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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
THROUGH April 26, 2007

(Commission File No. 1-14477)
 
 
BRASIL TELECOM PARTICIPAÇÕES S.A.
(Exact name of registrant as specified in its charter)
 
BRAZIL TELECOM HOLDING COMPANY
(Translation of Registrant's name into English)
 

SIA Sul, Área de Serviços Públicos, Lote D, Bloco B
Brasília, D.F., 71.215-000
Federative Republic of Brazil
(Address of Regristrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 

BRASIL TELECOM ANNOUNCES GROSS REVENUES OF R$ 3.9 BILLION AND
EBITDA OF R$ 952.0 MILLION IN 1Q07

Brasília, April 25th, 2007 - Brasil Telecom Participações S.A. (BOVESPA: BRTP3/BRTP4; NYSE: BRP) announces its consolidated results for the first quarter of 2007 (1Q07). The Company’s unaudited financial statements are presented in million of Reais, except when stated otherwise, and are in conformity with generally accepted accounting principles in Brazil.

HIGHLIGHTS
     
IR CONTACTS     
Ricardo Florence (Head of IR) Phone: (55 61) 3415-1140  rflorence@brasiltelecom.com.br 
Flávia Menezes (IR Manager) Phone: (55 61) 3415-1256  flavia@brasiltelecom.com.br 
Carla Bernardes  Phone: (55 61) 3415-1123  carla.bernardes@brasiltelecom.com.br 
Reynaldo Abreu Filho  Phone: (55 61) 3415-1411  reynaldom@brasiltelecom.com.br 
Ruy Nagano  Phone: (55 61) 3415-1291  ruy.nagano@brasiltelecom.com.br 
     
MEDIA CONTACTS     
Rui Xavier (Director) Phone: (55 61) 3415-9657  rui@brasiltelecom.com.br 
César Borges (Manager) Phone: (55 61) 3415-1378  cesarb@brasiltelecom.com.br 
     

Brasil Telecom Participações S.A. controls Brasil Telecom S.A., a telecommunications company which provides fixed line telephony services in local, domestic long distance, international long distance, mobile telephony, public telephony, data communication, network and value added services in the states of Rondônia, Acre, Mato Grosso, Mato Grosso do Sul, Tocantins, Goiás, Santa Catarina, Paraná and Rio Grande do Sul, as well as in the Federal District. Its coverage area corresponds to 24% of the population (approximately 44 million inhabitants), 27% of the GDP (approximately R$420 billion in 2003) and 33% of the Brazilian territory (about 2.8 million km²).

Brasil Telecom Participações S.A.    Page 1 of 26 

FINANCIAL STATEMENT

R$ Million    1Q06   4Q06   1Q07    D Quarter D 12 Months 
GROSS REVENUES    3,654.9  4,001.9  3,897.1    -2.6%  6.6% 
           
  FIXED TELEPHONY    2,888.9  2,892.7  2,824.4    -2.4%  -2.2% 
     Local Service    1,769.1  1,722.5  1,648.0    -4.3%  -6.8% 
     Public Telephony    127.9  138.4  129.0    -6.8%  0.9% 
     Long Distance Service    703.9  721.5  756.3    4.8%  7.4% 
     Interconnection    108.5  113.9  85.0    -25.4%  -21.7% 
     Lease of Means    83.0  81.5  89.7    10.1%  8.2% 
     Supplementary and Value Added Services    86.2  103.0  106.3    3.2%  23.4% 
     Other    10.4  11.8  10.0    -15.4%  -4.2% 
MOBILE TELEPHONY *    227.6  459.6  412.5    -10.2%  81.3% 
DATA COMMUNICATIONS    538.4  649.7  660.1    1.6%  22.6% 
           
Deductions    (1,178.0) (1,260.9) (1,206.2)   -4.3%  2.4% 
NET REVENUES    2,476.9  2,741.0  2,690.9    -1.8%  8.6% 
           
OPERATING COSTS AND EXPENSES    (1,651.6) (1,793.9) (1,738.9)   -3.1%  5.3% 
     Personnel    (190.2) (155.6) (151.3)   -2.7%  -20.5% 
     Materials    (83.9) (122.9) (77.3)   -37.1%  -7.8% 
     Subcontracted Services    (544.0) (583.4) (564.5)   -3.2%  3.8% 
     Interconnection    (498.5) (573.8) (576.5)   0.5%  15.6% 
     Advertising and Marketing    (20.4) (47.3) (24.8)   -47.6%  21.7% 
     Provisions and Losses    (188.0) (248.6) (218.3)   -12.2%  16.1% 
     Other    (126.7) (62.4) (126.2)   102.4%  -0.3% 
           
EBITDA    825.3  947.1  952.0    0.5%  15.4% 
EBITDA Margin    33.3%  34.6%  35.4%    0.8 p.p.  2.1 p.p. 
Depreciation and Amortization    (670.0) (717.8) (650.1)   -9.4%  -3.0% 
           
EARNINGS BEFORE FINANCIAL RESULT (EBIT)   155.2  229.3  301.9    31.7%  94.5% 
           
Financial Result    (75.3) (145.1) (333.3)   129.7%  342.9% 
     Financial Revenues    116.1  338.4  161.4    -52.3%  39.0% 
     Financial Expenses    (191.4) (221.4) (227.0)   2.5%  18.6% 
     Interest on Own Capital    -  (262.1) (267.8)   2.2%  N.A. 
           
EARNINGS AFTER FINANCIAL RESULT    80.0  84.2  (31.4)   N.A.  N.A. 
           
Non-Operating Revenues (Expenses)   (2.5) 54.8  3.5    -93.7%  N.A. 
     Goodwill Amortization    (0.3) (0.3) (0.1)   -52.5%  -52.5% 
     Other    (2.3) 55.1  3.6    -93.5%  N.A. 
           
EARNINGS BEFORE INCOME AND SOCIAL    77.4  139.0  (28.0)   N.A.  N.A. 
CONTRIBUTION TAXES               
           
Income and Social Contribution Taxes    (42.1) (50.2) 0.0    N.A.  N.A. 
           
EARNINGS BEFORE PROFIT SHARING    35.3  88.8  (27.9)   N.A.  N.A. 
           
Minority Interest    (1.8) (83.1) (70.0)   -15.8%  N.A. 
           
EARNINGS BEFORE REVERSION OF INTEREST    33.5  5.7  (97.9)   N.A.  N.A. 
ON OWN CAPITAL               
           
Reversion of Interest on Own Capital    -  262.1  267.8    2.2%  N.A. 
           
NET INCOME    33.5  267.8  169.9    -36.6%  406.4% 
           
 
           
Net Income (Losses)/1,000 shares - R$    0.0922  0.7357  0.4667    -36.6%  406.4% 
Net Income (Losses)/ADR - US$    0.2121  1.7206  1.1383    -33.8%  436.6% 
           
* BrT Mobile's data communications revenues (VAS) are included in 'Data Communications' item   


Brasil Telecom Participações S.A.    Page 2 of 26 

OPERATING PERFORMANCE

WIRELINE TELEPHONY

Network

By the end of 1Q07, Brasil Telecom’s plant had 10.4 million installed lines, of which 8.3 million were in service (Annex XV and XVI). The utilization rate reached 79.7%, a 1.1 p.p. decrease as compared to the previous quarter. In comparison to 1Q06, the utilization rate decreased 8.6 p.p. due to the adoption by the Company of stricter measures in its collection and charging policy as of 3Q06. By the end of 1Q07, Brasil Telecom had 8,037.0 thousand active lines and 241.1 thousand blocked lines.

TRAFFIC

In 1Q07, Brasil Telecom reached 1.9 billion billed pulses, a 9.3% reduction in comparison to 4Q06 (Annex XIV). This performance was impacted by seasonality, by the increase in the ADSL accesses and by the migration of fixed calls to mobile calls.

Long distance traffic increased 0.4% in 1Q07 in comparison to 4Q06, remaining in 1.4 billion minutes (Annex XIV). Such performance is explained by the increase in VC-2 and VC-3 minutes, due to a restructuring of its line of products and strategic partnership.

Graph 1: LD Market Share – Quarterly Average

In 1Q07 Brasil Telecom maintained its leadership position and reached a quarterly average market share of 86.2% in the intra-regional segment, 0.4 p.p. superior than the 85.8% market share registered in 4Q06. In the intra-sector segment, Brasil Telecom reached 90.6% market share. At the end of 1Q07, Brasil Telecom reached a 63.7% market share in the inter-regional segment and a 36.5% market share in the international segment (quarterly average).In the inter-regional segment and in the international segment Brasil Telecom increased market share by 2.4 p.p. and 1.6 p.p. in 12 months, respectively.


Brasil Telecom Participações S.A.    Page 3 of 26 

MOBILE TELEPHONY     
 
Graph 2: Mobile Network 


BrT Mobile reached 3,638.1 thousand mobile accesses in service (Annex XIX), a net addition of 261.3 thousand accesses in 1Q07. At the end of 1Q07, BrT Mobile’s subscriber base was 7.7% higher than 4Q06 and had a 47.8% increase against 1Q06.

At the end of March 2007, BrT Mobile’s subscriber base was composed of 967.0 thousand post-paid subscribers (26.6% of total subscribers). The 26.9 thousand accesses reduction in comparison to 4Q06 is explained by the increase of cancellations in this modality of service. In 1Q07, total disconnections reached 91.8 thousand, 24.4 thousand accesses were removed from the base due to indebtedness and approximately 65% of the remaining 67.4 thousand were disconnections from the Control Plan (hybrid plan) which had entered in the plant in 4Q05 and whose retention agreements expired in the end of 2006. Part of these subscribers who had cancelled its hybrid plan joined the Pre-Paid Plan, what can be proven by the increase of pre-paid net additions. The 7.4 p.p. reduction in the annualized churn from 28.6% in 4Q06 to 21.2% in 1Q07, is explained by the reduction in the pre-paid terminals annualized churn from 30.9% in 4Q06 to 14.9% in 1T07, due, mainly, to the migration of post-paid plans to the pre-paid plans, and partially offset by the disconnections in the post-paid plans.

