~~Table~~FORM of6-K ~~Contents~~

~~FORM~~UNITED 6STATES ~~- K~~

~~UNITED~~SECURITIES ~~STATES~~AND EXCHANGE COMMISSION

~~SECURITIES~~Washington, ~~AND~~DC ~~EXCHANGE~~20549 ~~COMMISSION~~

~~Washington,~~Report DCof ~~20549~~Foreign Issuer

~~Report~~Pursuant ofto ~~Foreign~~Rule ~~Issuer~~13a - 16 or 15d - 16 of the

~~Pursuant~~Securities toExchange ~~Rule~~Act ~~13a - 16 or 15d - 16~~ of ~~the~~1934

~~Securities~~For the ~~Exchange~~month ~~Act~~ of ~~1934~~ February 2007

~~For~~NATIONAL ~~the~~TELEPHONE ~~month~~COMPANY ofOF ~~April~~VENEZUELA ~~2006~~(CANTV)

~~NATIONAL~~(Translation ~~TELEPHONE~~of ~~COMPANY~~Registrant’s OFName ~~VENEZUELA (CANTV~~into English)

~~(Translation~~EDIFICIO ofCANTV ~~Registrant’s Name into English)~~

~~EDIFICIO~~AVENIDA ~~CANTV~~LIBERTADOR

~~AVENIDA~~CARACAS, ~~LIBERTADOR~~ VENEZUELA

~~CARACAS,~~(Address ~~VENEZUELA~~of Principal Executive Offices)

~~(Address~~Indicate by check mark whether the registrant files or will file annual reports under cover of ~~Principal~~Form ~~Executive~~20-F ~~Offices)~~or Form 40-F.

~~Indicate by check mark whether the registrant files or will file annual reports under cover of~~ Form 20-F or X Form 40-F.

~~Form~~Indicate ~~20-F X Form~~by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the 40Commission pursuant to Rule 12g3-F 2(b) under the Securities Act of 1934

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 Act of 1934 Yes No X

If “Yes ~~No X~~ ” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82 -

IfAttached ~~“Yes”~~to this report is ~~marked,~~a ~~indicated~~copy ~~below~~of the ~~file~~fourth ~~number~~quarter ~~assigned~~press release and supplemental data, dated February 14, 2006, pertaining to the financial condition and results of operations at and for the quarter ended December 31, 2006. The consolidated financial information of the registrant included in ~~connection~~the press release and the supplemental data were prepared in accordance with ~~Rule~~International ~~12g3-2(b):~~Financial 82Reporting -Standards, which differ in certain important respects from accounting principles generally accepted in the United States. The financial results for the quarter ended December 31, 2006 are unaudited.

~~Table~~This report may contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include the impact on Cantv’s business that may result from the Government’s planned nationalization of ~~Contents~~Cantv, economic considerations that could affect demand for telecommunications services and the ability of the Company to make collections, inflation, regulatory factors, exchange controls and occurrences in currency markets, competition, labor relations, legal proceedings and the risk factors set forth in the Company’s various filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 20-F. The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

~~Attached~~SIGNATURE to this report is a copy of the first quarter press release and supplemental data, dated April 26, 2006, pertaining to the financial condition and results of operations at and for the quarter ended March 31, 2006, as well as revised forecasts for the registrant’s operations for the fiscal year ending December 31, 2006. The consolidated financial information of the registrant included in the press release and the supplemental data were prepared on the basis of International Financial Reporting Standards, which differ in certain important respects from accounting principles generally accepted in the United States. The financial results for the quarter ended March 31, 2006 are unaudited.

~~The~~Pursuant ~~earning projections for the fiscal year ending December 31, 2006 included in the attachment contain forward-looking statements. The registrant desires~~ to ~~qualify for~~ the ~~“safe~~requirements ~~harbor” provisions~~ of the ~~Private~~ Securities ~~Litigation~~ ~~Reform~~Exchange Act of ~~1995~~1934, ~~and~~the ~~consequently~~registrant ishas ~~hereby~~duly ~~filing~~caused ~~cautionary~~this ~~statements~~report ~~identifying~~to ~~important~~be ~~factors~~signed ~~that~~on ~~could~~its ~~cause~~behalf by the ~~registrant’s~~undersigned, ~~actual~~thereunto ~~results~~duly ~~to differ materially from those set forth in the attachment~~authorized.

~~The~~COMPAÑIA ~~registrant’s~~ANONIMA ~~earning~~NACIONAL ~~projections~~TELEFONOS ~~are~~DE based on a series of projections and estimates regarding the economy and the telecommunications industry in Venezuela in general. The projections and estimates regarding the telecommunications industry may be affected by the state of the economy in Venezuela and abroadVENEZUELA, ~~the~~(CANTV) ~~effects~~By: ~~of competition, the pricing of services, tariff-setting regulations and the success of new products, new services and new businesses. No assurance can be given that the registrant’~~/s/ ~~actual~~Armando ~~results~~Yañes ~~will~~Armando ~~not~~Yañes ~~vary~~Chief ~~significantly~~Financial ~~from the projected earnings.~~ Officer

~~Table~~Date: ofFebruary 16, ~~Contents~~2007

LOGO

From: Compañía Anónima Nacional Teléfonos de Venezuela (Cantv) NYSE: VNT BVC: TDV.d April 26, 2006 For Release: Contact: FOR IMMEDIATE RELEASE Cantv Investor Relations +011 58 212 500-1831 (Main) +011 58 212 500-1828 (Fax) Email: invest@cantv.com.ve The Global Consulting Group César Villavicencio 646 284-9423 (US) Email: cvillavicencio@hfgcg.com


From:	Compañía Anónima Nacional	For Release:	FOR IMMEDIATE RELEASE
	Teléfonos de Venezuela (Cantv)
	NYSE: VNT	Contact:	Cantv Investor Relations
	BVC: TDV.d		+011 58 212 500-1831 (Main)
			+011 58 212 500-1828 (Fax)
			Email: invest@cantv.com.ve
			The Global Consulting Group

			Emmanuelle Ferrer
			646-284-9421 (US)
	February 14, 2007		Email: eferrer@hfgcg.com

CANTV ANNOUNCES ~~FIRST~~FOURTH QUARTER AND FULL YEAR 2006 RESULTS

~~Revenue~~Accelerated ~~and~~growth ~~free~~in ~~cash~~our ~~flow~~mobile ~~increased~~and ~~32.3%~~broadband ~~and~~businesses 72drove 32.15%, ~~respectively.~~revenue ~~Nearly~~increase ~~400 thousand net~~

~~additions~~over ~~increased~~fourth ~~our~~quarter ~~mobile~~last ~~subscriber~~year. ~~base~~EBITDA toof ~~nearly 5~~Bs.6 ~~million~~470.1 ~~2006~~billion ~~Guidance~~representing ~~revised~~23% of total revenues,

~~increasing~~reflects ~~year-end~~sustained ~~mobile~~efforts ~~subscribers~~towards ~~from~~higher ~~6.3~~penetration toand ~~7.8~~mobile ~~million.~~market share leadership

HIGHLIGHTS

nFourth ~~Consolidated revenues increased a robust 32.3% over first~~ quarter ~~2005~~2006 ~~due to sustained growth in our mobile and broadband services~~results:

n• ~~Our~~Consolidated ~~mobile~~revenues ~~and~~increased ~~broadband~~32.5% ~~customer~~over ~~bases~~fourth ~~posted~~quarter ~~75.1%~~2005 ~~and~~resulting ~~68.5%~~from ~~increases,~~sustained ~~respectively,~~growth ~~over~~in ~~first~~all ~~quarter~~our ~~2005~~business segments

n• ~~First~~Sustained ~~quarter~~switched ~~mobile~~access ~~net~~line ~~additions~~growth ofgenerated ~~nearly~~11.3% ~~400~~gain ~~thousand~~over ~~subscribers~~fourth ~~increased~~quarter ~~our mobile customer base to nearly 5.6 million subscribers~~2005

n• ~~Continued~~Mobile ~~strong~~and ~~ABA~~broadband ~~(ADSL)~~lines ~~sales~~in service increased ~~our~~52.6% ~~customer~~and ~~base~~52.3%, torespectively, ~~almost~~over ~~327~~fourth ~~thousand~~quarter ~~subscribers,~~2005. aThe 75Company now provides service to nearly 8.4%0 ~~increase~~million ~~over~~mobile ~~first~~and ~~quarter~~467 ~~2005~~thousand broadband subscribers

n• ~~Sustained~~Fourth ~~growth~~quarter ~~momentum~~2006 inEBITDA ~~switched~~of ~~access~~Bs. ~~lines~~470.1 ~~generated~~billion 6was 36.68% ~~gain~~higher ~~over~~than ~~first~~the ~~quarter~~same period in 2005

n• ANet ~~one~~income ~~time~~increase ~~gain~~ of ~~the~~Bs. ~~sale of the Company’s 1~~248.2% ~~equity~~billion ~~investment~~was indriven ~~INTELSAT~~by ~~occurred~~the inhigher ~~first quarter 2005 affects~~ EBITDA and ~~net~~ income ~~comparison~~tax ~~with first quarter 2006. Net of this effect, first quarter 2006 EBITDA would have been 16.6% higher than a year ago and net income would have been 0.2% lower than a year ago~~benefits

nNationalization ~~Strong~~plan: ~~operating cash flow drove a 72.1% increase in free cash flow over first quarter 2005~~

n• ~~First~~The ~~quarter~~Venezuelan ~~2006~~Government ~~CAPEX~~announced ofon BsJanuary 8, 2007, its plans to nationalize Cantv. ~~166~~On February 12, 2007 Verizon Communications Inc.8 ~~billion~~announced that it has entered into a memorandum of understanding covering the sale to the Venezuelan Government of its 28.5% equity stake in ~~line~~Cantv ~~with~~at ~~prior~~a ~~2006~~price ~~Guidance~~equivalent to US$17.85 per ADS

n• ~~2006~~The ~~Guidance~~memorandum ~~has~~also ~~been~~includes ~~revised~~a commitment by the Government to ~~reflect~~launch ~~strong~~concurrent ~~performance~~tender onoffers ~~our~~in ~~mobile~~Venezuela ~~segment.~~and ~~2006~~the ~~year-end~~United ~~mobile~~States ~~subscribers~~of ~~estimated~~America, ~~range~~to ~~mid-point~~acquire ~~has~~any ~~been~~and ~~increased~~all ~~from~~shares ~~6.3~~(and ~~million~~ADRs) toof ~~7.8~~capital ~~million~~stock of Cantv at a price per share of the Bolivar equivalent of not less than US$2.55 ~~Our~~(calculated ~~revised~~at ~~2006~~the ~~revenues,~~official ~~EBITDA~~exchange rate at closing date) and ~~net~~a ~~income~~price ~~mid-point~~per ~~estimates~~ADS ~~are~~of ~~5.3%,~~not 5less than US$17.3%85. The acquisition price would be adjusted downward to give effect to any dividend required to be declared and ~~8.6%~~declared ~~higher~~and ~~than~~paid ~~previous~~by ~~guidance,~~Cantv ~~respectively.~~with ~~Updated~~a ~~estimates~~record ~~mid-points~~date ~~increased~~after ~~11.0%~~February ~~for~~12, ~~CAPEX~~2007 and ~~declined~~prior ~~1.5%~~to ~~for~~the ~~free~~closing ~~cash~~as ~~flow~~defined in the agreement

CONTENTS
• Key financial and operating Indicators		2
• Revenue analysis:		2
Fixed		3
Mobile		5
• Expense and margin analysis		7
Total operating expenses		7
EBITDA and EBITDA margin		7
Interest income and exchange gain, net and taxes		8
Net income		8
• Cash flow analysis		8
Capital expenditures		8
Total debt		9
• Other developments		9
Dividends		9
Proposed sale of Verizon’s stake in Cantv to Telmex and América Móvil		9
Pension adjustment decision		10
CONATEL – Taxes review		10
• Financial statements data		11
Income statement data		11
Balance sheet data		12
Cash flow data		13
• Reconciliation of non-GAAP financial measures		14
• 2006 Revised Guidance		15
• Company profile		16
• Glossary of key terms		16

CONTENTS

Financial results are stated in accordance with International Financial Reporting Standards (IFRS). Translation of financial statements data to US$ has been performed solely for the convenience of the reader, converting bolivar amounts at the current official exchange rate of Bs. 2,150 per US$1.


- Key financial and operating indicators		2
- Fourth quarter 2006 revenue analysis:		2
Fixed		3
Mobile		6
- Fourth quarter 2006 expense and margin analysis		7
Total operating expenses		7
EBITDA and EBITDA margin		7
Interest income and exchange gain, net and taxes		8
Net income		8
- Full year 2006 cash flow analysis		8
Capital expenditures		8
Total debt		9
- Other developments		9
Pension adjustment decision		9
Dividends		9
Termination of Verizon’s proposed sale of its stake in Cantv to Telmex and America Movil		10
Nationalization plan		10
- Year in review		10
- Financial statements data		12
Income statement data		12
Income statement data (YTD)		13
Balance sheet data		14
Cash flow data		15
- Reconciliation of non-GAAP financial measures		16
- Company profile		17
- Glossary of key terms		17

~~CANTV~~Financial ~~1Q06~~results ~~Earnings~~are ~~Commentary~~stated –in ~~April~~accordance 26with International Financial Reporting Standards (IFRS). Translation of financial statements data to US$ has been performed solely for the convenience of the reader, ~~2006~~converting ~~NYSE:~~bolivar ~~VNT~~amounts ~~BVC:~~at ~~TDV~~the current official exchange rate of Bs.d 2,150 per US$1.

~~Table~~CANTV of4Q06 ~~Contents~~Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 1

KEY FINANCIAL AND OPERATING INDICATORS

Figure 1 - Key Financial Highlights and Operating Indicators

Billions of Bs. and %


*Billions of Bs. and %*
	4Q06		4Q05		Inc./(Dec.)		%
Revenues	2,022.2		1,525.6		496.6		32.5	%
EBITDA	470.1		343.8		126.3		36.8	%
EBITDA Margin	23	%	23	%	—		N.M.
Net Income	385.9		137.7		248.2		180.2	%
EPADS (Bs.)	3,481		1,242		2,239.0		180.2	%

	Full Year 06		Full Year 05		Inc./(Dec.)		%
Revenue	6,797.7		5,088.4		1,709.3		33.6	%
EBITDA	1,757.9		741.5		1,016.4		137.1	%
EBITDA Margin	26	%	15	%	1,100 bps		N.M.
Net Income	1,130.4		214.4		916.0		427.2	%
EPADS (Bs.)	10,197		1,934		8,263.0		427.2	%

CAPEX	1,200.4		958.4		242.0		25.2	%
Free Cash Flow	685.2		691.8		(6.6	)	(0.9	%)
Debt payments	52.2		243.0		(190.8	)	(78.5	%)

	4Q06		4Q05		Inc./(Dec.)		%
Subscribers (thousands)
Fixed	3,915		3,405		510		15.0	%
Switched access lines	3,448		3,098		350		11.3	%
Residential	2,701		2,385		316		13.3	%
Non-residential	634		608		26		4.2	%
Public Telephones	113		105		8		8.0	%
Broadband	467		307		160		52.3	%
ABA (ADSL) lines	449		290		159		55.0	%
Private Circuits	18		17		1		5.3	%
Mobile	7,918		5,188		2,730		52.6	%
Postpaid	356		255		101		39.8	%
Prepaid	7,562		4,933		2,629		53.3	%
Traffic (millions of outgoing minutes)
Fixed Local	3,055		3,430		(375	)	(10.9	)%
Fixed DLD and ILD	643		617		26		4.2	%
Mobile	1,855		1,139		716		62.9	%

	1Q06		1Q05		Inc./(Dec.)		%
Revenues	1,441.5		1,089.7		351.8		32.3	%
EBITDA	431.6		441.6		(10.0	)	(2.3	)%
EBITDA Margin	30	%	41	%	(1,100	)bps	N.M.
Net Income	183.9		294.9		(111.0	)	(37.6	)%
CAPEX	166.8		120.4		46.4		38.5	%
Free Cash Flow	188.4		109.5		78.9		72.1	%
Debt payments	25.8		25.4		0.4		1.6	%

N.M.= Not meaningful

	1Q06	1Q05	Inc./(Dec.)		%
Subscribers (thousands)
Fixed	3,457.9	3,126.5	331.4		10.6	%
Switched access lines	3,114.4	2,922.7	191.7		6.6	%
Residential	2,410.0	2,244.7	165.3		7.4	%
Non-residential	597.8	582.7	15.1		2.6	%
Public Telephones	106.6	95.3	11.3		11.8	%
Broadband	343.5	203.8	139.7		68.5	%
ABA (ADSL) lines	326.6	186.1	140.5		75.4	%
Private Circuits	16.9	17.7	(0.8	)	(4.5	)%
Mobile	5,587.5	3,191.1	2,396.4		75.1	%
Postpaid	271.3	223.2	48.1		21.6	%
Prepaid	5,316.2	2,967.9	2,348.3		79.1	%
Traffic (millions of minutes)
Fixed Local	3,131	3,426	(295	)	(8.6	)%
Fixed DLD and ILD	590	634	(44	)	(6.9	)%
Mobile	1,209	653	556		85.1	%

Note: further details are disclosed in additional tables posted in the Investor Relations section of Cantv’s web site

~~N.M.=~~ FOURTH ~~Not~~QUARTER ~~meaningful~~2006 REVENUE ANALYSIS

~~Note:~~Strong ~~further~~mobile ~~details~~and ~~are~~broadband ~~disclosed~~revenues incontinued ~~additional~~to ~~tables~~drive ~~posted~~top inline ~~Cantv’s Investor Relations web page~~ growth

~~REVENUE~~Operating ~~ANALYSIS~~revenues totaled Bs. 2,022.2 billion during fourth quarter 2006, a Bs. 496.6 billion (32.5%) increase over fourth quarter 2005.

