Provided by MZ Data Products
 
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 20, 2005

(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):

 


TABLE OF CONTENTS

TABLE OF CONTENTS  2 
Highlights  3 
Income Statements  5 
         Table 1: Consolidated Income Statement - Brasil Telecom Participações S.A  5 
         Table 2: Consolidated Income Statement - Brasil Telecom GSM  6 
OPERATING PERFORMANCE  7 
Fixed-Line Telephony  7 
   NETWORK  7 
         Table 3: Network  7 
   TRAFFIC  7 
         Table 4: Traffic  7 
         Graph 1: DLD Market Share – Quartely Average  8 
Mobile Telephony  9 
         Table 5: Operational Data  9 
         Graph 2: Mobile Network  9 
Data Communications  10 
   BROADBAND  10 
         Gráfico 3: ADSL Acesses in Service  10 
   INTERNET PROVIDERS  10 
Financial Performance  11 
   REVENUES  11 
         Table 6: Consolidated Operating Gross Revenues  11 
         Graph 4: Gross Revenues Breakdown  11 
         Graph 5: Data Communications and Other Services Revenues  13 
         Table 7: ARPU Calculation – Mobile Telephony  13 
   COSTS AND EXPENSES  14 
         Table 7: Consolidated Operating Costs and Expenses  14 
         Graph 6: Operating Costs and Expenses Breakdown  15 
         (Excluding Depreciation, Provisions, Losses and Other)  15 
         Graph 7: Accounts Receivable / Gross Revenues Ratio  16 
         Table 8: Gross Accounts Receivable  16 
   EBITDA  17 
         Table 9: EBITDA Margin – Gains and Losses  17 
         Table 10: EBITDA as a percentage of Service Revenues  17 
   NET FINANCIAL EXPENSES  18 
         Table 10: Consolidated Net Financial Expenses  18 
   OTHER ITEMS  18 
   NET EARNINGS  18 
Balance Sheets  19 
         Table 11: Consolidated Balance Sheet – Brasil Telecom Participações S.A  19 
         Table 12: Holding Balance Sheet – Brasil Telecom Participações S.A  20 
         Table 12: Consolidated Balance Sheet – Brasil Telecom GSM  21 
Indebtedness  22 
         Table 13: Indebtedness  22 
         Table 14: Indebtedness by Currency  23 
         Table 15: Amortization Schedule of Long Term Debt  23 
Investments in Permanent Assets  24 
         Table 16: Breakdown of Investments in Permanent Assets  24 
Cash Flow  25 
         Table 17: Consolidated Cash flow  25 
Stock Market  26 
         Table 18: Stock Performance  26 
         Graph 8: Performance in the 1Q05 – Bovespa and NYSE  26 
         Table 19: Weight in the Theoretical Portfolio – Jan - Apr  26 
Shareholding Structure  27 
         Table 20: Shareholding Structure  27 
Corporate Governance  27 
Awards  28 
Recent Developments  28 
2005 Scenario (Guidelines)  29 
Selected Data  30 
         Table 21: Selected Data  30 
Coming Events  31 
IR Contacts  31 
Media Contact  31 



Table of Contents

QUARTER
HIGHLIGHTS

1.0 million mobile accesses in service, an increase of 61.3%

625.3 thousand ADSL accesses in service, a 16.8% growth

Net revenues reached R$2.4 billion

Fixed-line ARPU reached R$83.2

Mobile telephony ARPU of R$29.4

Data communications revenues of R$420.6 million, a growth of 12.5%

EBITDA of R$824.3 million, up by 7.5%

Total fixed-line CAPEX of R$196.3 million

PCS CAPEX of R$85.9 million

  HIGHLIGHTS

Brasília, Brazil April 19, 2005 - Brasil Telecom Participações S.A. (BOVESPA: BRTP3/BRTP4; NYSE: BRP) announces its consolidated earnings for the first quarter of 2005 (1Q05).

In less than six months of operations, Brasil Telecom GSM exceeded all expectations and reached the mark of 1.0 million accesses in service.

EBITDA as a percentage of services revenues reached 34.6%, up 2.4 p.p. sequentially. Fixed-line EBITDA margin was of 40.7% in the 1Q05.
 

Operating Performance

Fixed-Line Telephony
We had 10,778 thousand lines installed at the end of the 1Q05, an increase of 0.4% and 0.7% compared to 4Q04 and 1Q04, respectively.

At 1Q05 we had 9,512 thousand lines in service, a result of 9.2 thousand net additions during the quarter.

  

Mobile Telephony
Our mobile operations had 322.5 thousand post-paid accesses in service, representing 32.1% of the total client base, exceeding all expectations.

Data Communications
At the end of 1Q05, we had 625.3 thousand ADSL accesses in service, representing a growth of 92.4% compared to 1Q04.
Financial Performance

Net revenues of R$2,447.6 million in 1Q05, an increment of 17.9% compared to 1Q04´s net revenues.

Revenues from supplementary and value added services reached R$114.7 million in 1Q05, an increase of 14.0% year-on-year and 15.8% compared to the previous quarter.

Revenues from data communications and other services totaled R$420.6 million in 1Q05, an increase of 67.8% year-on-year and 12.5% quarter-on-quarter.

Fixed-line ARPU (net revenues/ Avg. LIS/month) of R$83.2 in 1Q05, compared to R$70.4 in the same period of 2004.

 

Mobile telephony gross revenues (excluding inter-company revenues) of R$147.0 million in 1Q05, including R$47.4 million revenues from merchandise sales (handsets and accessories). Measured mobile service revenues reached R$57.4 million in 1Q05, compared to R$5.5 million in 4Q04.

Mobile telephony ARPU was of R$29.4 in 1Q05.

The subscriber acquisition cost was of R$188.8 in the same period, representing an 8.3% decrease compared to the previous quarter.

Operating costs and expenses excluding depreciation, amortization, provisions, losses and others were of R$1,362.1 million in 1Q05, down 6.0% sequentially.

Interconnection costs totaled R$576.1 million in 1Q05, down 11.0% quarter-on-quarter.

Trailing 12M
Highlights

32.1% of mobile telephony clients are post-paid

Increase of 92.4% in the number of ADSL accesses in service

Net revenue grew by 17.9%

Data communications revenues grew by 67.8% accounting for 12.1% of total revenues

Total debt 3.1% lower

Year-to-date cost of debt equivalent to 15.4% p.a., or 87.2% of the CDI

Operating cash flow of R$3.2 billion

Fixed-line EBITDA Margin of 40.6%

Net income of R$223.0 million

 

As of March 2005, our consolidated total debt was of R$4,564.5 million, 3.1% lower than in the 4Q04. Consolidated net debt was of R$1.762.2 million, as of March 2005.

2005 year-to-date cost of debt was equivalent to 15.4% p.a., or 87.2% of the domestic inter-bank rate (CDI).

Consolidated net debt as a percentage of net equity was of 28.5% in 1Q05 compared to 24.2% in 4Q04.

 

Dollar-denominated debt represented 14.9% of total debt, amounting to R$657.2 million at the end of 1Q05.

Debt denominated in foreign currency represented 32.2% of our total debt.

Brasil Telecom hedged 64.6% of its debt denominated in foreign currency, so that 11.7% of its total debt was exposed to exchange rate risk.



 
R$ Million Mar/04  Dec/04   Mar/05  D Quarter D 12 Months
Total Debt 4,283.3 4,708.2 4,564.5 -3.1% 6.6%
(-) Cash 2,920.5 3,226.6 2,802.3 -13.1% -4.0%
Net Debt 1,362.8 1,481.6 1,762.2 18.9% 29.3%
 

Total investments in fixed-line operations totaled R$196.3 million in 1Q05, of which 31.6% were directed at our data network, our intelligent network and information technology.

 

PCS investments totaled R$85.9 million, compared to the R$417.9 million in 4Q04.

Operating cash inflow of R$785.9 million in 1Q05 and R$3.2 billion in 12 months.

 

Financial Indicators
 
Financial Indicators 1Q04  4Q04  1Q05  D Quarter D 12 Months
EBITDA* / Interest Expenses 6.57 6.16 6.42 4.2% -2.2%
Net Debt / EBITDA* (x4) 0.38 0.48 0.53 10.7% 39.9%
Total Debt / (EBITDA* + Financial Revenue) (x4) 1.05 1.21 1.12 -7.5% 6.8%
EBITDA* (x4) / Lines in Service R$ 367 R$323 R$347 7.4% -5.5%
EBITDA* (x4) / Employees (thousand) R$ 685 R$529 R$499 -5.6% -27.1%
* EBITDA without effects of non-recurrent itens.

Table of Contents

INCOME STATEMENTS

Table 1: Consolidated Income Statement - Brasil Telecom Participações S.A.