BrT Mobile’s market share in region II reached 12.9% by the end of 1Q07, 0.8 p.p. above 4Q06’s and 3.5 p.p. above 1Q06’s. BrT Mobile is in third place in terms of market share in area 7 of the General Concession Plan (GO, TO, MT, AC and RO) and in the Federal District (Annex XX).

Anatel recently started to disclose the total of post-paid and pre-paid accesses by state. According to these numbers, BrT Mobile reached a 17.2% market share in Region II in post-paid accesses in March, superior than the total market share (12.9%) . It is a result of Brasil Telecom’s strategy to focus on profitable clients. Throughout 1Q07, BrT Mobile increased its coverage to 830 localities. Currently, its coverage reaches 87% of Region II’s population.

Brasil Telecom Participações S.A.    Page 4 of 26 

DATA

Graph 3: ADSL Accesses in Service


Brasil Telecom added 65.8 thousand accesses to its plant during 1Q07, amounting to 1,383.5 thousand broadband accesses in service by the end of March, 2007, an increase of 5.0% and 27.6% in comparison to 4Q06 and 1Q06, respectively (Annex XV). ADSL penetration (ADSL/LIS) reached 16.7% in 1Q07, in comparison to 15.7% in 4Q06 and 11.4% in 1Q06.

By the end of March, 2007, Brasil Telecom registered growth in the following data transmission services for the corporate market: (i) Serviço Plus, which is a data transport service, (ii) Vetor, a private virtual network which uses all the capacity of IP connections to form a unique network, complete and flexible, used for data, multimedia and voice transmission, (iii) IP Corporate services, which supply of Internet connectivity for large companies, and (iv) Interlan, a solution to connect more than two spots to a concentrating spot, transmitting voice and data.

Brasil Telecom Participações S.A.    Page 5 of 26 

Internet Service Providers

Internet Group, Brasil Telecom’s internet division, leading company in dial up internet access in the Brazilian market, had approximately 3.2 million active dial-up access users. Altogether, the three Internet Service Providers which comprise the Internet Group had approximately 1.6 million subscribers which pay for services (including broadband accesses and value added services), an increase of 14% as compared to the previous quarter (4Q06). From the total clients which pay for services, 1,160 thousand are broadband clients, representing an 8.1% increase in comparison to 1,073 thousand clients in the previous quarter (4Q06) and 46.2% in comparison to the 793 thousand clients in the same quarter of the previous year (1Q06).

iBest, the largest dial up ISP in Region II, with an estimated market share of 55.4% in 1Q07, had 1.5 million active users (dial-up).

With 1.7 million active dial-up users, iG is the largest ISP in Brazil in numbers of users. iG’s base of clients who pay for services reached 570 thousand in 1Q07, of which, 348 thousand were broadband accesses. This number represents a 67% growth in comparison to the same quarter of the previous year (1Q06) and 14.4% in comparison to the previous quarter (4Q06)

In 1Q06, iG took over the 2nd place among national portals in the Ibope/NetRatings hearing ranking, with a 18.0% increase in the hearing rate (CAGR) from March 2006 to March 2007.

BrTurbo reached 812 thousand broadband clients by the end of 1Q07, 38.9% and 5.6% greater in comparison to 1Q06 and 4Q06, respectively. Approximately 59.5% of Brasil Telecom’s broadband accesses were BrTurbo subscribers, a 2.1 p.p. increase as compared to 4Q06, placing it as market leader in Region II. BrTurbo has, still, 223 thousand users who pay for value added services.

Partnership with Google

Brasil Telecom celebrated a unique strategic partnership in the Brazilian market with Google.

Initially, the agreement allows Google to provide e-mail platform and PSP (customized homepage) to the Internet Group. Google will also provide the search engine to the portals and will explore the sponsored links segments of the Internet Group.

The main strength in the agreement consists in the combination of Google’s platforms with Internet Group’s portals’ contents and services. Currently, Google has agreements with other portals only for search engine and sponsored links.

Google’s technology sharing will not reduce Internet Group’s investments on own technology. There will be a combination of the best tools of both companies, which will lead to greater accessibility, portability and connectivity for its users.

Brasil Telecom Participações S.A.    Page 6 of 26 

FINANCIAL PERFORMANCE

REVENUE

Graph 4: Gross Revenue Breakdown


Brasil Telecom’s total gross revenue amounted to R$3,897.1 million in 1Q07, 6.6% superior than the revenue registered in 1Q06. The increase of data communication and mobile telephony services share in total revenue in comparison to 1Q06 demonstrate the success of Brasil Telecom’s strategy of revenue diversification. In comparison to 4Q06 Brasil Telecom’s total gross revenue registered a decrease of 2.6%, mainly explained by the seasonality.

Gross revenue from local service reached R$1,648.0 million in 1Q07, a 4.3% reduction in comparison to 4Q06. The subscription and measured service revenues accounted for 70.7% and VC-1 calls accounted for 28.3% of the total revenue from local service (Annex IV).

In the first quarter, gross revenue from subscription fees totaled R$862.6 million, a 2.1% decrease in comparison to R$881.4 million registered in 4Q06, explained by the 2.0% reduction of average lines in service, which totaled 8,347.8 thousand lines in 1T07 against 8,520.4 thousand lines in 4Q06.

Gross revenue from measured service totaled R$302.6 million in the 1Q07, 8.9% inferior to the previous quarter, reflecting a 9.3% decrease in the exceeding pulses. In comparison to 1Q06, gross revenues from measured service decreased 14.9% , due to a 16.3% traffic reduction.

Gross revenues from VC-1 calls reached R$465.7 million in 1Q07, 5.1% inferior than 4Q06, reflecting a 5.0% decrease in VC-1 traffic. In comparison to 1Q06, gross revenues from VC-1 calls decreased 7.5% , due to a 7.0% reduction in traffic.

Brasil Telecom Participações S.A.    Page 7 of 26 

Gross revenue from public telephony reached R$129.0 million in 1Q07, a 6.8% decrease in comparison to 4Q06 and 0.9% increase in comparison to 1Q06. The decrease in comparison to 4Q06 is explained by seasonality, the results presented in 1Q07 were superior to those registered in 1Q06.

Gross revenue from LD calls reached R$756.3 million in 1Q07, representing an increase of 4.8% and 7.4% in comparison to 4Q06 and 1Q06, respectively. The increase in comparison with 4Q06 occurred due to a restructuring of its line of products and strategic partnerships, improving both traffic and revenue for VC-2 and VC-3 calls.

Interconnection revenue in 1Q07 amounted to R$85.0 million, a reduction of 25.4% and 21.7% in comparison to 4Q06 and 1Q06, respectively. The reduction is due, mainly, to the 20% interconnection tariff (TU-RL) reduction as of January 1st, 2007 and due to seasonality effects of the period.

Graph 5: Data Communications and Mobile Telephony Revenue

In 1Q07, gross revenue from data communications and other services reached R$660.1 million, a 1.6% increase as compared to the previous quarter and a 22.6% increase in comparison to 1Q06. This increase is due, basically, to the increase of the ADSL subscriber base, which increased 5.0% and 27.6% in comparison to 4Q06 and 1Q06, respectively.

In 1Q07, gross revenue from mobile telephony was 81.3% superior than 1Q06, due to the increase of the subscriber base, the launch of new plans and the reformulation of Pula-pula plans.

In 1Q07, consolidated gross revenue from mobile telephony totaled R$412.5 million, of which R$360.3 million were related to services and R$52.2 million to the sale of handsets and accessories. The consolidated gross revenue from mobile telephony in 1Q07 registered a decrease of 10.2% in comparison to 4Q06, caused by the decrease in the sale of handsets, due to the Christmas sales in the end of last year and due to the seasonality in the period.

Brasil Telecom Participações S.A.    Page 8 of 26 

When annalyzing the mobile operation as a single unit, the blended mobile ARPU in the 1Q07 reached R$33.4 (Annex XVIII). The post-paid ARPU amounted to R$47.2 and the pre-paid ARPU reached R$28.1. In comparison to 4Q06, the blended mobile ARPU decreased 9.7% caused by seasonal effects, mainly in traffic, data and interconnection.

The fixed telephony (excluding data communications) ARPU reached R$77.9 in 1Q07, an increase of 14.1% and 0.5% in comparison to 1Q06 and 4Q06, respectively, reflecting the Company’s strategy to interrupt fixed line revenue erosion.

The ADSL ARPU in 1Q07 reached R$71.3, an increase of 15.3% in comparison to 1Q06, due to the strategy to prioritize the sale of broadband access (Turbo) with greater speeds.

Brasil Telecom’s net revenue reached R$2,690.9 million in 1Q07, 1.8% inferior than the revenue registered in 4Q06 and 8.6% superior than the revenue registered in 1Q06 (Annex IV).

COSTS AND EXPENSES

Graph 6: Operating Costs and Expenses Breakdown
(Excludes Depreciation and Amortization)


In 1Q07, operating costs and expenses amounted to R$2,389.0 million, compared to R$2,511.7 million in 4Q06 and R$2,321.7 million in the 1Q06. The main items that determined such performance in comparison to 4Q06 were: materials (-37.1%), marketing and advertising (-47.6%), losses and provisions (-12.2%) and others (+102.4%) (Annex V).

