for the information contained in this listing prospectus. To the best of
the knowledge of the Issuer and the Guarantor (each having taken all reasonable care to ensure that such is the case) the
information contained in this listing prospectus is in accordance with the facts and does not omit anything likely to affect the
import of such information.
NOTICE TO INVESTORS
You understand that the notes are only held by investors who are resident for income tax purposes in countries listed in the
Decree of the Ministry of Finance of Italy of September 4, 1996 as amended. A copy of the decree can be obtained from the
website of the Ministry of Finance of Italy at www.finanze.it. See "Description of the Debt Securities and Guarantees--Transfer
Restrictions". If Telecom Italia becomes the obligor under the notes due to substitution or otherwise (see "Description of Debt
Securities and Guarantees--Mergers and Similar Events") and Telecom Italia was obligated to withhold on any payments made
on the notes, there would be no obligation to gross up such payments to investors resident in the countries identified in the above
Decree (including investors resident in the United States) who do not furnish the required certifications under applicable Italian
tax requirements. See "Description of Notes and Guarantees--Payment of Additional Amounts". Please refer to "Description of
the Debt Securities and Guarantees--Transfer Restrictions" for the current exclusive list of countries or territories where, if the
notes were held by residents for income tax purposes of such countries or territories, and Telecom Italia were to become the
obligor on the notes, Telecom Italia would have, at certain conditions, an obligation to gross up payments in the event of a
withholding on any payments on the notes.
The list of countries included in the Decree of the Ministry of Finance of Italy of September 4, 1996 is expected to be
replaced in the future by a new list attached to a ministerial decree yet to be issued. If a holder of the notes is not resident in one
of the countries that will be identified in the forthcoming decree, that holder will not have a right to receive a gross-up in the
event of a tax withholding as described above. Accordingly, holders will bear the risk of changes in the list of countries that will
be included in the forthcoming decree.

ADDITIONAL INVESTOR RESTRICTIONS
Substantial additional restrictions exist with respect to the holding and resale of the notes. See pages 20-21 for further
information.
i

TABLE OF CONTENTS
Page
SUMMARY...........................................................................................................................................................................
1
RISK FACTORS.................................................................................................................................................................... 10
ADDITIONAL INVESTOR RESTRICTIONS ....................................................................................................................... 20
WHERE YOU CAN FIND MORE INFORMATION.............................................................................................................. 22
ENFORCEABILITY OF CIVIL LIABILITIES UNDER THE UNITED STATES SECURITIES LAWS ................................ 26
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS ....................................................... 27
PRESENTATION OF CERTAIN FINANCIAL AND OTHER INFORMATION ................................................................... 29
DESCRIPTION OF TELECOM ITALIA ............................................................................................................................... 30
USE OF PROCEEDS............................................................................................................................................................. 43
DESCRIPTION OF NOTES AND GUARANTEES ............................................................................................................... 44
DESCRIPTION OF TI CAPITAL .......................................................................................................................................... 58
CERTAIN TAX CONSIDERATIONS ................................................................................................................................... 61
UNDERWRITING................................................................................................................................................................. 67
GENERAL INFORMATION ................................................................................................................................................. 70
LEGAL MATTERS ............................................................................................................................................................... 70
EXPERTS.............................................................................................................................................................................. 70
INDEX TO TI CAPITAL FINANCIAL STATEMENTS ........................................................................................................ 72
_______________________
This listing prospectus incorporates important business and financial information about us that is not included in or
delivered with this listing prospectus. This information is available without charge to you upon written or oral request. If
you would like a copy of this information, please submit your request to our listing agent in Luxembourg, BNP Paribas
Securities Services, Luxembourg Branch, 33 rue de Gasperich Howald-Hesperange, L-2085, Luxembourg (Telephone +35
2 26 96 2000), or as set forth on page 70 of this listing prospectus.
_______________________
ii