~~Strong~~Quarter-over-quarter ~~mobile~~revenue ~~and broadband~~growth ~~revenues~~resulted ~~continued~~from toincreases ~~drive~~of ~~top~~54.2%, 9.8% and 33.1% in mobile, fixed line ~~growth~~revenues excluding broadband, and broadband, respectively.

~~Operating~~As ~~revenues~~a ~~totaled~~percentage ~~Bs.~~of 1total revenues,~~441.5~~ ~~billion~~fourth ~~during first~~ quarter 2006, amobile ~~Bs.~~revenues ~~351.8 billion~~increased ~~(32~~from 44.34%~~) increase~~ ~~over~~in ~~first~~fourth quarter 2005 to 51.7% in fourth quarter 2006 (see Figure 2).

LOGO

~~Quarter-over-quarter~~The 15.2% revenue increase in the fixed line segment resulted primarily from sustained growth ~~was~~in ~~driven~~fixed bywireless ~~72.5%~~subscribers, combined ~~and~~with 1029.87%, ~~increases~~higher infixed to mobile ~~and~~interconnection ~~fixed line~~outgoing revenues, ~~respectively~~and continuous growth in broadband customers of 52.3% ~~Fixed~~quarter-over-quarter. Excluding broadband, fixed line revenues ~~reflects~~increased ~~a 45~~9.8% ~~growth~~over infourth ~~its~~quarter ~~broadband~~2005. ~~component~~Local service tariffs remain frozen.

AsThe ~~a percentage of total revenues, first quarter mobile revenues increased from 34~~54.82% increase in ~~first~~mobile ~~quarter~~revenue ~~2005~~was todriven ~~45.4%~~by increases in ~~first~~our ~~quarter~~subscriber ~~2006 (see Figure 2)~~base.

~~Figure~~CANTV 24Q06 -Earnings ~~Revenues~~Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 2

~~Cantv’s business growth efforts were reflected in our first quarter revenues. Each of our two business segments~~ ~~contributed~~Fixed ~~to the overall 32.3% revenue growth.~~

~~The~~Switched ~~10.8%~~Access ~~revenue~~Lines: increase in our fixed line segment was largely a result of the 68.5% growth in broadband customers. Excluding broadband, our fixed line business’ revenues increased 3.0% over the same period last year. The improvement was driven by 19.4% higher IXC fixed to mobile outgoing revenues combined with the sustained fixed wireless subscriber growth. Local services residential tariffs remained frozen.

~~Mobile~~Continuous ~~revenue~~ growth ~~was~~in ~~driven~~fixed byswitched ~~the segment’s~~access ~~robust~~lines ~~subscriber and traffic growth.~~

~~CANTV~~Lines ~~1Q06~~in ~~Earnings~~service ~~Commentary~~increased –11.3% ~~April~~on ~~26,~~a ~~2006~~year-over-year ~~NYSE:~~basis ~~VNT~~expanding ~~BVC:~~our ~~TDV~~customer base to over 3.d4 2million.

~~Table~~Net additions of ~~Contents~~over 192 thousand were generated during fourth quarter 2006 reflecting sustained subscriber growth (See Figure 3). These additions were 250.2% higher than those generated during the same period in 2005.

~~Fixed~~Figure 3 - Switched Access Lines in Service

LOGO

~~Sustained~~The ~~growth~~net inadditions ~~fixed~~reflected increases of 174,118 residential lines, 17,254 non-~~switched~~residential ~~access~~lines and 682 public telephony lines.

~~Switched~~The ~~Access~~fourth ~~Lines:~~quarter residential lines gain resulted from an improvement in the sales process through our Movilnet Authorized Agents. The highest proportion of the sales, however, continues to be generated through Telecommunication Centers.

~~Lines~~Our prepaid product offering continued to drive fixed line ingrowth ~~service~~with 168,250 fourth quarter net additions. Postpaid lines posted their second consecutive quarter of growth. This due to increased 6fixed wireless sales plus a 43.69% onreduction ain ~~year-over-year~~both ~~basis~~residential ~~surpassing~~and ~~the~~non-residential ~~3.1 million~~postpaid ~~mark~~churn.

~~Nearly~~Local ~~17 thousand~~Service ~~net~~Revenue: ~~additions were generated during first quarter 2006 reflecting sustained subscriber growth. These net additions were 57.0% lower than those generated during the same period in 2005 (see Figure 3).~~

~~Figure~~Local 3service –revenues increased ~~Switched~~6.2% ~~Access~~over ~~Lines~~4Q05 ~~in Service~~

~~First~~Fourth quarter 2006 ~~growth~~local ~~was~~service ~~driven~~revenue byof aBs. ~~25,312~~244.6 ~~increase~~billion inwas ~~residential~~Bs. ~~lines~~14.3 ~~combined~~billion ~~with~~ (6.2~~,040~~%) higher ~~new~~than ~~public~~revenue ~~telephony~~for ~~lines~~same period in 2005. ~~These~~The ~~increases~~increase ~~were~~was ~~partially~~primarily ~~offset~~driven by ahigher ~~10,625~~monthly ~~non-residential~~recurring ~~lines~~charge ~~reduction.~~and ~~Our~~installation ~~prepaid~~and ~~product~~equipment ~~continues~~revenues, topartially ~~drive~~offset ~~our~~by ~~fixed~~the ~~line~~decrease ~~growth~~in ~~with~~local ~~first~~usage ~~quarter~~(See ~~net~~Figure ~~additions~~4). ofResidential ~~24,394~~and ~~lines~~non-residential tariffs remained unchanged during fourth quarter.

Figure 4 - Local Service Revenues:

Local service revenues decrease 0.6% driven by reduced traffic and freeze tariffs


	(in millions of Bs.)
	4Q06	4Q05	Inc./(Dec.)		%
Monthly recurring charge	137,570	126,492	11,078		8.8	%
Installation & Equipment	22,412	10,213	12,199		119.4	%
Usage	84,584	93,564	(8,980	)	(9.6	)%

Total	244,566	230,269	14,297		6.2	%

~~First~~The ~~quarter~~8.8% ~~2006~~increase ~~local~~in ~~service~~monthly ~~revenues~~recurring ofcharges ~~Bs.~~is ~~220.1~~attributable ~~billion~~to ~~were~~the ~~Bs.~~growth ~~1.3~~in ~~billion~~prepaid ~~lower~~customers ~~(0.6%)~~subscribing ~~than~~to our ~~revenues~~“Prepago ~~during~~Minutos ~~the~~Libres” ~~same~~plan ~~period~~which inincludes ~~2005.~~a ~~The~~recurring ~~slight~~charge, ~~decrease primarily~~combined ~~reflects~~with ~~the~~nearly ~~decrease~~33 thousand inadditional ~~local~~postpaid ~~usage~~lines, ~~traffic.~~and ~~Local~~the ~~services~~migration ~~residential~~of ~~tariffs~~postpaid ~~continue~~customers to beplans ~~frozen~~with higher recurring charges.

~~Figure~~The 4growth in installation and equipment revenue was driven by a 177.6% increase in residential and non-residential ~~Local~~equipment ~~Service~~sales. ~~Revenues~~The equipment sales were associated with, and reflect, the robust sales of our “Cantv Habla Ya” fixed wireless services product.

	(in millions of Bs.)
	1Q06	1Q05	Inc./(Dec.)		%
Monthly recurring charge	126,785	123,978	2,807		2.3	%
Installation & Equipment	10,862	6,763	4,099		60.6	%
Usage	82,431	90,637	(8,206	)	(9.1	)%
Total	220,078	221,378	(1,300	)	(0.6	)%

Local usage revenues declined 9.6% during fourth quarter 2006 primarily due to the 10.0% decrease in unbundled (billed) minutes. As shown in Figure 5, the 10.0% decrease in local services traffic was attributable to 6.9%, 12.5% and 26.9% reductions in residential, non-residential and public telephony traffic, respectively.

~~The~~Figure ~~60.6%~~5 ~~increase~~- inLocal ~~installation~~Unbundled ~~and~~Minutes ~~equipment revenues over first quarter 2005 was primarily attributable to a 61.6% increase in fixed wireless equipment residential sales.~~

Local usage revenues declined 9.1% due primarily to a 10.5% decrease in unbundled (billed) minutes. As shown in Figure 5, the 10.5% decrease in local services traffic was attributable to 9.9%, 7.4% and 28.4% reductions in residential, non-residential and public telephony traffic, respectively, partially offset by an increase in the weighted average price per minute of 1.2%. The higher average price was driven by the increase in prepaid minutes as a percentage of total traffic from 5.8% in first quarter 2005 to 9.7% in first quarter 2006. Prepaid usage is priced at a higher tariff than postpaid traffic.


	(in millions)
	4Q06	4Q05	Inc./(Dec.)		%
Residential	1,342	1,441	(99	)	(6.9	)%
Non-residential	708	809	(101	)	(12.5	)%
Public telephony	106	145	(39	)	(26.9	)%

Total	2,156	2,395	(239	)	(10.0	)%

~~Figure~~Migration 5to mobile services and substitution of Internet Dial-Up ~~Local~~accounts ~~Unbundled~~to ~~Minutes~~ABA (ADSL) services drove the decline in residential and non-residencial local services usage.

	(in millions)
	1Q06	1Q05	Inc./(Dec.)		%
Residential	1,388	1,541	(153	)	(9.9	)%
Non-residential	686	741	(55	)	(7.4	)%
Public telephony	131	183	(52	)	(28.4	)%
Total	2,205	2,465	(260	)	(10.5	)%


CANTV 4Q06 Earnings Commentary – February 14, 2007		NYSE: VNT BVC: TDV.d		3

The 2826.49% reduction in public telephony traffic ~~was~~continues to be driven by ~~mobile~~the ~~services~~ substitution, ~~and~~of ~~was~~this ~~comprised~~service ofwith amobile ~~60.6%~~services, ~~decrease~~as inwell ~~traffic~~as ~~generated~~competition byfrom ~~traditional~~informal ~~payphones~~telecommunications ~~partially offset by a 9~~vendors.5% ~~increase~~This decline in traffic ~~generated~~resulted ~~through~~from ~~telecommunication centers~~33.3% ~~Our customers have increasingly opted to use telecommunication centers due to the security~~ and ~~value~~ ~~added services they offer~~24.3% ~~The~~decreases ~~Company~~in ~~has encouraged this substitution due to the vulnerability of~~ traditional payphones toand ~~vandalism~~Telecommunication ~~that~~Centers’ ~~threaten~~traffic, ~~this service reliability~~respectively.

~~CANTV~~In ~~1Q06~~accordance ~~Earnings~~with ~~Commentary~~its –Public ~~April~~Telephony 26Modernization Plan, ~~2006~~Cantv ~~NYSE:~~continues ~~VNT~~to ~~BVC:~~deploy ~~TDV~~new equipment and relocate other equipment to high traffic areas such as hospitals, malls and subway stations.d 3

~~Table~~Domestic ofLong ~~Contents~~Distance Revenues:

~~Domestic~~DLD ~~Long~~revenues ~~Distance~~and ~~Revenue:~~traffic decreased 2.4% and 2.1%, respectively

Domestic long distance (DLD) revenues decreased ~~and~~Bs. ~~traffic~~1.8 ~~decreased~~billion 5(2.4%) compared ~~and~~to 11fourth quarter 2005, primarily due to a 3.56%, ~~respectively~~overall revenue decrease from unbundled traffic partially offset by 2.2% increase in monthly recurring charges from bundled plans. (See Figure 6).

~~Domestic~~Figure ~~long~~6 ~~distance~~- (DLD) ~~revenues~~Revenues ~~decreased~~and ~~Bs.~~Traffic ~~3.9 billion (5.4%) compared to first quarter 2005, while traffic decreased 11.5% (see Figure 6).~~

Figure 6 - DLD Revenues and Traffic


	Revenues (in millions of Bs.)						Minutes (in millions)
	4Q06	4Q05	Inc./(Dec.)		%		4Q06	4Q05	Inc./(Dec.)		%
Residential	19,891	17,248	2,643		15.3	%	141	123	18		14.6	%
Non-residential	31,085	32,325	(1,240	)	(3.8	)%	167	165	2		1.2	%
Public telephony	6,553	10,122	(3,569	)	(35.3	)%	56	70	(14	)	(20.0	)%

Total Unbundled	57,529	59,695	(2,166	)	(3.6	)%	364	358	6		1.7	%

Bundled plans	15,683	15,344	339		2.2	%	154	171	(17	)	(9.9	)%

Total	73,212	75,039	(1,827	)	(2.4	)%	518	529	(11	)	(2.1	)%

	Revenues (in millions of Bs.)						Minutes (in millions)
	1Q06	1Q05	Inc./(Dec.)		%		1Q06	1Q05	Inc./(Dec.)		%
Residential	18,435	18,114	321		1.8	%	131	130	1		0.8	%
Non-residential	27,984	29,951	(1,967	)	(6.6	)%	143	158	(15	)	(9.5	)%
Public telephony	8,767	10,697	(1,930	)	(18.0	)%	66	76	(10	)	(13.2	)%
Total Unbundled	55,186	58,762	(3,576	)	(6.1	)%	340	364	(24	)	(6.6	)%
Bundled plans	14,814	15,229	(415	)	(2.7	)%	158	199	(41	)	(20.6	)%
Total	70,000	73,991	(3,991	)	(5.4	)%	498	563	(65	)	(11.5	)%

Compared to the same period of 2005, fourth quarter 2006 unbundled DLD revenues decreased 3.6% to Bs. 57.5 billion mainly due to a 35.3% decline in public telephony partially offset by 15.3% increase in the residential segment.

~~Compared~~The to35.3% ~~the~~revenue ~~same~~decrease ~~period~~ in ~~2005,~~public telephony ~~first~~was ~~quarter~~the ~~2006~~result ~~residential~~of ~~unbundled~~a ~~DLD revenues increased 1~~20.80% todecrease ~~Bs. 18.4~~in ~~billion~~DLD ~~mainly~~unbundled ~~due~~traffic in addition to a 015.83% ~~increase~~decrease in ~~residential~~the ~~DLD~~weighted ~~unbundled~~average ~~traffic~~tariff. ~~combined~~Mobile ~~with~~substitution aand 1%competition ~~increase~~from ininformal ~~weighted~~telecommunications ~~average~~vendors ~~tariff~~impacted the public telephony results once more.