R$ Million  1Q04   4Q04   1Q05  D Quarter   D 12 Months
GROSS REVENUES  2,908.8  3,502.0  3,468.7  -1.0%  19.2% 
Fixed Telephony  2,658.2  3,040.1  2,901.1  -4.6%  9.1% 
     Local Service  1,114.3  1,262.5  1,195.7  -5.3%  7.3% 
     Public Telephony  108.2  123.2  86.9  -29.5%  -19.6% 
     Long Distance Service  382.2  444.9  430.2  -3.3%  12.6% 
     Fixed-Mobile Calls  702.1  854.4  832.5  -2.6%  18.6% 
     Interconnection  191.2  178.1  164.6  -7.6%  -13.9% 
     Lease of Means  55.1  66.7  65.9  -1.1%  19.7% 
     Supplementary and Value Added Services  99.1  100.7  114.7  14.0%  15.8% 
     Other  6.0  9.7  10.4  7.8%  72.9% 
Mobile Telephony  -  87.9  147.0  67.2%  N.A. 
Data Transmission  250.6  374.0  420.6  12.5%  67.8% 
Deductions  (833.5)  (1,036.0)  (1,021.2)  -1.4%  22.5% 
NET REVENUES  2,075.3  2,466.1  2,447.6  -0.7%  17.9% 
COSTS & OPERATING EXPENSES  (1,183.2)  (1,699.1)  (1,623.3)  -4.5%  37.2% 
     Personnel  (95.3)  (125.3)  (153.2)  22.2%  60.7% 
     Materials  (23.0)  (137.3)  (78.6)  -42.8%  241.3% 
     Subcontracted Services  (363.8)  (486.3)  (492.2)  1.2%  35.3% 
     Interconnection  (496.2)  (647.2)  (576.1)  -11.0%  16.1% 
     Advertising and Marketing  (24.1)  (53.5)  (62.0)  15.9%  157.7% 
     Provisions and Losses  (110.5)  (256.4)  (140.8)  -45.1%  27.4% 
     Other  (70.3)  7.1  (120.4)  N.A.  71.4% 
EBITDA  892.1  767.0  824.3  7.5%  -7.6% 
Depreciation and Amortization  (598.7)  (639.4)  (671.4)  5.0%  12.2% 
 
OPERATING PROFIT BEFORE FINANCIAL RESULT  293.4  127.6  152.8  19.8%  -47.9% 
Financial Result  (251.6)  (356.9)  (52.2)  -85.4%  -79.3% 
     Financial Revenues  130.0  205.2  195.1  -4.9%  50.1% 
     Financial Expenses  (225.8)  (324.4)  (247.3)  -23.8%  9.5% 
     Interest on Shareholders' Equity  (155.8)  (237.8)  -  N.A.  N.A. 
 
OPERATING PROFIT AFTER FINANCIAL RESULT  41.9  (229.3)  100.6  N.A.  140.4% 
Non-Operating Revenues (Expenses)  (51.5)  9.9  (33.9)  N.A.  -34.3% 
     Goodwill Amortization - CRT Acquisition  (31.0)  (31.0)  (31.0)  0.0%  0.0% 
     Other  (20.5)  40.9  (2.9)  N.A.  -86.1% 
EARNINGS BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES  (9.7)  (219.4)  66.8  N.A.  N.A. 
Income and Social Contribution Taxes  (13.9)  51.0  (20.1)  N.A.  44.0% 
EARNINGS BEFORE PROFIT SHARING  (23.6)  (168.4)  46.7  N.A.  N.A. 
Profit Sharing  (12.9)  (14.8)  -  N.A.  N.A. 
Minority Interest  (44.9)  (13.0)  (1.6)  -87.6%  -96.4% 
 
EARNINGS BEFORE REVERSION OF INTEREST ON SHAREHOLDERS' EQUITY  (81.4)  (196.2)  45.1  N.A.  N.A. 
Reversion of Interest on Shareholders' Equity  155.8  237.8  -  N.A.  N.A. 
NET EARNINGS  74.3  41.6  45.1  8.4%  -39.4% 
Goodwill Amortization - CRT Acquisition  31.0  31.0  31.0  0.0%  0.0% 
NET EARNINGS ADJUSTED BY GOODWILL AMORTIZATION  105.4  72.6  76.1  4.8%  -27.8% 
 
Net Earnings (Losses)/1,000 shares - R$  0.2084  0.1155  0.1239  7.2%  -40.6% 
Net Earnings (Losses)/ADR - US$  0.3599  0.2176  0.2323  6.7%  -35.5% 

Table of Contents

Table 2: Consolidated Income Statement - Brasil Telecom GSM

R$ Million  4Q04  1Q05  D Quarter 
GROSS REVENUES  102.3  182.5  78.4% 
     Subscription  10.2  34.6  239.2% 
     Utilization  5.7  57.4  N.A. 
     Roaming  0.2  0.7  244.6% 
     Interconnection  16.0  41.3  157.7% 
     Other Revenues  0.2  0.5  205.4% 
     Data Transmission  0.3  0.6  81.2% 
     Merchandise Sales (Handsets and Accessorie  69.7  47.4  -32.0% 
Deductions  (23.3)  (50.9)  118.2% 
NET REVENUES  79.0  131.6  66.7% 
COSTS & OPERATING EXPENSES  (223.6)  (279.4)  25.0% 
     Personnel  (11.5)  (21.9)  90.4% 
     Materials  (116.0)  (59.7)  -48.5% 
     Subcontracted Services  (43.9)  (61.4)  39.8% 
     Interconnection  (7.8)  (37.3)  376.0% 
     Advertising and Marketing  (24.2)  (35.5)  46.6% 
     Provisions and Losses  (2.8)  (6.2)  120.0% 
     Other  (17.4)  (57.4)  230.7% 
EBITDA  (144.6)  (147.8)  2.2% 
Depreciation and Amortization  (28.7)  (53.1)  85.0% 
OPERATING PROFIT BEFORE FINANCIAL       
RESULT  (173.3)  (200.9)  15.9% 
Financial Result  (6.5)  (10.0)  54.2% 
     Financial Revenues  11.1  4.0  -63.9% 
     Financial Expenses  (17.6)  (14.1)  -20.3% 
EARNINGS BEFORE INCOME AND SOCIAL       
CONTRIBUTION TAXES  (179.8)  (210.9)  17.3% 
Income and Social Contribution Taxes  60.7  85.7  41.1% 
NET EARNINGS (LOSSES)  (119.1)  (125.2)  5.1% 

Note: Statement does not consider inter-company eliminations with Brasil Telecom S.A.

Table of Contents

OPERATING PERFORMANCE

FIXED-LINE TELEPHONY

    Network

Table 3: Network

PLANT  1Q04  4Q04  1Q05  D Quarter  D 12 Months
Lines Installed (Thousand)  10,700.7  10,737.2  10,778.3  0.4%  0.7% 
Additional Lines Installed (Thousand)  14.2  11.8  41.1  247.9%  189.2% 
Lines in Service - LIS (Thousand)  9,723.8  9,503.1  9,512.3  0.1%  -2.2% 
       Residential  6,988.2  6,444.9  6,379.5  -1.0%  -8.7% 
       Non-Residential  1,468.5  1,433.0  1,440.2  0.5%  -1.9% 
       Public Telephones  295.9  295.9  296.4  0.2%  0.1% 
       Pre-paid  281.9  297.1  311.2  4.7%  10.4% 
       Hybrid Terminals  58.7  408.3  465.5  14.0%  692.9% 
       Other (including PBX)  630.6  623.9  619.6  -0.7%  -1.7% 
Additional LIS (Thousand)  (127.0)  (101.2)  9.2  N.A.  N.A. 
Average LIS (Thousand)  9,787.4  9,553.7  9,507.7  -0.5%  -2.9% 
LIS/100 Inhabitants  23.1  22.4  22.4  0.0%  -3.1% 
Public Telephones/1,000 Inhabitants  7.0  7.0  7.0  0.0%  -0.8% 
Public Telephones/100 Lines Installed  2.8  2.8  2.7  -0.2%  -0.6% 
Utilization Rate  90.9%  88.5%  88.3%  -0.3 p.p.  -2.6 p.p. 
Digitization Rate  99.5%  99.7%  99.3%  -0.4 p.p.  -0.2 p.p. 

Fixed-line Network

In 1Q05, Brasil Telecom installed 41.1 thousand lines, closing the quarter with 10.8 million terminals.

In 1Q05 we had 9.5 million lines in service, a result of 9.2 thousand net additions during the quarter. Based on a strategy of client segmentation with the objective of improving profitability and prevent delinquency, we continued to encourage our subscribers of alternative plans to migrate to our hybrid plan. This initiative increased the number of such terminals by 14.0% in the quarter.

Table of Contents

    Traffic

Table 4: Traffic

TRAFFIC  1Q04  4Q04  1Q05  D Quarter  D 12 Months 
Exceeding Local Pulses (Million)  2,585.9  2,772.5  2,304.8  -16.9%  -10.9% 
Long Distance Minutes (Million)  1,533.6  1,436.5  1,334.4  -7.1%  -13.0% 
Fixed-Mobile Minutes (Million)  1,037.4  1,238.0  1,089.0  -12.0%  5.0% 
Exceeding Pulses/Average LIS/Month  90.6  96.7  80.8  -16.5%  -10.8% 
LD Minutes/Average LIS/Month  52.2  50.1  46.8  -6.7%  -10.4% 
Fixed-Mobile Minutes/Average LIS/Month  35.4  43.2  38.2  -11.6%  7.7% 

Billed Pulses

Influenced by seasonal effects typical of the first quarter of the year, local traffic decreased by 16.9%. Additionally, the record sale of mobile phones in December 2004, as well as the increase in the number of ADSL accesses in service, contributed to the reduction of local traffic.


