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.
MANAGEMENT’S PROPOSAL
TO REVIEW THE CAPITAL BUDGET OF
TIM PARTICIPAÇÕES S.A.
NOVEMBER 2005
| R$ million | Preliminary Budget 2005 |
Final Estimate 2005 |
Final Change |
Change % | Tim Nordeste | Tim Sul |
| Total Industrial Investments | 561,783 | 718,300 | 156,517 | 28% | 344,000 | 374,300 |
| Network | 434,790 | 462,000 | 27,210 | 6% | 218,000 | 244,000 |
| Information Technology (IT) | 40,046 | 159,000 | 118,954 | 297% | 69,000 | 60,000 |
| Building | 25,331 | 20,600 | (4,731) | -19% | 13,000 | 7,600 |
| Loan for use | 53,323 | 69,000 | 15,677 | 29% | 40,000 | 29,000 |
| Other investments | 8,293 | 7,700 | (593) | -7% | 4,000 | 3,700 |
| Sources | 561,783 | 718,300 | 344,000 | 374,300 | ||
| Funding (BNB) | 85,000 | 85,000 | ||||
| Own cash generation | 361,886 | 433,403 | 162,920 | 272,857 | ||
| Profit retention | 199,897 | 199,897 | 96,080 | 101,443 | ||
General Description
1. Network
The investment to expand network views at meeting the demand of GSM new clients, in addition to the migration of TDMA client base. We estimate that GSM base should reach nearly 4.8 million clients by December 2005, an increment of approximately 2.8 million clients compared to December 2004.
The investments will be allocated as follows:
a) Core: implementation of new GSM centers (MSC and HLR) and enlargement of current centers capacity; Tim Nordeste: (HLR expansion, new HLR, NGN, APZ Upgrade); Tim Sul: (new HLR, APZ Upgrade, NGN);
b) Access network: expansion of voice channels in existing sites in order to meeting the traffic demand and enlargement of
existing transmission system (DXX, mini-link radio); (BSC Expansion. New BSC, BTS Expansion, New BTS, MW, Repeater);
c) Management: investment in management tools (NMC and OSS);
d) VAS: expansion of short message service platforms (SMS), data
service (EDGE/GPRS), Voice mail and new services to be launched by the Marketing area; (IN, VMS, SMS, WAP, GPRS and others);
e) Training: application of employees’ training;
f) Quality ongoing improvement: GSM network coverage will
need investments in new sites (BTS, repeaters), reallocation of existing sites, change of antennas, implementation of 900MHz sectors and the acquisition of analysis tools and supervision of network quality.
2. Loan for Use
The investments will be directed to the migration of business and high value clients for GSM, viewing besides loyalty, the availability of GSM network special services, such as EDGE/GPRS, SMS, TIM Access TV, TIM Box, domestic coverage, international roaming, etc. The change of outdated and/or defective handsets is also estimated, renewal of contracts, acquisition of new business and high value clients.
A minor addition occurred, as a result of such review, in relation to the amount initially budgeted for 2005 in this investment category.
3. Information Technology (IT)
Information Technology investments will be allocated as follows:
4. Building
The investments include the renovation of the stores layout, implementation of new stores in shopping centers and other sites, as well as the refurbishment of administrative buildings.
5. Other Investments
The investments include the acquisition of new kiosks, change of vehicles, purchase of equipment, such as projector, etc.
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.
| TIM PARTICIPAÇÕES S.A. | ||
| Date: December 6, 2005 | By: | /s/ Paulo Roberto Cruz Cozza |
| Name: Paulo Roberto Cruz Cozza | ||
| Title: Chief Financial Officer | ||