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TFTS Free-Translation into English
January 26, 2006

MANAGEMENT PROPOSAL FOR
THE 2006 CAPITAL BUDGET

TIM Participações S.A.
USE		2006
		R$ thous
Total Investments		543,245
Network		293,951
Access		140,218
CORE		99,176
VAS		39,448
Other		15,108
IT		159,313
Hardware		60,678
Training		204
Software		98,431
Loan		69,010
Buildings & Civil Works		14,317
Other Industrial		6,654
SOURCES		543,245
Profit Reserve		299,074
Generation of Own Cash		244,171

General Description

1. Network

The purpose of investments to enlarge the network aims at improving the quality, expansion and meeting the demand of new GSM clients, in addition to the migration of clients from the TDMA base. It is estimated that the GSM base should reach approximately 6,804,000 clients in December 2006, an increase of 2,023,000 clients as compared to December 2005.

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Investments shall be distributed as follows:

a) Core: implementation of new GSM (MSC e HLR) and capacity enlargement of the existing centrals;

b) Access Network: enlargement of voice channels in the existing sites in order to meet the traffic and enlargement demand of the existing transmission system (DXX, mini-link radio);

c) VAS: enlargement of message service platforms (SMS), data service (EDGE/GPRS), Voice mail and new services that shall be launched by the Marketing Department;

d) Continued quality improvement: the GSM network coverage shall need investments in new sites (BTS, repeaters), rearrangement of the existing ones, exchange of antennas, implementation of 900MHz sectors and acquisition of tools in order to analyze and oversee the network quality.

2. Loan

Investments shall be intended for the acquisition, migration, retaining and fidelity of GSM corporate and value-added clients, with a view to make available the GSM network special services – such as EDGE/GPRS, SMS, TIM Acess TV, TIM Box, national coverage, international roaming, etc. The exchange of obsolete and/or defective phone sets is also foreseen, as well as contract renewals.

3. Information Technology (IT)

Investments in Information Technology shall be distributed as follows:

• Improvements in the REMEDY System
• Improvements in the Backup Infrastructure services
• BSCS hardware upgrade (BSCS system machines, bill control, Identify and Tax Interfaces with Aspensati and SAP)
• Hardware upgrade for BSCS data extension for Datawarehouse
• Hardware upgrade for test and development environment of post-payment system phones
• New hardware for the TIM training environment
• Storage capacity increase for post-payment systems
• Metaframe Upgrade
• Upgrade of Web and VAS solution servers
• Fitting the data network the LAN / WAN demand increase
• OPSC Licenses
• Network infrastructure improvements
• Security infrastructure improvements

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• Version management software
• Sales
• Improvements in the post-payment system – new developments
• Improvements in the post-payment system – new developments
• Improvement in the CRM, Dunning and Collection, BI, VAS, SALES, INTERCONNECTION REVENUE ASSURANCE systems – new developments
• Improvement in the CDR Archiving systems
• Improvement in the Siscom Hardware Upgrade systems
• Improvement in the DCM Hardware Upgrade systems
• Improvement in the IUP/Vendita Hardware Upgrade due growing and Migration to Web Logic systems
• Improvement in the DSF, NO-FRAUD, PROVISIONING systems

4. Building

Investments include store layout renewal, implementation of new stores in malls and other places, and fixing managing buildings.

5. General

Investments include acquisition of new kiosks, car exchange, purchase of additional managing equipment, etc.

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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: February 01, 2006	By:	/s/ Paulo Roberto Cruz Cozza
		Name: Paulo Roberto Cruz Cozza
		Title: Chief Financial Officer

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