Long Distance
Traffic

In 1Q05, LD traffic decreased by 7.1% compared to the previous quarter. Seasonal effects of the quarter also affected long distance traffic. In the intra-sector segment Anatel’s resolution regarding conurbated areas explains the traffic variation compared to 1Q04.


LD Market Share

Brasil Telecom closed 1Q05 well positioned in the long distance market, with a 51.0% and 29.1% (quarterly average) market share in the interregional and international long distance segments. This reflects the success of our marketing campaigns (“Viaje com 14” e “Aniversário das Cidades”) and the strength of the Brasil Telecom brand in Region II.

Sequentially, our quarterly average long distance market share increased 0.6 p.p. in the intra-state segment, reaching 82.9%. In the inter-state segment, our market share was of 91.0%.

Table of Contents

Graph 1: DLD Market Share – Quartely Average

Inter-Network
Traffic

Inter-network traffic decreased by 12.0% in 1Q05 compared to the previous quarter. We have implemented initiatives to increase the profitability of our operations. In this sense, we offer pre-paid and hybrid plans, which have features that help to reduce fixed-to-mobile traffic. Additionally, subscribers of our residential plan have tried to control this type of traffic. Moreover, seasonality also played a role in the reduction of this traffic.

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MOBILE TELEPHONY

Table 5: Operational Data

Key Operational Data   4Q04       1Q05  D Quarter 
Clients  622,295  1,003,658  61.3% 
   Post-Paid  205,716  322,486  56.8% 
   Pre-Paid  416,579  681,172  63.5% 
Gross Additions  626,526  405,616  -35.3% 
   Post-Paid  209,497  122,801  -41.4% 
   Pre-Paid  417,029  282,815  -32.2% 
Cancellations  4,231  24,253  473.2% 
   Post-Paid  3,781  6,031  59.5% 
   Pre-Paid  450  18,222  N.A. 
Annualized Churn  1.4%  11.9%  10.6 p.p. 
Served Localities  626  626  0.0% 
Base Stations  1,632  1,695  3.9% 
Switches  3  6  100.0% 
Employees  881  918  4.2% 

Mobile Network

Brasil Telecom GSM exceeded all expectations, reaching 1.0 million accesses in service in less than six months of operations. At the end of 1Q05, Brasil Telecom GSM’s customer base increased by 61.3% compared to 4Q04.


Table of Contents

Graph 2: Mobile Network

Client-Mix

Our mobile operations had 322.5 thousand post-paid subscribers at the end of 1Q05, which represented 32.1% of our mobile customer base, a percentage that is above the market average. This mix reflects good awareness of the Brasil Telecom brand in the corporate segment and the attentiveness of our clients to the benefits of convergence.


Market Share

At the end of 1Q05, Brasil Telecom GSM achieved a 4.8% market share in its area of operations.

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DATA COMMUNICATIONS

    Broadband

ADSL Accesses

We increased the number of our ADSL accesses in service by 92.4% in one year, reaching 625.3 thousand accesses at the end of 1Q05.

Table of Contents

Gráfico 3: ADSL Acesses in Service

Table of Contents

    Internet Providers

BrTurbo

BrTurbo consolidated its broadband market leadership in Region II, with 333.8 thousand clients at the end of 1Q05, 24.5% higher than in 4Q04.


iG e iBest

iG and iBest have achieved positive results in their commercial strategy of offering value-added products. At the end of 1Q05, iG and iBest had 197.7 thousand paying clients, an increase of 13,5% compared to 4Q04. Additionally, iG and iBest are collectively positioned as leaders in the dial-up markets of Region I, II and III.

At the end of 1Q05, our internet providers had 446.3 thousand broadband clients in total.

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FINANCIAL PERFORMANCE

    Revenues

Table 6: Consolidated Operating Gross Revenues

R$ Million  1Q04  4Q04  1Q05  D Quarter   D 12 Months 
GROSS REVENUES  2,908.8  3,502.0  3,468.7  -1.0%  19.2% 
FIXED TELEPHONY  2,658.2  3,040.1  2,901.1  -4.6%  9.1% 
   Local Service  1,114.3  1,262.5  1,195.7  -5.3%  7.3% 
         Activation  9.1  7.3  7.7  5.1%  -16.0% 
         Basic Subscription  744.7  832.2  830.8  -0.2%  11.6% 
         Measured Service  336.4  402.0  337.7  -16.0%  0.4% 
         Lease of Lines  0.4  0.4  0.4  -18.2%  -7.3% 
         Other  23.7  20.5  19.1  -7.2%  -19.7% 
   Public Telephony  108.2  123.2  86.9  -29.5%  -19.6% 
   Long Distance Service  382.2  444.9  430.2  -3.3%  12.6% 
         Intra-Region  355.2  358.4  347.4  -3.1%  -2.2% 
         Inter-Region  21.3  74.3  70.1  -5.7%  229.1% 
         International / Borderline  5.7  12.1  12.8  5.2%  124.0% 
   Inter-Network Calls  702.1  854.4  832.5  -2.6%  18.6% 
         VC-1  527.8  553.4  507.7  -8.3%  -3.8% 
         VC-2  133.9  183.7  191.7  4.4%  43.2% 
         VC-3  40.5  115.4  130.9  13.5%  223.1% 
         International  -  2.0  2.3  15.8%  N.A. 
   Interconnection  191.2  178.1  164.6  -7.6%  -13.9% 
         Fixed-Fixed  128.3  111.7  101.0  -9.6%  -21.3% 
         Mobile-Fixed  62.9  66.4  63.6  -4.2%  1.2% 
   Lease of Means  55.1  66.7  65.9  -1.1%  19.7% 
   Supplementary and Value Added Services  99.1  100.7  114.7  14.0%  15.8% 
   Other  6.0  9.7  10.4  7.8%  72.9% 
MOBILE TELEPHONY  -  87.9  147.0  67.2%  N.A. 
     Subscription  -  10.2  34.6  239.2%  N.A. 
     Utilization  -  5.5  57.4  936.5%  N.A. 
     Roaming  -  0.2  0.7  244.6%  N.A. 
     Interconnection  -  2.1  6.4  202.9%  N.A. 
     Other Services  -  0.2  0.5  205.4%  N.A. 
     Merchandise Sales (Handsets and Accessories)  -  69.7  47.4  -32.0%  N.A. 
DATA COMMUNICATIONS AND OTHER  250.6  374.0  420.6  12.5%  67.8% 
     Fixed  250.6  373.7  420.0  12.4%  67.6% 
     Mobile  -  0.3  0.6  81.2%  N.A. 
Deductions  (833.5)  (1,036.0)  (1,021.2)  -1.4%  22.5% 
NET REVENUES  2,075.3  2,466.1  2,447.6  -0.7%  17.9% 

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Graph 4: Gross Revenues Breakdown


Local Service

Gross revenues from local service reached R$1,195.7 million in 1Q05, up 7.3% year-on-year and down 5.3% quarter-on-quarter, mainly as a result of the decrease in revenues from measured service.

Gross revenues from activation fees totaled R$7.7 million in 1Q05, up 5.1% sequentially, due to the increase in the number of lines activated in the quarter. In 1Q05, 378.5 thousand lines were activated, compared to 376.8 thousand in 4Q04. Additionally, the rate adjustment of 3.4% effective since November 1, 2004 also positively impacted revenues from activation fees.

Gross revenues from basic subscription fees reached R$830.8 million in the quarter, stable compared to the R$832.2 million reported in 4Q04.

Gross revenues from measured service totaled R$337.7 million in 1Q05, stable compared to the corresponding period in 2004.


Public Telephony

Gross revenues from public telephony services reached R$86.9 million in 1Q05, due to the implementation of the Brasil VirtualCel service, which converts fixed-to-mobile calls made from pubic payphones into mobile-to-mobile calls. As a result, revenues from calls made from public payphones to mobile phones, which amounted to R$42.6 million, are recognized as revenues of Brasil Telecom GSM.


Long Distance

Gross revenues from long distance services reached R$430.2 million in 1Q05, down 3.3% sequentially. This reduction is mainly explained by the decrease of 7.1% in traffic, which in turn, was affected by seasonal effects typical of the first quarter of the year.


Inter-Network

Gross revenues from inter-network calls amounted to R$832.5 million in 1Q05, down 2.6% quarter-on-quarter, due to a 12.0% decrease in inter-network traffic, which was offset by the increase of VC-2 and VC-3 traffic as a percentage of total of inter-network traffic. The VC-2 and VC-3 rates were also adjusted in February 2005, in accordance with the maximum rate authorized by Anatel in February 2004.


Interconnection

Gross revenues from interconnection fees in 1Q05 decreased by 7.6% compared to 4Q04, mainly due to the increase in our market share in long distance segments and the impact of seasonality in 1Q05.


Data
Communications

In 1Q05, gross revenues from data communications and other services reached R$420.6 million, up 12.5% sequentially, due to the growth in data communications services such as VPN, Vetor, and Interlan, and also by the 16.8% increase in ADSL accesses in service.

Data communications revenues have been increasing as a percentage of total revenues. The segment increased its share from 8.6% of total revenues a year ago to 12.1% in 1Q05.