SUMMARY
This summary should be read as an introduction to this listing prospectus. Any decision you make to invest in the notes should be
based on consideration of the listing prospectus as a whole. If you bring a claim relating to the information contained in this listing
prospectus, you might be required to bear the costs of translating the listing prospectus before any such legal proceedings are
initiated. Civil liability attaches to those persons who have tabled the summary, including any translation thereof, and applied for
its notification, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the
listing prospectus.
Issuer ........................................................
TI Capital
Guarantor ................................................
Telecom Italia
Securities ..................................................
$1,000,000,000 6.999% Guaranteed Senior Notes due 2018 (CUSIP 87927VAU2;
ISIN US87927VAU26, Common Code 036871903) (the "2018 notes"); and
$1,000,000,000 7.721% Guaranteed Senior Notes due 2038 (CUSIP 87927VAV0;
ISIN US87927VAV09, Common Code 036834323) (the "2038 notes" and,
together with the 2018 notes, the "notes").
Guarantee .................................................
Telecom Italia irrevocably and unconditionally guarantees the full and punctual
payment of principal, interest, additional amounts and all other amounts, if any,
that may become due and payable in respect of the notes. If TI Capital fails to
punctually pay any such amount, Telecom Italia will immediately pay the same.
Issue price .................................................
100% of the principal amount for the 2018 notes; and
100% of the principal amount for the 2038 notes.
Maturities .................................................
June 4, 2018 for the 2018 notes; and
June 4, 2038 for the 2038 notes.
Interest rate ..............................................
The 2018 notes will bear interest at a rate of 6.999% per annum; and the 2038
notes will bear interest at a rate of 7.721% per annum.
The notes will bear interest from June 4, 2008.
Interest payment dates .............................
June 4 and December 4, beginning on December 4, 2008, for the 2018 notes.
June 4 and December 4, beginning on December 4, 2008 for the 2038 notes.
Regular record dates ................................
May 16 and November 15 for the 2018 notes.
May 16 and November 15 for the 2038 notes.
Settlement date .........................................
June 4, 2008.
Use of proceeds .........................................
The net proceeds from this offering were approximately U.S.$1,987 million. The
net proceeds from the sale of the notes have been used for loans to the Telecom
Italia Group companies for their general corporate purposes, which may include
the repayment of existing indebtedness. See "Use of Proceeds".
Ranking ....................................................
The notes are unsecured by assets or property. The notes rank equally in right of
payment with all other senior unsecured indebtedness of TI Capital from time to
time outstanding. The guarantee ranks equally in right of payment with all of
Telecom Italia's senior unsecured indebtedness.
1

Payment of additional amounts ...............
TI Capital, as issuer, and Telecom Italia, as guarantor, will pay additional amounts
in respect of any payments of interest or principal so that the amount you receive
after Luxembourg or Italian withholding tax will equal the amount that you would
have received if no withholding of tax had been applicable, subject to some
exceptions as described under "Description of Notes and Guarantees--Payment of
Additional Amounts" in this listing prospectus. See "Description of Notes and
Guarantees--Transfer Restrictions Due to Certain Tax Considerations".
Optional redemption ................................
Beginning on January 5, 2010, the notes will be redeemable in whole or in part at
TI Capital's option at any time at a redemption price equal to the greater of:
· 100% of the principal amount of the applicable notes, or
· as determined by the quotation agent, the sum of the present values of the
remaining scheduled payments of principal and interest thereon (not
including any portion of such payments of interest accrued and unpaid as of
the date of redemption) discounted to the redemption date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the
adjusted treasury rate, plus 45 basis points, plus accrued and unpaid interest
thereon to the date of redemption.

See "Description of Notes and Guarantees--Redemption at TI Capital's Option".
Tax redemption .......................................
If, due to changes in Italian or Luxembourg laws relating to withholding taxes
applicable to payments of principal or interest, or in connection with certain
merger or similar transactions of Telecom Italia or TI Capital, TI Capital, as issuer,
or Telecom Italia, as guarantor (or its respective successors), is obligated to pay
additional amounts on the notes, TI Capital may redeem the outstanding notes in
whole, but not in part, at any time at a price equal to 100% of their principal
amount plus accrued interest to the redemption date.
Form and denomination ..........................
Delivery of the notes was made on June 4, 2008 as described below.

