TELEFÓNICA S.A., pursuant to article 228 of the Spanish Securities Market Act (Ley del Mercado de Valores), hereby reports the following

SIGNIFICANT EVENT

On the date hereof, January 12, 2016, DTS, Distribuidora de Television Digital, S.A.U. ("DTS") and Mediaproducción, S.L.U. ("Mediapro") have reached an agreement for the broadcasting of the thematic pay TV channel called "BeIN Sports LaLiga" with contents of the Spanish National League Championship First and Second Division and the Copa del S.M. el Rey, corresponding to the three seasons 2016/17, 2017/18 and 2018/19.

Also, on this date, DTS and Mediapro have reached an agreement for the broadcasting of the thematic pay TV  channel called "BeIN Sports" containing, among others, matches of the "UEFA Champions League"  and "UEFA Europa League" competitions corresponding to the three seasons 2015/16 (from January 12, 2016), 2016/17 and 2017/18.

The total value of the agreements relating to those channels amounts to 2,400 million euros.

Moreover, last December 2, 2015, DTS was awarded the Package  number 5 for the pay television broadcast of a live match of First Division and a live match Second Division, exclusively ( first selection), in the tender made by the National Football League and publicly announced on November 13, 2015 for the three seasons 2016/17, 2017/18 and 2018/19.

With this agreement, MOVISTAR+ fulfills its commitment to provide to its entire customer base a comprehensive offer with all the best sports contents.

Madrid, January 12, 2016.