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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 DECEMBER 15, 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) 415-1140 
  ri@brasiltelecom.com.br 
   
  Media Relations 
  (1 212) 983-1702 
  cesarb@brasiltelecom.com.br 

Free Translation

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 December 14th, 2006, the appropriation of Interest on Own Capital in the amount of R$103,900,000.00 (one hundred and three million and nine hundred thousand reais), which corresponds to a gross amount of R$0.189850685 per one thousand shares or an amount net of income tax of R$0.161373082 per one thousand shares, common and preferred, pursuant to Article 9 of Law 9,249 of December 26th, 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$103,900,000.00, in the books of Brasil Telecom S.A., will occur on December 29th, 2006.

III - Date of Trading “ex-Interest on Own Capital”: As of December 27th, 2006, the Company’s shares will trade “Ex-Interest on Own Capital”, considering the shares deposited on December 26th, 2006.

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 2006 and shall be subject to the approval of the Ordinary General Shareholders’ Meeting of 2007. 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 December 29th, 2006.

VI - Amount Appropriated on 2006 Fiscal Year:

DATE OF THE 
CREDIT 		 BRAZILIAN
 EX-DATE 		 TOTAL 
APPROPRIETED
 (R$)		 GROSS AMOUNT
 PER 1,000
 SHARES (R$)		 AMOUNT NET OF INCOME 
TAX PER 1,000 SHARES (R$)
06/30/2006  07/11/2006  245,000,000.00  0.447674858  0.380523629 
12/29/2006  12/27/2006  103,900,000,00  0.189850685  0.161373082 

Brazil, Brasília, December 14th, 2006.
Charles Laganá Putz
Investor Relations Officer

Page 1 of 1  

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: December 15, 2006

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

 

FORWARD-LOOKING STATEMENTS

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.