At the end of 1Q07, 5,227 employees worked in Brasil Telecom’s wireline segment, against 5,199 employees in the previous quarter. BrT Mobile ended 4Q06 with 611 employees, as compared to 636 in 4Q06. By the end of March, Brasil Telecom had 5,838 employees, a 0.1% increase in comparison to December 2006. Total personnel costs and expenses reached R$151.3 million in 1Q07, a 2.7% and 20.5% reduction as compared to the previous quarter and to 1Q06, respectively.

Costs and expenses with subcontracted services, excluding interconnection, marketing and advertisement, totaled R$564.5 million in 1Q07, 3.2% inferior than the amount registered in the previous quarter due to an increase in legal fees related to the closure of legal processes and the hiring of IT consulting, both in 4Q06.

Brasil Telecom Participações S.A.    Page 9 of 26 

In the 1Q07, interconnection costs amounted to R$576.5 million, in line with 4Q06, due to the increase in the mobile telephony subscriber base, compensated by the 20% reduction of TU-RL as of January 1st, 2007, and by BrT Mobile’s increase in market share.

Advertising and marketing expenses amounted to R$24.8 million in 1Q07, a 47.6% decrease in comparison to 4Q06, due to Christmas advertising campaigns.

Losses from Accounts Receivable as a percentage of gross revenue in the 1Q07 amounted to 2.5%, stable in comparison to the 2.4% registered in 4Q06. Losses from accounts receivable totaled R$95.7 million in 1Q07, also stable in comparison to the R$ 95.8 million registered in 4Q06.

In 1Q07, provisions for contingencies totaled R$122.6 million, a R$30.2 million decrease in comparison to 4Q06, due to a R$22.8 million revaluation of fiscal contingencies and R$10.4 million from the increase of civil suits, both of which occurred in 4Q06.

Costs and expenses with materials totaled R$77.3 million in 1Q07, a decrease of 37.1% in comparison to 4Q06 due to Christmas sales of handsets. BrT Mobile’s costs and expenses with materials amounted to R$55.9 million, representing 72.3% of the Group’s total costs and expenses with materials, which includes the costs of handsets sold.

Costs related to depreciation and amortization totaled R$650.1 million in 1Q07, 9.4% inferior to 4Q06, due to the increase of assets that were totally depreciated in 1Q07 and due to the revision of depreciation rates for Brasil Telecom Cabos Submarinos Ltda., with a R$50.9 million impact in 4Q06.

Other operating costs and expenses totaled R$126.2 million in 1Q07. If we disconsider the extraordinary effects in 4Q06 (recovery of state and federal taxes, including legal decisions, which generated a positive impact of R$58.4 million, and revenues of R$53.1 million due to agreements made with other telephony operators to end litigations), we would have a 27.4% reduction. In comparison to 1Q06, other operating costs and expenses decreased 0.3% .

EBITDA


Graph 7 - EBITDA

Brasil Telecom Participações S.A.    Page 10 of 26 

Brasil Telecom’s consolidated EBITDA amounted to R$952.0 million in 1Q07 (Annex VI). Consolidated EBITDA margin reached 35.4% in 1Q07. In 4Q06, the EBITDA reached R$947.1 million, representing an EBITDA margin of 34.6%, while in 1Q06 it amounted to R$825.3 million with an EBITDA margin of 33.3% (Annex VI).

BrT Mobile’s EBITDA in 1Q07 reached R$4.4 million, positive for the first time since the mobile operation was launched, representing an EBITDA margin of 1.1% .

FINANCIAL RESULTS

Brasil Telecom’s consolidated financial revenue amounted to R$161.4 million in 1Q07, a 52.3% decrease in comparison to the 4Q06, due to the following factors which happened in 4Q06: (i) moratorium interest received from Telegoiás Celular (currently Vivo) in the amount of R$36 million, (ii) booking of interest related to legal decisions in the amount of R$95 million and (iii) financial discount obtained in the negotiation of Vant with AES Intercon II in the amount of R$18 million.

In 1Q07, Brasil Telecom Participações registered a consolidated financial result of R$333.3 million, which included R$267.8 million of Interest on Shareholders’ Equity declared on January 31, 2007. The payment of Interest on Shareholders’ Equity will be defined in the General Shareholders Meeting to be held in 2008.

NET EARNINGS

Net income totaled R$169.9 million in 1Q07 (R$0.4667/1,000 shares). Net income/ADR in the period reached US$1.1383. In 1Q06, the Company registered a net income of R$33.5 million, corresponding to R$0.0922/1,000 shares, while net income per ADR amounted US$0.2121.

INDEBTEDNESS

At the end of March 2007, Brasil Telecom’s consolidated total debt amounted to R$5,067.7 million, 5.7% inferior than the amount registered at the end of December 2006 (Annex IX). As of March 2007, 71.2% of the total debt corresponded to long-term debt (Annex X).

On April 17, 2007, Brasil Telecom S.A. exercised its early redemption right under the terms of the Indenture (Escritura de Emissao) of the 4th Issuance of Debentures, being the 3rd Public Issuance, as informed to debenture holders on March 28, 2007. A total of R$521,1 million was paid to redeem the totality of outstanding debentures.

Brasil Telecom Participações ended 1Q07 with cash of R$3,923.9 million, in comparison with R$3,974.0 million in the end of December 2006. The consolidated net debt totaled R$1,143.8 million, 12.8% inferior to that registered in December 2006 (Annex IX).

At the end of March 2007, the foreign-currency-denominated debt excluding hedge adjustments totaled R$912.9 million, of which R$450.4 million were denominated in US dollars, R$161.4 million in currency basket and R$301.1 million in Yens (Annex IX). On March 31, 2007, 59.8% of our debt affected by exchange rate variation was hedged against exchange rate risk. Of our total debt excluding hedge adjustments, 7.8% was exposed to exchange rate variations.

Brasil Telecom’s consolidated debt had a year-to-date cost equivalent to 9.5% p.a., or 75.7% of the Domestic Interbank Rate.

At the end of March 2007, Brasil Telecom’s financial leverage ratio, represented by the ratio of its net debt to shareholders’ equity, was equal to 21.7%, against 24.9% in the previous quarter.

Brasil Telecom Participações S.A.    Page 11 of 26 

INVESTMENTS

Brasil Telecom’s CAPEX totaled R$152.8 million in 1Q07, of which R$148.5 million were invested in the fixed-line network, including voice, data, information technology and regulatory, and R$4.3 million in mobile telephony (Annex VIII). In comparison to 4Q06, total investments decreased significantly by 68.0%, mainly due to the mobile telephony investments, which decreased 96.0% in comparison to the previous quarter.

STOCK MARKET

By the end of March 2007, Brasil Telecom Participações’ market cap, calculated by the weighed quote price of the common and preferred shares, totaled R$9,783.4 million, an increase of 56.9% in comparison to R$6,236.2 million registered in the end of March 2006. In the last 12 months, the Ibovespa and Itel indices increased 20.7% and 3.7%, respectively.

In 1Q07, the performance of Brasil Telecom Participações’ common shares (BRTP3) outperformed the IBOVESPA index by 17.1 p.p., while the preferred shares (BRTP4) outperformed the IBOVESPA index by 0.5 p.p. In the last 12 months the common shares outperformed the IBOVESPA by 66.3 p.p. and the preferred shares outperformed the IBOVESPA by 8.9 p.p.

Table 1: Stock Market Performance
                 
    Closing Price as of        Performance     
    3/30/2007    In 1Q07    In 12 Months    In 24 Months 
Common Shares (BRTP3) (in R$/1,000 shares)   41.41    20.1%    87.0%    83.2% 
Preferred Shares (BRTP4) (in R$/1,000 shares)   18.41    3.5%    29.6%    32.5% 
ADR (BRP) (in US$/ADR)   92.80    4.3%    24.1%    26.6% 
IBOVESPA (points)   45,805    3.0%    20.7%    72.1% 
ITEL (points)   1,007    -4.4%    3.7%    17.1% 
IGC (points)   5,330    3.1%    25.7%    103.1% 
Dow Jones (points)   25,425    -4.5%    5.3%    -9.6% 
Market Capitalization (Million)   9,783.4    12.3%    56.9%    57.2% 
   

Graph 8: Stock Market Performance in 1Q07  Graph 9: Market Capitalization Evolution 
Bovespa and NYSE  (R$ billion)
(Base 100 = 12/29/ 2006)  


Brasil Telecom Participações S.A.    Page 12 of 26 

Table 2: Theoretical Portfolio Participation – January / April 
       
  Ibovespa  Itel  IGC 
               BRTP3  0.473%  5.698%  0.328% 
               BRTP4  0.674%  12.713%  0.733% 
       

SHAREHOLDING STRUCTURE

Table 3: Shareholding Structure

Mar/07  Common Shares  % Preferred Shares  % Total Shares  %
Solpart Participações S.A.  68,356,160,984  51.0%  26  0.0%  68,356,161,010  18.8% 
ADR Free Float  -  0.0%  155,120,025,000  67.5%  155,120,025,000  42.6% 
Treasury  1,480,800,000  1.1%  -  0.0%  1,480,800,000  0.4% 
Free Float in Bovespa  64,194,727,219  47.9%  74,817,500,658  32.5%  139,012,227,877  38.2% 
             
Total  134,031,688,203  100.0%  229,937,525,684  100.0%  363,969,213,887  100.0% 
             
 
 
Dec/06  Common Shares  % Preferred Shares  % Total Shares  %
Solpart Participações S.A.  68,356,160,984  51.0%  26  0.0%  68,356,161,010  18.8% 
ADR Free Float  -  0.0%  157,809,115,000  68.6%  157,809,115,000  43.4% 
Treasury  1,480,800,000  1.1%  -  0.0%  1,480,800,000  0.4% 
Free Float in Bovespa  64,194,727,219  47.9%  72,128,410,658  31.4%  136,323,137,877  37.5% 
             
Total  134,031,688,203  100.0%  229,937,525,684  100.0%  363,969,213,887  100.0% 
             

   COMING EVENTS 
 
Conference Call and Webcast: 1Q07 Results 
Connection number: (+1 973) 935-8893 
Access Code: 8629011 
Link: http://www.brasiltelecom.com.br/ir/ 
Date:  April 26th , 2007 (Thursday)
Time:  11:00 a.m. (New York time)
  12:00 p.m. (Brasília time)
  04:00 p.m. (London time)

Brasil Telecom Participações S.A.    Page 13 of 26 

FINANCIAL STATEMENTS

BRASIL TELECOM PARTICIPAÇÕES S.A.