The 9.9% traffic ~~decrease,~~ ~~mainly~~reduction in bundled plans is attributable to ~~mobile~~a ~~service~~net ~~substitution,~~migration ~~was~~of ~~most~~customers ~~pronounced~~to inunbundled ~~our~~and bundled ~~DLD~~ plans ~~(20.6%) than~~with infewer ~~our~~free minutes. ~~unbundled~~Despite ~~DLD~~the ~~service~~overall ~~(6.6%).~~traffic ~~Due~~reduction, tonew ~~restrictions~~additions ~~imposed~~and bymigrations ~~CONATEL,~~between ~~mobile~~bundled ~~services~~plans ~~providers~~drove ~~may~~a ~~not~~2.2% ~~bill~~revenue ~~domestic long distance usage~~increase.

~~Bundled~~International ~~plans helped curb DLD revenue decline. Unbundled DLD revenues decreased 6.1% over same period last year and was in line with~~Long ~~the~~Distance ~~6.6%~~Revenues: ~~decrease in unbundled traffic. Bundled DLD revenues, however, only decreased 2.7% despite a 20.6% overall decline in bundled traffic.~~

~~International~~ILD ~~Long~~revenues ~~Distance~~decreased ~~Revenues~~4.1% ~~and~~driven ~~Net~~by ~~Settlements:~~less revenues on net settlements despite increase in outgoing revenue

Fourth quarter 2006 international long distance (ILD) revenues ~~increased~~of 5Bs. 29.4 billion reflect a 4.1% ~~driven~~decrease byover 2fourth quarter 2005.9 The decline is attributable to Bs. 7.7 billion ~~increase~~ inlower ~~revenues~~net onsettlements ~~outgoing~~revenue ~~minutes~~partially ~~charged~~offset toby ~~customers~~Bs. 6.5 (22.4%) higher outgoing revenue.

~~First~~The ~~quarter~~22.4% increase ~~2006~~in ~~international~~outgoing ~~long~~traffic ~~distance~~revenues ~~(ILD)~~was ~~revenues~~driven ofby ~~Bs.~~a 2928.78% ~~billion~~ increase in outgoing traffic (2See Figure 7) partially offset by a 6.49% ofdecrease ~~total~~in ~~revenues)~~weighted ~~reflects~~average aprices. 5The 28.18% increase ~~over~~in ~~first~~outgoing ~~quarter~~traffic ~~2005~~resulted ~~results,~~from ~~mainly~~traffic ~~due~~increases toin residential aand ~~Bs.~~public ~~2.9~~telephony ~~billion~~segments, ~~(10.3%) increase~~particularly in ~~outgoing~~Telecommunication ~~revenues~~Centers ~~partially~~where ~~offset~~traffic byincreased Bs49.6% 1over fourth quarter 2005.4 ~~billion~~During ~~decrease~~fourth inquarter ~~net~~2006 ~~settlements~~Telecommunication ~~revenues~~Centers ~~(see~~generated ~~Figure~~nearly 7)47.0% of Cantv’s total outgoing ILD traffic.

Figure 7 - ILD ~~Revenues and~~ Traffic

	Revenues (in millions of Bs.)										Minutes (in millions)
	Minutes (in millions)
	1Q06			1Q05		Inc./(Dec.)			%		1Q06	1Q05	Inc./(Dec.)	%
	4Q06		4Q05		Inc./(Dec.)			%
Incoming minutes	~~15,446~~170		129	~~16,129~~	41	~~(682~~	)	31.8	~~(4.2~~%	)%	~~138~~	85	53	~~62.4~~	%
Outgoing minutes	~~16,627~~125		88	~~15,875~~	37	~~751~~		42.0	~~4.7~~%	%	92	71	21	~~29.6~~	%
Net Settlements	~~(1,180~~45	)	41	~~253~~	4	~~(1,434~~	)	9.8	~~N.M.~~%		46	14	32	~~228.6~~	%
Incoming/Outgoing ratio	01.9336		1.47	~~1.02~~	(0.11	~~(0.09~~)	)	(7.2	~~(8.6~~)%	)%	~~1.50~~	~~1.20~~	~~0.30~~	~~25.3~~	%
Outgoing minutes charged to customers	~~30,909~~85		66	~~28,022~~	19	~~2,887~~		28.8	~~10.3~~%	%	74	65	9	~~13.8~~	%
Total	29,729			28,275		1,453			5.1	%	120	79	9	51.9	%

The ~~increase~~6.9% decrease in ~~revenues~~weighted ~~from~~average ~~outgoing~~prices ~~minutes~~is ~~charged~~attributable to ~~customers~~the ~~results~~higher ~~from~~proportion ~~the~~of ~~13.8%~~calls ~~increase~~made ~~in outgoing~~from ~~traffic~~Telecommunication ~~partially~~Centers ~~offset~~compared byto athe ~~2.8%~~same ~~reduction~~period in ~~weighted~~2005. ~~average~~The ~~tariffs.~~Telecommunications

~~The~~CANTV ~~decline~~4Q06 inEarnings ~~net~~Commentary ~~settlements~~– ~~revenues~~February ~~results~~14, ~~from~~2007 aNYSE: ~~reduction~~VNT inBVC: ~~tariffs partially offset by an increase in traffic with improved incoming/outgoing ratio~~TDV.d Lower incoming tariffs are primarily attributable to the Company’s efforts to maximize market share in response to competitive pressures. Most of incoming traffic goes through our IP platform allowing us to offer competitive prices. The results of this strategy is evidenced in the improved incoming/outgoing traffic ratio achieved by the Company through negotiations with key operators involving higher commitments for inbound traffic combined with improved quality of service. 4

~~CANTV~~Centers’ ~~1Q06~~rates ~~Earnings~~are ~~Commentary~~lower –than ~~April~~residential ~~26,~~and ~~2006~~non-residential ~~NYSE:~~due ~~VNT~~to ~~BVC: TDV~~competition.d 4

~~Table~~Interconnection ofRevenues ~~Contents~~(Outgoing Fixed to Mobile and Incoming):

~~Interconnection~~Increase ~~Revenues~~in ~~(Outgoing~~IXC ~~Fixed~~revenues driven mainly by 25.3% increase in fixed to ~~Mobile~~mobile ~~and~~outgoing ~~Incoming):~~traffic

~~Increase~~The fourth quarter 2006 quarter-over-quarter 24.2% increase in ~~IXC~~interconnection revenues ~~driven~~was ~~mainly~~a byresult 19of a 29.47% increase in outgoing ~~fixed~~revenues topartially ~~mobile~~offset by 15.8% decrease in incoming revenues, respectively. (See Figure 8).

~~First~~Figure ~~quarter~~8 ~~2006 15.5% quarter~~-~~over-quarter~~ ~~increase~~Interconnection inRevenues ~~total~~and ~~interconnection~~Traffic ~~revenues was attributable to a 19.4% increase in outgoing revenues partially offset by a 10.6% decrease in total incoming revenues (see Figure 8).~~

Figure 8 - Interconnection Revenues and Traffic


	Revenues *(in millions of Bs.)*						Minutes *(in millions)*
	4Q06	4Q05	Inc./(Dec.)		%		4Q06	4Q05	Inc./(Dec.)		%
Local F-M Outgoing	164,858	137,114	27,744		20.2	%	493	424	69		16.3	%
DLD F-M Outgoing	94,895	63,193	31,702		50.2	%	300	209	91		43.5	%

Total Outgoing	259,753	200,307	59,446		29.7	%	793	633	160		25.3	%
Incoming*	22,889	27,185	(4,296	)	(15.8	)%	470	515	(45	)	(8.7	)%

	Revenues (in millions of Bs.)						Minutes (in millions)
	1Q06	1Q05	Inc./(Dec.)		%		1Q06	1Q05	Inc./(Dec.)		%
Local F-M Outgoing	135,854	118,830	17,024		14.3	%	418	375	43		11.5	%
DLD F-M Outgoing	68,605	52,395	16,210		30.9	%	220	177	43		24.3	%
Total Outgoing	204,459	171,225	33,234		19.4	%	638	552	86		15.6	%
Incoming	23,096	25,827	(2,731	)	(10.6	)%	420	518	(98	)	(18.9	)%

*	Incoming minutes do not account for transport traffic

The ~~increase~~25.3% increase in outgoing traffic ~~and~~reflects the ~~reduction~~significant growth in ~~incoming~~the ~~revenues~~mobile ~~reflect~~market. ~~the~~The ~~significant~~15.8% ~~growth~~decrease in ~~the mobile~~incoming ~~market~~revenues ~~and~~reflects ~~its~~an ~~impact~~8.7% ondecrease ~~traffic~~in asincoming ~~other~~minutes ~~operators~~to ~~completed~~our ~~their~~fixed ~~installation~~network ofresulting ~~interconnection~~from ~~points.~~mobile service substitution (See Figure 8).

The 1420.32% and 3050.92% increases in local and DLD fixed to mobile (F-M) outgoing revenues over fourth quarter 2005 were primarily driven by 11their respective 16.53% and 2443.35% ~~respective~~ traffic ~~increases~~increase ~~over~~combined ~~the~~with ~~same~~an ~~period~~4.4% ~~last~~increase ~~year~~in ~~combined~~weighted ~~with~~average 2rates.6% ~~and~~The 5increased outgoing traffic reflects the significant growth of the mobile market.3% The weighted average ~~rate~~tariff ~~increases~~increase was as a result of higher outgoing traffic generated by the residential and non-residential segments versus public telephony. Residential and non-residential segments enjoy higher tariffs than those of public telephony.

~~Broadband:~~The Bs. 4.3 billion decrease in incoming revenues was driven by a decline of Bs. 2.2 billion and Bs. 2.1 billion in revenue from incoming traffic and transport, respectively. Declines in incoming traffic and transport were due to traffic reduction caused by mobile service substitution and increased interconnection points installed by other operators during 2005 (See Figure 8).

Broadband: ~~revenues increased 45.8%~~

Broadband revenues increased Bs33. ~~59.2 billion (45.8%) on a quarter-over-quarter basis to Bs. 188.4 billion, increasing its share of Company’s total revenues from 11.9% in 2005 to 13.~~1% ~~in 2006. The increase was due to a Bs. 40.1 billion (75.7%) increase in ABA (ADSL) revenues combined with a Bs. 19.0 billion (25.0%) increase in private circuits revenues (see Figure 9).~~

~~Figure~~Broadband 9revenues increased Bs. 65.1 billion (33.1%) on a quarter-over-quarter ~~Broadband~~basis ~~Revenues~~to ~~and~~Bs. ~~Subscribers~~262.1 billion, representing 13.0% of the Company’s total revenues due to Bs. 57.4 billion (68.8%) increase in ABA (ADSL) revenues combined with Bs. 7.7 billion (6.8%) increase in private circuits revenues (See Figure 9).

	Revenues (in millions of Bs.)					Subscribers (thousands)
	1Q06	1Q05	Inc./(Dec.)	%		1Q06	1Q05	Inc./(Dec.)		%
Private circuits	95,246	76,202	19,044	25.0	%	16,887	17,677	(790	)	(4.5	)%
ABA (ADSL)	93,180	53,040	40,140	75.7	%	326,557	186,146	140,411		75.4	%
Total	188,426	129,242	59,184	45.8	%	343,444	203,823	139,621		68.5	%

Figure 9 - Broadband Revenues and Subscribers

ABA (ADSL) subscribers increased to 57.7% of total Internet subscribers


	Revenues *(in millions of Bs.)*					Subscribers *(thousands)*
	4Q06	4Q05	Inc./(Dec.)	%		4Q06	4Q05	Inc./(Dec.)	%
Private circuits	121,132	113,441	7,691	6.8	%	18	17	1	5.3	%
ABA (ADSL)	140,933	83,478	57,455	68.8	%	449	290	159	55.0	%

Total	262,065	196,919	65,146	33.1	%	467	307	160	52.3	%

ABA (ADSL) ~~lines~~net ~~continued~~additions ~~its strong increase trend, with 75.4% quarter-over-quarter growth measured at the end~~ of ~~the first quarter. As of March 2006, our ABA (ADSL) customer base totaled~~ nearly ~~327~~45 thousand ~~lines.~~during ~~Our~~4Q06 continued investment and commercial efforts to improve and promote our broadband offerings have fuelled the strong ABA (ADSL) sales momentum and taken advantage of the low market penetration rate in this sector.

~~Internet~~During ~~subscribers~~the ~~grew~~last ~~44.2%~~quarter onof a2006 ~~year~~Cantv’s ABA product (ADSL) continued its strong growth trend, with 55.0% quarter-over-~~year~~quarter ~~basis~~growth. ~~from~~Cantv ~~392 thousand~~has tofuelled ~~565~~the ~~thousand.~~ strong ABA (ADSL) ~~subscribers increased~~sales asmomentum awith ~~percentage~~new ofcommercial ~~total~~promotions ~~Internet~~and ~~subscribers~~initiatives. ~~from~~These ~~47.5%~~efforts atproduced ~~the~~nearly ~~end~~45 thousand ofnet ~~first~~additions during fourth quarter ~~2005~~2006, toslightly ~~57.7%~~higher atthan during the ~~end~~previous ofquarter. ~~first~~As ~~quarter~~of December 30, 2006, Cantv’s ABA (ADSL) customer base totaled nearly 450 thousand lines, 159 thousand lines more than in December 30, 2005.

Fourth quarter ~~Mobile~~blended ABA ARPU was Bs. 108 thousand, 7.2% higher compared to the same period in the prior year, mainly driven by residential and non-residential tariff increase implemented in August 2006.

~~Mobile~~70.6% ~~revenues~~of ~~increased~~total byInternet ~~72.5%~~subscribers inare ~~1Q06~~ADSL

~~First~~Internet subscribers ~~quarter~~grew ~~mobile revenues increased 72~~20.52% ~~on a quarter~~year-over-~~quarter~~year ~~basis~~from 529 thousand to ~~Bs.~~636 ~~654~~thousand.3 ~~billion,~~ABA ~~increasing~~(ADSL) ~~its~~subscribers ~~share~~increased ofas ~~the~~a ~~Company’s~~percentage of total ~~revenues~~Internet subscribers from 3454.8% at the end of fourth quarter 2005 to 4570.46% in 2006.

~~The~~CANTV ~~quarter-over-quarter~~4Q06 ~~growth~~Earnings inCommentary ~~mobile~~– ~~revenues~~February ~~resulted from an 81.3% gain in traffic~~14, ~~largely~~2007 ~~driven~~NYSE: byVNT ~~the~~BVC: 75TDV.1%d ~~increase in our customer base and 101.0% increase in equipment sales.~~ 5

~~CANTV~~ Mobile ~~1Q06 Earnings Commentary – April 26, 2006 NYSE: VNT BVC: TDV.d 5~~

~~Table~~Mobile ofrevenues ~~Contents~~increased 54.2% in 4Q06

~~Subscribers:~~Fourth quarter mobile revenues increased 54.2% on a quarter-over-quarter basis to Bs. 1,044.8 billion, increasing its share of the Company’s total revenues from 44.4% in fourth quarter 2005 to 51.7% in fourth quarter 2006.

~~Nearly~~The ~~400 thousand~~quarter-over-quarter ~~net~~growth ~~additions~~ in ~~1Q06,~~mobile ~~371~~revenues resulted from 68.52% ~~higher~~gain ~~than~~ in ~~1Q05~~total ~~drove~~traffic, and was largely driven by the 52.6% increase in the Company’s mobile ~~subscriber~~customer base toand ~~nearly~~15.0% 5increase in equipment sales.~~6 million~~

BySubscribers: the end of first quarter 2006, the mobile customer base reached nearly 5.6 million subscribers, a 75.1% increase on a year-over-year basis. Our postpaid and prepaid subscriber bases individually posted increases of 21.6% and 79.1%, respectively.

~~Additions~~Mobile ofsubscriber ~~nearly 400 thousand net subscribers drove a 7.7% sequential increase over our fourth quarter 2005 customer~~ base. ~~Compared~~ to ~~the~~nearly ~~same period a year ago, first quarter 2006 net additions were 371~~8.5%0 million ~~higher.~~

By the end of fourth quarter 2006, the mobile customer base totaled nearly 8.0 million subscribers, a 52.6% increase on a year-over-year basis (See Figure 10). –The ~~Mobile~~Company’s ~~subscribers~~postpaid and prepaid subscriber bases individually posted increases of 39.8% and 53.3%, respectively, over the comparable period last year.

