SECURITIES AND EXCHANGE COMMISSION

Commission File Number: 001-10579

COMPANIA DE TELECOMUNICACIONES DE CHILE S.A.
(Exact name of registrant as specified in its charter)

(Translation of registrant's name into English)

(Address of principal executive offices)

Form 20-F   X   Form 40-F ___

Yes        No  X   

1. Press release dated January 31, 2005 announcing 4^rd Quarter 2004 results.

Quarterly Earnings Release

(Comparisons refer to 4Q03)

Operating costs and expenses decreased by 34.4% in 4Q04, to Ch$122,175 million (US$219.2 million), as compared to Ch$186,214 million (US$334.1 million) in 4Q03. In 2004,, operating costs and expenses decreased 15.5% vs. 2003, reaching Ch$603,741 million (US$1,083 million). Excluding the mobile business in both years, these costs decreased 4.5%.

As a result of the above, EBITDA in 4Q04 fell by 29.2% to Ch$68,764 million (US$123.4 million), compared to Ch$97,172 million (US$174.3 million) recorded in 4Q03. However, excluding the mobile business from 4Q03, EBITDA decreased 11.4%. During the year 2004, EBITDA fell 16.2% to Ch$327,051 million (US$586.7 million) when compared to 2003. Excluding the mobile business in both years, 2004 EBITDA decreased 5.5% vs. 2003.

EBITDA margin in 4Q04 was 47.9%, compared to the 45.3% recorded in 4Q03. Excluding the mobile business, EBITDA margin for 4Q03 reaches 51.9%. EBITDA margin for the year 2004 reached 46.5% vs. 46.9% the previous year. Excluding the mobile business in both years, the margin dropped from 52.0% in 2003 to 51.1% in 2004.

As of 4Q03, depreciation of assets related to the sales and administration is accounted for under "Administrative and selling expenses". Exhibits were adjusted accordingly in each of the four quarters of 2003.

Total depreciation in 4Q04 decreased by 31.3% to Ch$47,465 million (US$85.2 million), as compared to 4Q03, mainly due to the deconsolidation of the mobile business. Excluding this effect, depreciation decreased 9.3% due to the lower level of investment in recent years. Depreciation for the year reached Ch$227,917 million (US$408.9 million) compared to Ch$272,161 million (US$488.3 million) in 2003. Excluding the mobile business, depreciation decreased 7.5% in 2004.

OPERATING INCOME decreased 24.3% to Ch$21,299 million (US$38.2 million) in 4Q04 when compared to Ch$28,118 million (US$50.4 million) recorded in 4Q03. Excluding the mobile business in 4Q03, operating income decreased by 15.7%.

The operating margin reached 14.8% in 4Q04 as compared to 13.1% in 4Q03. However, excluding the mobile business, the operating margin in 4Q03 reached 16.9%.

For 2004, operating income totaled Ch$99,134 million (US$177.9 million), reflecting a 16.2% decline with respect to 2003 and an operating margin of 14.1% in 2004 vs. 14.2% in 2003. Excluding the mobile business in both years, operating income decreases slightly by 1.7%, whereas operating margin improves by 40 basis points.

NON-OPERATING INCOME: Telefónica CTC Chile increased its non-operating loss by 67.9% in 4Q04. The non-operating loss reached Ch$31,683 million (US$56.8 million) in 4Q04, as compared to a non-operating loss of Ch$18,868 million (US$33.9 million) in 4Q03. This is basically due to: (i) increased interest expense explained by a charge of Ch$8,094 million (US$14.5 million) related to the repurchase of US$182 million in Yankee Bonds carried out in 4Q04, at a price above its par value; and (ii) an increase of Ch$11,325 million (US$20.3 million) in other non-operating expenses, which included severance payments for restructuring carried out during the quarter for Ch$2,838 million (US$5.1 million) and asset write-offs for Ch$9,565 million (US$17.2 million).

Non-operating results for the year, improved from a loss of Ch$77,976 million (US$139.9 million) in 2003 to a profit of Ch$275,173 million (US$493.7 million) in 2004 and which is basically explained by the gain on the sale of the mobile subsidiary.

INCOME TAXES: In 4Q04, Telefónica CTC Chile recorded a total income tax charge in the amount of Ch$2,257 million (US$4.0 million) as compared to the Ch$8,549 million (US$15.3 million) tax charge registered in 4Q03. The lower tax charge is explained by the losses registered in the quarter together with lower deferred taxes as a result of lower level of capital expenditures.

Total income tax in 4Q04 is composed of Ch$1,764 million (US$3.2 million) in current income tax and a Ch$493 million (US$0.9 million) net charge for deferred taxes for the period as well as amortization of deferred taxes for previous periods.

Income tax provision for the year reached Ch$62,395 million (US$111.9 million) compared to Ch$29,735 million (US$53.3 million) registered in 2003, and is mainly explained by the tax generated by the gain on the sale of the mobile subsidiary.