Annex I: Consolidated Balance Sheet

R$ Million     Mar/06   Dec/06  Mar/07 
 
       
CURRENT ASSETS    5,486.7  7,498.1  7,638.4 
       
Cash, Bank Accounts and High-liquid Investments    1,679.9  3,974.0  3,923.9 
Temporary Investments    -  89.4  - 
Accounts Receivables (Net)   2,142.7  2,127.7  2,157.7 
Deferred and Recoverable Taxes    1,188.2  944.1  1,129.5 
Other Recoverable Amounts    113.8  223.3  262.7 
Inventory    80.3  64.2  49.1 
Contractual Retentions    191.4  -  - 
Other    90.5  75.5  115.6 
       
LONG TERM ASSETS    1,851.4  2,128.4  2,187.7 
       
Loans and Financing    104.2  2.9  0.8 
Deferred and Recoverable Taxes    1,485.0  1,649.5  1,614.2 
Other    262.2  476.0  572.7 
       
PERMANENT ASSETS    8,953.8  8,167.3  7,668.9 
       
Investment (Net)   386.9  330.1  311.9 
Property, Plant and Equipment (Net)   7,140.3  6,535.3  6,086.4 
 Property, Plant and Equipment (Gross)   25,112.0  26,051.5  26,129.1 
 Accumulated Depreciation    (17,971.7) (19,516.2) (20,042.8)
Intangible (Net)*    1,205.9  1,163.4  1,150.5 
 Property, Plant and Equipment (Gross)   2,120.2  2,343.9  2,416.6 
 Accumulated Depreciation    (914.2) (1,180.5) (1,266.2)
Deferred Assets (Net)   220.6  138.5  120.2 
       
TOTAL ASSETS    16,291.9  17,793.8  17,495.0 
       
 
       
CURRENT LIABILITIES    4,325.5  4,852.4  5,248.2 
       
Loans and Financing    1,257.3  1,109.6  1,459.0 
Suppliers    1,378.1  1,474.7  1,265.1 
Taxes and Contributions    917.2  893.3  945.4 
Dividends Payable    117.2  614.4  856.5 
Provisions    246.5  218.8  220.7 
Salaries and Benefits    102.3  154.9  96.2 
Consignment for Third Parties    116.4  138.4  121.2 
Authorization for Services Exploration    74.8  135.8  154.7 
Other    115.7  112.5  129.3 
       
LONG TERM LIABILITIES    4,801.2  5,852.7  5,186.1 
       
Loans and Financing    3,082.2  4,265.6  3,608.6 
Provisions    1,076.3  1,163.2  1,186.8 
Taxes and Contributions    350.6  116.0  73.0 
Authorization for Services Exploration    259.6  219.5  226.1 
Other    32.6  88.3  91.6 
       
DEFERRED INCOME    82.7  -  - 
       
MINORITY INTEREST    1,802.8  1,811.1  1,800.9 
       
SHAREHOLDERS' EQUITY    5,279.6  5,277.6  5,259.9 
       
Capital Stock    2,596.3  2,596.3  2,596.3 
Capital Reserves    309.2  309.2  309.2 
Profit Reserves    282.7  306.3  306.3 
Retained Earnings    2,112.3  2,086.6  2,068.9 
Treasury Shares    (20.8) (20.8) (20.8)
       
TOTAL LIABILITIES    16,291.9  17,793.8  17,495.0 
       
* In compliance with CVM Deliberation 488 and 489 the line of Tangible Permanent Asset is created 

Brasil Telecom Participações S.A.    Page 14 of 26 

Annex II - Consolidated Balance Sheet - Holding
R$ Million    Mar/06  Dec/06  Mar/07 
 
       
CURRENT ASSETS    976.0  1,724.8  1,949.0 
       
Cash and Equivalents    833.6  1,432.3  1,445.2 
Temporary Investments      -  - 
Deferred Taxes    139.1  42.9  114.9 
Other Recoverable Amounts    0.6  0.1  0.5 
Dividends / Interest on Own Capital Receivable    -  241.1  381.2 
Other    2.7  8.3  7.1 
       
LONG TERM ASSETS    977.9  285.6  235.7 
       
Loans and Financing    686.1  -  - 
Deferred and Recoverable Taxes    247.0  279.7  230.4 
Other    44.8  5.9  5.3 
       
PERMANENT ASSETS    3,747.7  3,757.4  3,733.9 
       
Investment (Net)   3,746.5  3,756.3  3,732.9 
Property, Plant and Equipment (Net)   1.1  1.0  0.9 
 Property, Plant and Equipment (Gross)   53.7  52.5  52.5 
 Accumulated Depreciation    (52.5) (51.5) (51.5)
Intangible (Net)*    0.1  0.0  0.0 
 Property, Plant and Equipment (Gross)   3.9  3.9  3.9 
 Accumulated Depreciation    (3.8) (3.8) (3.9)
Deferred Assets (Net)   0.1  -  - 
       
TOTAL ASSETS    5,701.6  5,767.8  5,918.6 
       
 
       
CURRENT LIABILITIES    354.0  477.6  651.8 
       
Loans and Financing    275.1  -  - 
Suppliers    1.1  0.1  0.3 
Taxes and Contributions    21.3  0.2  41.2 
Dividends Payable    56.1  442.7  610.3 
Salaries and Benefits    0.07  0.0  0.0 
Consignment for Third Parties    0.1  34.3  0.1 
Other    0.3  0.3  0.0 
       
LONG TERM LIABILITIES    64.8  12.0  6.9 
       
Loans and Financing    0.0  -  - 
Taxes and Contributions    60.2  7.8  2.5 
Other    4.5  4.2  4.4 
       
SHAREHOLDERS' EQUITY    5,282.8  5,278.2  5,259.9 
       
Capital Stock    2,596.3  2,596.3  2,596.3 
Capital Reserves    309.2  309.2  309.2 
Profit Reserves    282.7  306.3  306.3 
Retained Earnings    2,115.5  2,087.2  2,068.9 
Treasury Shares    (20.8) (20.8) (20.8)
       
TOTAL LIABILITIES    5,701.6  5,767.8  5,918.6 
       
* In compliance with CVM Deliberation 488 and 489 the line of Tangible Permanent Asset is created

Brasil Telecom Participações S.A.    Page 15 of 26 

Annex III: Consolidated Cash Flow
 
R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
OPERATING ACTIVITIES               
(+) Net Income of the Period    33.5  267.8  169.9    -36.6%  406.4% 
 
(+) Minority Participation    1.8  83.1  (70.0)   N.A.  N.A. 
 
(+) Items with no Cash Effects    1,072.5  505.6  763.7    0.5  -28.8% 
 
     Depreciation and Amortization    672.0  719.8  650.2    -10%  -3.3% 
     Losses with Accounts Receivables    96.1  79.1  87.8    10.9%  -8.7% 
     Provision for Doubtful Accounts    16.6  16.7  7.9    -52.7%  -52.6% 
     Provision for Contingencies    75.2  152.8  122.6    -19.7%  63.1% 
     Provision for Pension Funds    7.2  0.4  11.7    N.A.  63.0% 
     Deferred Taxes    204.6  (422.2) (116.5)   -72.4%  N.A. 
     Results from the Write-off of Permanent Assets    0.7  (41.0) -    N.A.  N.A. 
 
(-) Equity Changes    (877.9) (401.4) (355.7)   -11.4%  -59.5% 
     Clients' Accounts Receivable    (102.7) (156.9) (125.8)   -19.8%  22.5% 
     Inventories    2.8  (16.0) 15.1    N.A.  442.7% 
     Contract Retentions    (191.4) 192.2  -    N.A.  N.A. 
     Court Deposits    (39.3) (187.5) (120.1)   -36.0%  205.6% 
     Personnel, Charges and Social Benefits    (3.4) (23.0) (2.3)   -89.9%  -32.1% 
     Accounts Payable and Provisioned Expenses    (91.4) (232.7) (0.5)   -99.8%  -99.4% 
     Taxes    (226.1) 361.4  (26.0)   N.A.  -88.5% 
     Financial Expenses    (55.5) (167.7) (38.8)   -76.9%  -30.1% 
     Authorization for Services Exploration    26.6  (28.8) 25.3    N.A.  -4.8% 
     Provision for Contingencies    (110.5) (131.3) (99.5)   -24.2%  -9.9% 
     Provision for Pension Funds    (34.2) (11.4) (9.3)   -18.7%  -72.8% 
     Other Assets and Liabilities' Accounts    (52.8) 0.4  26.2    N.A.  N.A. 
 
(=) Cash Flow from Operating Activities    229.9  455.1  507.9    11.6%  120.9% 
           
 
INVESTMENT ACTIVITIES               
     Financial Investments    -  208.3  89.4    -57.1%  N.A. 
     Funds from Sales of Permanent Assets    0.1  3.6  0.1    -97.3%  -21.2% 
     Investments in Permanent Assets    (623.5) (263.0) (378.0)   43.7%  -39.4% 
          Investments    (623.5) (263.0) (378.0)   43.7%  N.A. 
 
