SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of March, 2011
Commission File Number 001-14491

TIM PARTICIPAÇÕES S.A.
(Exact name of registrant as specified in its charter)

TIM PARTICIPAÇÕES S.A.
(Translation of Registrant's name into English)

Av. das Américas, 3434, Bloco 1, 7º andar – Parte
22640-102 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)

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

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____

MANAGEMENT PROPOSAL OF
2011 CAPITAL BUDGET
FOR THE SUBSIDIARIES OF
TIM PARTICIPAÇÕES S/A (“COMPANY”)

Dear Shareholders,

According to the provisions in paragraph two, Art. 196 of Act 6.404/76, this is to submit TIM Participações S.A. (TIM) and its subsidiaries’ capital budget for the year of 2010, in the amount of two billion, nine hundred and twenty million reais (R$ 2,912,000,000) to your approval, according to the financing sources shown below and to be approved on this date.

TIM Participações S.A. Capital budget proposal:                             R$ 2,912,000,000

Financing sources:

Own/third party’s resources                                                              R$ 2,912,000,000

The resources mentioned above will be invested in two main fronts: Network/IT development and business development, at the following approximated rates, 82% and 18%. Such investments will contribute to the improvement in the third generation (3G) services provision, growth in the voice traffic (2G), growth in the customers’ base, among others.

The network development includes investments stratified in 2nd and 3rd generations’ access network, last mile, radio and optical fiber backhauling and backbone. Those projects aim at extending TIM’s infrastructure capacity and coverage, ensuring high quality levels and supporting the market strategies.

The business development front comprises the information technology projects aiming at updating and developing TIM’s systems and technological platforms. The projects mentioned aim at operating and management improvements, and, mainly, the development of new and innovative products, which is the Company’s brand.

Rio de Janeiro, February 21, 2011.

The Management