The Company recorded a net loss of Ch$12,743 million (US$22.9 million) in 4Q04 as compared to a net income of Ch$662 million (US$1.2 million) recorded in 4Q03. In 2004, net income reached Ch$311,629 million (US$559.1 million), vs. a net income of Ch$10,387 million (US$18.6 million) in 2003.

Net loss per ADR in 4Q04 amounted to US$0.096, compared to a net income per ADR of US$0.005 recorded in 4Q03. Furthermore, net loss per share in 4Q04 equaled Ch$13.3 as compared to a profit of Ch$0.7 in 4Q03. For the full year 2004, net income per ADR amounted to US$2.34, while net income per share reached Ch$ 325.6.

Capital expenditures for Telefónica CTC Chile and its consolidated subsidiaries amounted to US$38 million in 4Q04 compared to US$76 million in 4Q03, mainly due to the deconsolidation of the mobile business since July 1, 2004. Capital expenditures for the year 2004, totaled US$151 million vs. US$263 million in 2003. Capital expenditures, excluding the mobile business, amounted to US$119 in 2004.

The consolidated free cash flow from operations in 4Q04 reached Ch$29,279 million (US$52.5 million) as compared to Ch$42,385 million (US$76.0 million) in 4Q03. The decrease is mainly explained by lower EBITDA as a result of the deconsolidation of the mobile business and the increased interest expense relating to the yankee bond repurchase.

During the year 2004, cash flow from operations reached Ch$183,736 million (US$329.6 million), representing a 1.9% increase over 2003.

As of May 2004 and until the present, the Company has been making the appropriate provisions for the new tariffs imposed under the Tariff Decree No. 169 and its latest revisions. These tariffs, once approved by the Chilean General Controller, will become effective, retroactive to May 6, 2004.

Basic Telephony revenues, which include the fixed monthly charge, variable charge, connections and other installations, plans of minutes (allowed by tariff flexibility), value-added services and other basic telephony revenues (services through operator and rural telephony, among others), decreased by 10.2% to Ch$73,072 million (US$131.1 million) in 4Q04 as compared to 4Q03. This decrease is mainly attributable to a 6.8% decrease in the fixed monthly charge and a 26.8% decrease in the variable charge, both mainly due to: (i) a lower number of lines subject to fixed monthly charge; and (ii) a 12.5% decrease in total local traffic for 4Q04 compared to 4Q03. Additionally, basic telephony revenues were impacted by lower other basic telephony revenues. These decreases were partly offset by new revenues resulting from commercialization of plans of minutes allowed by tariff flexibility, which generated revenues of Ch$6,277 million (US$11.3 million) in 4Q04.

The revenues related to Broadband, which exclude those considered in the corporate customer communications business, grew 77.4% to Ch$7,488 million (US$13.4 million) in 4Q04, due to the growth of 60.3% in ADSL connections in the quarter.

Access charges and interconnections revenues include revenues from access charges generated by LD carriers, as well as those paid by other telecommunications operators that use Telefónica CTC Chile's network. They also include other interconnection services apart from access charges, such as interconnection of networks and information services to carriers, among others. These revenues increased by 2.5% in 4Q04 to Ch$8,562 million (US$15.4 million) as compared to 4Q03. This increase was mainly due to the payment in 4T03 of pending interconnection charges from other local operators as well the positive effect of the new Tariff Decree No. 169 provisioned in 4Q04.

Revenues from Other fixed telecommunications businesses, now include revenues generated as consequence of the Company's contract with Publiguías, those originated in the subsidiary Telemergencia (home security services), in public telephones, in interior installations and in equipment marketing. These revenues decreased by 9.4% in 4Q04 to Ch$15,052 million (US$27.0 million) as compared to 4Q03, and this is mainly due to a decrease in interior installation revenues and equipment marketing revenues, as a result of cellular equipment sales, which experienced an important growth in 4Q03. These were partially compensated by increased revenues from security services and ISP revenues.

Long distance revenues include revenues from domestic and international long distance traffic carried by 188 Telefónica Mundo and Globus 120, as well as revenues from the rental of the long distance network to other telecom operators. Total long distance revenues, which accounted for 10.7% of consolidated operating revenues in 4Q04, increased by 13.6% as compared to 4Q03, to Ch$15,402 million (US$27.6 million). This increase was mainly due to higher revenues from the rental of the long distance network to other telecom operators due to the deconsolidation of the mobile business, given that previously these rentals were considered inter-company. DLD and ILD revenues increased by 0.1% and 8.2%, respectively. DLD traffic in 4Q04 decreased 1.9%, while ILD traffic grew 1.3%. Additionally, average prices continue with downward trends. It is also important to note that in 4Q03, certain revenue provisions were registered. For 2004, long distance revenues decreased 2.5% to Ch$61,589 million (US$110.5 million).

