Telefonica Brasil : 03/31/2016 - Notice to the Market - March 18, 2016 IOC amount per share confirmation

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TELEFÔNICA BRASIL S.A.

Publicly-Held Company

CNPJ MF 02.558.157/0001-62 - NIRE 35.3.001.5881-4

NOTICE TO THE MARKET DELIBERATION OF INTEREST ON CAPITAL

Continuing the Notice to Shareholders from March 18, 2016, published in the editions of March 19, 2016 and March 21, 2016 of the newspapers Diário Oficial do Estado de São Paulo and Valor Econômico, respectively, Telefônica Brasil S.A. ("Company") announces to its shareholders that no shares were purchased within the Program for the Buyback of Shares to be held in treasury for subsequent sale and/or cancellation, according to the Material Fact disclosed to the market on December 09, 2015. Thus, the unit values per share for the Interest on Capital deliberated by the Board of Directors on March 18, 2016 remain unchanged as described in the table below:

Amount per share (R$)	Immune or Exempt Legal Entities (gross value)	Withholding tax (15%)	Taxed Legal Entities and Individuals (Net value)
Common shares	0.18715692294	0.02807353844	0.15908338450
Preferred shares (*)	0.20587261524	0.03088089229	0.17499172295

(*) 10% higher than the amount granted to each common share, in accordance with article 7 of the Company's Bylaws.

The credit of Interest on Own Capital will be made on individual basis for each shareholder, in accordance to the shareholder registry book position by the end of the day, on March 31, 2016, including. After this date the shares will be considered as "ex-Interest on Own Capital". The payment of these proceeds will be carried out before the end of the fiscal year of 2017, in a date to be defined by the Company's Board.

São Paulo, March 31, 2016.

Amos Genish

Interim Investor Relations Officer Telefônica Brasil S.A. - Investor Relations Tel: +55 11 3430-3687

Email: ir.br@telefonica.com www.telefonica.com.br/ir