(=) Cash Flow from Investment Activities    (623.3) (51.0) (288.5)   465.3%  -53.7% 
           
 
FINANCING ACTIVITIES               
 
     Dividens/Interests on Own Capital paid in the Period    (397.4) (5.4) (0.7)   -87.8%  -99.8% 
 
     Loans and Financing    (160.8) 679.4  (268.8)   N.A.  67.2% 
          Loans Obtained    1.5  800.8  -    N.A.  N.A. 
          Loans Paid    (162.3) (121.4) (268.8)   121.5%  65.6% 
     Other Financing Flows    17.7  -  -    N.A.  N.A. 
 
(=) Cash Flow from Financing Activities    (540.5) 674.0  (269.5)   N.A.  -50.1% 
           
 
           
CASH FLOW OF THE PERIOD    (933.9) 1,078.0  (50.1)   N.A.  -94.6% 
           
 
           
CASH, BANK ACCOUNTS and HIGH-LIQUID INVESTMENTS               
     Current Balance    1,679.9  3,974.0  3,923.9    -1.3%  133.6% 
     Previous Balance    2,613.8  2,895.9  3,974.0    37.2%  52.0% 
     Variation    (933.9) 1,078.0  (50.1)   N.A.  -94.6% 
           
 
           
OPERATING CASH FLOW    229.9  455.1  507.9    11.6%  120.9% 
 
(+) Investments on Permanent Assets (includes Investment Suppliers)   (623.5) (263.0) (378.0)   43.7%  -39.4% 
           
(=) FREE CASH FLOW    (393.5) 192.1  129.9    -32.4%  N.A. 
           
 
           
SUPLEMENTARY INFORMATION TO THE CASH FLOW               
     Income and Social Contribution Taxes Paid    4.0  39.4  52.8       
     Interest Paid on Loans and Financing    170.0  132.2  166.5       
           

Brasil Telecom Participações S.A.    Page 16 of 26 

Annex IV: Consolidated Operating Gross Revenue
             
             
R$ Million     1Q06   4Q06  1Q07    D Quarter D 12 Months 
GROSS REVENUES    3,654.9  4,001.9  3,897.1    -2.6%  6.6% 
           
FIXED TELEPHONY    2,888.9  2,892.7  2,824.4    -2.4%  -2.2% 
           
 Local Service    1,769.1  1,722.5  1,648.0    -4.3%  -6.8% 
           
     Subscription    893.3  881.4  862.6    -2.1%  -3.4% 
     Activation    4.2  7.9  6.6    -16.1%  58.2% 
     Masured Service    355.6  332.1  302.6    -8.9%  -14.9% 
     VC-1    503.5  490.5  465.7    -5.1%  -7.5% 
     Lease of Facilities    0.3  0.5  0.3    -42.5%  -6.1% 
     Other    12.2  10.2  10.3    0.9%  -15.4% 
           
 Public Telephony    127.9  138.4  129.0    -6.8%  0.9% 
           
 Long Distance Service    703.9  721.5  756.3    4.8%  7.4% 
           
     Intra-Sector    230.1  215.8  213.9    -0.9%  -7.0% 
     Intra-Region    82.2  72.4  68.4    -5.5%  -16.7% 
     Inter-Region    69.8  64.1  60.8    -5.0%  -12.8% 
     International    12.7  11.3  11.7    3.8%  -7.6% 
     VC-2    167.5  193.9  202.6    4.5%  20.9% 
             Fixed Origin    70.2  74.6  73.7    -1.1%  5.0% 
             Mobile Origin    97.3  119.3  128.8    8.0%  32.4% 
     VC-3    141.6  164.1  198.9    21.2%  40.4% 
             Fixed Origin    58.8  78.4  97.2    24.1%  65.3% 
             Mobile Origin    82.8  85.7  101.6    18.6%  22.7% 
     Interconnection    108.5  113.9  85.0    -25.4%  -21.7% 
           
             Fixed-Fixed    71.7  74.9  56.7    -24.3%  -20.9% 
             Mobile-Fixed    36.8  39.0  28.2    -27.6%  -23.4% 
           
     Lease of Means    83.0  81.5  89.7    10.1%  8.2% 
           
     Supplementary and Value    86.2  103.0  106.3    3.2%  23.4% 
     Added Services               
           
     Other    10.4  11.8  10.0    -15.4%  -4.2% 
           
MOBILE TELEPHONY    227.6  459.6  412.5    -10.2%  81.3% 
           
         Subscription    57.8  104.5  101.4    -2.9%  75.3% 
         Utilization    79.4  119.2  109.5    -8.2%  38.0% 
         Additional for Calls Received    1.6  1.2  1.5    28.5%  -3.1% 
         Roaming    3.5  3.9  4.8    20.9%  37.3% 
         Interconnection    26.1  127.4  139.6    9.6%  434.9% 
         Other Services    4.6  7.1  3.5    -49.9%  -22.7% 
         Merchandise Sales    54.6  96.4  52.2    -45.8%  -4.5% 
           
DATA COMMUNICATIONS    538.4  649.7  660.1    1.6%  22.6% 
           
         Fixed    521.6  622.5  642.9    3.3%  23.3% 
         Mobile    16.8  27.2  17.2    -36.7%  2.2% 
           
Deductions    (1,178.0) (1,260.9) (1,206.2)   -4.3%  2.4% 
% of Gross Revenue    32.2%  31.5%  31.0%    -0.6 p.p.  -1.3 p.p. 
           
NET REVENUES    2,476.9  2,741.0  2,690.9    -1.8%  8.6% 
           
 Net Service Revenues    2,441.7  2,673.0  2,660.2    -0.5%  8.9% 
 Net Handsets Revenues    35.2  68.0  30.7    -54.9%  -12.8% 
           

Brasil Telecom Participações S.A.    Page 17 of 26 

Annex V: Consolidated Operating Costs and Expenses
 
R$ Million     1Q06  4Q06  1Q07    D Quarter D 12 Months 
GROSS REVENUES    3,654.9  4,001.9  3,897.1    -2.6%  6.6% 
           
Deductions    (1,178.0) (1,260.9) (1,206.2)   -4.3%  2.4% 
NET REVENUES    2,476.9  2,741.0  2,690.9    -1.8%  8.6% 
           
 Costs    (1,567.9) (1,727.7) (1,611.4)   -6.7%  2.8% 
           
     Personnel    (58.6) (41.9) (40.1)   -4.3%  -31.5% 
     Materials    (72.0) (114.2) (69.5)   -39.1%  -3.5% 
     Subcontracted Services    (721.9) (812.0) (815.2)   0.4%  12.9% 
         Interconnection    (498.5) (573.8) (576.5)   0.5%  15.6% 
         Other    (223.4) (238.2) (238.7)   0.2%  6.9% 
     Depreciation and Amortization    (568.9) (611.3) (540.9)   -11.5%  -4.9% 
     Other    (146.5) (148.2) (145.6)   -1.8%  -0.6% 
           
GROSS PROFIT    909.0  1,013.4  1,079.5    6.5%  18.8% 
           
 Sales Expenses    (261.6) (285.2) (273.6)   -4.1%  4.6% 
           
     Personnel    (73.3) (63.3) (60.2)   -4.9%  -17.8% 
     Materials    (6.8) (3.7) (6.8)   85.4%  0.5% 
     Subcontracted Services    (168.2) (202.1) (175.1)   -13.4%  4.1% 
         Advertising and Marketing    (20.4) (47.3) (24.8)   -47.6%  21.7% 
         Other    (147.8) (154.7) (150.3)   -2.9%  1.7% 
     Depreciation and Amortization    (4.1) (4.1) (4.8)   14.8%  15.7% 
     Other    (9.2) (12.0) (26.7)   122.6%  188.9% 
           
 General and Administrative Expenses    (206.9) (214.4) (204.0)   -4.8%  -1.4% 
           
         Personnel    (51.6) (43.5) (44.9)   3.4%  -12.9% 
         Materials    (4.5) (4.8) (0.6)   -87.3%  -86.6% 
         Subcontracted Services    (141.0) (155.3) (148.4)   -4.5%  5.3% 
         Depreciation and Amortization    (6.1) (6.1) (6.3)   4.0%  4.5% 
         Other    (3.7) (4.8) (3.7)   -21.9%  0.0% 
           
 Information Technology    (115.9) (127.2) (116.0)   -8.8%  0.1% 
           
         Personnel    (6.7) (6.8) (6.0)   -12.7%  -11.1% 
         Materials    (0.5) (0.2) (0.3)   53.9%  -35.6% 
         Subcontracted Services    (31.8) (35.1) (27.0)   -23.0%  -15.0% 
         Depreciation and Amortization    (69.7) (77.2) (77.0)   -0.3%  10.4% 
         Other    (7.2) (7.8) (5.7)   -27.3%  -20.8% 
           
 Provisions and Losses    (188.0) (248.6) (218.3)   -12.2%  16.1% 
           
         Doubtful Accounts    (112.8) (95.8) (95.7)   -0.2%  -15.2% 
         Contingencies    (75.2) (152.8) (122.6)   -19.7%  63.1% 
           
 Other Operating Revenues (Exp.)   18.7  91.3  34.4    -62.4%  83.4% 
           
         Goodwill Amortization    (21.3) (19.1) (21.0)   10.4%  -1.1% 
         Other    40.0  110.4  55.4    -49.8%  38.5% 
           
EARNINGS BEFORE FINANCIAL RESULT    155.2  229.3  301.9    31.7%  94.5% 
(EBIT)              
           
