TELEFÔNICA BRASIL S.A.
CNPJ/MF nº 02.558.157/0001-62 - NIRE 35.3.0015881-4
NOTICE TO THE MARKET
Telefônica Brasil (VIVO) & TIM Infrastructure Sharing and Other Projects' MOU
Telefônica Brasil S.A. ("Company") (B3: VIVT3 / VIVT4; NYSE: VIV), in compliance with Article 157 of Law No 6,404 and the provisions of CVM Instruction No 358, hereby informs its shareholders, the market in general and other interested parties that:
Telefônica Brasil S.A. and TIM S.A., wholly owned subsidiary of TIM Participações S.A., together so called "Companies", have signed, on this date, a memorandum of understanding ("MOU") which aims to initiate discussions regarding:
2G network sharing in a Single Grid Model;
Establishment of new sharing agreement concerning 4G network infrastructure in 700MHz band. At this moment, the parties intend to limit the discussions to cities with less than 30 thousand inhabitants, which can be later expanded to larger cities;
Other opportunities of network sharing in other frequencies and technologies; and
Other efficiency and cost reduction opportunities regarding network operations and maintenance.
The Companies highlight the benefits that can arise from these discussions regarding the improvement in quality of service for clients of both operators, as well as the efficiency in investment allocation and operational costs. No less important, sharing initiatives are in line with the challenges of sustainability (energy conscious use), urbanism (optimization of the use of public spaces) and have been successful in several countries, including Brazil.
The parties ratify that they will preserve their commercial and client management independence, regardless of any agreement that may result from those discussions. This MOU does not create a joint venture or any commercial partnership or formal business relationship, nor does it create or imply any exclusive relationship between the parties.
The Company reiterates its commitment to keep the shareholders and the market in general duly informed, pursuant to regulations in force.
São Paulo, July 23, 2019.
David Melcon Sanchez-Friera
CFO and Investor Relations Officer
Telefônica Brasil - Investor Relations
Phone: +55 11 3430 3687