Telefonica Brasil : 12/30/2015 - Notice to the Market - Dec 17, 2015 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 2015 INTEREST ON CAPITAL

Continuing the Notice to Shareholders from December 17, 2015, published in the editions of December 18, 2015 of the newspapers Valor Econômico and Diário Oficial do Estado de São Paulo, 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 December 17, 2015 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	0.16823296997	0.02523494549	0.14299802448
Preferred shares (*)	0.18505626697	0.02775844004	0.15729782693

(*) 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 December 30, 2015, 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 2016, in a date to be defined by the Company's Board.

São Paulo, December 30, 2015.

Alberto Manuel Horcajo Aguirre

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

Tel: +55 11 3430-3687

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