2€/Week with 250MB of traffic, prepaid. If you're out of traffic (you'll get a text message), you'll have to start a new period for 2€, or you pay 0.50€/1MB. It will be enabled by sending a free text message containing "TIMSMART ON" to 40916. This applies on top of all following stuff.
8 Cent/Minute to every mobile network and fixed lines in Italy, prepaid. You pay 16 Cent for every received call, though.
Same thing, but costs 1€/Month and you call for 4 Cents/Minute.
Again the same, but 16 Cents/Minute and you don't pay for received calls.
If you need to call to the US,
there's something for it, at 20 Cents/Minute, while paying 16 Cents/Minute on every Italian mobile/fixed and 16 Cents for a received call.
Add the topping with
Unlimited free calls to TIM for 3€/Week,
60 SMS per week to any italian carrier for 2€/Week,
Unlimited SMS to TIM for 1€/Week (Free for 6 month for new customers) and/or
recharge your phone with 5 Cents/Minute on any received call for a 50Cents/Week fee.
TIM provides you with a MicroSIM as needed, we don't have carriers incompatible with the iPhone in Europe (Well, except for Nokias testing facilities and the 100MBit/s LTE test-network in Norway). In Italy, there are basically no mobile contracts (There are, they cost the same but noone uses them. A contract cost the same 8/16 Cents, same 8€/month for 1GB UMTS traffic (plus 25€ for the iPhone 4 32GB)), that's why the stuff is that cheap.
Why they charge you for received calls? Because they want you to recharge your phone regularly and if it's charged, you'll gonna use it. Minor rip-off.
To test the unlocked iPhone get any prepaid GSM card from an US-carrier other then AT&T. If it works, it works with TIM.