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Graph 5: Data Communications and Other Services Revenues

Mobile Telephony

In 1Q05, gross revenues from mobile telephony services totaled R$147.0 million, of which R$99.6 million are related to services and R$47.4 million to the sale of handsets and accessories. Due to our good client-mix (32.1% post-paid) revenues from monthly subscription fees accounted for 34.7% of total revenues from services.


Fixed-line
Telephony ARPU

Fixed-line telephony ARPU (net revenues/Avg. LIS/month) was of R$83.2 in 1Q05, compared to R$83.9 in 4Q04.


Mobile Telephony
ARPU

Total mobile telephony ARPU reached R$29.4 in 1Q05. Post-paid ARPU was of R$53.6 while pre-paid ARPU reached R$17.7.

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Table 7: ARPU Calculation – Mobile Telephony

R$ Thousands   1T05
(+) Gross Revenues  182,531 
(-) Handsets  (47,404) 
Gross Service Revenues  135,127 
(-) Taxes and Deductions  (36,170) 
Net Service Revenues  98,956 
(-) Net Revs Public Payphones  (26,894) 
(-) Net Revs Roaming  (454) 
Quarterly Net Revenues  71,608 
Monthly Net Revenues  23,869 
Average Number of Clients  812,977 
ARPU (R$)  29.36 

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COSTS AND EXPENSES

Table 7: Consolidated Operating Costs and Expenses

R$ Million  1Q04  4Q04  1Q05  D Quarter  D 12 Months 
NET REVENUES  2,075.3  2,466.1  2,447.6  -0.7%  17.9% 
     Costs  (1,335.9)  (1,622.1)  (1,585.7)  -2.2%  18.7% 
         Personnel  (28.0)  (32.2)  (37.3)  15.7%  33.4% 
         Materials  (21.8)  (113.4)  (69.0)  -39.2%  216.1% 
         Subcontracted Services  (654.1)  (831.2)  (770.2)  -7.3%  17.7% 
               Interconnection  (496.2)  (647.2)  (576.1)  -11.0%  16.1% 
               Other  (157.9)  (184.0)  (194.0)  5.4%  22.9% 
         Depreciation and Amortization  (540.0)  (559.6)  (570.6)  2.0%  5.7% 
         Other  (92.0)  (85.6)  (138.6)  61.9%  50.6% 
GROSS PROFIT  739.4  844.0  861.9  2.1%  16.6% 
     Sales Expenses  (133.9)  (257.4)  (265.8)  3.3%  98.6% 
         Personnel  (31.2)  (46.9)  (60.9)  30.0%  95.5% 
         Materials  (0.2)  (22.5)  (7.7)  -65.9%  3919.0% 
         Subcontracted Services  (99.6)  (178.4)  (190.4)  6.7%  91.1% 
               Advertising and Marketing  (24.1)  (53.5)  (62.0)  15.9%  157.7% 
               Other  (75.5)  (124.9)  (128.3)  2.8%  69.9% 
         Depreciation and Amortization  (1.3)  (3.1)  (4.0)  28.2%  205.6% 
         Other  (1.6)  (6.6)  (2.9)  -55.3%  82.7% 
     General and Administrative Expenses  (148.4)  (189.9)  (199.8)  5.2%  34.7% 
         Personnel  (30.9)  (36.8)  (44.0)  19.7%  42.3% 
         Materials  (0.6)  (0.7)  (1.4)  85.8%  143.0% 
         Subcontracted Services  (106.5)  (140.6)  (138.6)  -1.4%  30.1% 
         Depreciation and Amortization  (5.5)  (7.6)  (9.6)  26.9%  73.6% 
         Other  (4.9)  (4.3)  (6.3)  48.0%  29.8% 
     Information Technology  (82.0)  (106.8)  (109.8)  2.8%  33.8% 
         Personnel  (5.2)  (9.5)  (10.9)  15.4%  109.2% 
         Materials  (0.5)  (0.7)  (0.6)  -14.2%  30.8% 
         Subcontracted Services  (23.9)  (36.8)  (31.2)  -15.2%  30.5% 
         Depreciation and Amortization  (41.8)  (53.8)  (60.9)  13.2%  45.8% 
         Other  (10.6)  (5.9)  (6.1)  2.4%  -42.8% 
     Provisions and Losses  (110.5)  (256.4)  (140.8)  -45.1%  27.4% 
         Doubtful Accounts  (87.7)  (129.5)  (104.9)  -19.0%  19.7% 
         Contingencies  (22.8)  (127.0)  (35.9)  -71.8%  57.0% 
     Other Operating Revenues (Expenses)  28.8  94.1  7.1  -92.4%  -75.3% 
         Goodwill Amortization  (10.1)  (15.3)  (26.4)  71.7%  161.8% 
         Other  38.9  109.4  33.5  -69.4%  -13.9% 
OPERATING PROFIT BEFORE FINANCIAL           
RESULTS  293.4  127.6  152.8  19.8%  -47.9% 
 
R$ Million  1Q04  4Q04  1Q05  D Quarter  D 12 Months 
COSTS AND OPERATING EXPENSES  (1,781.9)  (2,338.5)  (2,294.8)  -1.9%  28.8% 
   Depreciation and Amortization  (598.7)  (639.4)  (671.4)  5.0%  12.2% 
   Interconnection  (496.2)  (647.2)  (576.1)  -11.0%  16.1% 
   Subcontracted Services  (363.8)  (486.3)  (492.2)  1.2%  35.3% 
   Personnel  (95.3)  (125.3)  (153.2)  22.2%  60.7% 
   Provisions and Losses  (110.5)  (256.4)  (140.8)  -45.1%  27.4% 
   Materials  (23.0)  (137.3)  (78.6)  -42.8%  241.3% 
   Advertising and Marketing  (24.1)  (53.5)  (62.0)  15.9%  157.7% 
   Other  (70.3)  7.1  (120.4)  N.A.  71.4% 
 
R$ Million  1Q04  4Q04  1Q05  D Quarter  D 12 Months 
COSTS AND OPERATING EXPENSES  (1,781.9)  (2,338.5)  (2,294.8)  -1.9%  28.8% 
(+) Depreciation and Amortization  598.7  639.4  671.4  5.0%  12.2% 
(+) Provisions and Losses  110.5  256.4  140.8  -45.1%  27.4% 
(+) Other  70.3  (7.1)  120.4  N.A.  71.4% 
(=) CASH COST  (1,002.5)  (1,449.7)  (1,362.1)  -6.0%  35.9% 

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Graph 6: Operating Costs and Expenses Breakdown

(Excluding Depreciation, Provisions, Losses and Other)


Operating Costs
and Expenses

Operating costs and expenses reached R$2,294.8 million in 1Q05, compared to R$2,338.5 million in the previous quarter.

Cash costs (operating costs and expenses excluding depreciation, amortization, provisions, losses and other) was of R$1,362.1 million in 1Q05, compared to R$1,449.7 million in 4Q04, a decrease of 6.0% quarter-on-quarter. The main items responsible for this reduction were: interconnection (-11.0%) and materials (-42.8%).

Employees

At the end of 1Q05, our fixed-line arm had 5,690 employees, compared to 5,805 of the previous quarter.

Brasil Telecom GSM had 918 employees at the end of the quarter compared to 881 at 4Q04.


Personnel

Total personnel costs reached R$153.2 million, up 22.2% from the previous quarter, mainly due to the recording of R$14.1 million previously accounted for under the employee profit sharing line, the consolidation of iG in December 2004, and the effectiveness of the new Collective Bargaining Agreement since January 2005.


Cost of
Subcontracted
Services

Cost of subcontracted services, excluding interconnection costs and advertising and marketing expenses, totaled R$492.2 million in 1Q05, virtually stable compared to the previous quarter.


Interconnection

Interconnection costs totaled R$576.1 million in 1Q05, a decrease of 11.0% sequentially. Lower interconnection costs are associated to the synergies achieved between our mobile operations and the rest of our business, as well as the reduction in inter-network traffic.


Advertising and
Marketing

Advertising and marketing expenses totaled R$62.0 million in 1Q05, up 15.9% quarter-on-quarter.


Losses from
accounts receivable
as a percentage of
gross revenues

Losses from accounts receivable as a percentage of gross revenues in 1Q05 reached 3.0%, compared to 3.7% in 4Q04. Losses from accounts receivable totaled R$104.9 million in 1Q05, down 19.0% sequentially.


Accounts
Receivable

Net of provision for doubtful accounts in the amount of R$270.0 million, net accounts receivable totaled R$2,186.8 million at the end of 1Q05.


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Graph 7: Accounts Receivable / Gross Revenues Ratio

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Table 8: Gross Accounts Receivable
  Mar/04  Jun/04  Sep/04  Dec/04  Mar/05 
Total (R$ Million)  2,099.0  2,145.9  2,284.4  2,354.8  2,456.8 
     Due  60.6%  60.1%  61.5%  64.5%  63.3% 
     Overdue (up to 30 days)  16.2%  15.7%  17.3%  16.4%  15.7% 
     Overdue (between 31-60 days)  6.2%  6.3%  5.8%  5.7%  6.4% 
     Overdue (between 61-90 days)  4.4%  3.6%  3.5%  3.7%  4.3% 
     Overdue (over 90 days)  12.6%  14.3%  11.9%  9.7%  10.3% 

Provision for
Contingencies

In 1Q05, provision for contingencies totaled R$35.9 million, down 71.8% quarter-on-quarter.