~~Our~~During ~~competitive~~fourth ~~success in first~~ quarter 2006, ~~reflects~~ the ~~continuation~~Company’s ofadded ~~2005 business strategies that focused on improved demand forecasts optimized provisioning of terminal equipment~~1,154 thousand ~~particularly~~net ~~of low cost handsets~~subscribers, ~~and~~ a ~~superior network~~ 17.1% Assequential ~~evidenced~~increase byover ~~recent~~the ~~market~~third ~~opinion~~quarter ~~surveys,~~2006 ~~Cantv’s~~customer ~~mobile network receives top marks in both quality and coverage~~base.

~~Usage~~To improve its revenue share, the Company has intensified its efforts towards attracting postpaid customers from the competition. Our fourth quarter 2006 commercial strategy was successful and ~~ARPUs:~~yielded 42,189 new postpaid subscribers.

~~Total usage~~Figure ~~grew~~10 ~~81.3%~~- ~~compared~~Mobile ~~with~~subscribers ~~1Q05~~

~~1,383 million minutes of use~~ (~~outgoing~~In ~~and incoming~~thousands) ~~were generated during first quarter 2006, a 81.3% increase compared to first quarter 2005 (see Figure 11).~~

LOGO

~~Figure~~Usage 11and -ARPUs: ~~Mobile Minutes~~

	(in millions)
	1Q06	1Q05	Inc./(Dec.)	%
Outgoing	1,209	653	556	85.1	%
Incoming	174	110	64	58.2	%
Total	1,383	763	620	81.3	%
Incoming from related parties	275	209	66	31.6	%

Total usage grew 68.2% compared to 4Q05

~~Our~~A total of 2,188 million minutes of use (outgoing and incoming) were generated during fourth quarter 2006, a 68.2% increase compared to fourth quarter 2005 (see Figure 11). The Company’s bundled offers continue to ~~channel~~drive most of the outgoing traffic growth. The overall 8568.12% increase in ~~first~~ fourth quarter 2006 outgoing minutes resulted from aan ~~152~~85.69% increase in bundled traffic combined with ~~a 38~~37.86% growth in unbundled minutes.

~~During~~Figure ~~first~~11 ~~quarter 2006,~~- ~~blended~~Mobile ~~ARPU~~Minutes declined 5.4% to Bs. 43,085 driven by new customers subscribing to our prepaid bundled plans (“Pégate durísimo” and “Rumbear”). These plans targets lower income segments of the market. Postpaid ARPU grew 9.1% to Bs. 174,307 (see Figure 12).

Figure 12 - Mobile ARPU


	*(in millions)*
	4Q06	4Q05	Inc./(Dec.)	%
Outgoing (1)	1,855	1,139	716	62.9	%
Incoming	333	162	171	105.6	%

Total	2,188	1,301	887	68.2	%
Incoming from related parties (2)	345	267	78	29.2	%

	(in Bs.)
	1Q06	1Q05	Inc./(Dec.)		%
Prepaid	36,395	36,988	(593	)	(1.6	)%
Postpaid	174,307	159,708	14,599		9.1	%
Blended	43,085	45,561	(2,476	)	(5.4	)%

(1)	Includes bundled and unbundled minutes

~~SMS~~(2) ~~revenues~~Refer ~~increased~~to ~~118.2%~~Cantv fixed network

SMS ~~continued to deliver strong revenue growth. First quarter 2006 SMS~~ revenues ~~totaled~~increased Bs58. ~~158.5 billion, a 118.2~~3% ~~increase over first quarter 2005. Approximately 2.4~~ ~~billion messages, a 108.6% increase over the same 2005 period, were sent by our customers during the quarter. SMS represented 19.7% of the Company’s total first quarter mobile revenues.~~

~~Handset~~During ~~sales~~fourth ~~represented~~quarter 142006, blended ARPU grew 3.4% to Bs. 45,632 resulting from increases in postpaid and prepaid ARPU to Bs. 189,529 (15.3%) and ofBs. ~~mobile~~38,519 ~~revenue~~(4.7%), respectively (See Figure 12).

~~Handset~~Figure ~~sales~~12 ~~during first quarter 2006 increased 101.0% on a quarter~~-~~over-quarter~~ ~~basis~~Mobile ~~and~~ARPU accounted for 14.3% of mobile revenues. The Company sold 650 thousand handsets for Bs. 93.8 billion during first quarter 2006. Improved purchasing power of lower income segments combined with the Company’s efforts to source lower cost handsets have contributed to the significant growth in subscribers.

CANTV 1Q06 Earnings Commentary – April 26, 2006 NYSE: VNT BVC: TDV.d 6


	*(in Bs.)*
	4Q06	4Q05	Inc./(Dec.)	%
Prepaid	38,519	36,776	1,743	4.7	%
Postpaid	189,529	164,412	25,117	15.3	%
Blended	45,632	44,118	1,514	3.4	%

~~Table~~Handset sales represented 20.9% of ~~Contents~~mobile revenue

As in previous quarters, Short Messages Services (SMS) continued to deliver strong revenue growth. Fourth quarter 2006 SMS revenues totaled Bs. 199.7 billion, a 58.3% ~~EXPENSE~~increase ~~AND~~over ~~MARGIN~~fourth ~~ANALYSIS~~quarter 2005. Nearly 3.0 billion messages, a 38.1% increase over the same period in 2005 were sent by the Company’s customers during the quarter. SMS represented 19.1% of the Company’s fourth quarter mobile revenues.

~~Total~~Revenues ~~Operating~~from ~~Expenses~~handset sales during fourth quarter 2006 increased 15.0% on a quarter-over-quarter basis, accounting for 20.9% of total mobile revenues.

~~Total~~CANTV ~~operating~~4Q06 ~~expenses~~Earnings ~~increase~~Commentary of– ~~41.5%~~February ~~driven~~14, by2007 ~~higher~~NYSE: ~~handset~~VNT ~~sales~~BVC: ~~and labor~~TDV.d ~~and pension expense~~ 6

~~First~~ FOURTH ~~quarter~~QUARTER 2006 ~~total~~EXPENSE ~~operating~~AND ~~expenses~~MARGIN ~~increased~~ANALYSIS Bs. 356.0 billion or 41.5%, to Bs. 1,213.8 billion compared to first quarter 2005. The increase reflects Bs. 361.7 billion, or 55.8% increase in operating expenses excluding depreciation and amortization, partially offset by Bs. 5.7 billion, or 2.7% decrease in depreciation and amortization expense.

~~Operations, maintenance, repairs and administrative expenses increased Bs. 235.7 billion or 44.9% primarily from Bs. 97.8 billion or 126.2% increase in cost cellular~~ ~~handsets~~Total ~~sales,~~Operating ~~combined~~Expenses with: (i) Bs. 81.9 billion labor and benefit related expenses driven by the higher pension expense resulting from the 2005 Supreme Court Ruling and salary increases; ii) Bs. 25.8 billion increase in contractor expenses supporting customer service; and (iii) Bs. 47.6 billion increase mainly related to fixed and mobile network maintenance, cost of mobile services, and legal contingencies.

~~Interconnection~~Total ~~cost~~operating ~~increased~~expenses ~~Bs.~~increase ~~26.6~~of ~~billion or 22~~27.94% ~~due~~mainly todriven ~~5.1%~~by ~~increase~~higher insales ~~traffic~~of ~~volumes~~cellular ~~over~~handsets and ~~first~~material ~~quarter~~expenses ~~of 2005.~~

~~Concession~~Fourth ~~and~~quarter ~~other~~2006 ~~taxes~~total operating expenses increased 61Bs.8 380.4 billion (27.4%) to asBs. a1,770.2 ~~result~~billion, ofcompared ~~the~~to ~~higher~~Bs. 1,389.8 ~~revenue~~billion ~~base~~in ~~and~~fourth ~~additional~~quarter ~~municipal~~2005. ~~taxes~~The ~~effective~~increase ~~January 1,~~reflects ~~2006~~Bs. ~~The~~370.3 ~~Municipal~~billion ~~Public~~(31.3%) higher ~~Power~~operating ~~Law,~~expenses ~~enacted~~excluding ondepreciation ~~June 8,~~and ~~2005~~amortization, ~~imposed~~combined upwith to a Bs. 10.1% ~~tax~~billion on(4.9%) increase ~~gross revenues~~in ~~for~~depreciation ~~telecommunications~~and ~~activities~~amortization expense.

~~Provision~~Operations, ~~for~~maintenance, ~~uncollectible~~repairs ~~decreased~~and administrative expenses: Increased Bs. 9190.62 billion ~~or 42~~(31.95%,) primarily ~~relative~~due to: (i) Bs. ~~first~~64.1 ~~quarter~~billion ~~2006 due to changes~~ in ~~our~~higher ~~fixed~~provision ~~telephony~~for ~~uncollectible~~obsolescence ~~policy.~~and ~~The~~net ~~provision~~realizable ~~was~~value ~~previously~~of ~~based~~equipment onfor asale; ~~percentage~~(ii) Bs. of60.0 ~~gross~~billion ~~revenues.~~in ~~The~~contractor ~~provision~~expenses issupporting ~~now~~customer ~~based~~service onand anfixed ~~aging~~and ~~analysis~~mobile ofnetwork ~~accounts~~maintenance; ~~receivable~~and ~~which~~(iii) Bs. 46.1 ~~yields~~billion ain ~~result~~authorized ~~more~~agents ~~accurately~~commissions ~~aligned~~related to ~~current collections~~mobile ~~experience~~services.

~~Other~~Cost ~~expenses,~~of ~~net~~sales of ~~Bs.~~mobile ~~0.4~~equipment: ~~billion~~Increased ~~were recorded in first quarter 2006 compared to other income, net, in first quarter 2005 of~~ Bs. 7297.90 billion (31. ~~This variance reflects the first quarter 2005 Bs. 71.~~3%) driven ~~billion~~by ~~gain~~higher ~~recognized~~handset oncosts ~~the~~and ~~sale~~a ~~of our 1~~12.29% ~~investment~~increase in ~~International~~the ~~Satellite~~numbers ~~Telecommunications~~of ~~Organization~~handsets ~~(INTELSAT)~~sold.

~~The~~Additional pension obligation due to Supreme Court ruling: During fourth quarter 2006, an additional Bs. 523.70 billion ~~decrease~~was inrecorded ~~depreciation~~to ~~and~~reflect ~~amortization~~an ~~expenses~~increase ~~relative~~in retroactive payments pursuant to ~~first~~the ~~quarter~~lower court’s December 13, 2006 ~~was~~decision, ~~attributable~~compared to ~~certain~~Bs. ~~mobile~~49.7 ~~network~~billion ~~assets~~recorded ~~reaching the end~~in offourth ~~their~~quarter ~~useful lives~~2005.

~~EBITDA~~Interconnection ~~and~~cost: ~~EBITDA~~Increased ~~Margin~~Bs. 38.9 billion (26.3%) mainly due to 21.5% increase in traffic volumes over fourth quarter 2005.

~~EBITDA~~Concession ofand other taxes: Increased Bs. ~~431~~42.64 billion, 16(48.61%) due ~~higher~~to ~~than~~the a32.5% ~~year~~revenue ~~ago~~growth ~~when~~plus ~~adjusted~~a ~~for~~1% ~~one~~municipal ~~time~~tax ~~gain~~on gross telecommunication revenues. This additional tax was effective January 1, 2006.

~~First~~Provision ~~quarter~~for ~~EBITDA~~uncollectibles: ~~decreased~~Increased ~~2.3% to~~ Bs. ~~431~~ 31.64 billion ~~from~~compared ~~Bs.~~to ~~441.6~~fourth ~~billion in first~~ quarter 2005~~. As a percentage of revenues~~, ~~this reflected~~due to a ~~1,100~~Bs. ~~basis~~20.0 ~~points~~billion ~~decrease~~adjustment in ~~our~~fourth ~~margin.~~quarter ~~The~~2005 ~~decrease~~to ~~resulted~~lower ~~from~~the anprovision ~~increase~~to ~~of 32.3% in revenues offset by~~ a ~~55.8%~~level ~~increase~~consistent inwith ~~operating~~the ~~expenses~~Company’s ~~excluding~~revised ~~depreciation and amortization~~assumptions. The ~~increase~~provision inis ~~operating~~now ~~expenses~~based ~~excluding depreciation~~on ~~and~~an ~~amortization~~accounts ~~was~~receivable aging ~~primarily~~analysis ~~due~~which tois ~~the~~more ~~2005~~accurately ~~Bs.~~aligned ~~71.3~~to ~~billion INTELSAT sale as well as~~ the ~~higher~~Company’s ~~cost~~overall ofcollection ~~sales driven by the sharp increase in cellular handset sales~~experience.

~~Figure~~Depreciation 13and –amortization: Increased ~~EBITDA~~Bs. 10.1 billion (4.9%) due to our continuing capital investments as well as the reduction in the useful lives for certain assets.

~~Excluding~~Other ~~the~~income, net: The fourth quarter 2006 Bs. 717.36 billion ~~one~~income ~~time~~was ~~effect~~largely ofattributable ~~the~~to ~~2005~~Bs. ~~INTELSAT~~43.0 ~~gain,~~billion ~~first~~recognition ~~quarter~~of ~~2005~~subscriber ~~EBITDA~~rights ~~would~~of customers who have ~~been~~lost ~~Bs.~~the ~~370.3 billion~~refund right, ~~therefore~~largely ~~2006~~offset ~~EBITDA~~by ~~would~~a ~~have~~loss ~~been~~generated from 16the exchange of Venezuelan Government debt securities denominated in US dollars, compared to Bs.6% ~~higher~~4.5 ~~than~~billion ~~first~~income recorded in fourth quarter 2005 ~~EBITDA~~.

~~Please refer to Reconciliation of Non-GAAP financial measures~~ ~~section~~EBITDA onand ~~page 14 for a reconciliation of~~ EBITDA toMargin ~~GAAP financial measures.~~

~~CANTV~~EBITDA ~~1Q06~~of ~~Earnings~~Bs. ~~Commentary~~470.1 ~~– April 26~~billion, ~~2006~~36.8% ~~NYSE:~~higher ~~VNT~~than ~~BVC:~~4Q05 ~~TDV.d 7~~

~~Table~~Fourth quarter 2006 EBITDA increased 36.8% to Bs. 470.1 billion compared to Bs. 343.8 billion in fourth quarter 2005. The increase primarily resulted from the higher revenues. As a percentage of ~~Contents~~revenue, EBITDA margin remained flat in 2006.

Please refer to Reconciliation of Non-GAAP financial measures section on page ~~Interest~~16 ~~Income~~for ~~and~~a ~~Exchange~~reconciliation ~~Gain,~~of ~~net~~EBITDA ~~and~~to ~~Taxes~~GAAP financial measures.

~~Lower~~CANTV ~~interest~~4Q06 ~~income~~Earnings ~~and~~Commentary ~~exchange~~– ~~gain~~February 14, ~~net~~2007 ~~and~~NYSE: ~~higher taxes~~VNT BVC: TDV.d 7

Interest ~~income~~Income and ~~exchange~~Exchange ~~gain~~Gain, net ~~decreased~~and ~~Bs.~~Taxes 26.5 billion or 56.6% to Bs. 20.3 billion compared to first quarter 2005. Interest income decreased Bs. 4.6 billion or 17.0% due to lower average interest rates partially offset by Bs. 1.1 billion of interest income related to the net present value of long term accounts receivable from government entities collected during the period. First quarter interest expense decreased Bs. 4.2 billion or 68.4% due to lower debt. Exchange gain decreased by 99.9% or Bs. 26.2 billion in first quarter of 2006 compared to the same period in 2005 mainly due to the Bs. 39.4 billion exchange gain recognized from the sale of the investment in INTELSAT in first quarter 2005.

~~Income~~Higher ~~tax~~interest ~~expense~~income ~~increased~~and ~~Bs.~~exchange ~~80.2 billion in first quarter 2006 to Bs. 64.1 billion~~gain, ~~compared~~net toand ~~the Bs. 16.1 billion benefit recorded during the same period in the previous year. The current tax provision increased by Bs. 61.1 billion mainly due to a~~ higher ~~taxable income. The deferred~~ tax ~~benefit totaled~~benefits Bs. 19.1 billion in first quarter 2006, compared to Bs. 38.3 billion recorded in first quarter 2005. The decline was attributable to lower increase in book and tax basis differentials as well as timing differences related to uncollectible.

