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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___

 

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BRASIL TELECOM S.A.
Publicly Traded Company
Corporate Taxpayer Registration: 76.535.764/0001 -43
Board of Trade: 53 3 0000622 9

MATERIAL FACT

CREDIT OF INTEREST ON OWN CAPITAL

We hereby inform Brasil Telecom S.A.’s (“Company”) shareholders that the Company’s Senior Management deliberated, following a delegation from the Board of Directors specified on a meeting held on January 30^th, 2007, the appropriation of Interest on Own Capital in the amount of R$245,000,000.00 (two hundred and forty five million reais), which corresponds to a gross amount of R$0.447674858 per one thousand shares or an amount net of income tax of R$0.380523629 per one thousand shares, common and preferred, pursuant to Article 9 of Law 9,249 of December 26^th, 1995 and to Brazilian Securities and Exchange Commission’s (Comissão de Valores Mobiliários) Deliberation 207/96.

I – Income Tax Withheld: Income tax of 15% will be withheld from the amount of Interest on Shareholders’ Equity, except for the shareholders proven to have fiscal exemption or with differentiated taxation who prove such condition.

II – Date of the Credit: The credit of Interest on Shareholders Equity, in the total amount of R$245,000,000.00, in the books of Brasil Telecom S.A., will occur on January 31^st, 2007.

III – Date of Trading “ex-Interest on Own Capital”: As of February 12^th, 2007, the Company’s shares will trade “Ex-Interest on Own Capital”, considering the shares deposited on February 9^th, 2007.

IV – Information regarding the Dividends’ Payment and Accusation: The interest on own capital shall be accused to the dividends related to the fiscal year of 2007 and shall be subject to the approval of the Ordinary General Shareholders’ Meeting of 2008. The payment date, when resolved, will be informed through the publication of Notice to Shareholders.

V – Confirmation of Fiscal Exemption or Differentiated Taxation: Legal persons that are exempted from the income tax or with differentiated taxation, in compliance with the current law, shall prove such condition to the Custodian Bank – Banco Bradesco S.A., Departamento de Ações e Custódia, Prédio Amarelo, 2º Andar, Cidade de Deus, Vila Yara – CEP 06.029 -900 – Osasco – SP, until February 23^rd, 2007.

Brazil, Brasília, January 31^st, 2007.

Charles Laganá Putz
Investor Relations Officer

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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.

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