Materials

Costs and expenses related to materials amounted to R$78.6 million in 1Q05, down 42.8% quarter-on-quarter. This was mainly due to the decrease in costs of handsets and accessories, which totaled R$58.7 million in 1Q05, compared to R$113.6 million in the previous quarter, which in turn, was as a result of the sales volume of Brasil Telecom GSM.


Other Operating
Costs and Expenses
/ Revenues

Other operating costs and expenses reached R$120.4 million in 1Q05.

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    Ebitda

Table 9: EBITDA Margin – Gains and Losses

R$ Million  1Q04  Vertical  4Q04  Vertical  1Q05  Vertical 
GROSS REVENUES  2,908.8  140.2%  3,502.0  142.0%  3,468.7  141.7% 
    Fixed Telephony  2,658.2  128.1%  3,040.1  123.3%  2,901.1  118.5% 
     Local Service  1,114.3  53.7%  1,262.5  51.2%  1,195.7  48.9% 
     Public Telephony  108.2  5.2%  123.2  5.0%  86.9  3.6% 
     Long Distance Service  382.2  18.4%  444.9  18.0%  430.2  17.6% 
     Fixed-Mobile Calls  702.1  33.8%  854.4  34.6%  832.5  34.0% 
     Interconnection  191.2  9.2%  178.1  7.2%  164.6  6.7% 
     Lease of Means  55.1  2.7%  66.7  2.7%  65.9  2.7% 
     Supplementary and Value Added Services  99.1  4.8%  100.7  4.1%  114.7  4.7% 
     Other  6.0  0.3%  9.7  0.4%  10.4  0.4% 
    Mobile Telephony  -  0.0%  87.9  3.6%  147.0  6.0% 
Data Transmission  250.6  -30.1%  374.0  -36.1%  420.6  -41.2% 
Deductions  (833.5)  -40.2%  (1,036.0)  -42.0%  (1,021.2)  -41.7% 
NET REVENUES  2,075.3  100.0%  2,466.1  100.0%  2,447.6  100.0% 
COSTS & OPERATING EXPENSES  (1,183.2)  -57.0%  (1,699.1)  -68.9%  (1,623.3)  -66.3% 
     Personnel  (95.3)  -4.6%  (125.3)  -5.1%  (153.2)  -6.3% 
     Materials  (23.0)  -1.1%  (137.3)  -5.6%  (78.6)  -3.2% 
     Subcontracted Services  (363.8)  -17.5%  (486.3)  -19.7%  (492.2)  -20.1% 
     Interconnection  (496.2)  -23.9%  (647.2)  -26.2%  (576.1)  -23.5% 
     Advertising and Marketing  (24.1)  -1.2%  (53.5)  -2.2%  (62.0)  -2.5% 
     Provisions and Losses  (110.5)  -5.3%  (256.4)  -10.4%  (140.8)  -5.8% 
     Other  (70.3)  -3.4%  7.1  0.3%  (120.4)  -4.9% 
EBITDA  892.1  43.0%  767.0  31.1%  824.3  33.7% 

EBITDA of R$824.3
million

Our EBITDA was of R$824.3 million in 1Q05, up R$57.3 million or 7.5% quarter-on-quarter. Fixed-line EBITDA margin reached 40.7%.

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Table 10: EBITDA as a percentage of Service Revenues

R$ Million  1Q04  4Q04  1Q05  D Quarter  D 12 Months 
NET REVENUES  2,075.3  2,466.1  2,447.6  -0.7%  17.9% 
 Merchandise Sales  -  69.7  47.4  -32.0%  N.A. 
 Taxes and Discounts of Merchandise Sales  -  (14.5)  (14.7)  1.4%  N.A. 
NET SERVICE REVENUES  2,075.3  2,410.9  2,414.9  0.2%  16.4% 
EBITDA  892.1  767.0  824.3  7.5%  -7.6% 
EBITDA / Service Revenues  43.0%  31.8%  34.1%  2.3 p.p.  -8.9 p.p. 

EBITDA as a
Percentage of
Service Revenues

EBITDA as a percentage of service revenues reached 34.1%, up 2.3 p.p. sequentially.


EBITDA/Avg.
LIS/month

In 1Q05, EBITDA/Avg. LIS/month reached R$28.9, an 8.0% increase quarter-on-quarter.

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    Net Financial Expenses

Table 10: Consolidated Net Financial Expenses

R$ Million  1Q04  4Q04  1Q05  D Quarter  D Year 
Financial Revenue  130.0  205.2  195.1  -4.9%  50.1% 
 Local Currency  118.63  145.86  163.08  11.8%  37.5% 
 Foreign Currency  11.35  59.38  32.04  -46.0%  182.2% 
Financial Expense  (225.8)  (324.4)  (247.3)  -23.8%  9.5% 
 Local Currency  (213.3)  (212.8)  (168.6)  -20.8%  -20.9% 
 Foreign Currency  (12.5)  (111.5)  (78.7)  -29.5%  531.1% 
Interest on Shareholders' Equity  (155.8)  (237.8)  -  N.A.  N.A. 
Financial Result  (251.6)  (356.9)  (52.2)  -85.4%  -79.3% 

Net Financial
Expenses

Our net financial expenses totaled R$52.2 million in 1Q05, an improvement of 56.2% compared to the 4Q04, not accounting for the payment of interest on capital.

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    Other Items

Goodwill
Amortization

In 1Q05, we amortized R$31.0 million of goodwill in connection with the acquisition of CRT (with no impact on cash flows and dividend distributions), which was accounted for as non-operational expense.

    Net Earnings

 

Net income reached R$45.1 million in 1Q05 (R$0.1239/1,000 shares). Net income/ADR in the same period was of US$0.2323.

Net income adjusted by goodwill totaled R$76.1 million in 1Q05.

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BALANCE SHEETS

Table 11: Consolidated Balance Sheet – Brasil Telecom Participações S.A.

 R$ Million  Dec/04  Mar/05 
 
CURRENT ASSETS  6,742.1  6,309.2 
   Cash and Equivalents  3,226.6  2,802.3 
   Accounts Receivables (Net)  2,111.6  2,186.8 
   Deferred and Recoverable Taxes  841.5  836.3 
   Other Recoverable Amounts  326.9  267.9 
   Inventory  174.0  137.5 
   Other  61.5  78.3 
LONG TERM ASSETS  1,647.4  1,797.6 
   Loans and Financing  126.5  124.5 
   Deferred and Recoverable Taxes  957.1  1,074.1 
   Other  563.8  599.0 
PERMANENT ASSETS  10,332.4  9,905.4 
   Investment (Net)  519.2  489.8 
   Property, Plant and Equipment (Net)  8,887.0  8,518.5 
           Property, Plant and Equipment (Gross)  24,608.1  24,804.4 
              Accumulated Depreciation  (15,721.1)  (16,285.9) 
   Deferred Assets (Net)  926.3  897.2 
TOTAL ASSETS  18,721.9  18,012.2 
 
CURRENT LIABILITIES  4,613.4  3,974.2 
   Loans and Financing  856.6  825.1 
   Suppliers  1,769.8  1,515.0 
   Taxes and Contributions  822.0  837.9 
   Dividends Payable  436.2  113.2 
   Provisions  357.1  339.0 
   Salaries and Benefits  137.5  120.0 
   Consignment for Third Parties  114.4  102.5 
 Authorization for Services Exploration  44.1  45.6 
   Other  75.8  76.0 
LONG TERM LIABILITIES  5,717.7  5,649.9 
   Loans and Financing  3,851.6  3,739.3 
   Provisions  886.5  899.4 
   Taxes and Contributions  697.9  717.5 
   Authorization for Services Exploration  261.5  270.6 
   Other  20.2  23.1 
DEFERRED INCOME  74.0  88.1 
MINORITY INTEREST  2,188.3  2,126.4 
SHAREHOLDERS' EQUITY  6,128.5  6,173.6 
   Capital Stock  2,568.2  2,596.3 
   Capital Reserves  337.2  309.2 
   Profit Reserves  879.6  879.6 
   Retained Earnings  2,364.3  2,409.4 
   Treasury Shares  (20.8)  (20.8) 
TOTAL LIABILITIES  18,721.9  18,012.2 

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Table 12: Holding Balance Sheet – Brasil Telecom Participações S.A.