The notes were issued only in fully registered form in minimum denominations of
$2,000 and integral multiples of $1,000, unless otherwise specified by us. Each
series of the notes was evidenced by a separate note in global form, which was
deposited with a custodian for and registered in the name of a nominee of
Depositary Trust Company ("DTC").

You may hold a beneficial interest in the global notes through DTC, directly as a
participant in DTC or indirectly through financial institutions that are DTC
participants. Both Euroclear and Clearstream are DTC participants. As an owner
of a beneficial interest in the global notes, you will generally not be entitled to
have your notes registered in your name, will not be entitled to receive certificates
in your name evidencing the notes and will not be considered the holder of any
notes under the indenture for the global notes.
Mergers and assumptions ........................
Each of TI Capital and Telecom Italia is generally permitted to consolidate or
merge with another company. TI Capital will be permitted to merge with an
Italian company and either Telecom Italia or any Italian subsidiary of Telecom
Italia will be permitted to assume the obligations of TI Capital subject to the
delivery of certain legal opinions. To the extent that an Italian company, including
Telecom Italia or any Italian subsidiary of Telecom Italia, will become the obligor
under the notes and that such Italian company will be required to withhold on any
payments made on the notes, there would be no obligation to gross up such
payments to investors (including investors resident in the United States) who do
not furnish the required certifications under applicable Italian tax requirements.
Luxembourg listing and admission to
TI Capital has made application to trade the notes on the regulated market and to
trading
list the notes on the official list of the Luxembourg Stock Exchange. The
2

regulated market of the Luxembourg Stock Exchange is a regulated market of
financial assets in accordance with Regulation 809/2004 of the European
Commission. Listing was not expected to be completed prior to the settlement
date of the notes.
Trustee, principal paying agent, registrar
and calculation agent ...............................
The Bank of New York.
Governing law ..........................................
New York law. For the avoidance of doubt, the provisions of Articles 86 to 94-8
of the Luxembourg law on commercial companies of 10 August 1915, as
amended, are excluded.
Ratings .....................................................
Telecom Italia's long-term rating is Baa2 with a stable outlook according to
Moody's, BBB with a stable outlook according to Standard & Poors and BBB+
with a stable outlook according to Fitch.
A securities rating is not a recommendation to buy, sell or hold securities. Ratings
may be subject to revision or withdrawal at any time by the assigning rating
organization and each rating should be evaluated independently of any other
rating.
Risk factors ..............................................
Prospective purchasers of the notes should consider carefully all of the
information set forth in this listing prospectus and, in particular, the information
set forth under "Risk Factors" and "Description of the Notes and Guarantees--
Transfer Restrictions Due to Certain Tax Considerations".
Selling restrictions ...................................
There are restrictions on persons that can be sold notes, and on the distribution of
this listing prospectus, as described in "Underwriting".
Transfer restrictions ................................
Investors should also note that under certain circumstances Italian taxes could
apply. See "Description of Notes and Guarantees--Transfer Restrictions Due to
Certain Tax Restrictions".
Further issues ...........................................
TI Capital may issue as many distinct series of notes under the indenture as it
wishes. TI Capital may, subject to certain conditions, without the consent of any
holder of the notes, "reopen" any series of the notes and issue additional notes
having the same ranking, maturity and other terms (except for the issue date and
issue price) as the notes of the applicable series offered pursuant to this listing
prospectus. Any further issue will be considered to be part of the notes of the
applicable series offered hereby, will be fungible therewith after any applicable
restricted period and will rank equally and ratably with the notes of the applicable
series offered hereby.
Yield ..........................................................
The yield on the notes is the return you will receive by holding the notes for a
period of time. For example, current yield, which calculates the percentage return
that annual interest payments might provide to you, is calculated as follows:
Annual Dollar Interest Paid
Current Yield = ___________________________________ x 100%
Market Price
You may wish to calculate the adjusted current yield, yields to maturity, yield to
call and other yields in making an investment decision with respect to the notes.
3