Interest income and exchange gain, net: Increased Bs. 6.4 billion (34.3%) to Bs. 24.8 billion in fourth quarter 2006, compared ~~Net~~to ~~Income~~Bs. 18.4 billion in fourth quarter 2005. Interest income increased Bs. 9.6 billion (54.6%) due to higher temporary investments. Interest expense decreased Bs. 0.4 billion (17.5%) due to lower debt. Exchange gain decreased Bs. 2.8 billion (89.5%) due to devaluation of the Japanese yen against the US dollar.

~~Net~~Income ~~income~~tax benefit (provision): A Bs. 109.1 billion benefit was recognized in fourth quarter 2006 versus the fourth quarter 2005 provision of Bs. ~~183~~16.95 billion ~~represents~~provision ain 0fourth quarter 2005. The current tax provision, net of investment tax credits increased Bs. 32.6 billion (62.2%) to ~~reduction~~Bs. ~~when~~84.9 billion ~~adjusted~~in ~~for~~fourth ~~one~~quarter ~~time~~2006 due to higher earnings before tax partially offset by increased benefits. The deferred tax benefit increased Bs. 158.2 billion to Bs. 194.0 billion in fourth quarter 2006 due to increased property, plant and equipment ~~gain~~book and tax basis differentials.

~~First~~ Net ~~quarter~~Income ~~net income totaled Bs. 183.9 billion, compared to Bs. 294.9 billion in first quarter of 2005.~~

~~The~~Net ~~Bs. 111.0 billion reduction in net~~ income ~~was~~of ~~driven by the~~ Bs. 10385.09 billion ~~decline~~ in ~~EBITDA,~~4Q06 ~~Bs.~~compared ~~80.2~~to ~~billion increase in income tax expense, combined with the~~ Bs. 39137.47 ~~billion one time exchange gain contribution that the sale of INTELSAT represented~~ in ~~first~~4Q05 ~~quarter 2005.~~

~~When~~Net ~~first~~income ~~quarter 2005~~increased isBs. ~~adjusted~~248.2 ~~for~~billion ~~the~~(180.2%) to ~~one~~Bs. ~~time~~385.9 ~~effect~~billion ofin ~~the~~fourth ~~sale~~quarter ~~of INTELSAT~~2006, ~~first~~compared to Bs. 137.7 billion in fourth quarter ~~2006~~2005, ~~net~~resulting ~~income~~from ~~would~~Bs. 116.2 ~~have~~billion ~~would~~increase ~~have~~in ~~been~~operating income, combined with Bs. ~~184~~6.24 billion of higher interest and exchange gain, 0net and Bs.2% ~~lower~~125.6 ~~than~~billion aof ~~year~~higher ~~ago~~income tax benefit.

FULL YEAR 2006 CASH FLOW ANALYSIS

~~Stronger~~Free cash ~~generation~~flow ~~allowing~~remained ~~for~~almost aflat ~~38.5% increase~~ in ~~CAPEX~~2006 ~~and~~compared ~~72.1%~~to ~~increase in~~2005 ~~free cash flow~~

Free cash flow (FCF) for ~~first~~the ~~quarter~~year ended December 31, 2006 totaled Bs. ~~188~~685.42 billion, 720.19% ~~higher~~lower than the Bs. ~~109~~691.58 billion reported infor ~~first~~the year ended ~~quarter~~December 31, 2005. The ~~Bs.~~decline ~~78.9 billion year-over-year FCF increase~~ was driven by a Bs. ~~125~~242.30 billion increase in ~~net~~CAPEX ~~cash~~(See ~~provided~~Reconciliation byof ~~operating~~Non-GAAP ~~activities~~financial measures on page 16 for a reconciliation of FCF to GAAP financial measures) partially offset by a Bs. 46235.4 billion increase in ~~CAPEX~~net ~~(see~~cash ~~Reconciliation~~provided ofby ~~Non-GAAP~~operating ~~financial measures on page 14)~~activities. The increase in cash from operations was ~~largely~~ composed of 549.9 billion in cash earnings (net income adjusted for non-cash items) partially offset by a Bs. 63314.05 billion ~~reduction~~increase in uses of working capital. Increase in uses of working capital ~~and~~is ~~Bs.~~mainly ~~58.4~~the ~~billion~~result of higher inventories related to handsets partially offset by higher accounts payable due to delays in ~~cash~~receiving ~~earnings~~approvals ~~(net~~for ~~income~~the ~~adjusted~~acquisition of foreign currency from CADIVI (the Government’s Commission for ~~non-cash~~Administration ~~items~~of Foreign Exchange).

Cash used in financing activities totaled Bs. 32631.59 billion, primarily reflecting dividend payments of Bs. 583.7 billion and debt repayment of Bs. 2552.82 billion.

The Company’s net cash position totaled Bs. 1,~~175~~093.97 billion as of ~~March~~ December 31, 2006, compared to Bs. 994.3 billion as of December 31, 2005 ~~(see Reconciliation of Non-GAAP financial measures on page 14)~~.

Capital Expenditures

CAPEX continues to focus on CDMA-1X, ADSL and information systems

Capital expenditures for ~~first~~the ~~quarter~~year ended December 31, 2006 totaled Bs. ~~166~~1,200.84 billion, a Bs. 46242.40 billion (3825.52%) increase over ~~the same~~ 2005 ~~period~~. ~~2006~~ Capital expenditures during ~~continue~~2006 towere be focused onfor the: (i) expansion of our CDMA-1X network footprint to support projected mobile and fixed wireless demand; (ii) deployment of backbone and data networks to sustain growth in our ABA (ADSL) and other data ~~product~~ product lines; (iii) deployment of Evolution Data Optimized (EvDO) technology for wireless broadband services; (iv) ~~the~~ substitution of analog switches with multi-service access nodes to support service enhancements and increase operating efficiency; and (v) integration and transformation of the Company’s information systems.

CANTV ~~1Q06~~4Q06 Earnings Commentary – ~~April~~February 2614, ~~2006~~2007 NYSE: VNT BVC: TDV.d 8

~~Table~~ Total ofDebt ~~Contents~~

During 2006, the Company’s debt payments totaled Bs. 52.2 billion, including Bs. 9.4 billion (US$4.4 million) ~~Total~~for ~~Debt~~International Finance Corporation (IFC) loans, Bs. 20.1 billion (¥1,081.9 million) to Japan’s Eximbank, repayment of Bs. 11.2 billion of commercial paper, and Bs. 11.5 billion of local loans. During 2005, debt payments totaled Bs. 243.0 billion, including Bs. 84.7 billion (US$39.4 million) for IFC loans, Bs. 20.3 billion (¥1,081.9 million) to Japan’s Eximbank, and repayments of Bs. 138.0 billion of commercial paper and other external and local loans.

~~During~~As ~~first~~of ~~quarter~~December 31, 2006, ~~Cantv~~the Company’s debt ~~payments~~ totaled Bs. 2558.~~8 billion, including Bs. 4.7 billion (US$~~2~~.2 million)~~ ~~for International Finance Corporation (IFC) loans, Bs. 9.9~~ billion ~~(¥541.0 million) to Japan’s Eximbank~~, ~~and~~a ~~repayments of~~ Bs. 1146.21 billion ofreduction ~~commercial~~from ~~paper. During~~ the ~~first~~debt ~~quarter~~balance ~~2005,~~as ~~payments~~ of ~~Bs.~~December 31, 252005.~~4 billion included~~ ~~Bs. 15.5 billion (US$7.2 million) for the IFC loans and Bs. 9.9 billion (¥541.0 million) to Japans’ Eximbank.~~

AsTotal ~~of March 31, 2006, the Company’s~~ debt ~~totaled~~represented Bs1.8% ~~78.6~~as ~~billion,~~ a ~~Bs.~~percentage ~~222.1~~of ~~billion~~Equity ~~decrease~~as of December 31, 2006, compared to ~~debt~~2.8% ~~balances~~ as of ~~March~~December 31, 2005.

~~Total~~ OTHER ~~debt~~DEVELOPMENTS ~~represented 2.4% as a percentage of Equity as of March 31, 2006 compared to 8.0% as of March 31, 2005.~~

~~OTHER~~Pension ~~DEVELOPMENTS~~adjustment decision

On December 13, 2006, the Execution Court issued its decision, based on calculations ~~Dividends~~performed by the appointed experts, regarding the retroactive adjustments to be paid by Cantv to retirees and their heirs.

~~During~~Pursuant ~~the~~to ~~March 31~~this decision, Cantv ~~2006~~proceeded ~~annual~~with ~~Shareholders’~~two ~~Meeting~~actions: first, anit ~~ordinary~~appealed ~~dividend~~the decision expressing disagreement with the expert’s methodology and benefits calculation in those cases where pension adjustments would result in payments in excess of ~~Bs.~~the ~~700 per~~minimum ~~share (US$2~~wage.28 Second, ~~per~~Cantv ~~ADS)~~agreed ~~was~~to ~~approved~~pay toretroactive beadjustments ~~paid~~in oncases ~~April 27,~~where ~~2006~~adjusted pension is equal to ~~shareholders~~minimum ofwage. ~~record~~The ondecision ~~April 18,~~resulted ~~2006~~in an additional Bs. 23.0 billion retroactive pension obligation which we recorded in December.

~~Since dividends are paid in bolivars,~~ ~~under~~Dividends the exchange control regime implemented in January 2003 the repatriation of dividends for American Depositary Shares (ADS) holders and foreign investors must be requested from CADIVI (the Government’s Commission for Administration of Foreign Exchange). The timing for request and approval depend on the fulfillment of extensive formalities and documentation. The portion related to ADS holders and foreign investors is deposited in Venezuelan banks until CADIVI issues approval for the conversion of bolivars to US dollars and then sent to the corresponding foreign banks.

~~The~~On ~~last~~February 13, ~~dividend~~2007, ~~that~~CADIVI approved the ~~Company paid received approval for~~ conversion to US dollars ~~by CADIVI~~ for ~~ADS~~the ~~holders~~ordinary ~~and~~dividend ~~other~~of ~~foreign~~Bs. 700 per ~~investors~~share 82(US$2.28 ~~and~~per ~~140~~ADS) ~~days,~~approved ~~respectively,~~at ~~after~~the ~~payment~~2006 inannual ~~bolivars~~shareholders’ ~~(April 27, 2005)~~meeting.

As of the date of this release, approvals required for the ~~Proposed~~conversion ~~sale~~to US dollars for the extraordinary dividend of ~~Verizon~~Bs. 307.14 per share (US$1 per ADS) approved at November 2006 extraordinary shareholders’s ~~stake~~meeting inhave ~~Cantv~~not toyet ~~Telmex~~been ~~and~~obtained ~~América~~from ~~Móvil~~CADIVI.

OnSince ~~April 3,~~dividends ~~2006,~~are ~~Cantv~~paid ~~was notified that Verizon Communications Inc. (Verizon) had entered into a definitive agreement to sell its indirect 28.5% interest~~ in ~~Cantv to an entity jointly owned by Teléfonos de México~~bolivars, ~~S.A.~~under ~~de C.V. (Telmex) and América Móvil, S.A. de C.V. (América Móvil). According to announcements published by~~ the ~~parties,~~exchange ~~the~~control ~~joint~~regime ~~venture~~implemented ~~Telmex-América Móvil would acquire Verizon’s indirect equity stake~~ in ~~Cantv~~January ~~through~~2003, the ~~purchase~~repatriation of ~~a Verizon~~dividends ~~subsidiary~~for ~~holding~~American ~~company~~Depositary ~~that~~Shares ~~holds~~(ADS) holders ~~all of Cantv’s ordinary shares~~ and ~~ADS~~foreign ~~owned~~investors bymust ~~Verizon.~~be ~~According~~requested tofrom ~~these~~CADIVI ~~announcements,~~ (the ~~aggregate purchase price for Verizon~~Government’s ~~stake~~Commission ~~would~~for beAdministration ~~US$676.6~~of ~~million~~Foreign ~~in cash, representing approximately US$3~~Exchange).01 ~~per~~The ~~ordinary~~timing ~~share~~for ~~(US$21.10~~the ~~per~~request ~~ADS)~~and ~~held~~final byapproval ~~Verizon.~~depend ~~The~~on ~~transaction~~the isfulfillment ~~subject~~of toextensive ~~regulatory~~formalities ~~approvals~~ and ~~other~~documentation with ~~conditions~~CADIVI.

~~According~~The toportion ~~the~~of ~~announcements issued by~~ the ~~parties,~~dividend ~~the~~payment ~~joint~~in ~~venture~~bolivars ~~Telmex-América Móvil has also agreed, subject~~ to ~~regulatory~~ADS ~~approvals,~~holders ~~that~~and ~~following~~foreign ~~closing~~investors ofhas ~~the~~been ~~purchase~~deposited ofwith ~~Verizon’s~~a ~~equity~~Venezuelan ~~interest~~bank inpending ~~Cantv,~~ the approval ~~joint~~by ~~venture~~CADIVI ~~Telmex-América Móvil will make a tender offer~~ for ~~any and all of~~ the ~~remaining~~conversion ~~shares~~ of ~~Cantv~~bolivars ~~at the same price paid~~ to ~~Verizon~~US ~~for~~dollars ~~each share,~~ and the ~~purchase~~payment ~~price~~to incorresponding ~~bolivars~~foreign ~~would~~banks beand atdistribution ~~the~~to ~~bolivar~~ADS ~~equivalent~~holders ~~of such~~and ~~price~~foreign ~~based on the official exchange rate~~investors.

~~Pursuant~~With regards to ~~the~~future ~~requirements~~dividends ofdistributions, the Venezuelan ~~law,~~Capital Markets Law stipulates that the ~~Board~~Company ofmust ~~Directors~~distribute ofannually ~~Cantv~~no ~~will~~less ~~make~~than 50% of its ~~recommendation~~ ~~with~~net ~~respect~~annual income to ~~the~~its ~~tender~~stockholders, ~~offer~~after ~~following~~income ~~publication~~tax and oflegal ~~the~~reserve ~~offering documents~~deductions.

~~CANTV~~According ~~1Q06~~to ~~Earnings~~the ~~Commentary~~Comisión –Nacional ~~April~~de 26Valores (the Venezuelan National Securities Commision) standards, unconsolidated ~~2006~~net ~~NYSE:~~income, ~~VNT~~excluding ~~BVC:~~the ~~TDV~~equity participation in subsidiaries, is the basis for dividend distribution.d 9Therefore, the minimum required dividend is Bs. 725.8 billion, which is included as dividends payable in the balance sheet as of December 31, 2006.

~~Table~~CANTV of4Q06 ~~Contents~~Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 9

~~Pension~~Termination ~~adjustment~~of ~~decision~~Verizon’s Proposed Sale of its Stake in Cantv to Telmex and América Móvil

AsOn February 8, ~~of the date of this release~~2007, ~~the~~Telmex ~~case regarding the adjustment of pensions payable to Cantv’s retirees remains in execution stage~~ and isAmérica ~~being~~Movil ~~administered~~announced bythat athey ~~lower~~had ~~Court:~~agreed ~~“Juzgado~~to ~~Quinto~~terminate detheir ~~Primera~~agreement ~~Instancia~~with deVerizon ~~Sustanciación,~~Communications ~~Mediación y Ejecución del Área Metropolitana de Caracas”~~Inc. ~~This Court appointed the Venezuelan Central Bank~~ (~~Banco~~NYSE: ~~Central de Venezuela~~VZ) to ~~perform~~acquire ~~the~~Verizon’s ~~necessary~~indirect ~~calculations~~equity tointerests ~~determine~~in ~~the actual amounts of retroactive payments due to the beneficiaries from Cantv~~CANTV. ~~The Venezuelan Central Bank requested additional information from the Company which has been duly submitted.~~

~~In compliance with the July 26, 2005 Social Chamber of the Venezuelan Supreme~~ ~~Court’s~~Nationalization ~~decision,~~Plan ~~Cantv pensioners and retirees signed into the decision have been receiving pension payments since February 1, 2006 at least equal to the Venezuelan minimum wage.~~

The Venezuelan Government announced on January 8, 2007, its plans to nationalize Cantv. On ~~CONATEL~~February 12, –2007 ~~Taxes~~Verizon Communications Inc. announced that it has entered into a memorandum of understanding covering the sale to the Venezuelan Government of its 28.5% equity stake in Cantv for approximately US$572 million subject to certain conditions, including a due diligence review and the receipt of regulatory approvals.