 
 
R$ Million     1Q06  4Q06  1Q07    D Quarter D 12 Months 
OPERATING COSTS AND EXPENSES    (2,321.7) (2,511.7) (2,389.0)   -4.9%  2.9% 
           
     Personnel    (190.2) (155.6) (151.3)   -2.7%  -20.5% 
     Materials    (83.9) (122.9) (77.3)   -37.1%  -7.8% 
     Subcontracted Services    (544.0) (583.4) (564.5)   -3.2%  3.8% 
     Interconnection    (498.5) (573.8) (576.5)   0.5%  15.6% 
     Advertising and Marketing    (20.4) (47.3) (24.8)   -47.6%  21.7% 
     Provisions and Losses    (188.0) (248.6) (218.3)   -12.2%  16.1% 
     Other    (126.7) (62.4) (126.2)   102.4%  -0.3% 
     Depreciation and Amortization    (670.0) (717.8) (650.1)   -9.4%  -3.0% 
           

Brasil Telecom Participações S.A.    Page 18 of 26 

Annex VI: EBITDA Margin – Gains and Losses
 
R$ Million     1Q06  Vertical     4Q06  Vertical     1Q07  Vertical 
GROSS REVENUES    3,654.9  147.6%    4,001.9  146.0%    3,897.1  144.8% 
             
 FIXED TELEPHONY    2,888.9  116.6%    2,892.7  105.5%    2,824.4  105.0% 
             
     Local Service    1,769.1  71.4%    1,722.5  62.8%    1,648.0  61.2% 
     Public Telephony    127.9  5.2%    138.4  5.1%    129.0  4.8% 
     Long Distance Service    703.9  28.4%    721.5  26.3%    756.3  28.1% 
     Interconnection    108.5  4.4%    113.9  4.2%    85.0  3.2% 
     Lease of Means    83.0  3.3%    81.5  3.0%    89.7  3.3% 
     Supplementary and Value Added Services    86.2  3.5%    103.0  3.8%    106.3  4.0% 
     Other    10.4  0.4%    11.8  0.4%    10.0  0.4% 
             
 MOBILE TELEPHONY    227.6  9.2%    459.6  16.8%    412.5  15.3% 
             
 DATA COMMUNICATIONS    538.4  21.7%    649.7  23.7%    660.1  24.5% 
             
Deductions    (1,178.0) -47.6%    (1,260.9) -46.0%    (1,206.2) -44.8% 
NET REVENUES    2,476.9  100.0%    2,741.0  100.0%    2,690.9  100.0% 
             
OPERATING COSTS AND EXPENSES    (1,651.6) -66.7%    (1,793.9) -65.4%    (1,738.9) -64.6% 
     Personnel    (190.2) -7.7%    (155.6) -5.7%    (151.3) -5.6% 
     Materials    (83.9) -3.4%    (122.9) -4.5%    (77.3) -2.9% 
     Subcontracted Services    (544.0) -22.0%    (583.4) -21.3%    (564.5) -21.0% 
     Interconnection    (498.5) -20.1%    (573.8) -20.9%    (576.5) -21.4% 
     Advertising and Marketing    (20.4) -0.8%    (47.3) -1.7%    (24.8) -0.9% 
     Provisions and Losses    (188.0) -7.6%    (248.6) -9.1%    (218.3) -8.1% 
     Other    (126.7) -5.1%    (62.4) -2.3%    (126.2) -4.7% 
             
EBITDA    825.3  33.3%    947.1  34.6%    952.0  35.4% 
             

Annex VII: EBITDA Margin of Services

R$ Million     1Q06     4Q06     1Q07    D Quarter D 12 Months 
GROSS REVENUES    3,654.9    4,001.9    3,897.1    -2.6%  6.6% 
     Services    3,600.2    3,905.6    3,844.9    -1.6%  6.8% 
     Products    54.6    96.4    52.2    -45.8%  -4.5% 
DEDUCTIONS    (1,178.0)   (1,260.9)   (1,206.2)   -4.3%  2.4% 
     Services    (1,158.6)   (1,232.6)   (1,184.7)   -3.9%  2.3% 
     Products    (19.4)   (28.3)   (21.5)   -24.1%  10.7% 
NET REVENUES    2,476.9    2,741.0    2,690.9    -1.8%  8.6% 
     Services    2,441.7    2,673.0    2,660.2    -0.5%  8.9% 
     Products    35.2    68.0    30.7    -54.9%  -12.8% 
EBITDA    825.3    947.1    952.0    0.5%  15.4% 
     EBITDA Margin    33.3%    34.6%    35.4%    0.8 p.p.  2.1 p.p. 
     EBITDA Margin - Services    33.8%    35.4%    35.8%    0.4 p.p.  2.0 p.p. 
     Variation    0.5 p.p.    0.9 p.p.    0.4 p.p.    -0.5 p.p.  -0.1 p.p. 
       

Brasil Telecom Participações S.A.    Page 19 of 26 

Annex VIII: Investments
 
R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Network Expansion    38.3  101.9  48.0    -52.9%  25.4% 
 Conventional Telephony    0.3  (2.6) 1.9    N.A.  516.0% 
 Transmission Backbone    2.4  16.1  7.6    -52.7%  216.2% 
 Data Network    33.9  77.3  38.5    -50.2%  13.5% 
 Intelligent Network    0.7  2.4  0.1    -96.0%  -86.3% 
 Network Management Systems    0.4  8.0  0.5    -93.5%  36.7% 
 Other Investments for Network Expansion    0.5  0.6  (0.7)   N.A.  N.A. 
Network Operation    50.9  76.4  48.9    -36.0%  -3.9% 
Public Telephony    1.4  1.4  0.9    -33.2%  -37.0% 
Information Technology    8.5  50.7  8.2    -83.8%  -2.9% 
Expansion Personnel    26.9  22.0  18.7    -15.2%  -30.6% 
Regulatory    61.2  75.2  12.9    -82.8%  -78.9% 
Other    22.3  42.1  9.7    -77.0%  -56.5% 
Expansion Financial Expenses    0.0  0.2  1.2    415.4%  N.A. 
           
TOTAL - FIXED LINE TELEPHONY    209.4  369.9  148.5    -59.8%  -29.1% 
           
 
 
R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
           
TOTAL - MOBILE TELEPHONY    5.2  107.1  4.3    -96.0%  -17.3% 
           
 
 
R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
           
TOTAL INVESTMENT    214.6  477.0  152.8    -68.0%  -28.8% 
           

Annex IX: Indebtedness
 
Debt (R$ Million)   1Q06  4Q06  1Q07    D Quarter D 12 Months 
Short Term    1,257.3  1,109.6  1,459.0    31.5%  16.0% 
In R$    984.5  811.1  1,196.4    47.5%  21.5% 
In US$    16.8  29.4  15.1    -48.6%  -9.7% 
In Yen    80.2  80.1  75.6    -5.7%  -5.8% 
In Currency Basket    72.4  72.6  60.6    -16.5%  -16.2% 
Hedge Adjustment    103.3  116.4  111.3    -4.3%  7.7% 
Long Term    3,082.2  4,265.6  3,608.6    -15.4%  17.1% 
In R$    1,795.9  3,117.5  2,562.7    -17.8%  42.7% 
In US$    493.2  458.9  435.3    -5.2%  -11.7% 
In Yen    319.3  271.7  225.6    -17.0%  -29.3% 
In Currency Basket    173.7  113.3  100.8    -11.1%  -42.0% 
Hedge Adjustment    300.1  304.2  284.3    -6.5%  -5.2% 
Total Debt    4,339.4  5,375.2  5,067.7    -5.7%  16.8% 
(-) Cash    1,679.9  3,974.0  3,923.9    -1.3%  133.6% 
(-) Contractual Retentions    191.4  -  -    N.A.  -100.0% 
(-) Temporary Investments    -  89.4  -    -100.0%  N.A. 
Net Debt    2,468.1  1,311.8  1,143.8    -12.8%  -53.7% 
           

Brasil Telecom Participações S.A.    Page 11 of 26 

Annex X: Indebtedness

          R$ Million     
               
Description  Currency  Annual Cost  Maturity        Long Term % 
        Total  Short Term  Long Term   
 
Foreign Currency               
               
     Financial Institutions I  US$  Lib6+0.5%  jul/08 - jul/13  34.2  9.9  24.3  71.0% 
     Bonds - US$200 MM  US$  9.38%  Feb-14  415.1  5.0  410.1  98.8% 
     Financial Institutions II  Yen  Jibor6 + 1.92%  Mar-11  300.3  75.2  225.2  75.0% 
     Financial Institutions III  Yen  3.36%  Feb-09  0.8  0.4  0.4  49.8% 
     Suppliers I  US$  1.75%  Feb-14  1.1  0.2  0.9  85.5% 
               
Foreign Currency Total        751.5  90.7  660.8  87.9% 
               
 
Local Currency               
               
    Currency Basket           
     BNDES  R$  + 5.85%  Nov-07  7.0  7.0  (0.0) 0.0% 
    Currency Basket           
     BNDES  R$  + 6.5%  Oct-07  20.3  20.3  (0.0) 0.0% 
    Currency Basket           
     BNDES  R$  + 5.5% Apr-11  134.1  33.3  100.8  75.1% 
     BNDES  R$  TJLP + 5.85%  Oct-07  62.7  62.7  (0.0) 0.0% 
     BNDES  R$  TJLP + 5.85%  Dec-07  318.6  318.6  (0.0) 0.0% 
     BNDES  R$  TJLP + 6.5%  Dec-07  12.1  12.1  0.0  0.0% 
     BNDES  R$  TJLP + 5.5%  Feb-11  854.1  221.1  633.0  74.1% 
     BNDES  R$  TJLP + 2.3%  May-14  30.4  0.3  30.1  99.0% 
     BNDES  R$  TJLP + 4.3%  May-14  780.9  9.3  771.6  98.8% 
     BRB - Fixed Line  R$  2.43%  Dec-33  5.7  0.0  5.7  99.4% 
     BRB - GSM  R$  2.43%  Dec-33  19.4  0.1  19.3  99.4% 
     Debentures 3rd Public Issuance  R$  CDI + 1.0%  Jul-09  515.3  515.3  -  0.0% 
     Debentures 4th Public Issuance  R$  104% of CDI  Jun-13  1,124.9  44.9  1,080.0  96.0% 
     FCO I  R$  10.94%  Jan-08  4.2  4.2  -  0.0% 
     FCO II  R$  11.50%  Apr-11  30.8  7.7  23.1  75.1% 
               