TI Capital Summary Selected Financial Data
BILAN AU 31 DÉCEMBRE 2007
ACTIF (EUR)
PASSIF (EUR)
A. Capital souscrit non versé
- A. Capitaux propres
5,869,687.71
I. Capital Souscrit
2,336,000.00
IV. Réserves
-
1. Réserve légale
234,000.00
B. Frais d'établissement
-
4. Autres réserves
526,779.57
V. Résultats reportés
250,516.95
VI. Résultat de l'exercice
2,522,391.19
C. Actif immobilisé
9,537,676,528.05
II. Immobilisations
B. Provisions pour risques et
corporelles
charges
-
2. Installations
3. Autres provisions
-
techniques et
machines
446.55
III. Immobilisations
C. Dettes
9,728,365,664.13
financières
1. Emprunts obligataires
2. Créances sur des
b) Emprunts non
entreprises liées
9,537,676,081.50
convertibles
a) dont la durée résiduelle
est à un an
679,301,677.88
b) dont la durée résiduelle
est > à un an
7,879,899,463.36
2. Dettes envers des
D. Actif Circulant
137,631,961.06
établissements de crédit
II. Créances
a) dont la durée résiduelle
2. Créances sur des
est à un an
-
entreprises liées
b) dont la durée résiduelle
a) dont la durée
est > à un an
52,770,917.07
résiduelle
4. Dettes sur achats et
est à un an
100,959,415.63
prestations de services
4. Autres Créances
a) dont la durée résiduelle
a) dont la durée
est à un an
565,191.08
résiduelle
6. Dettes envers des
est à un an
183,813.38
entreprires liées
IV. Avoirs en banques,
a) dont la durée résiduelle
avoirs en compte de
est à un an
1,052,917.61
chèques postaux,
8. Dettes fiscales et dettes au
chèques et en caisse
36,488,732.05
titre de la sécurité sociale
a) dont la durée résiduelle
est à un an
2,410,881.98
9. Autres dettes
a) dont la durée résiduelle
est à un an
2.01
b) dont la durée résiduelle
est > à un an
1,112,364,613.14
E. Comptes de régularisation
313,797,237.90
D. Comptes de régularisation
254,870,375.17
TOTAL ACTIF
9,989,105,727.01 TOTAL PASSIF
9,989,105,727.01
4

COMPTES DE PROFITS ET PERTES POUR L'EXERCICE CLOTURE AU 31 DECEMBRE 2007
A. CHARGES EUR
B. PRODUITS - EUR
1. Réduction du stock de produits finis
1. Montant net du chiffre d'affaires
-
et en cours de fabrication
-
2.a) Consommation de marchandises
2. Augmentation du stock de
et de matières premières et
produits finis et en cours de
consommables
-
fabrication
-
3. Frais de personnel
151,923.51
3. Travaux effectués par
a) Salaires et traitements
96,934.07
l'entreprise pour elle-même et
b) Charges sociales couvrant les
portés à l'actif
-
salaires et traitements
54,989.44
4.a) Corrections de valeur sur frais
4. Autres produits d'exploitation
39,936.84
d'établissement sur
immobilisations corporelles et
incorporelles
14,413.02
5. Autres charges d'exploitation
1,108,933.18
5. Produits de participations
-
6. Corrections de valeur sur
6. Produits d'autre valeurs
immobilisations financières et sur
mobilières et de créances de
valeurs mobilières faisant partie
l'actif immobilisé
-
de l'actif circulant
-
7. Intérêts et charges assimilées
915,296,375.40
7. Autres intérêts et produits
a) Concernant des entreprises liées
2,244,095.37
assimilés
920,116,114.57
b) Autres intérêts et charges
913,052,280.03
a) Provenant des entreprises liées
524,930,944.00
b) Autres intérêts et produits
10. Charges exceptionnelles
1,207,102.10
assimilés
395,185,170.57
11. Impôts sur le résultat
1,062,015.11
9. Produits exceptionnels
1,207,102.10
13. Résultat de l'exercice
2,522,391.19
10. Résultat de l'exercice
-
TOTAL CHARGES
921,363,153.51
TOTAL PRODUITS
921,363,153.51
5

