UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF MAY 2006
TELECOM ITALIA S.p.A.
(Translation of registrant's name into English)
Piazza degli Affari 2
20123 Milan, Italy
(Address of principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F:
FORM 20-F [X] FORM 40-F [ ]
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the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
YES [ ] NO [X]
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to the registrant in connection with Rule 12g3-2(b): 82- _______
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PRESS RELEASE
TELECOM ITALIA ACHIEVED GROUP LEVEL FIRST QUARTER 2006 COST SAVINGS OF 127 MILLION EURO FROM SYNERGIES
- Domestic Operations: first quarter savings of 107 million euro, or 23% of the 460 million euro expected by end 2006
- Corporate: savings of 20 million euro, or 12% of the 166 million euro expected by end 2006
Milan, 17 May 2006 – The chairman of the Telecom Italia Group, Marco Tronchetti Provera, and the chief executive officer, Riccardo Ruggiero, during today’s “7th Italian Conference”, organized by Deutsche Bank, illustrated the progress to date of the Group’s 2006-2008 cost reduction plan, announced to the market on 8 March.
In the first quarter of 2006, the following was achieved:
•
61% of total reductions in operating costs (deriving from the process of integration of network infrastructures and IT platforms), estimated in total at 100 million euro by the end of 2006;
•
24% of total reductions in marketing and sales costs (deriving from the process of integration and rationalization of commercial structures and compensation policies), estimated in total at approximately 100 million euro by end 2006;
•
9% of the total reduction in purchasing costs and for general/administrative services (deriving from the optimization of purchasing criteria and synergies in general and administrative structures), estimated in total at 160 million euro at end 2006;
•
8% of the total reduction in personnel costs (deriving from the process of Group staff optimization), estimated in total at approximately 100 million euro at end 2006.
At the domestic level, the Operations division has already achieved 23% of the 460 million euro in total cost reductions expected by the end of 2006, while at the Corporate level, the reduction of costs was equal to 12% of the total 170 million euro expected by the end of 2006.
Overall, by the end of the first quarter of 2006, the Telecom Italia Group had achieved 20% of the 630 million euro in cost reductions expected by the end of the year.
Telecom Italia
Telecom Italia Group Press Office
Institutional Press Office
+39.06.3688.2610
www.telecomitalia.com/media
Telecom Italia
Investor Relations
+39.02.8595.4131
www.telecomitalia.com/investors
Cautionary Statement for Purposes of the "Safe Harbor" Provision of the United States Private Securities Litigation Reform Act of 1995. The Private Securities Litigation reform Act of 1995 provides a "safe harbor" for forward-looking statements. The Press Release included in this Form 6-K contains certain forward looking statements and forecasts reflecting management's current views with respect to certain future events. The ability of the Telecom Italia Group to achieve its projected results is dependant on many factors which are outside of management's control. Actual results may differ materially from those projected or implied in the forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. The following important factors could cause the Telecom Italia Group's actual results to differ materially from those projected or implied in any forward- looking statements: - the continuing impact of increased competition in a liberalized market, including competition from global and regional alliances formed by other telecommunications operators in the core domestic fixed-line and wireless markets of the Telecom Italia Group; - the ability of the Telecom Italia Group to introduce new services to stimulate increased usage of its fixed and wireless networks to offset declines in its fixed-line business due to the continuing impact of regulatory required price reductions, market share loss and pricing pressures generally; - the ability of the Telecom Italia Group to achieve cost-reduction targets in the time frame established or to continue the process of rationalizing its non-core assets; - the impact of regulatory decisions and changes in the regulatory environment; - the impact of the slowdown in Latin American economies and the slow recovery of economies generally on the international business of the Telecom Italia Group focused on Latin America and on its foreign investments and capital expenditures; - the continuing impact of rapid changes in technologies; - the impact of political and economic developments in Italy and other countries in which the Telecom Italia Group operates; - the impact of fluctuations in currency exchange and interest rates; - Telecom Italia's ability to continue the implementation of its 2002-2004 Industrial Plan, including the rationalization of its corporate structure and the disposition of Telecom Italia's interests in various companies; - the ability of the Telecom Italia Group to successfully achieve its debt reduction targets; - Telecom Italia's ability to successfully roll out its UMTS networks and services and to realize the benefits of its investment in UMTS licenses and related capital expenditures; - Telecom Italia's ability to successfully implement its internet strategy; - the ability of the Telecom Italia Group to achieve the expected return on the significant investments and capital expenditures it has made in Latin America and in Europe; - the amount and timing of any future impairment charges for Telecom Italia's licences, goodwill or other assets; and - the impact of litigation or decreased mobile communications usage arising from actual or perceived health risks or other problems relating to mobile handsets or transmission masts. The foregoing factors should not be construed as exhaustive. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Accordingly, there can be no assurance that the group will achieve its projected results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: May 17th, 2005
TELECOM ITALIA S.p.A.
BY: /s/ Carlo De Gennaro
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Carlo De Gennaro
Company Manager