R$ Million  Dec/04  Mar/05 
 
CURRENT ASSETS  1,191.0  1,012.4 
   Cash and Equivalents  828.8  949.1 
   Deferred Taxes  105.7  56.1 
   Other Recoverable Amounts  0.6  1.3 
   Dividends / Interest on Shareholders' Equity Receivable  250.2  - 
   Other  5.6  5.9 
LONG TERM ASSETS  1,390.6  1,404.4 
   Loans and Financing  1,164.8  1,122.0 
   Deferred and Recoverable Taxes  223.5  280.6 
   Other  2.3  1.8 
PERMANENT ASSETS  4,366.3  4,368.0 
   Investment (Net)  4,364.9  4,366.7 
   Property, Plant and Equipment (Net)  1.2  1.3 
           Property, Plant and Equipment (Gross)  57.2  57.3 
           Accumulated Depreciation  (55.9)  (56.0) 
   Deferred Assets (Net)  0.1  0.1 
TOTAL ASSETS  6,947.8  6,784.9 
 
CURRENT LIABILITIES  516.0  307.2 
   Loans and Financing  213.8  204.0 
   Suppliers  0.3  0.4 
   Taxes and Contributions  22.8  26.5 
   Dividends Payable  275.2  71.6 
   Salaries and Benefits  3.4  3.8 
   Consignment for Third Parties  0.2  0.1 
   Other  0.3  0.7 
LONG TERM LIABILITIES  295.7  297.5 
   Loans and Financing  259.4  261.7 
   Taxes and Contributions  32.9  31.9 
   Other  3.4  3.9 
SHAREHOLDERS' EQUITY  6,136.1  6,180.3 
   Capital Stock  2,568.2  2,596.3 
   Capital Reserves  337.2  309.2 
   Profit Reserves  879.6  879.6 
   Retained Earnings  2,371.9  2,416.1 
   Treasury Shares  (20.8)  (20.8) 
TOTAL LIABILITIES  6,947.8  6,784.9 

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Table 12: Consolidated Balance Sheet – Brasil Telecom GSM

R$ Million  Dec/04  Mar/05 
 
CURRENT ASSETS  633.2  465.6 
     Cash and Equivalents  214.7  2.3 
     Accounts Receivables (Net)  91.2  128.4 
     Deferred and Recoverable Taxes  149.6  182.9 
     Other Recoverable Amounts  8.8  8.8 
     Inventory  166.2  132.0 
     Other  2.7  11.3 
LONG TERM ASSETS  112.0  179.6 
     Deferred and Recoverable Taxes  109.8  177.3 
     Other  2.3  2.3 
PERMANENT ASSETS  1,450.3  1,483.1 
 Property, Plant and Equipment (Net)  1,149.1  1,166.3 
     Property, Plant and Equipment (Gross)  1,169.1  1,224.3 
     Accumulated Depreciation  (20.0)  (58.0) 
 Deferred Assets (Net)  301.2  316.8 
TOTAL ASSETS  2,195.5  2,128.3 
 
CURRENT LIABILITIES  834.0  618.1 
 Suppliers  687.0  451.4 
 Taxes and Contributions  81.5  90.4 
 Dividends Payable  4.8  4.5 
 Salaries and Benefits  6.6  8.9 
 Consignment for Third Parties  6.7  10.8 
 Authorization for Services Exploration  44.1  45.6 
 Other  3.4  6.6 
LONG TERM LIABILITIES  250.8  342.6 
 Loans and Financing  0.4  5.6 
 Provisions  -  0.1 
 Authorization for Services Exploration  250.3  259.0 
 Capitalized Resources  -  78.0 
SHAREHOLDERS' EQUITY  1,110.7  1,167.5 
 Capital Stock  1,218.0  1,400.0 
 Capital Reserves  11.8  11.8 
 Retained Earnings  (119.1)  (244.3) 
TOTAL LIABILITIES  2,195.5  2,128.3 

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INDEBTEDNESS

Table 13: Indebtedness

Mar05  Currency Annual Cost  Maturity  % Total  Balance
(R$ Million) 
Short Term        18.1%  825.1 
 BNDES  R$  TJLP + 6.5%  dec/2007    15.7 
 BNDES  R$  TJLP + 3.85%  dec/2007    349.8 
 BNDES  R$  TJLP + 3.85%  oct/2007    82.2 
 BNDES  R$  Basket + 6.5%  dec/2007    36.6 
 BNDES  R$  Basket + 3.85%  nov/2007    12.6 
 Debentures  R$  TJLP + 4%  jul/2006    203.8 
 BNDES  R$  Basket + 5.5%  apr/2011    3.3 
 BNDES  R$  TJLP + 5.5%  apr/2011    18.4 
 BRDE  R$  IGP-M+12.0%  sep/2006    9.1 
 BB  R$  14%  jan/2008    5.2 
 Debentures 3rd Public Issuance  R$  CDI + 1.0%  jul/2009    20.4 
 Bonds - US$ 200 MM  US$  9.38%  feb/2014    6.8 
 Financial Institutions I  US$  Lib6 + 4.0%  mar/2006    11.5 
 Financial Institutions II  US$  Lib6 + 2.4%  dec/2005    9.6 
 Financial Institutions III  US$  Lib6 + 0.5%  jul/2008-jul/2012    12.9 
 Financial Institutions IV  Yen$  Jibor6 + 1.92%  mar/2011    0.2 
 Financial Institutions V  Yen$  3.65%  feb/2009    0.6 
 Suppliers I  US$  Lib3 + 2.95%  jun/2007    0.6 
 Suppliers II  US$  1.75%  feb/2014    0.2 
 Suppliers III  US$  Lib3 + 2.95%  jun/2007    0.2 
 Hedge Adjustment          25.6 
Long Term        81.9%  3,739.3 
 BNDES  R$  TJLP + 6.5%  dec/2007    26.7 
 BNDES  R$  TJLP + 3.85%  dec/2007    686.7 
 BNDES  R$  TJLP + 3.85%  oct/2007    136.6 
 BNDES  R$  Basket + 6.5%  dec/2007    62.2 
 BNDES  R$  Basket + 3.85%  nov/2007    21.3 
 Debentures  R$  TJLP + 4%  jul/2006    261.5 
 BNDES  R$  Basket + 5.5%  apr/2011    128.2 
 BNDES  R$  TJLP + 5.5%  apr/2011    603.5 
 BRDE  R$  IGP-M+12.0%  sep/2006    5.0 
 BB  R$  14%  jan/2008    9.2 
 BRB - GSM  R$  2.47%  jan/2034    5.6 
 BRB - Fixa  R$  2.47%  jan/2034    0.1 
 Debentures 3rd Public Issuance  R$  CDI + 1.0%  jul/2009    500.0 
 Bonds - US$ 200 MM  US$  9.38%  feb2014    533.2 
 Financial Institutions III  US$  Lib6 + 0.5%  jul/2008-jul/2012    53.3 
 Financial Institutions IV  Yen$  Jibor6 + 1.92%  mar/2011    536.6 
 Financial Institutions V  Yen$  3.65%  feb/2009    1.6 
 Financial Institutions VI  US$  0.00%  dec/2015    26.5 
 Suppliers I  US$  Lib3 + 2.95%  jun/2007    0.7 
 Suppliers II  US$  1.75%  feb/2014    1.6 
 Suppliers III  US$  Lib3 + 2.95%  jun/2007    0.2 
 Hedge Adjustment          139.2 
Total Debt        100.0%  4,564.4 

Total Debt

As of March 2005, Brasil Telecom’s consolidated total debt was of R$4,564.4 million, 3.1% lower than the amount reported at the end of 2004.


Net Debt

Net debt totaled R$1,762.2 million, an 18.9% increase from December 2004, due to a reduction of R$424.3 million in cash and cash equivalents, mainly due to the payment of proceeds to shareholders in the amount of R$323.1 million.

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Table 14: Indebtedness by Currency

Debt BRP (R$ Million)  Mar 2004  Dec 2004  Mar 2005  D Quarter  D Year 
Short Term  1,723.5  856.6  825.1  -3.7%  -52.1% 
In R$  1,607.4  724.0  704.6  -2.7%  -56.2% 
In US$  42.0  54.4  41.7  -23.4%  -0.8% 
In Yen  0.0  4.0  0.8  -80.7%  N.A. 
In Currency Basket  54.4  50.4  52.5  4.1%  -3.5% 
Hadge Adjustment  19.8  23.8  25.6  7.4%  29.4% 
Long Term  2,559.7  3,851.6  3,739.3  -2.9%  46.1% 
In R$  1,707.8  2,335.8  2,234.8  -4.3%  30.9% 
In US$  681.9  626.8  615.5  -1.8%  -9.7% 
In Yen  0.0  561.4  538.2  -4.1%  N.A. 
In Currency Basket  142.9  225.2  211.7  -6.0%  48.1% 
Hadge Adjustment  27.1  102.3  139.2  36.1%  413.3% 
Total Debt  4,283.3  4,708.2  4,564.5  -3.1%  6.6% 
(-) Cash  2,920.5  3,226.6  2,802.3  -13.1%  -4.0% 
Net Debt  1,362.8  1,481.6  1,762.2  18.9%  29.3% 

Long term debt

As of March 2005, 81.9% of the total debt was long-term debt, compared to 59.8% in March 2004, reflecting the Company’s success in increasing debt maturity. Brasil Telecom’s debt had the following amortization schedule:


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Table 15: Amortization Schedule of Long Term Debt

Maturity  % Long Term Debt 
2006    21.9% 
2007    21.2% 
2008    10.3% 
2009    21.2% 
2010    7.7% 
2011  and after   17.7% 

Debt Exposed to
Exchange Rate
Variation

At the end of March 2005, debt exposed to exchange rate variation totaled R$1,460.3 million, of which R$657.2 million were denominated in US dollars, R$264.2 million in Currency Basket and R$539.0 million in Yen.

On March 31, 2005, 64.6% of our debt affected by exchange rate variation was hedged against exchange rate risk. Of our total debt excluding hedge adjustments, 11.7% was exposed to exchange rate variations.