BILAN AU 31 DÉCEMBRE 2006
ACTIF (EUR)
PASSIF (EUR)
A. Capital souscrit non versé
- A. Capitaux propres
4,347,286.46
I. Capital Souscrit
2,336,000.00
IV. Réserves
-
1. Réserve légale
234,000.00
B. Frais d'établissement
14,077.69
4. Autres réserves
442,054.57
V. Résultats reportés
56,448.76
VI. Résultat de l'exercice
1,278,783.13
C. Actif immobilisé
9,939,286,975.41
B. Provisions pour risques et
II. Immobilisations
charges
-
corporelles
3. Autres provisions
-
2. Installations
techniques et
machines
781.88
C. Dettes
10,060,359,167.43
III. Immobilisations
1. Emprunts obligataires
financières
b) Emprunts non
2. Créances sur des
convertibles
entreprises liées
9,939,286,193.53
a) dont la durée résiduelle
est à un an
-
b) dont la durée résiduelle
est > à un an
9,567,198,177.66
2. Dettes envers des
établissements de crédit
D. Actif Circulant
52,371,935.00
a) dont la durée résiduelle
II. Créances
est à un an
239.26
2. Créances sur des
b) dont la durée résiduelle
entreprises liées
est > à un an
65,502,632.47
a) dont la durée
4. Dettes sur achats et
résiduelle
prestations de services
est à un an
40,959,415.63
a) dont la durée résiduelle
4. Autres Créances
est à un an
758,564.37
a) dont la durée
6. Dettes envers des
résiduelle
entreprires liées
est à un an
9,031.49
a) dont la durée résiduelle
IV. Avoirs en banques,
est à un an
1,162,430.50
avoirs en compte de
8. Dettes fiscales et dettes au
chèques postaux,
titre de la sécurité sociale
chèques et en caisse
11,403,487.88
a) dont la durée résiduelle
est à un an
1,360,183.19
9. Autres dettes
a) dont la durée résiduelle
est à un an
10,304.03
b) dont la durée résiduelle
est > à un an
424,366,635.95
E. Comptes de régularisation
316,705,548.74
D. Comptes de régularisation
243,672,082.95
TOTAL ACTIF
10,308,378,536.84
TOTAL PASSIF
10,308,378,536.84
6

COMPTES DE PROFITS ET PERTES POUR L'EXERCICE CLOTURE AU 31 DECEMBRE 2006
A. CHARGES EUR
B. PRODUITS - EUR
1. Réduction du stock de produits finis
1. Montant net du chiffre d'affaires
-
et en cours de fabrication
-
2.a) Consommation de marchandises
2. Augmentation du stock de
et de matières premières et
produits finis et en cours de
consommables
-
fabrication
-
3. Frais de personnel
131,702.02
3. Travaux effectués par
a) Salaires et traitements
87,121.76
l'entreprise pour elle-même et
b) Charges sociales couvrant les
portés à l'actif
-
salaires et traitements
44,580.26
4.a) Corrections de valeur sur frais
4. Autres produits d'exploitation
-
d'établissement sur
immobilisations corporelles et
incorporelles
15,409.26
5. Autres charges d'exploitation
1,063,265.76
5. Produits de participations
-
6. Corrections de valeur sur
6. Produits d'autre valeurs
immobilisations financières et sur
mobilières et de créances de
valeurs mobilières faisant partie
l'actif immobilisé
-
de l'actif circulant
-
7. Intérêts et charges assimilées
781,808,743.28
7. Autres intérêts et produits
a) Concernant des entreprises liées
2,166,957.78
assimilés
784,836,348.01
b) Autres intérêts et charges
779,641,785.50
a) Provenant des entreprises liées
407,700,870.12
b) Autres intérêts et produits
assimilés
377,135,477.89
10. Charges exceptionnelles
-
9. Produits exceptionnels
-
11. Impôts sur le résultat
538,444.56
13. Résultat de l'exercice
1,278,783.13
10. Résultat de l'exercice
-
TOTAL CHARGES
784,836,348.01
TOTAL PRODUITS
784,836,348.01
7