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 JANUARY 27, 2006

(Commission File No. 1-15256)
 
 
BRASIL TELECOM S.A.
(Exact name of Registrant as specified in its Charter)
 
BRAZIL TELECOM 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):

 


  Investor Relations
  (55 61) 3415-1140
  ri@brasiltelecom.com.br
 
  Media Relations
  (55 61) 3415-1378
  cesarrb@brasiltelecom.com.br

Free Translation

Brasil Telecom Clarifies Bovespa’s Inquiry

In compliance with the request made in notice GAE/SAE 0117-06, dated January 27th, 2006, transcribed below:

“We request clarification regarding the news published on Valor Econômico Newspaper, edition of 01/27/06, “Cost reduction and lay-off program is under analysis by Brasil Telecom”, as well as other important information.”

Brasil Telecom S.A. (“Company”) clarifies that, as previously disclosed to the market on 12/9/2005, it will implement cost reductions throughout 2006 to keep the inertial increase in expenses that was in course under control.

The Company has been analyzing measures and taking actions, according to what was disclosed and, therefore, does not understand that there are new material facts to be disclosed to the market.

The Company is available for any clarifications that shall be made necessary.

Brasília, January 27, 2006.

Charles Laganá Putz
Investor Relations Officer
Brasil Telecom S.A.

 
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: January 27, 2006

 
BRASIL TELECOM S.A.
By:
/S/ Charles Laganá Putz
 
Name:   Charles Laganá Putz
Title:     Chief Financial Officer