Local Currency Total        3,920.5  1,257.0  2,663.5  67.9% 
               
 
 
               
Total Debt before Hedge Adjustments        4,672.0  1,347.7  3,324.3  71.2% 
               
     Hedge Adjustments        395.7  111.3  284.3  71.9% 
               
TOTAL DEBT        5,067.7  1,459.0  3,608.6  71.2% 
               

Brasil Telecom Participações S.A.    Page 21 of 26 

Annex XI: Long Term Debt Amortization Schedule

Maturity  % Long Term Debt 
2008  8.0% 
2009  14.7% 
2010  16.4% 
2011  18.1% 
2012  14.4% 
2013  14.4% 
2014  13.9% 
   

Annex XII: Consolidated Financial Result
 
R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Financial Revenue    116.1  338.4  161.4    -52.3%  39.0% 
       Local Currency    111.3  330.2  161.4    -51.1%  45.0% 
       Foreign Currency    4.8  8.2  0.1    -99.2%  -98.7% 
Financial Expenses    (191.4) (221.4) (227.0)   2.5%  18.6% 
       Local Currency    (150.3) (189.2) (202.0)   6.7%  34.4% 
       Foreign Currency    (41.0) (32.2) (25.0)   -22.2%  -39.0% 
Interest on Own Capital    -  (262.1) (267.8)   2.2%  N.A. 
           
Financial Result    (75.3) (145.1) (333.3)   129.7%  342.9% 
           

Annex XIII: Consolidated Accounts Receivable
 
    1Q06  2Q06  3Q06  4Q06  1Q07 
Total (R$ Million)   2,520.8  2,462.6  2,411.8  2,485.3  2,522.7 
           
     Due    62.6%  63.6%  66.0%  65.7%  62.9% 
     Overdue (up to 30 days)   16.5%  15.9%  16.0%  16.7%  16.3% 
     Overdue (between 31-60 days)   6.2%  5.3%  4.8%  5.0%  5.9% 
     Overdue (between 61-90 days)   3.9%  3.4%  2.8%  3.1%  3.9% 
     Overdue (more than 90 days)   10.8%  11.9%  10.4%  9.5%  11.0% 
           

Brasil Telecom Participações S.A.    Page 22 of 26 

Annex XIV: Traffic
               
TRAFFIC    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Exceeding Local Pulses (Million)   2,291.2  2,113.6  1,917.4    -9.3%  -16.3% 
           
VC-1 (Million Minutes)   744.7  728.8  692.3    -5.0%  -7.0% 
           
Lond Distance Minutes (Million)   1,454.1  1,432.2  1,438.4    0.4%  -1.1% 
           
         Longa Distância    1,196.5  1,154.3  1,128.3    -2.2%  -5.7% 
         VC-2    152.7  160.8  168.1    4.5%  10.1% 
         VC-3    104.9  117.1  141.9    21.2%  35.3% 
           

Annex XV - Indicators
 
FIXED LINE PLANT    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Lines Installed (Thousand)   10,814.3  10,423.0  10,388.5    -0.3%  -3.9% 
Additional Lines Installed (Thousand)   (2.0) (371.6) (34.5)   -90.7%  1627.8% 
           
Lines in Service - LIS (Thousand)   9,543.1  8,417.7  8,278.0    -1.7%  -13.3% 
         Residential    6,042.8  5,556.3  5,560.3    0.1%  -8.0% 
         Non-Residential    1,432.6  1,282.4  1,248.7    -2.6%  -12.8% 
         Public Telephones    295.2  277.9  275.5    -0.9%  -6.7% 
         Pre-paid    316.6  -  -    N.A.  -100.0% 
         Hybrid Terminals    825.6  633.3  561.8    -11.3%  -32.0% 
         Other (Including PBX)   630.1  667.8  631.8    -5.4%  0.3% 
Additional LIS (Thousand)   (17.0) (205.6) (139.6)   -32.1%  720.4% 
           
Average LIS (Thousand)   9,551.6  8,520.4  8,347.8    -2.0%  -12.6% 
           
LIS/100 Inhabitants    22.2  19.4  18.8    -2.9%  -15.2% 
Public Telephones/1,000 Inhabitants    6.9  6.4  6.3    -2.1%  -8.7% 
Public Phones/100 Lines Installed    2.7  2.7  2.7    -0.5%  -2.9% 
           
Utilization Rate    88.2%  80.8%  79.7%    -1.1 p.p.  -8.6 p.p. 
           
Digitalization Rate    100.0%  100.0%  100.0%    0.0 p.p.  0.0 p.p. 
           
ADSL Accesses (Thousand)   1,084.1  1,317.7  1,383.5    5.0%  27.6% 
    Net Additions (Thousand)   70.2  65.3  65.8    1%  -6% 
    ADSL Penetration (%)   11.4%  15.7%  16.7%    1.1 p.p.  5.4 p.p. 
           
 
PRODUCTIVITY    1Q06  4Q06  1Q07    D Quarter D 12 Months 
# of Employees - Fixed Telephony    5,420  5,199  5,227    0.5%  -3.6% 
Average # of Employees    5,612  5,166  5,213    0.9%  -7.1% 
LIS/Employee    1,761  1,619  1,584    -2.2%  -10.1% 
           
Gross Revenue/Average # of Employees/Month (R$ Thousand)   171.6  186.7  180.6    -3.3%  5.2% 
EBITDA/Average # of Employees/Month (R$ Thousand)   49.0  61.1  60.9    -0.4%  24.2% 
Net Income/Average # of Employees/Month (R$ Thousand)   2.0  17.3  10.9    -37.1%  445.1% 
           
Exceeding Pulses/Average LIS/Month    80.0  82.7  76.6    -7.4%  -4.3% 
DLD Minutes/Average LIS/Month    50.7  56.0  57.4    2.5%  13.2% 
Fixed-Mobile Minutes/Average LIS/Month    35.0  39.4  40.0    1.6%  14.4% 
           
Gross Revenue (Fixed Line)/Average LIS/Month (R$)   100.8  113.2  112.8    -0.3%  11.9% 
EBITDA/Average LIS/Month    28.8  37.1  38.0    2.6%  32.0% 
Net Earnings/Average LIS/Month    1.2  10.5  6.8    -35.3%  479.4% 
           
 
PROFITABILITY    1Q06  4Q06  1Q07    D Quarter D 12 Months 
EBITDA Margin    33.3%  34.6%  35.4%    0.8 p.p.  2.1 p.p. 
Net Margin    1.4%  9.8%  6.3%    -3.5 p.p.  5.0 p.p. 
Return on Equity - ROE    0.6%  5.1%  3.2%    -1.8 p.p.  2.6 p.p. 
           
 
CAPITAL STRUCTURE    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Cash, Bank Accounts and High-liquid Investments (R$ Million)   1,679.9  3,974.0  3,923.9    -1.3%  133.6% 
Temporary Investments (R$ Million)   -  89.4  -    -100.0%  N.A. 
Contractual Retentions (R$ Million)   191.4  -  -    N.A.  -100.0% 
Total Debt (R$ Million)   4,339.4  5,375.2  5,067.7    -5.7%  16.8% 
Short Term Debt    1,257.3  1,109.6  1,459.0    31.5%  16.0% 
Long Term Debt    3,082.2  4,265.6  3,608.6    -15.4%  17.1% 
Short Term Debt (%)   29.0%  20.6%  28.8%    8.1 p.p.  -0.2 p.p. 
Long Term Debt (%)   71.0%  79.4%  71.2%    -8.1 p.p.  0.2 p.p. 
Net Debt (R$ Million)   2,468.1  1,311.8  1,143.8    -12.8%  -53.7% 
Shareholders' Equity (R$ Million)   5,279.6  5,277.6  5,259.9    -0.3%  -0.4% 
Net Debt/Shareholders' Equity    46.7%  24.9%  21.7%    -3.1 p.p.  -25.0 p.p. 
           

