TELEFÔNICA BRASIL S.A.

Publicly?held Company
CNPJ MF 02.558.157/0001?62 ? NIRE 35.3.001.5881?4

NOTICE TO THE MARKET

Telefônica Brasil S.A. announces that it ended the year with 71.55 million mobile customers, showing a continuous growth and maintaining its leadership in all segments. This performance was driven by the evolution in post?paid and data segments, for which the market share grew by an annual 1.3 p.p. and 3.3 p.p., respectively. In addition, there was a resumption of the prepaid segment, which grew by 7.8 million in the year, despite a disconnection of 1 million customers in December, by the adoption of more conservative criteria that consider the level of activity. This disconnection has produced corresponding reflections in the Churn and ARPU of the Company. We emphasize that the market share of postpaid and data in December was of 36.6% and 43.4%, respectively, confirming our commitment to coverage, quality and innovation.
São Paulo, January 16, 2012. Gilmar Roberto Pereira Camurra
Investor Relations Officer Telefônica Brasil S.A. Investor Relations
Tel: +55 11 7420 1172
Email: ri.telefonicabr@telefonica.com.br
Available information: www.telefonica.com.br/investidores

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