Corporate customer communications include revenues from (i) telecommunications equipment, which mainly refers to the sale of voice equipment (fax, PABX, among others); (ii) complementary telephone services, such as 600, 700, 800 numbers and digital communications; (iii) data services, including ATM, Frame Relay, data equipment and services related to the IP network, and (iv) dedicated links and others, including videoconference, Datared, E1 Links and VSAT, "ISP Empresas" revenues, services such as housing and hosting, e-solutions, and consulting services to corporate customers.

In 2004, corporate customer communications revenues grew 2.7% and amounted to Ch$82,906 million (US$148.7 million).

These revenues include those from other Company's subsidiaries, such as Telepeajes, Tecnonaútica and t-gestiona, among others. These revenues, which represented 0.6% of total operating revenues in 4Q04, grew 4.3% to Ch$809 million (US$1.5 million) in 4Q04. In 2004, these revenues totaled Ch$3,943 million (US$7.1 million)

In December, 2004, the Company successfully completed its financial restructuring initiated after the sale of Telefónica Móvil de Chile S.A. The restructuring included the renegotiation of a syndicated loan for US$200 million. Similarly, the Company also completed a tender offer for its two series of Yankee Bonds and repurchased US$182 million.

Additionally, since the sale of Telefónica Móvil de Chile and through December, 2004, the Company has also paid down US$210 million in financial obligations, which included US$155 million in Eurobonds that expired in August 2004, together with prepayments for US$50 million.

The final operation of this restructuring process will be the redemption of US$115 million (UF 4 million) of Series K Local Bonds, which have an annual interest rate of UF + 6.75% and expire in February, 2020. The redemption is scheduled for February 15, 2005, at a price of 100% nominal face value, in accordance with the issuance agreement for these bonds.

On December 30, 2004, the Undersecretary of Telecommunications resubmitted Tariff Decree No. 169 to the General Controller modifying some unbundling services, under the item of "Adjustment of Constructions". Similarly, Subtel slightly modified said item, among others, and on January 14, 2005, once again resubmitted T. D. No. 169 to the General Controller.

To date, the General Controller has not made any announcements regarding the Tariff Decree, the report submitted by the Ministries, or the recent appeals presented by Telefónica CTC Chile and other operators.

Through decree No. 590, the Ministry of Transportation and Telecommunications established calls for emergency numbers 131, 132, and 133 to be free of charge to users including lines suspended for non-payment; established the obligation of telephone companies to provide telephone attention of complaints to customers and the number 105 was defined for these purposes. Telefónica CTC Chile incorporated the gratuity of emergency numbers on May 6, 2004, in accordance with the effectiveness of Tariff Decree No. 169 and similarly, the Company, created the customer service hotline in the year 2000, through the special number 107. The Company also provided access to emergency numbers to suspended lines.

Through decree No. 510, the Ministry of Transportation and Telecommunications established the minimum content and other elements of the Telephone Bill and established a period of 120 days, which expires on April 6, 2005, to adopt the defined requirements.

Through Exempt Resolution No. 1319 of October 6, 2004, the Undersecretary of Telecommunications established the categories for complementary services and provided the numbering of these for public telephone network access to clients.

In regard to the public inquiries made by Subtel regarding IP telephony and network unbundling and resale services, Telefónica CTC Chile and the other operators made observations and comments regarding Subtel's rule proposals.

In December, 2004, Subtel submitted to public inquiry a new rule proposal for network unbundling and resale, to which the Company reiterated its observations and legal arguments to such rule proposals.

To date, Subtel has not made any pronouncements regarding the observations and legal arguments presented by the Company and the other operators, nor has it pronounced a final rule.

On January 27, 2005, Telefónica CTC Chile's Board of Directors approved several changes to the Board:

On January 27, 2005, the Company's Board agreed to propose to shareholders at the following General Shareholders' Meeting a dividend payment of Ch$58.84591 per share to be charged against net income of 2004. Similarly, the Board agreed to also propose at the Meeting a dividend payment of Ch$50.99095 per share to be charged against accumulated retained earnings.

For more information contact:

This news release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1996, including but not limited to Compañía de Telecomunicaciones de Chile S.A.'s expectations for its performance for the quarter. Forward looking statements may also be identified by words such as "believes", "expects", "anticipates", "projects", "intends", "should", "seeks", "estimates", "future", or similar expressions. The forward-looking statements included in this news release are based on current expectations, but actual results may differ materially from anticipated future results due to various factors many of which are beyond the control of Compañía de Telecomunicaciones de Chile S.A. and its subsidiaries. Certain factors which could cause the actual results of Compañía de Telecomunicaciones de Chile S.A. and its subsidiaries to differ materially from the expected results include, among others, changes in Chile's regulatory framework, impact of increased competition and other factors beyond Compañía de Telecomunicaciones de Chile S.A.'s control

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: January 31, 2005

COMPAÑÍA DE TELECOMUNICACIONES DE CHILE S.A.

By: /s/ Julio Covarrubias F.

Name: Julio Covarrubias F.

Title: Chief Financial Officer