I think location is a lot to do with Telefonica services.
We live inthe Malaga region and most of the people I know that have dealt with them have had several problems trying to get a service and problems with the service once it connected.
I moved into a property and was told I could not have a line as all the lines in the urbanization were taken. Two days later an engineer turnedup to connect the line I was told I couln’t have and procceeded to pull a wire to one off the connections completley out of the junction box making the line inoperable.
Three days later another engineer three hours working and still no line.
Six visits later the line was connected and running after 39 hours of visits.
We then moved property and have had no luck in getting a line in the new property or having the old properties line disconnected after 24 phone calls to them we have given up.
All but 4 of the calls were by my friend who speaks fluent spanish so there should have been no problem due to language but on several of the calls even she became frustrated as they did not seem to be able to understand her.
We have now changed to vodaphone and skype and the service is by far superior to anything telefonica had to offer.

I have used Telefonica for the last 4 years never had any problems
But then i live on the Costa Blanca

the big problem is infrastucture , more and more have come to live in spain and area would only have 40 line but 50 people living area
banks , shops and pubs would take up 2 lines in the area atm cash post used 2- 3 telphone line , it all adds up and less of the loacls

at work we have over 1000 telphone lines at the point of coms room but wouldnt used all them lines , but in the block i live we only have 20 lines for 60 apartments
i would have 2 line to my apartment , my next door used my net and few outhers aswell ..... 

jurdy