Exhibit 7.1



Statement explaining computation of ratio of earning to fixed charges



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Ratio of earnings to fixed charges under Italian GAAP



|                                                                                                            |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|----------------------------------------------------------------------------------------------------------- |  | ----------------------- |  | -------------------------------- |  | ------------------ |  | ------- |  | ------- |  | ------------------------------------------------ |  | -----
|                                                                                                            |  | Year ended December 31,
|                                                                                                            |  | 2000(1)                 |  | 2000pro forma(Unaudited)  (1)(2) |  | 2001(1)            |  | 2002(1) |  | 2003(1) |  | 2004(1)                                          |  | 2004 
|                                                                                                            |  |                         |  |                                  |  | (millions of Euro) |  |         |  |         |  | (millions ofU.S. dollars,except pershareamounts)
|Earnings                                                                                                    |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|Pre-tax income from continuing operations before adjustment minority interests in consolidated subsidiaries |  | 2,924                   |  | 2,758                            |  | (3,097)            |  | (2,516) |  | 3,442   |  | 4,956                                            |  | 6,710
|Fixed charges                                                                                               |  | 2,299                   |  | 2,080                            |  | 2,783              |  | 2,594   |  | 2,229   |  | 2,084                                            |  | 2,821
|Amortization of capitalized interest and issue debt discounts or premiums                                   |  | 4                       |  | 4                                |  | 35                 |  | (36)    |  | (9)     |  | 0                                                |  | 0    
|Dividends from equity investees                                                                             |  | 118                     |  | 118                              |  | 124                |  | 50      |  | 47      |  | 26                                               |  | 35   
|Equity in losses of equity investees                                                                        |  | 1,314                   |  | 1,309                            |  | 1,935              |  | 586     |  | 20      |  | 57                                               |  | 77   
|Capitalized interest for the applicable period                                                              |  | (41)                    |  | (9)                              |  | (3)                |  | (1)     |  | (1)     |  | 0                                                |  | 0    
|Equity in earnings of equity investees                                                                      |  | (276)                   |  | (296)                            |  | (166)              |  | (120)   |  | (54)    |  | (48)                                             |  | (65) 
|                                                                                                            |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|(A)                                                                                                         |  | 6,342                   |  | 5,964                            |  | 1,611              |  | 557     |  | 5,674   |  | 7,075                                            |  | 9,578
|                                                                                                            |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|Fixed Charges                                                                                               |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|Interest costs (both expensed and capitalized)                                                              |  | 2,049                   |  | 1,845                            |  | 2,433              |  | 2,242   |  | 2,174   |  | 2,033                                            |  | 2,752
|Issue costs and any original issue debt discounts or premiums                                               |  | 5                       |  | 5                                |  | 24                 |  | 3       |  | (3)     |  | 6                                                |  | 8    
|Estimated interest within rental expenses for operating leases                                              |  | 245                     |  | 230                              |  | 326                |  | 349     |  | 58      |  | 45                                               |  | 61   
|                                                                                                            |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      
|(B)                                                                                                         |  | 2,299                   |  | 2,080                            |  | 2,783              |  | 2,594   |  | 2,229   |  | 2,084                                            |  | 2,821
|Ratio of earnings to fixed charges (A/B)                                                                    |  | 2.76                    |  | 2.87                             |  | 0.58               |  | 0.21    |  | 2.55    |  | 3.39                                             |  | 3.39 
|                                                                                                            |  |                         |  |                                  |  |                    |  |         |  |         |  |                                                  |  |      



|(1) | Beginning with the consolidated financial statements for the year ended December 31, 2001, under Italian GAAP, Nortel Inversora and the controlled Telecom Argentina group
(Nortel Inversora group), which in 2000 were consolidated proportionally, have been accounted for using the equity method. Prior to 2000 the Nortel Inversora group was accounted for using the equity method. Under U.S. GAAP, the Nortel Inversora
group is accounted for using the equity method. These differences in accounting treatment for 2000 did not affect net income and stockholders equity but had an impact on other line items, such as operating revenues and operating expenses, as
well as a number of balance sheet line items.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | The 2000 unaudited pro forma amounts give effect to the consolidation of the Nortel Inversora group using the equity method instead of the proportional consolidation
method.
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Ratio of earnings to fixed charges under U.S. GAAP



|                                                                                                                |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|--------------------------------------------------------------------------------------------------------------- |  | ----------------------- | - |  | ----------------------------------------------- | - |  | ----- | - |  | ----- | - |  | ----- | -
|                                                                                                                |  | Year ended December 31, |  
|                                                                                                                |  | 2001                    |   |  | 2002                                            |   |  | 2003  |   |  | 2004  |   |  | 2004  |  
|                                                                                                                |  | (millions of Euro)      |   |  | (millions ofU.S.dollars,except pershareamounts) |  
|Earnings                                                                                                        |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries |  | (2,759                  | ) |  | 3,093                                           |   |  | 4,970 |   |  | 5,321 |   |  | 7,204 |  
|Fixed charges                                                                                                   |  | 3,238                   |   |  | 3,019                                           |   |  | 2,436 |   |  | 2,011 |   |  | 2,723 |  
|Amortization of capitalized interest and issue debt discounts or premiums                                       |  | 71                      |   |  | 137                                             |   |  | 134   |   |  |      |   |  |      |  
|Dividends from equity investees                                                                                 |  | 124                     |   |  | 50                                              |   |  | 47    |   |  | 26    |   |  | 35    |  
|Equity in losses of equity investees                                                                            |  | 1,935                   |   |  | 586                                             |   |  | 20    |   |  | 49    |   |  | 66    |  
|Capitalized interest for the applicable period                                                                  |  | (239                    | ) |  | (236                                            | ) |  | (163  | ) |  | (58   | ) |  | (79   | )
|Equity in earnings of equity investees                                                                          |  | (166                    | ) |  | (119                                            | ) |  | (52   | ) |  | (45   | ) |  | (61   | )
|                                                                                                                |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|(A)                                                                                                             |  | 2,204                   |   |  | 6,530                                           |   |  | 7,392 |   |  | 7,304 |   |  | 9,888 |  
|                                                                                                                |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|Fixed Charges                                                                                                   |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|Interest costs (both expensed and capitalized)                                                                  |  | 2,888                   |   |  | 2,667                                           |   |  | 2,381 |   |  | 1,978 |   |  | 2,678 |  
|Issue costs and any original issue debt discounts or premiums                                                   |  | 24                      |   |  | 3                                               |   |  | (3    | ) |  | 6     |   |  | 8     |  
|Estimated interest within rental expense for operating leases                                                   |  | 326                     |   |  | 349                                             |   |  | 58    |   |  | 27    |   |  | 37    |  
|                                                                                                                |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  
|(B)                                                                                                             |  | 3,238                   |   |  | 3,019                                           |   |  | 2,436 |   |  | 2,011 |   |  | 2,723 |  
|Ratio of earnings to fixed charges (A/B)                                                                        |  | 0.68                    |   |  | 2.16                                            |   |  | 3.03  |   |  | 3.63  |   |  | 3.63  |  
|                                                                                                                |  |                         |   |  |                                                 |   |  |       |   |  |       |   |  |       |  



| | The term equity investees means investments that Telecom Italia accounts for using the equity method of accounting.
| | ---------------------------------------------------------------------------------------------------------------------



| | A ratio of less than one indicates that earnings are inadequate to cover fixed charges. The amount by which fixed charges exceeded earnings for the year ended December 31,
2001 under US GAAP was 1,034 million.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------