Cost of Debt

Brasil Telecom’s consolidated debt had a year-to-date cost equivalent to 15.4% per annum, or 87.2% of the CDI (Domestic Inter-bank Rate).


Gearing Ratio

As of March 31, 2005, Brasil Telecom had a gearing ratio (net debt/net equity) of 28.5%, compared to 24.2% at December 2004.

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INVESTMENTS IN PERMANENT ASSETS

Table 16: Breakdown of Investments in Permanent Assets

R$ Million  1Q04  2Q04  3Q04  4Q04  1Q05  D Quarter  D 12 Months 
Network Expansion  95.0  128.8  107.2  240.5  65.0  -73.0%  -31.6% 
 Conventional Telephony  45.0  19.3  20.0  95.4  16.5  -82.7%  -63.3% 
 Transmission Backbone  5.3  11.4  10.3  22.2  3.9  -82.6%  -26.6% 
 Data Network  41.0  76.2  74.1  108.7  42.0  -61.3%  2.7% 
 Intelligent Network  0.9  19.6  0.6  5.2  0.4  -92.7%  -56.4% 
 Network Management Systems  0.3  1.0  0.1  2.9  -  -100.0%  -100.0% 
 Other  2.6  1.4  2.0  6.0  2.2  -63.7%  -15.4% 
Network Operation  50.2  62.8  71.9  85.3  58.3  -31.6%  16.1% 
Public Telephony  0.5  0.9  0.7  0.9  1.2  33.3%  124.2% 
Information Technology  40.0  29.0  41.2  106.0  19.7  -81.4%  -50.8% 
Expansion Personnel  21.0  20.6  19.8  19.1  21.0  9.7%  -0.1% 
Other  10.3  356.3  13.7  162.1  26.5  -83.6%  157.7% 
Expansion Financial Expenses  -  19.1  (17.6)  6.5  4.6  -28.9%  N.A. 
Total - Fixed Telephony  217.0  617.5  236.9  620.3  196.3  -68.3%  -9.5% 
 
R$ Million  1Q04  2Q04  3Q04  4Q04  1Q05  D Quarter D 12 Months 
Brasil Telecom GSM  39.9  158.1  486.4  415.2  85.9  -79.3%  115.3% 
Expansion Financial Expenses  14.5  42.6  16.3  2.7  -  -100.0%  -100.0% 
Total - Mobile Telephony  54.4  200.7  502.7  417.9  85.9  -79.4%  57.9% 
 
Total Investment in Permanent Assets  271.440  818.216  739.6  1,038.2  282.3  -72.8%  4.0% 

Investments in
Permanent Assets

Investments amounted to R$282.3 million in 1Q05, of which R$196.3 million relate to fixed-line operations and R$85.9 million to mobile operations.

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CASH FLOW

Table 17: Consolidated Cash flow

R$ Million  1Q04  4Q04  1Q05 
OPERATING ACTIVITIES       
(+) Net Income of the Period  74.3  41.6  44.2 
(+) Minority Participation  44.9  13.0  1.6 
(+) Items with no Cash Effects  1,144.1  1,090.4  1,208.6 
         Depreciation and Amortization  629.7  671.2  702.7 
         Losses with Accounts Receivable from Services  97.5  69.0  77.6 
         Provision for Doubtful Accounts  (6.3)  50.0  27.3 
         Provision for Contingencies  22.8  127.0  35.9 
         Deferred Taxes  235.3  121.8  208.7 
         Result from the Write-off of Permanent Assets  9.0  (24.1)  6.4 
         Financial Expenses  145.7  71.9  161.6 
         Other Expenses/Revenues with no Cash Effects  10.4  3.7  (11.6) 
(-) Equity Changes  511.0  422.2  468.6 
(=) Cash Flow from Operating Activities  752.4  722.8  785.9 
 
INVESTMENT ACTIVITIES       
         Financial Investments  0.0  3.9  0.0 
         Investment Suppliers  122.8  299.3  (256.1) 
         Funds from Sales of Permanent Assets  0.7  1.4  0.5 
         Investments in Permanent Assets  (273.2)  (930.6)  (268.7) 
         Other Investment Flows  (1.1)  5.1  - 
(=) Cash Flow from Investment Activities  (150.7)  (620.9)  (524.3) 
  601.7     
FINANCING ACTIVITIES       
         Dividens/Interests on Shareholders' Equity paid in the Period  (0.5)  (2.4)  (323.1) 
         Loans and Financing  362.5  (229.2)  (303.0) 
                Loans Obtained  587.2  418.3  5.1 
                Loans Paid  (128.1)  (541.0)  (143.2) 
                Interest Paid  (96.5)  (106.5)  (164.8) 
         Change in Shareholders' Equity  -  5.6  0.9 
         Other Financing Flows  0.2  (49.8)  (60.7) 
(=) Cash Flow from Financing Activities  362.2  (275.8)  (685.9) 
 
CASH FLOW OF THE PERIOD  963.8  (173.9)  (424.3) 
 
       Cash and Cash Equivalents - current balance  2,920.5  3,226.6  2,802.3 
       Cash and Cash Equivalents - previous balance  1,956.7  3,400.4  3,226.6 
       Variation in Cash and Cash Equivalents  963.8  (173.9)  (424.3) 
 
       OPERATING CASH FLOW  752.4  722.8  785.9 
(-) Cash Flow from Investmenting Activities  (150.7)  (620.9)  (524.3) 
(-) Interest Paid  (96.5)  (106.5)  (164.8) 
(=) FREE CASH FLOW  505.1  (4.5)  96.8 

Cash Flow from
Operations of R$785.9
million in 1Q05

Cash flow from operations reached R$785.9 million in 1Q05, an increase of 8.7% compared to the previous quarter.


Free Cash Flow of
R$96.8 million

Our free cash flow totaled R$96.8 million in the quarter, reversing the R$4.5 million cash outflow of 4Q04.

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STOCK MARKET

Table 18: Stock Performance

  Closing Price as  Performance 
of Mar 31, 2005
    In 1Q05  In 12   In 24 
      months  months 
Common Shares (BRTP3) (in R$/1,000 shares)  26.00  -3.0%  41.7%  76.9% 
Preferred Shares (BRTP4) (in R$/1,000 shares)  17.35  -13.7%  -12.5%  -7.5% 
ADR (BRP) (in US$/ADR)  32.65  -14.4%  -4.4%  16.8% 
Ibovespa (points)  26,611  1.6%  20.2%  136.0% 
Itel (points)  859  -6.5%  -3.8%  58.4% 
IGC (points)  2,624  3.1%  44.5%  139.6% 
Dow Jones (points)  10,504  -2.6%  1.4%  31.4% 

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Graph 8: Performance in the 1Q05 – Bovespa and NYSE

(Base 100 = December 31, 2004)


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Table 19: Weight in the Theoretical Portfolio – Jan - Apr

  Ibovespa  Itel  IGC 
BRTP3  0.46%  4.22%  0.74% 
BRTP4  1.54%  13.58%  2.39% 

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SHAREHOLDING STRUCTURE

Share capital
Increase

The 12/60 (installment/month) amortization of goodwill resultant from the incorporation of goodwill paid by Solpart Participações S.A. in the acquisition of the control of Brasil Telecom Participações S.A. for the fiscal year 2004 resulted in a fiscal benefit of R$71.8 million, which was capitalized. The subscription right foreseen by article 171 of Law 6.404/76 was assured when the respective 3,929,772,704 preferred shares were issued. The issuance and subscription price is of R$18.26 per a thousand preferred shares and the period for the exercise of subscription rights is from 03/30/2005 to 04/28/2005.

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Table 20: Shareholding Structure

Mar 2005  Common Shares     %  Preferred Shares     %  Total     % 
Solpart Participações S.A.  68,356,160,984  51.0%  -  0.0%  68,356,160,984  18.8% 
ADR  -  0.0%  156,693,705,000  68.1%  156,693,705,000  43.1% 
Treasury  1,480,800,000  1.1%  -  0.0%  1,480,800,000  0.4% 
Other  64,194,727,219  47.9%  73,243,820,684  31.9%  137,438,547,903  37.8% 
Total  134,031,688,203  100.0%  229,937,525,684  100.0%  363,969,213,887  100.0% 
 
Dec 2004  Common Shares     %  Preferred Shares     %  Total     % 
Solpart Participações S.A.  68,356,160,984  51.0%  -  0.0%  68,356,160,984  19.0% 
ADR  -  0.0%  152,938,530,000  67.7%  152,938,530,000  42.5% 
Treasury  1,480,800,000  1.1%  -  0.0%  1,480,800,000  0.4% 
Other  64,194,727,219  47.9%  73,069,222,980  32.3%  137,263,950,199  38.1% 
Total  134,031,688,203  100.0%  226,007,752,980  100.0%  360,039,441,183  100.0% 

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CORPORATE GOVERNANCE

2005 Ordinary and
Extraordinary
General Meeting of
Shareholders

On April 29, 2005, shareholders of Brasil Telecom Participações S.A. will meet at the Ordinary and Extraordinary Meeting of Shareholders to deliberate on the following:

Ordinary Meeting of Shareholders
1. Assess the acts of our Senior Management and Board of Directors and give an opinion on the Financial Statements and Annual Report of the Management for the fiscal year ended on December 31, 2004;
2. Give an opinion regarding the allocation of net income for the fiscal year and dividend distribution; and
3. Elect effective and alternate members of the Fiscal Council.