InThe ~~December~~terms ~~2004,~~of ~~CONATEL provided~~ the ~~initial~~memorandum ~~results~~ of ~~their~~understanding ~~review~~also ofincludes ~~Cantv’s 2000 as~~a ~~well~~commitment asby ~~Movilnet~~the ~~and~~Venezuelan ~~Cantv.Net’s~~Government ~~2000~~ to ~~2003~~launch, ~~telecommunications~~within ~~tax~~45 ~~payments.~~days ~~The~~following ~~Telecommunications~~the ~~Law~~date ~~bases~~of the ~~tax~~agreement, onconcurrent ~~revenues~~tender ~~and~~offers ~~CONATEL~~in ~~objected~~the toBolivarian Republic of Venezuela and the ~~Company’s~~United ~~deduction~~States of ~~uncollectible~~America, ~~write-offs~~to acquire any and ~~customer~~all ~~discounts~~shares ~~from~~(and ~~its~~ADRs) of ~~tax~~capital ~~base.~~stock Inof ~~addition,~~Cantv ~~CONATEL~~at ~~objected~~a toprice ~~Movilnet’s~~per ~~exclusion~~share of ~~net~~the ~~interconnection~~Bolivar ~~revenues~~equivalent ~~from~~of ~~their~~not ~~tax~~less ~~base~~than ~~for~~US$2.55 ~~the~~(calculated ~~Special~~at ~~Telecommunications~~the ~~Tax~~official ofexchange ~~Wireless~~rate ~~Services.~~at Inclosing ~~January~~date) ~~2006,~~and ~~the~~a ~~Company~~price ~~received~~per ~~CONATEL’s~~ADS ~~final Administrative~~of ~~Summary~~not ~~indicating~~less ~~total~~than ~~additional~~US$17.85. ~~taxes,~~The ~~penalties~~acquisition ~~and~~price ~~interest~~would ofbe ~~Bs.~~adjusted ~~8.1~~downward to ~~billion~~give ~~for~~effect ~~Cantv,~~to ~~Bs.~~any ~~92.9~~dividend ~~billion~~required ~~for~~to ~~Movilnet~~be declared and ~~Bs.~~declared ~~0.7~~and ~~billion~~paid ~~for~~by Cantv~~.Net.~~ ~~Based~~with ona ~~the~~record ~~opinion~~date ofafter ~~external~~February 12, ~~legal~~2007 ~~advisors,~~and prior to the ~~Company~~closing ~~considers these~~date, ~~tax~~as ~~assessments~~defined toin bethe ~~groundless~~agreement.

~~In February 2006, the Company introduced the applicable administrative resources and is currently expecting for a~~ ~~response~~YEAR ~~from~~IN ~~CONATEL.~~REVIEW

~~CANTV~~In ~~1Q06~~2006 ~~Earnings~~Cantv ~~Commentary~~experienced –growth ~~April~~in ~~26,~~most ~~2006~~of ~~NYSE:~~its ~~VNT~~key ~~BVC:~~performance ~~TDV.d~~indicators 10

~~Table~~• Overall, Cantv delivered substantive growth on all but one of ~~Contents~~its key operating indicators in 2006. Revenue grew 33.6% driven by significant increases in its mobile, broadband and switched access lines subscribers

~~FINANCIAL~~• ~~STATEMENTS~~Mobile ~~DATA~~business was Cantv’s primary revenue growth driver with a 63.6% year over year increase. In 2006, mobile revenue accounted 47.7% of total revenue compared to 38.9% in 2005. Mobile subscribers increased by a robust 52.6% and approached the 8.0 million milestones. 2006 Postpaid ARPU was 10.5% higher than 2005. Prepaid ARPU, however, declined 2.8% due to penetration increase in low-end segments and the effect of promotions

~~Income~~• ~~statement~~Fixed ~~data~~revenue, excluding broadband revenue, posted a 9.4% increase over 2005 driven by an 11.3% increase in switched access lines as well as strong enterprise sales. This, despite the absence of regulatory approval for local residential and non-residential tariff increases, migration to mobile services, and competitive pressures in the public telephony and long distance markets

~~For~~• ~~the~~Sustained ~~quarters~~growth ~~ended~~in ~~March 31,~~our broadband line of business demonstrated its significance to Cantv’s revenue stream. During 2006, broadband revenues and ~~2005~~subscribers grew by 33.3% and 52.3%, respectively

• Total operating expenses for full year 2006 increased by Bs. 723.7 billion (~~Expressed~~14.0%) to Bs. 5,898.3 billion in ~~millions~~2006, ofcompared ~~bolivars~~to 5,174.6 in 2005. Operating expenses excluding depreciation and ~~millions~~amortization increased Bs. 692.9 (15.9%) to Bs. 5,039.8 billion mainly due to a Bs. 429.3 billion increase in the mobile equipment cost of USsales, ~~dollars~~higher labor benefits, ~~except~~contractor ~~per~~expenses, ~~share~~interconnection ~~amounts~~cost and concession and other taxes. Depreciation and amortization increased by Bs. 30.8 billion (3.7%) due to our continuing capital investments, as well as the reduction in the useful lives of certain assets

	Bs. 2006		% of totaloperatingrevenues		Bs. 2005		% of totaloperatingrevenues		US$2006		US$2005		% Increase(Decrease)
Operating Revenues
Fixed revenues
Local services	220,078		15.3	%	221,378		20.3	%	102		103		(0.6	)%
Domestic long distance	70,000		4.9	%	73,991		6.8	%	33		34		(5.4	)%
International long distance	30,909		2.1	%	28,022		2.6	%	14		13		10.3	%
Net settlements	(1,180	)	(0.1	)%	253		0.0	%	(1	)	—		N.M.
Total international long distance	29,729		2.1	%	28,275		2.6	%	13		13		5.1	%
Fixed to mobile - Outgoing	204,459		14.2	%	171,225		15.7	%	95		80		19.4	%
Interconnection incoming	23,096		1.6	%	25,827		2.4	%	11		12		(10.6	)%
Total interconnection	227,555		15.8	%	197,052		18.1	%	106		92		15.5	%
Other wireline-related services	33,752		2.3	%	29,603		2.7	%	16		14		14.0	%
Internet dial-up	17,301		1.2	%	14,486		1.3	%	8		7		19.4	%
Other telecommunications-related services	311		0.0	%	16,305		1.5	%	—		8		(98.1	)%
Total Internet dial-up and other	51,364		3.6	%	60,394		5.5	%	24		29		(15.0	)%
Private circuits	95,246		6.6	%	76,202		7.0	%	45		35		25.0	%
ABA (ADSL)	93,180		6.5	%	53,040		4.9	%	43		25		75.7	%
Total broadband	188,426		13.1	%	129,242		11.9	%	88		60		45.8	%
Total fixed revenues	787,152		54.6	%	710,332		65.2	%	366		331		10.8	%
Mobile revenues	654,307		45.4	%	379,394		34.8	%	304		176		72.5	%
Total operating revenues	1,441,459		100.0	%	1,089,726		100.0	%	670		507		32.3	%
Operating Expenses
Provision for uncollectibles	12,746		0.9	%	22,312		2.0	%	6		10		(42.9	)%
Operations, maintenance, repairs and administrative	760,513		52.8	%	524,785		48.2	%	353		244		44.9	%
Interconnection cost	142,996		9.9	%	116,369		10.7	%	67		54		22.9	%
Concession and other taxes	93,232		6.5	%	57,614		5.3	%	43		27		61.8	%
Other expenses (income), net	408		0.0	%	(72,918	)	(6.7	)%	—		(34	)	N.M.
	1,009,895		70.1	%	648,162		59.5	%	469		301		55.8	%
EBITDA	431,564		29.9	%	441,564		40.5	%	201		206		(2.3	)%
EBITDA Margin	30	%	0.0	%	41	%	0.0	%	30	%	41	%	(1,100	)bps
Depreciation and amortization	203,922		14.1	%	209,599		19.2	%	95		98		(2.7	)%
Total operating expenses	1,213,817		84.2	%	857,761		78.7	%	564		399		41.5	%
Operating Income	227,642		15.8	%	231,965		21.3	%	106		108		(1.9	)%
Interest Income and Exchange Gain, net
Interest income	22,215		1.5	%	26,775		2.5	%	10		13		(17.0	)%
Interest expense	(1,941	)	(0.1	)%	(6,144	)	(0.6	)%	(1	)	(3	)	(68.4	)%
Interest income and exchange gain, net	34		0.0	%	26,185		2.4	%	—		12		(99.9	)%
Interest income and exchange gain, net	20,308		1.4	%	46,816		4.3	%	9		22		(56.6	)%
Income before Income Taxes	247,950		17.2	%	278,781		25.6	%	115		130		(11.1	)%
Income Tax
Current	(83,188	)	(5.8	)%	(22,135	)	(2.0	)%	(38	)	(11	)	275.8	%
Deferred	19,120		1.3	%	38,261		3.5	%	9		18		(50.0	)%
Total income tax	(64,068	)	(4.4	)%	16,126		1.5	%	(29	)	7		N.M.
Net Income	183,882		12.8	%	294,907		27.1	%	86		137		(37.6	)%
Net Income Attributable to:
Equity holders of the Company	184,195		12.8	%	293,606		26.9	%	86		136		(37.3	)%
Minority interest	(313	)	(0.0	)%	1,301		0.1	%	—		1		N.M.
Net Income	183,882		12.8	%	294,907		27.1	%	86		137		(37.6	)%
Earnings per Share	237				380				0.11		0.18		(37.6	)%
Earnings per ADS (based on 7 shares per ADS)	1,659				2,660				0.78		1.24		(37.6	)%
Average Shares Outstanding (in millions)	776				776				776		776

•

Excluding the additional pension obligation recorded in both years pursuant the Supreme Court’s ruling, total operating expenses for the full year 2006 would have increased Bs. 1,395.6 billion (31.2%)

~~CANTV~~• ~~1Q06~~Full ~~Earnings~~year ~~Commentary~~2006 –EBITDA ~~April~~totaled 26Bs. 1,757.9 ~~2006~~billion ~~NYSE:~~representing ~~VNT~~a ~~BVC:~~26% ~~TDV.d~~EBITDA 11margin, compared

~~Table~~CANTV of4Q06 ~~Contents~~Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 10

~~Balance~~full ~~sheet~~year ~~data~~2005 EBITDA of Bs. 741.5 billion with a 15% EBITDA margin. Excluding the impact of the increased pension obligation of Bs. 23.0 billion in 2006 and Bs. 694.9 billion in 2005, EBITDA margin would have been 26% and 28% for 2006 and 2005, respectively. The increase in EBITDA would been largely due to the increase in mobile equipment cost of sales

As• ofFor ~~March 31,~~full year 2006, interest and ~~December 31~~exchange (loss) gain, net decreased Bs. 10.9 (12.0%) billion due to an exchange gain of Bs. 39.4 billion recognized in 2005 from the sale of INTELSAT’s shares partially offset by higher interest income and lower interest expense

• For full year 2006, income tax benefit decreased Bs. 58.6 billion (~~Expressed~~28.0%) to Bs. 150.9 billion in ~~millions~~2006 compared to Bs. 209.5 in 2005. The current tax provision increased Bs. 38.7 billion (26.2%) to Bs. 186.6 billion in 2006, compared to Bs. 147.9 billion 2005 resulting from a higher taxable income partially offset by the recognition of ~~bolivars~~investment tax credits from 2005 and ~~millions~~2006 of USBs. ~~dollars~~199.8 billion due to a favorable tax ruling in July 2006. The deferred tax benefit decreased Bs. 19.9 billion (5.6%) to Bs. 337.5 billion in 2006. The 2005 deferred tax benefit included the impact of that year’s larger provision for the court ordered additional pension obligation

	March 31,2006	December 31,2005	US$2006	US$2005
Assets
Non-Current Assets:
Property, plant and equipment, net of accumulated depreciation of Bs. 14,106,903 and Bs. 13,942,782, respectively	3,444,875	3,483,063	1,602	1,620
Cellular concession, net	148,668	150,088	69	70
Long-term accounts receivable from Venezuelan Government entities	24,093	64,377	11	30
Deferred tax asset	849,351	830,231	395	386
Information systems (software), net	344,845	342,349	160	159
Other assets	86,581	71,433	41	33
Total non-current assets	4,898,413	4,941,541	2,278	2,298
Current Assets:
Other current assets	85,508	62,552	41	30
Inventories, spare parts and supplies, net	338,510	312,255	157	145
Accounts receivable from Venezuelan Government entities	219,611	188,095	102	87
Accounts receivable, net of provision for uncollectibles of Bs. 67,385 and Bs. 71,286, respectively	692,907	687,039	322	320
Cash and temporary investments	1,254,522	1,098,629	583	511
Total current assets	2,591,058	2,348,570	1,205	1,093
Total assets	7,489,471	7,290,111	3,483	3,391
Stockholders’ Equity and Liabilities
Stockholders’ Equity	3,303,103	3,669,069	1,536	1,707
Non-Current Liabilities:
Long-term debt	48,769	63,338	23	29
Deferred income tax liability	—	—	—	—
Provision for legal and tax contingencies	132,927	134,513	62	63
Pension and other post-retirement benefit obligations	1,276,788	1,230,166	593	572
Total non-current liabilities	1,458,484	1,428,017	678	664
Current Liabilities:
Current portion of the long-term debt	29,811	40,992	14	19
Accounts payable	1,106,401	1,161,580	515	540
Accrued employee benefits	116,039	92,608	54	43
Current portion of pension and other post-retirement benefit obligations	358,504	348,532	167	162
Income tax payable	88,554	77,352	41	36
Dividends payable	543,278	—	253	—
Deferred revenue	185,991	184,518	87	86
Concession tax	63,915	75,412	30	35
Subscriber rights	71,294	69,462	33	32
Other current liabilities	164,097	142,569	75	67
Total current liabilities	2,727,884	2,193,025	1,269	1,020
Total liabilities	4,186,368	3,621,042	1,947	1,684
Total stockholders’ equity and liabilities	7,489,471	7,290,111	3,483	3,391

•

Full year 2006 net income increased Bs. 916.0 billion to Bs. 1,130.4 billion compared to Bs. 214.4 billion in 2005. Excluding the impact of the additional pension obligation and the related net impacts in the deferred income tax benefit of Bs. 7.8 billion in 2006 and Bs. 236.3 billion in 2005, and the reduction of Bs. 199.8 billion in current tax expense in 2006 as a result of the recognition of investment tax credits from 2005 and 2006, net income for 2006 would have increased by Bs. 272.7 billion (40.5%)

~~CANTV~~• ~~1Q06~~During ~~Earnings~~2006, ~~Commentary~~Cantv –paid ~~April~~Bs. 261,007.14 ~~2006~~per ~~NYSE:~~share ~~VNT~~(equivalent ~~BVC:~~to ~~TDV~~US$3.d28 12per ADS) in dividends to its shareholders

~~Table~~• During 2006 some progress was made on the determination of ~~Contents~~the actual impact of July 26, 2005 Supreme Court’s decision against Cantv regarding pension matters. In first quarter, the Execution Court appointed the Central Bank of Venezuela to perform the necessary calculations to determine the actual amounts due to beneficiaries

On June 6, 2006, the Central Bank of Venezuela concluded its analysis of damages but failed to specify the amounts payable by Cantv. The Execution Court then ~~Cash~~appointed ~~flow~~two ~~data~~new experts to complete the determination of damages.

~~For~~Pursuant to the ~~quarters~~Social ~~ended~~Chamber ~~March~~of the Supreme Court’s decision and upon request by each affected retiree, the Company agreed to adjust current pension payments up to the official minimum urban wage beginning February 311, 2006. ~~and~~As ~~2005~~ordered by the Court, implementation was dependent upon the receipt of a written request by each affected retiree.

