Inmates of the prison will be working in the call centre which will deal with directory enquiries, answering thousands of requests for phone numbers and addresses.
Telecom Italia’s chairman Marco Tronchetti Provera, who toured the Rebibbia jail on the northern outskirts of Rome, said "this is a unique initiative in Europe and it helps the detainees get some work experience and prepare for when they'll get out of prison."
Inmate Gianluca Descenzo who works in the call centre says he enjoys the anonymity of the job.
"It's good because people don't know who we are, so we don't feel like we are in a ghetto anymore.”
He is serving a 13 year sentence for a drug-related murder.
A similar Telecom operation has been running in Milan’s San Vittore jail with detainees being paid 12 cents ($0.15) per call answered.
"Jails should not only be a place for punishment. They need not be a permanent hell, they must also give opportunities to people." Justice minister Clemente Mastella said.
Telecom has stated there is no security risk with detainees having access to addresses and phone numbers as calls to the centre are directed randomly by computer to any one of Italy’s 45 centres and prisoners cannot dial outside the jail.