Extraordinary Meeting of Shareholders
1. Pursuant to Article 14 of the Company’s By-laws, set the total remuneration amount to be divided among the members of the Board of Directors and Senior Management and the individual remuneration of the members of the Fiscal Council; and
2. Alter the contents of Article 5 of the Company’s By-laws.

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AWARDS

“Top de Marketing da ADVB” Award

Brasil Telecom GSM was awarded the “Top de Marketing da ADVB” (Associação de Dirigentes de Marketing e Vendas - Marketing and Sales Managers Association). The award, one of the most important in its segment, has the objective to identify organizations that excel in the creation of long-living products, services or brand, through innovative and consistent tactics.

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RECENT DEVELOPMENTS

BrTurbo launches
e-mail-mobile
convergence
service

BrTurbo launched the Giga Mail service in the entire country. This new service offers 1 Gigabyte of email storage, virus and spam protection, digital certification, and allow its subscribers to integrate their e-mail accounts with their mobile phones.

Giga Mail subscribers can access their email inbox by typing wapmail.brturbo.com.br in their mobile phone’s WAP browser, and the service is compatible with all mobile operators that offer WAP services.

The launch of BrTurbo’s Giga Mail is part of Brasil Telecom’s convergent integration of telecommunications service strategy.

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2005 SCENARIO (GUIDELINES)

Disclaimer

This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the Company may be different from the company's current expectations, and the reader should not place undue reliance 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.


Broadband

We maintain our estimates of having 1.0 million ADSL accesses in service by the end of 2005, virtually doubling our client base throughout the year.


Mobile Operations

Due to the success of our sales in the first quarter, we have revised our estimates and anticipate that Brasil Telecom GSM’s customer base should reach 2.1 million clients at the end of 2005, of which 77% are expected to be pre-paid. We also revised our ARPU estimates to R$26 in 2005. We maintain our average SAC estimate at R$220 in 2005. We expect a churn rate equivalent to 50% of the market’s average in 2005.


Revenues

We anticipate a healthy growth in revenues from data, mobile, internet and value-added services throughout 2005. Consequently revenues in 2005 should grow at a similar rate as the one observed in 2004.


Costs

Cost control will continue to be one of the strengths of our management in 2005. We expect a nominal increase in fixed-line telephony costs in-line with the Brazilian inflation rate.


Provision for
Doubtful Accounts

We expect to report relatively lower provisions for doubtful accounts in 2005 compared to 2004, as internal controls improve and economic conditions continue to thrive, positively impacting income and employment figures.


EBITDA Margin

EBITDA margin for the fixed-line segment should remain in-line with 2004 and we expect a negative impact of 6 p.p. from mobile operations on the consolidated figure.


Debt

We expect to overcome the challenge of extending our debt maturity further, as well as to optimize our capital structure, and maintain a conservative leverage ratio and rich liquidity, so as to participate in possible consolidation opportunities in the sector and meet all of our obligations during the year.


CAPEX

2005’s fixed-line Capex should be in-line with 2004’s, excluding expenditures associated with the Universalization Targets established by Anatel for 2005. Mobile telephony Capex should be marginal and targeted at the increase of our coverage in Region II.

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SELECTED DATA

Table 21: Selected Data

FIXED-LINE NETWORK  1Q04  2Q04  3Q04  4Q04  1Q05 
Lines installed (thousand)  10,701  10,712  10,725  10,737  10,778 
Additional lines installed (thousand)  14  11  14  12  41 
Lines in service - LIS (thousand)  9,724  9,647  9,604  9,503  9,512 
     Residential (thousand)  6,988  6,840  6,685  6,445  6,379 
     Non-residential (thousand)  1,468  1,451  1,451  1,433  1,440 
     Public phones (thousand)  296  296  296  296  296 
     Pre-paid (thousand)  282  276  285  297  311 
     Hybrid (thousand)  59  159  267  408  465 
     Other (including PBX) (thousand)  631  624  620  624  620 
Additional lines in service (thousand)  (127)  (77)  (42)  (101)  9 
Average lines in service (thousand)  9,782  9,685  9,626  9,554  9,508 
Utilization rate  90.9%  90.1%  89.5%  88.5%  88.3% 
Teledensity (LIS/100 inhabitants)  23.1  22.9  22.7  22.4  22.4 
ADSL lines in service (thousand)  324.9  382.5  456.1  535.5  625.3 
 
MOBILE NETWORK  1Q04  2Q04  3Q04  4Q04  1Q05 
Clients (thousand)  -  -  -  622  1,004 
     Post-paid (thousand)  -  -  -  206  322 
     Pre-paid (thousand)  -  -  -  417  681 
Gross Additions  -  -  -  627  406 
Cancellations  -  -  -  4  24 
Anualized churn  -  -  -  1.4%  11.9% 
# of employees - Mobile Telephony  265  758  822  881  918 
 
TRAFFIC  1Q04  2Q04  3Q04  4Q04  1Q05 
Exceeding local pulses (million)  2,586  2,715  2,730  2,773  2,305 
Domestic long distance - DLD (million minutes)  1,534  1,624  1,638  1,437  1,334 
Fixed-mobile (million minutes)  1,037  1,036  1,098  1,180  1,126 
     VC-1 (million minutes)  879  869  902  906  807 
     VC-2 (million minutes)  125  119  132  178  213 
     VC-3 (million minutes)  34  48  64  97  106 
 
PRODUCTIVITY  1Q04  2Q04  3Q04  4Q04  1Q05 
Nº of employees - Fixed Operation  5,211  5,391  5,509  5,805  5,690 
Average nº of employees -Fixed Operation  5,203  5,301  5,450  5,657  5,748 
LIS/employee  1,341  1,269  1,214  1,110  1,121 
Net revenue/average nº of employees/month (R$ thousand)  133.0  136.0  144.4  145.3  142.0 
EBITDA/average nº of employees/month (R$ thousand)  57.2  58.0  60.2  45.2  47.8 
Net earnings/average nº of employees/month (R$ thousand)  4.8  3.2  5.2  2.5  2.6 
Exceeding local pulses/average LIS/month  52.3  55.9  56.7  50.1  46.8 
DLD minutes/average LIS/month  40.6  40.5  39.4  31.2  29.9 
Fixed-mobile minutes/average LIS/month  29.9  29.9  31.3  31.6  28.3 
Net revenue/average LIS/month (R$)  70.7  74.4  81.8  83.9  82.2 
EBITDA/average LIS/month (R$)  30.4  31.7  34.1  26.8  28.9 
Net earnings/average LIS/month (R$)  2.5  1.8  3.0  1.5  1.6 
Market share total           
Market share intra-regional           
Market share intra-setorial           
 
QUALITY  1Q04  2Q04  3Q04  4Q04  1Q05 
Quality goals achieved  33/35/35  35/35/35  35/35/35  35/35/35  35/35/35 
Digitization rate  99.5%  99.5%  99.6%  99.7%   
 
PROFITABILITY  1Q04  2Q04  3Q04  4Q04  1Q05 
EBITDA margin  43.0%  42.6%  41.7%  31.1%  33.7% 
Net margin  3.6%  2.4%  3.6%  1.7%  1.8% 
Return on equity - ROE  1.2%  0.8%  1.4%  0.7%  0.7% 

Table of Contents

COMING EVENTS

Teleconference: 1Q05 Earnings Result
Phone: (1 719) 457-2727
Date: April 20, 2005 (Wednesday)
Time: 11:00 a.m. (New York); 12:00 p.m. (Brasília); 04:00 p.m. (London)

Open Meeting with Analysts: ABAMEC-RJ
Date: April 27, 2005 (Wednesday)
Time: 05:00 p.m. (Brasília)
Place: Av. Rio Branco, 103 / 21th floor –Rio de Janeiro, Brazil

Table of Contents

IR CONTACTS

Marcos Tourinho (Director) Phone: (55 61) 415-1052 marcos.tourinho@brasiltelecom.com.br
Renata Fontes (Manager) Phone: (55 61) 415-1256 renatafontes@brasiltelecom.com.br
Gustavo Nunes (Manager) Phone: (55 61) 415-8181 gustavon@brasiltelecom.com.br
Flávia Menezes Phone: (55 61) 415-1411 flaviam@brasiltelecom.com.br
Cristiano Pereira Phone: (55 61) 415-1291 cpereira@brasiltelecom.com.br
Alex Veloso Phone: (55 61) 415-1122 alex.veloso@brasiltelecom.com.br

MEDIA CONTACT

Ivette Almeida Phone: (1 212) 983-1702 ivette.almeida@annemcbride.com




This press release contains forward-looking statements. Such statements are not statements of historical fact, and reflect the beliefs and expectations of the company's management. The words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects" and "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Accordingly, the actual results of operations of the company may be different from the company's current expectations, and the reader should not place undue reliance 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.

 

 
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 20, 2005

 
BRASIL TELECOM PARTICIPAÇÕES S.A.
By:
/S/  Paulo Pedrão Rio Branco
 
Name:   Paulo Pedrão Rio Branco
Title:     Financial Executive Officer