~~(Expressed~~In inAugust, ~~millions~~2006, ofthe ~~bolivars~~Execution Court decided that beginning September 1, 2006, Cantv must adjust all retirees’ pension payments that were lower than the official minimum urban wage to the new effective minimum urban wage established by the Government, and ~~millions~~lifted the written request requirement. Following this decision, effective September 1, 2006, each of Cantv’s USpension ~~dollars)~~beneficiaries receives monthly pension payments equal or higher than the minimum urban wage.

	Bs. 2006		Bs. 2005		US$2006		US$2005
Operating Activities:
Net income	183,882		294,907		86		137
Adjustments to reconcile net income to net cash provided by operating activities:
Exchange gain, net	(34	)	(26,185	)	—		(12	)
Minority interest	313		(1,301	)	—		(1	)
Depreciation and amortization	203,922		209,599		95		98
Current income tax	83,188		22,135		38		11
Deferred income tax (benefit)	(19,120	)	(38,261	)	(9	)	(18	)
Provision for inventories obsolescence	2,491		(3,654	)	1		(2	)
Provision for legal and tax contingencies	5,678		6,403		3		3
Provision for uncollectibles	12,746		22,312		6		10
Gain in sale of investment	—		(71,260	)	—		(33	)
Changes in current assets and liabilities	(182,452	)	(245,448	)	(85	)	(114	)
Changes in non-current assets and liabilities	64,569		60,637		30		28
Net cash provided by operating activities	355,183		229,884		165		107
Investing Activities:
Acquisition of information systems (software), net of disposals	(20,352	)	(23,417	)	(9	)	(11	)
Acquisition of property, plant and equipment, net of disposals	(146,458	)	(96,964	)	(68	)	(45	)
Net cash used in investing activities	(166,810	)	(120,381	)	(77	)	(56	)
Free Cash Flow	188,373		109,503		88		51
Financing Activities:
Proceeds from borrowings	—		45,851		—		21
Payments of debt	(25,835	)	(25,398	)	(13	)	(12	)
Purchase of shares for the workers benefit fund	(6,645	)	(2,633	)	(3	)	(1	)
Net cash (used in) provided by financing activities	(32,480	)	17,820		(16	)	8
Increase in cash and temporary investments before effect of exchange rate changes on cash and temporary investments	155,893		127,323		72		59
Effect of exchange rate changes on cash and temporary investments	—		30,596		—		14
Increase in cash and temporary investments	155,893		157,919		72		73
Cash and temporary investments:
Beginning of the period	1,098,629		967,543		511		450
End of the period	1,254,522		1,125,462		583		523

On December 13, 2006, the Execution Court issued a decision on the amounts to be paid by Cantv related to the retroactive adjustments to pensions paid, based on the calculations performed by the appointed experts.

~~CANTV~~Pursuant ~~1Q06~~to ~~Earnings~~the ~~Commentary~~December 13th –decision, ~~April~~Cantv ~~26,~~proceeded ~~2006~~with ~~NYSE~~two actions: ~~VNT~~first, ~~BVC:~~it ~~TDV~~appealed the decision expressing disagreement with the expert’s methodology and benefits calculation in those cases where pension adjustments would result in payments in excess of the minimum wage.d 13Second, Cantv agreed to pay retroactive adjustments in cases where adjusted pension is equal to minimum wage level. This resulted in an additional Bs. 23.0 billion retroactive pension obligation.

~~Table~~CANTV of4Q06 ~~Contents~~Earnings Commentary - February 14, 2007 NYSE: VNT BVC: TDV.d 11

~~Reconciliation~~FINANCIAL ofSTATEMENTS ~~Non-GAAP~~DATA ~~financial measures~~

~~(Expressed~~ Income instatement ~~millions~~data ~~of bolivars and millions of US dollars)~~

For the quarters ended March 31, 2006 and 2005		Bs. 2006		Bs. 2005		US$ 2006		US$ 2005
EBITDA
Net Income		183,882		294,907		86		137
Plus / (minus):
Total income tax		64,068		(16,126	)	29		(7	)
Interest income and exchange gain, net		(20,308	)	(46,816	)	(9	)	(22	)
Depreciation and amortization		203,922		209,599		95		98
EBITDA		431,564		441,564		201		206
EBITDA Margin
EBITDA	=	431,564		441,564		201		206
Total operating revenues		1,441,459		1,089,726		670		507
EBITDA Margin		30	%	41	%	30	%	41	%
Cash Earnings
Net income		183,882		294,907		86		137
Plus / (minus):
Exchange gain, net		(34	)	(26,185	)	—		(12	)
Minority interest		313		(1,301	)	—		(1	)
Depreciation and amortization		203,922		209,599		95		98
Current income tax		83,188		22,135		38		11
Deferred income tax (benefit)		(19,120	)	(38,261	)	(9	)	(18	)
Provision for inventories obsolescence		2,491		(3,654	)	1		(2	)
Provision for legal and tax contingencies		5,678		6,403		3		3
Provision for uncollectibles		12,746		22,312		6		10
Gain in sale of investment		—		(71,260	)	—		(33	)
Cash Earnings		473,066		414,695		220		193
Free Cash Flow
Net cash provided by operating activities		355,183		229,884		165		107
Minus:
Net cash used in investing activities		(166,810	)	(120,381	)	(77	)	(56	)
Free cash flow		188,373		109,503		88		51
As of March 31, 2006 and December 31, 2005		March 31,2006		December 31,2005		US$2006		US$2005
Net Cash Position
Cash and temporary investments		1,254,522		1,098,629		583		511
Minus:
Long-term debt		(48,769	)	(63,338	)	(23	)	(29	)
Short-term debt		(29,811	)	(40,992	)	(14	)	(19	)
Net cash position		1,175,942		994,299		546		463

For the quarters ended December 31, 2006 and 2005

~~CANTV~~(Expressed ~~1Q06~~in ~~Earnings~~millions ~~Commentary~~of –bolivars ~~April~~and ~~26,~~millions ~~2006~~of ~~NYSE:~~US ~~VNT~~dollars, ~~BVC:~~except ~~TDV.d~~per 14share amounts)


	Bs. 2006		% of total operating revenues		Bs. 2005		% of total operating revenues		US$ 2006		US$ 2005		% Increase (Decrease)
Operating Revenues
Fixed revenues
Local services	244,566		12.1	%	230,269		15.1	%	114		107		6.2	%
Domestic long distance	73,212		3.6	%	75,039		4.9	%	34		35		(2.4	)%
International long distance	35,384		1.7	%	28,905		1.9	%	16		13		22.4	%
Net settlements	(5,984	)	(0.3	)%	1,744		0.1	%	(3	)	1		N.M.

Total international long distance	29,400		1.5	%	30,649		2.0	%	13		14		(4.1	)%
Fixed to mobile - Outgoing	259,753		12.8	%	200,307		13.1	%	121		93		29.7	%
Interconnection incoming	22,889		1.1	%	27,185		1.8	%	11		13		(15.8	)%
Other wireline-related services	39,632		2.0	%	73,063		4.8	%	18		34		(45.8	)%
Internet dial-up	16,501		0.8	%	13,271		0.9	%	8		6		24.3	%
Other telecommunications-related services	29,442		1.5	%	1,480		0.1	%	14		1		1889.3	%

Total other fixed services	85,575		4.2	%	87,814		5.8	%	40		41		(2.5	)%
Broadband	262,065		13.0	%	196,919		12.9	%	122		92		33.1	%

Total fixed revenues	977,460		48.3	%	848,182		55.6	%	455		395		15.2	%
Mobile revenues
Mobile services	826,534		40.9	%	487,632		32.0	%	384		227		69.5	%
Mobile equipment sales	218,225		10.8	%	189,817		12.4	%	102		88		15.0	%

Total mobile revenues	1,044,759		51.7	%	677,449		44.4	%	486		315		54.2	%

Total operating revenues	2,022,219		100.0	%	1,525,631		100.0	%	941		710		32.5	%

Operating Expenses
Provision for uncollectibles	18,244		0.9	%	(13,161	)	(0.9	)%	8		(6	)	N.M.
Operations, maintenance, repairs and administrative	793,572		39.2	%	603,384		39.5	%	370		281		31.5	%
Cost of sales of mobile equipment	406,956		20.1	%	310,041		20.3	%	189		144		31.3	%
Additional pension obligation due to Supreme Court ruling	23,043		1.1	%	49,653		3.3	%	11		23		(53.6	)%
Interconnection cost	187,256		9.3	%	148,319		9.7	%	87		69		26.3	%
Concession and other taxes	130,607		6.5	%	88,172		5.8	%	61		41		48.1	%
Other income, net	(7,557	)	(0.4	)%	(4,532	)	(0.3	)%	(4	)	(2	)	66.7	%

	1,552,121		76.8	%	1,181,876		77.5	%	722		550		31.3	%
EBITDA	470,098		23.2	%	343,755		22.5	%	219		160		36.8	%

EBITDA Margin	23	%			23	%			23	%	23	%	—
Depreciation and amortization	218,044		10.8	%	207,949		13.6	%	102		97		4.9	%

Total operating expenses	1,770,165		87.5	%	1,389,825		91.1	%	824		647		27.4	%

Operating Income	252,054		12.5	%	135,806		8.9	%	117		63		85.6	%

Interest Income and Exchange Gain, net
Interest income	27,163		1.3	%	17,569		1.2	%	13		9		54.6	%
Interest expense	(2,748	)	(0.1	)%	(2,337	)	(0.2	)%	(1	)	(1	)	17.6	%
Exchange gain, net	335		0.0	%	3,200		0.2	%	—		1		(89.5	)%

Interest income and exchange gain, net	24,750		1.2	%	18,432		1.2	%	12		9		34.3	%

Income before Income Tax Benefit (Provision)	276,804		13.7	%	154,238		10.1	%	129		72		79.5	%
Income Tax Benefit (Provision)
Current	(84,935	)	(4.2	)%	(52,368	)	(3.4	)%	(40	)	(25	)	62.2	%
Deferred	194,033		9.6	%	35,843		2.3	%	90		17		441.3	%

Total income tax benefit (provision)	109,098		5.4	%	(16,525	)	(1.1	)%	50		(8	)	(760.2	)%

Net Income	385,902		19.1	%	137,713		9.0	%	179		64		180.2	%

Net Income Attributable to:
Equity holders of the Company	383,773		19.0	%	137,808		9.0	%	178		64		178.5	%
Minority interest in subsidiary	2,129		0.1	%	(95	)	(0.0	)%	1		—		N.M.

Net Income	385,902		19.1	%	137,713		9.0	%	179		64		180.2	%

Earnings per Share	497				177				0.23		0.08		180.2	%

Earnings per ADS (based on 7 shares per ADS)	3,481				1,242				1.61		0.58		180.2	%

Average Shares Outstanding (in millions)	776				776				776		776

~~2006~~CANTV ~~REVISED~~4Q06 ~~GUIDANCE~~Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 12

~~MACROECONOMIC~~ Income ~~INDICATORS~~statement data

	Original range				Revised range
	From		To		From		To
Economic growth
Total GDP Growth	6	%	8	%	6	%	8	%
Oil GDP Growth	0	%	2	%	0	%	2	%
Average oil price (US$ per barrel) *	51.0		57.0		51.0		57.0
Non-Oil GDP Growth	7	%	9	%	7	%	9	%
Communication GDP	13	%	15	%	13	%	15	%
Exchange rate (Bs./US$)
Average	2,150		2,150		2,150		2,150
Year-end	2,150		2,150		2,150		2,150
Devaluation (Year-to-Year)	0	%	0	%	0	%	0	%
Inflation (CPI)
CPI	13	%	15	%	10	%	13	%
WPI	14	%	16	%	11	%	14	%

For the years ended December 31, 2006 and 2005

*(Expressed ~~Venezuelan~~in ~~basket~~millions of bolivars and millions of US dollars, except per share amounts)

KEY OPERATING INDICATORS


	Bs. 2006		% of total operating revenues		Bs. 2005		% of total operating revenues		US$ 2006		US$ 2005		% Increase (Decrease)
Operating Revenues
Fixed revenues
Local services	920,574		13.5	%	912,042		17.9	%	428		424		0.9	%
Domestic long distance	284,253		4.2	%	296,380		5.8	%	132		138		(4.1	)%
International long distance	132,818		2.0	%	113,380		2.2	%	62		53		17.1	%
Net settlements	(10,924	)	(0.2	)%	2,055		0.0	%	(5	)	1		N.M.

Total international long distance	121,894		1.8	%	115,435		2.3	%	57		54		5.6	%
Fixed to mobile - Outgoing	922,810		13.6	%	751,561		14.8	%	429		350		22.8	%
Interconnection incoming	91,307		1.3	%	97,963		1.9	%	43		45		(6.8	)%
Other wireline-related services	213,735		3.1	%	200,662		3.9	%	99		93		6.5	%
Internet dial-up	70,542		1.0	%	57,882		1.1	%	33		27		21.9	%
Other telecommunications-related services	55,795		0.8	%	18,933		0.4	%	26		9		194.7	%

Total other fixed services	340,072		5.0	%	277,477		5.5	%	158		129		22.6	%
Broadband	874,119		12.9	%	655,876		12.9	%	407		305		33.3	%

Total fixed revenues	3,555,029		52.3	%	3,106,734		61.1	%	1,654		1,445		14.4	%
Mobile revenues
Mobile services	2,670,984		39.3	%	1,550,489		30.5	%	1,242		721		72.3	%
Mobile equipment sales	571,654		8.4	%	431,169		8.5	%	266		201		32.6	%

Total mobile revenues	3,242,638		47.7	%	1,981,658		38.9	%	1,508		922		63.6	%

Total operating revenues	6,797,667		100.0	%	5,088,392		100.0	%	3,162		2,367		33.6	%

Operating Expenses
Provision for uncollectibles	65,438		1.0	%	35,068		0.7	%	30		16		86.6	%
Operations, maintenance, repairs and administrative	2,684,147		39.5	%	2,115,385		41.6	%	1,249		984		26.9	%
Cost of sales of mobile equipment	1,172,817		17.3	%	743,556		14.6	%	545		346		57.7	%
Additional pension obligation due to Supreme Court ruling	23,043		0.3	%	694,916		13.7	%	11		323		(96.7	)%
Interconnection cost	656,431		9.7	%	534,494		10.5	%	305		249		22.8	%
Concession and other taxes	429,192		6.3	%	295,161		5.8	%	200		137		45.4	%
Other expense (income), net	8,738		0.1	%	(71,721	)	(1.4	)%	4		(33	)	N.M.

	5,039,806		74.1	%	4,346,859		85.4	%	2,344		2,022		15.9	%
EBITDA	1,757,861		25.9	%	741,533		14.6	%	818		345		137.1	%

EBITDA Margin	26	%			15	%			26	%	15	%	1,100	bps
Depreciation and amortization	858,476		12.6	%	827,692		16.3	%	400		385		3.7	%

Total operating expenses	5,898,282		86.8	%	5,174,551		101.7	%	2,744		2,407		14.0	%

Operating Income (Loss)	899,385		13.2	%	(86,159	)	(1.7	)%	418		(40	)	N.M.

Interest Income and Exchange (Loss) Gain, net
Interest income	92,987		1.4	%	85,572		1.7	%	44		40		8.7	%
Interest expense	(12,351	)	(0.2	)%	(27,393	)	(0.5	)%	(6	)	(13	)	(54.9	)%
Exchange (loss) gain, net	(530	)	(0.0	)%	32,843		0.6	%	—		15		N.M.