Brasil Telecom Participações S.A.    Page 23 of 26 

Annex XVI – Active and Blocked Lines
               
    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Active Lines (LIS - Blocked Lines)   8,483.6  8,138.6  8,037.0    -1.2%  -5.3% 
Blocked Lines    1,059.4  279.0  241.1    -13.6%  -77.2% 
           
Lines in Service (LES)   9,543.1  8,417.7  8,278.0    -1.7%  -13.3% 
           

BRASIL TELECOM MOBILE

Annex XVII: Income Statement – BrT Mobile

R$ Million    1Q06  4Q06  1Q07    D Quarter D 12 Months 
GROSS REVENUES    329.5  590.3   541.3    -8.3%  64.3% 
     Subscription    57.8  104.5   101.4    -2.9%  75.3% 
     Utilization    85.9  129.4   121.5    -6.1%  41.4% 
     Interconnection    104.6  220.8   239.1    8.3%  128.7% 
     Other Revenues    9.6  12.2  9.8    -19.3%  2.1% 
     Data Communications    16.8  27.2  17.2    -36.7%  2.2% 
     Merchandise Sales (Handsets and    54.6  96.4  52.2    -45.8%  -4.5% 
     Accessories)              
Deductions    (106.9) (171.2) (156.3)   -8.7%  46.3% 
NET REVENUES    222.6  419.1   385.0    -8.1%  72.9% 
           
OPERATING COST AND EXPENSES    (262.9) (452.9) (380.6)   -16.0%  44.8% 
     Personnel    (21.4) (19.0) (18.7)   -1.9%  -12.9% 
     Materials    (60.8) (98.1) (55.9)   -43.0%  -8.1% 
     Subcontracted Services    (85.5) (101.5) (93.7)   -7.7%  9.6% 
     Interconnection    (24.2) (131.3) (128.0)   -2.5%  428.0% 
     Advertising and Marketing    (7.6) (14.6) (10.2)   -30.5%  34.1% 
     Provisions and Losses    (11.0) (20.6) (14.6)   -29.0%  32.9% 
     Other    (52.3) (67.6) (59.4)   -12.1%  13.6% 
           
EBITDA    (40.3) (33.8) 4.4    N.A.  N.A. 
EBITDA Margin    -18.1%  -8.1%  1.1%    N.A.  N.A. 
     Depreciation and Amortization    (76.7) (90.4) (94.5)   4.6%  23.2% 
           
EARNINGS BEFORE FINANCIAL RESULT    (117.1) (124.2) (90.2)   -27.4%  -23.0% 
           
     Financial Result    (8.7) (5.1) 10.6    N.A.  N.A. 
             Financial Revenues    5.2  9.3  22.7    143.3%  339.3% 
             Financial Expenses    (13.8) (14.4) (12.1)   -16.3%  -12.7% 
           
EARNINGS AFTER FINANCIAL RESULT    (125.7) (129.3) (79.5)   -38.5%  -36.7% 
           
     Non-Operating Revenues (Expenses)   (0.4) (0.0) -    N.A.  N.A. 
           
EARNINGS BEFORE INCOME AND SOCIAL    (126.1) (129.3) (79.5)   -38.5%  -36.9% 
CONTRIBUION TAXES               
           
     Income and Social Contribution Taxes    42.6  43.4  27.1    -37.6%  -36.5% 
           
EARNINGS BEFORE PROFIT SHARING    (83.5) (85.8) (52.5)   -38.9%  -37.2% 
           
 
EARNINGS BEFORE REVERSION OF    (83.5) (85.8) (52.5)   -38.9%  -37.2% 
INTEREST ON OWN CAPITAL               
           
NET EARNINGS (LOSSES)   (83.5) (85.8) (52.5)   -38.9%  -37.2% 
           
Obs.: The values presented in this Income Statement do not consider inter-company elimination with Brasil Telecom S.A.

Brasil Telecom Participações S.A.    Page 24 of 26 

Annex XVIII: ARPU Calculation – Mobile Telephony

R$ Thousand    1Q06  2Q06  3Q06    4Q06  1Q07 
 
(+) Gross Revenues    329.5  374.7  494.5    590.3  541.3 
(-) Handsets    (54.6) (69.5) (65.7)   (96.4) (52.2)
 
Gross Service Revenues    274.8  305.3  428.8    493.9  489.1 
 
(-) Taxes and Deductions    (87.4) (102.3) (116.8)   (142.9) (134.8)
 
Net Service Revenues    187.4  203.0  311.9    351.1  354.3 
   Mobile-Mobile Interconnection Fee (Full Bill)            -  -  75.6    94.6  98.4 
   Other Net Service Revenues             -  -  236.4    256.4  255.9 
(-) Roaming    (0.9) (0.8) (0.7)   (1.1) (1.8)
 
Net Quarterly Revenues    186.4  202.2  311.2    349.9  352.5 
Receita Líquida Mensal    62.1  67.4  103.7    116.6  117.5 
Average Number of Clients    2,340.5  2,590.2  2,911.8    3,153.7  3,514.0 
 
ARPU (R$)   26.6  26.0  35.6    37.0  33.4 
     
 
Annex XIX: Operating Data
               
Key Operational Data    1Q06  4Q06  1Q07    D Quarter D 12 Months 
Clients (Thousand)   2,460.9  3,376.8  3,638.1    7.7%  47.8% 
 Post-Paid    821.1  993.8  967.0    -2.7%  17.8% 
 Pre-Paid    1,639.8  2,383.0  2,671.1    12.1%  62.9% 
Net Additions (Thousand)   248.1  325.8  261.3    -19.8%  5.3% 
 Post-Paid    128.1  46.5  (26.9)   -157.8%  -121.0% 
 Pre-Paid    119.9  279.3  288.2    3.2%  140.3% 
Gross Additions (Thousand)   398.9  555.8  447.2    -19.5%  12.1% 
 Post-Paid    151.6  103.3  65.0    -37.1%  -57.1% 
 Pre-Paid    247.3  452.5  382.2    -15.5%  54.5% 
Cancellations (Thousand)   150.9  230.0  185.9    -19%  23% 
 Post-Paid    23.5  56.8  91.8    61.6%  291.2% 
 Pre-Paid    127.4  173.2  94.1    -45.7%  -26.2% 
Annualized Churn    25.8%  28.6%  21.2%    -7.4 p.p.  -4.6 p.p. 
 Post-Paid    12.4%  23.4%  37.5%    14.1 p.p.  25.1 p.p. 
 Pre-Paid    32.3%  30.9%  14.9%    -16.0 p.p.  -17.4 p.p. 
SAC (R$)   136.6  123.1  97.8    -20.6%  -28.4% 
Market Share    9.4%  12.1%  12.9%    0.8 p.p.  3.5 p.p. 
Served Localities    782  819  830    1.3%  6.1% 
% of Population Covered    86%  87%  87%    0.0 p.p.  1.1 p.p. 
Base Stations    2,123  2,406  2,417    0.5%  13.8% 
Switches    8  10  10    0.0%  25.0% 
Employees    735  636  611    -3.9%  -16.9% 
           

Annex XX: Market Share by State – BrT Mobile
                 
State    1Q06  2Q06  3Q06  4Q06  1Q07    D Quarter D 12 Months 
AC    8.8%  11.3%  12.2%  13.7%  15.3%    1.6 p.p.  6.5 p.p. 
RO    14.5%  17.5%  18.7%  20.2%  22.0%    1.8 p.p.  7.5 p.p. 
DF    16.0%  18.9%  20.1%  21.3%  22.7%    1.5 p.p.  6.7 p.p. 
GO    11.2%  13.2%  13.7%  14.6%  15.7%    1.1 p.p.  4.5 p.p. 
TO    15.0%  17.2%  17.2%  17.9%  19.6%    1.7 p.p.  4.6 p.p. 
MS    7.9%  9.5%  10.1%  10.8%  11.4%    0.6 p.p.  3.5 p.p. 
MT    8.6%  10.4%  11.1%  11.9%  12.9%    1.0 p.p.  4.3 p.p. 
PR    7.7%  8.7%  9.4%  9.9%  10.4%    0.4 p.p.  2.6 p.p. 
SC    9.5%  10.3%  10.9%  11.4%  11.9%    0.5 p.p.  2.4 p.p. 
RS    6.8%  7.4%  8.2%  8.7%  9.3%    0.6 p.p.  2.5 p.p. 
               
Region II    9.4%  10.7%  11.4%  12.1%  12.9%    0.8 p.p.  3.5 p.p. 
               

Brasil Telecom Participações S.A.    Page 25 of 26 

GLOSSARY

ADSL: Asymmetrical Digital Subscriber Line. System that allows broadband signal transmission through metallic telephone cables. It is the most common DSL technology, which represents a midway transition to totally optic networks.

ARPU: Average Revenue Per User. It is an indicator used in telecom industry which calculates the average net revenue per user.

CAPEX: Capital Expenditure. The investments made by a company.

EBITDA: Earnings Before Interests, Taxes, Depreciation and Amortization.

GSM: Global System for Mobile communications. GSM is the most used technological standard by mobile operators in the world. This feature allows its users to move around freely and easily with their handsets. The price of GSM handsets is also more attractive, the network is safer and there is a consistent technological evolution.

JSCP (Interest on Shareholders’ Equity): Shareholder remuneration option, calculated from the Shareholders’ Equity and limited, for taxes deductibility effects, to the variation of the long term interest rates. The fiscal benefit is due to the reduction of the calculation basis of the income tax and social contribution on the net income, once the interest on shareholders’ equity represent deductible expenses in the application of these resources.

LIS: Lines in Service. All the lines in a plant that are effectively being used.

SAC: Subscriber Acquisition Cost. It is the average amount spent by a company to acquire a new subscriber.

TUP (Public Phone): Public terminals which use phone cards (or collect calls) to make calls.

Financial Leverage Ratio: Net Debt / Shareholders’ Equity

 

This document contains forward-looking statements. Such statements do not constitute facts occurred in the past and reflect the expectations of the Company's managers only. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "aims", as well as other similar words, are intended to identify those forward-looking statements, which obviously involve risks or uncertainties predicted or not by the Company. Accordingly, the future results of the Company’s operations may differ from the current expectations, and the reader should not rely exclusively on these forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments. 

Brasil Telecom Participações S.A.    Page 26 of 26 

 
SIGNATURE
 
 
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: April 26, 2007

 
BRASIL TELECOM PARTICIPAÇÕES S.A.
By:
/S/ Paulo Narcélio Simões do Amaral
 
Name:   Paulo Narcélio Simões do Amaral
Title:     Chief Financial Officer
 

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.