TELEFÔNICA BRASIL S.A.

Publicly-Held Company

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

NOTICE TO THE MARKET

Telefónica Brasil S.A. ("Company") in attendance with article 28 of CVM Instruction 308/1999, as amended, hereby informs the market that its Board of Directors, at a Meeting held on December 9, 2016, approved the hiring of PricewaterhouseCoopers Independent Auditors ("PWC") to provide independent auditing services in the fiscal years 2017 to 2019, replacing Ernst & Young Auditores Independentes S.S. It is noted that the audit work carried out by PWC will only begin on January 1, 2017.

The independent auditor replacement will be done strictly because of a strategic decision of the Company and due to commercial circumstances.

The Company also informs that it has obtained due consent from Ernst & Young Auditores Independentes S.S. regarding the aforementioned replacement.

São Paulo, December 9, 2016.

David Melcon Sanchez-Friera

Investor Relations Officer Telefônica Brasil S.A. - Investor Relations

Tel: +55 11 3430-3687

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

Telefônica Brasil SA published this content on 09 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 December 2016 21:15:06 UTC.

Original documenthttp://telefonica.mediagroup.com.br/en/Download/1462_Notice_to_the_Market_-_Change_of_Auditor.pdf

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