Interest income and exchange (loss) gain, net	80,106		1.2	%	91,022		1.8	%	38		42		(12.0	)%

Income before Income Tax Benefit (Provision)	979,491		14.4	%	4,863		0.1	%	456		2		N.M.
Income Tax Benefit (Provision)
Current	(186,576	)	(2.7	)%	(147,881	)	(2.9	)%	(87	)	(68	)	26.2	%
Deferred	337,460		5.0	%	357,426		7.0	%	157		166		(5.6	)%

Total income tax benefit (provision)	150,884		2.2	%	209,545		4.1	%	70		98		(28.0	)%

Net Income	1,130,375		16.6	%	214,408		4.2	%	526		100		427.2	%

Net Income Attributable to:
Equity holders of the Company	1,127,420		16.6	%	213,929		4.2	%	525		100		427.0	%
Minority interest in subsidiary	2,955		0.0	%	479		0.0	%	1		—		516.9	%

Net Income	1,130,375		16.6	%	214,408		4.2	%	526		100		427.2	%

Earnings per Share	1,457				276				0.68		0.13		427.2	%

Earnings per ADS (based on 7 shares per ADS)	10,197				1,934				4.74		0.90		427.2	%

Average Shares Outstanding (in millions)	776				776				776		776

inCANTV ~~thousands~~4Q06 Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 13

					Revised Range
	Original growth range				Growth range				EOY Number
	From		To		From		To		From	To
Fixed
Switched access lines *	3	%	5	%	3	%	5	%	3,206	3,238
ABA (ADSL)**	38	%	48	%	38	%	48	%	400	430
Mobile subscribers	21	%	23	%	45	%	54	%	7,500	8,000
Regulated Tariffs Effective Increase	0.0	%	7.0	%	0.0	%	5.0	%

Balance sheet data

*As ~~Excludes~~of ~~ABA~~December 31, ~~(ADSL)~~2006 and ~~private~~2005 ~~circuits~~

**(Expressed ~~While EOY numbers~~ in ~~original~~millions ~~guidance~~of ~~were~~bolivars ~~correctly~~and ~~stated,~~millions ~~growth range from original guidance was stated by mistake at 45%-49%. Correct range~~ of ~~38%-48%~~US isdollars) ~~included herein.~~

KEY FINANCIAL INDICATORS


	December 31, 2006	December 31, 2005	US$ 2006	US$ 2005
Assets

Non-Current Assets:
Property, plant and equipment, net of accumulated depreciation of Bs. 14,363,765 and Bs. 13,942,782, respectively	3,714,737	3,483,063	1,728	1,620
Cellular concession, net	144,407	150,088	67	70
Long-term accounts receivable from Venezuelan Government entities	55,856	64,377	26	30
Deferred income tax	1,167,692	830,231	543	386
Information systems (software), net	461,940	342,349	215	159
Other assets	159,502	71,433	74	34

Total non-current assets	5,704,134	4,941,541	2,653	2,299

Current Assets:
Other current assets	266,030	62,552	123	29
Inventories, spare parts and supplies, net of allowance for obsolescence and net realizable value of equipment for sale of Bs. 151,456 and Bs. 56,486, respectively	681,139	312,255	317	145
Accounts receivable from Venezuelan Government entities	186,865	188,095	87	87
Accounts receivable, net of provision for uncollectibles of Bs. 62,617 and Bs. 71,286, respectively	932,052	687,039	434	320
Cash and temporary investments	1,151,987	1,098,629	536	511

Total current assets	3,218,073	2,348,570	1,497	1,092

Total assets	8,922,207	7,290,111	4,150	3,391

Stockholders’ Equity and Liabilities

Stockholders’ Equity	3,289,654	3,669,069	1,530	1,707

Non-Current Liabilities:
Long-term debt	29,303	63,338	14	29
Provision for litigation	170,254	134,513	79	63
Pension and other post-retirement benefit obligations, net	1,351,563	1,230,166	629	572

Total non-current liabilities	1,551,120	1,428,017	722	664

Current Liabilities:
Current portion of the long-term debt	28,942	40,992	13	19
Accounts payable	2,061,758	1,161,580	959	540
Accrued employee benefits	118,170	92,608	55	43
Current portion of pension and other post-retirement benefit obligations, net	242,275	348,532	113	162
Income tax payable	153,982	77,352	72	36
Dividends payable, including minumun dividends by law	923,583	—	430	—
Deferred revenue	271,435	184,518	126	86
Concession tax	99,622	60,412	46	28
Subscriber reimbursable deposits	35,213	69,462	16	32
Other current liabilities	146,453	157,569	68	74

Total current liabilities	4,081,433	2,193,025	1,898	1,020

Total liabilities	5,632,553	3,621,042	2,620	1,684

Total stockholders’ equity and liabilities	8,922,207	7,290,111	4,150	3,391

inCANTV ~~billions of~~4Q06 BsEarnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 14

					Revised range
	Original growth range*				Growth range*				EOY Number
	From		To		From		To		From		To
Revenue	30	%	32	%	35	%	40	%	6,890		7,120
Cash operating expenses	29	%	26	%	34	%	34	%	4,910		4,890
EBITDA	33	%	46	%	38	%	55	%	1,980		2,230
EBITDA Margin (bp and percentages)	59		314		59		314		29	%	31	%
Net Income (loss)	33	%	46	%	41	%	60	%	952		1,080
CAPEX	7	%	17	%	16	%	33	%	1,116		1,271
Free Cash Flow	24	%	39	%	23	%	36	%	854		940

Cash flow data

* For ~~illustrative purposes, estimated as percentages of adjusted year 2005 figures excluding~~ the ~~effect~~years ofended ~~the~~December 31, ~~July~~2006 ~~26,~~and 2005 ~~Supreme Court's decision on pension litigation~~

~~CANTV~~(Expressed ~~1Q06~~in ~~Earnings~~millions ~~Commentary~~of –bolivars ~~April~~and ~~26,~~millions ~~2006~~of ~~NYSE:~~US ~~VNT~~dollars) ~~BVC: TDV.d 15~~


	Bs. 2006		Bs. 2005		US$ 2006		US$ 2005
Operating Activities:
Net income	1,130,375		214,408		526		100
Adjustments to reconcile net income to net cash provided by operating activities:
Exchange loss (gain), net	530		(32,843	)	—		(15	)
Minority interest in subsidiary	(2,955	)	(479	)	(1	)	—
Depreciation and amortization	858,476		827,692		400		385
Current income tax	186,576		147,881		87		68
Deferred income tax (benefit)	(337,460	)	(357,426	)	(157	)	(166	)
Provision for inventory obsolescence	110,073		912		51		—
Provision for litigation	43,584		68,878		20		32
Additional pension obligation due to Supreme Court ruling	23,043		694,916		11		323
Provision for uncollectibles	65,438		35,068		30		16
Gain in sale of investment	—		(71,260	)	—		(33	)

Changes in current assets and liabilities	(225,855	)	248,433		(105	)	116

Changes in non-current assets and liabilities	33,749		(126,029	)	15		(58	)

Net cash provided by operating activities	1,885,574		1,650,151		877		768

Investing Activities:
Acquisition of information systems (software), net of disposals	(190,607	)	(141,733	)	(89	)	(66	)
Acquisition of property, plant and equipment, net of disposals	(1,009,746	)	(816,657	)	(469	)	(380	)

Net cash used in investing activities	(1,200,353	)	(958,390	)	(558	)	(446	)

Free Cash Flow	685,221		691,761		319		322

Financing Activities:
Proceeds from borrowings	6,237		69,095		3		32
Payments of debt	(52,150	)	(243,007	)	(24	)	(113	)
Dividends paid	(583,745	)	(415,133	)	(272	)	(193	)
Purchase of shares for the workers benefit fund, net	(2,205	)	(2,255	)	(1	)	(1	)

Net cash used in financing activities	(631,863	)	(591,300	)	(294	)	(275	)

Increase in cash and temporary investments before effect of exchange rate changes on cash and temporary investments	53,358		100,461		25		47
Effect of exchange rate changes on cash and temporary investments	—		30,625		—		14

Increase in cash and temporary investments	53,358		131,086		25		61

Cash and temporary investments:
Beginning of the year	1,098,629		967,543		511		450

End of the year	1,151,987		1,098,629		536		511

~~COMPANY~~CANTV ~~PROFILE~~4Q06 Earnings Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 15

~~Cantv, a Venezuelan corporation, is the leading Venezuelan telecommunications services provider with over~~ ~~3.1 million~~Reconciliation ~~switched fixed access lines in service, almost 5.6 million mobile subscribers and over 343 thousand broadband subscribers as~~ of ~~March 31, 2006. The Company’s principal strategic stockholder is a wholly~~Non-~~owned subsidiary~~GAAP offinancial ~~Verizon~~measures Communications Inc. with 28.5% of the capital stock. Other major stockholders include the Venezuelan Government with 6.6% of the capital stock (Class B Shares), employees, retirees and employee trusts which own 6.7% (Class C Shares) and the remaining 58.2% of the capital stock is held by public and other stockholders.

~~SAFE~~(Expressed ~~HARBOR~~in ~~FOR~~millions ~~FORWARD~~of ~~LOOKING~~bolivars ~~STATEMENTS:~~and millions of US dollars)

This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include economic considerations that could affect demand for telecommunications services and the ability of the Company to make collections, inflation, regulatory factors, exchange controls and occurrences in currency markets, competition, labor relations, legal proceedings and the risk factors set forth in the Company’s various filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 20-F. The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.


*For the quarters ended December 31, 2006 and 2005*		Bs. 2006		Bs. 2005		US$ 2006		US$ 2005
EBITDA
Net Income		385,902		137,713		179		64
Plus / (minus):
Total income tax benefit (provision)		(109,098	)	16,525		(50	)	8
Interest income and exchange gain, net		(24,750	)	(18,432	)	(12	)	(9	)
Depreciation and amortization		218,044		207,949		102		97

*EBITDA*		470,098		343,755		219		160

EBITDA Margin
EBITDA	=	470,098		343,755		219		160

Total operating revenues		2,022,219		1,525,631		941		710
*EBITDA Margin*		23	%	23	%	23	%	23	%

*For the years ended December 31, 2006 and 2005*		Bs. 2006		Bs. 2005		US$ 2006		US$ 2005
EBITDA
Net Income		1,130,375		214,408		526		100
Plus / (minus):
Total income tax benefit (provision)		(150,884	)	(209,545	)	(70	)	(98	)
Interest income and exchange (loss) gain, net		(80,106	)	(91,022	)	(38	)	(42	)
Depreciation and amortization		858,476		827,692		400		385

*EBITDA*		1,757,861		741,533		818		345

EBITDA Margin
EBITDA	=	1,757,861		741,533		818		345

Total operating revenues		6,797,667		5,088,392		3,162		2,367
*EBITDA Margin*		26	%	15	%	26	%	15	%

Cash Earnings
Net income		1,130,375		214,408		526		100
Plus / (minus):
Exchange loss (gain), net		530		(32,843	)	—		(15	)
Minority interest in subsidiary		(2,955	)	(479	)	(1	)	—
Depreciation and amortization		858,476		827,692		400		385
Current income tax		186,576		147,881		87		68
Deferred income tax (benefit)		(337,460	)	(357,426	)	(157	)	(166	)
Provision for inventory obsolescence		110,073		912		51		—
Provision for litigation		43,584		68,878		20		32
Additional pension obligation due to Supreme Court ruling		23,043		694,916		11		323
Provision for uncollectibles		65,438		35,068		30		16
Gain in sale of investment		—		(71,260	)	—		(33	)

*Cash Earnings*		2,077,680		1,527,747		967		710

Free Cash Flow
Net cash provided by operating activities		1,885,574		1,650,151		877		768
Minus:
Net cash used in investing activities		(1,200,353	)	(958,390	)	(558	)	(446	)

*Free cash flow*		685,221		691,761		319		322

*As of December 31, 2006 and 2005*		Bs. 2006		Bs. 2005		US$ 2006		US$ 2005
Net Cash Position
Cash and temporary investments		1,151,987		1,098,629		536		511
Minus:
Long-term debt		(29,303	)	(63,338	)	(14	)	(29	)
Current portion of the long-term debt		(28,942	)	(40,992	)	(13	)	(19	)

*Net cash position*		1,093,742		994,299		509		463

~~GLOSSARY~~CANTV OF4Q06 ~~KEY~~Earnings ~~TERMS~~Commentary – February 14, 2007 NYSE: VNT BVC: TDV.d 16

~~ADSL:~~ COMPANY ~~Asymmetrical~~PROFILE Digital Subscriber Lines. ARPU: Average monthly revenue per user excluding terminal equipment sales, taxes and late-payment charges. Bundled minutes: Actual minutes used by the customer within the minutes allowed under variously priced monthly customer tariff plans that include a maximum number of allowed minutes within the monthly tariff. Capital expenditures (CAPEX): Net cash used in investing activities, including acquisition of property, plant and equipment and information systems. Cash earnings: Net income adjusted for non cash items or adjustments to reconcile net income to net cash provided by operating activities. EBITDA: Earnings before interest, taxes, depreciation and amortization, equivalent to operating income plus depreciation and amortization. EBITDA margin: EBITDA as a percent of total operating revenues. EPADS: Earnings per ADS. Free cash flow (FCF): Cash flow from operating activities minus cash used in investing activities. IXC: Interconnection. Net cash position: Cash and temporary investments minus short-term and long-term debt. SMS: Short text mobile messaging service. Switched access lines: Fixed access lines including Residential, non Residential and Public Telephony. Total debt: Short-term plus long-term debt. Unbundled minutes: Minutes in excess of the limits set forth in a specific monthly customer tariff plan that are billed to the customer on a per minute basis in addition to the basic monthly tariff plan that the customer has selected.

~~CANTV~~Cantv, ~~1Q06~~a ~~Earnings~~Venezuelan ~~Commentary~~corporation, –is ~~April~~the 26leading Venezuelan telecommunications services provider with nearly 3.4 million switched fixed access lines in service, nearly 8.0 million mobile subscribers and nearly 467 thousand broadband subscribers as of December 31, 2006. ~~NYSE:~~The ~~VNT~~Company’s ~~BVC:~~principal ~~TDV~~strategic stockholder is a wholly-owned subsidiary of Verizon Communications Inc.d 16with 28.5% of the capital stock. Other major stockholders include the Venezuelan Government with 6.6% of the capital stock (Class B Shares), employees, retirees and employee trusts which own 6.2% (Class C Shares) and the remaining 58.7% of the capital stock is held by public and other stockholders.

~~Table~~SAFE ofHARBOR ~~Contents~~FOR FORWARD LOOKING STATEMENTS:

~~SIGNATURE~~This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual results to differ materially from those discussed herein include the impact on Cantv’s business that may result from the Government’s planned nationalization of Cantv, economic considerations that could affect demand for telecommunications services and the ability of the Company to make collections, inflation, regulatory factors, exchange controls and occurrences in currency markets, competition, labor relations, legal proceedings and the risk factors set forth in the Company’s various filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 20-F. The Company undertakes no obligation to revise these forward-looking statements to reflect events or circumstances after the date hereof, and claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

~~Pursuant~~ GLOSSARY toOF ~~the~~KEY ~~requirements~~TERMS ~~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.~~

~~COMPAÑIA~~ADSL: ~~ANONIMA~~Asymmetrical ~~NACIONAL~~Digital ~~TELEFONOS~~Subscriber DELines. ~~VENEZUELA~~ARPU: Average monthly revenue per user excluding terminal equipment sales, taxes and late-payment charges net of discounts. Bundled minutes: Actual minutes used by the customer within the minutes allowed under variously priced monthly customer tariff plans that include a maximum number of allowed minutes within the monthly tariff. Capital expenditures (~~CANTV~~CAPEX): ByNet cash used in investing activities, including acquisition of property, plant and equipment and information systems. Cash earnings: ~~/s/~~Net ~~Armando~~income ~~Yañes~~adjusted ~~Armando~~for ~~Yañes~~non ~~Chief~~cash ~~Financial~~items ~~Officer~~or adjustments to reconcile net income to net cash provided by operating activities. EBITDA: Earnings before interest, taxes, depreciation and amortization, equivalent to operating income plus depreciation and amortization. EBITDA margin: EBITDA as a percent of total operating revenue. EPADS: Earnings per ADS. Each ADS represents seven Cantv Class D shares. Free cash flow (FCF): Cash flow from operating activities minus cash used in investing activities. IXC: Interconnection. Net cash position: Cash and temporary investments minus short-term and long-term debt. SMS: Short mobile message service. Switched access lines: Fixed access lines including residential, non residential and public telephony. Total debt: Short-term plus long-term debt. Unbundled minutes: Minutes in excess of the limits set forth in a specific monthly customer tariff plan that are billed to the customer on a per minute basis in addition to the basic monthly tariff plan that the customer has selected.

~~Date:~~CANTV ~~April 28~~4Q06 Earnings Commentary – February 14, ~~2006~~2007 NYSE: VNT BVC: TDV.d 17

Table of Contents

Table of Contents

Filing Compare · NATIONAL TELEPHONE CO OF VENEZUELA