3Q12 Results: Telefonica Brasil S.A.

                     3Q12 Results: Telefonica Brasil S.A.

PR Newswire

SAO PAULO, Nov. 6, 2012

SAO PAULO, Nov. 6, 2012 /PRNewswire/ -- Telefonica Brasil - (Bovespa: VIVT3
[ON = Common Shares] / VIVT4 [PN = Preferred Shares]; NYSE: VIV), announces
its consolidated results for the third quarter 2012 (3Q12). With consistent
focus on service quality and profitability, the Company recorded an EBITDA
Margin of 34.4% in the quarter.

 R$ million                  3Q12      2Q12      3Q11
Net Revenue                    8,463.3   8,243.5   8,293.1
Total Operating Costs          (5,552.1) (5,150.6) (5,468.5)
EBITDA                         2,911.2   3,092.9   2,824.5
EBITDA Margin (%)              34.4%     37.5%     34.1%
Net Result                     935.8     1,085.5   1,332.3
Number of accesses (thousand)  91,892    90,858    82,372
Mobile accesses                76,806    75,720    67,038
Fixed accesses                 15,087    15,138    15,333

Total accesses reached 91.9 million in 3Q12 (+11.6% y-o-y), 76.8 million of
which in the mobile business (+14.6% y-o-y) and 15.1 million in the fixed-line
business (-1.6% y-o-y);

In the mobile market, the market share totaled 29.7% in September 2012 (+0.2
p.p. y-o-y);

Undisputable leadership in the higher revenue segments, recording 36.9% market
share in the postpaid market. In the segment of datacards Vivo recorded 48.1%
of the market share;

Fixed broadband accesses moved up by  5.7% y-o-y to 3.8 million accesses;

Superior quality of the fixed services remaining among the best two companies
in the industry in the IDA (Attendance Index measured by Anatel) and
leadership in customer satisfaction;

Mobile Services Revenue maintained its high annual growth, recording a
positive variation of 8.1% in 3Q12 (11% excluding the MTR effect), driven by
the Data and VAS revenue;

Fixed Service Revenues dropped by 7.3% annually, a strong deceleration in
comparison to the last quarter, which registered a decrease of 11.7%.

Operating costs increased less than the revenue growth, evidencing an
efficient cost control;

The EBITDA reached R$2,911.2 million in the quarter (+3,1% y-o-y);

EBITDA Margin of 34.4% in the quarter (+0.3 p.p. y-o-y);

Cash flow after investment activities reached R$3,737.5 million. We grew 27%
over the same period in the year to date of 2012.

Declaration of Interim Dividends in the amount of R$ 1,122.52 million.

TELEFONICA BRASIL – Investor Relations
Gilmar Roberto Camurra
Cristiane Barretto Sales
Carlos Raimar Schoeninger
Luis Carlos Plaster
Maria Tereza Ali Pelicano David

Chucri Zaidam, 860 – Morumbi – SP – 04583-110
Phone: +55 11 97420-1172
Email: ir.br@telefonica.com

To download the complete version of the Company's earnings release, please
visit our website: http://www.telefonica.com.br/investidores

SOURCE Telefonica Brasil S.A.

Website: http://www.telefonica.com
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