I moved to Spain last year and after 6 months of trying to get a Telefonica landline was about to give up. I then saw an advert for DSL Spain and withing two weeks had one of their systems installed.
It's brilliant. They give you a phone line and 6Mbit internet access anywhere. It doesn't matter if you are on the side of a mountain or in the middle of nowhere, they can fit one for you.
At the new reduced price of 2,750 Euros and 55 Euros per month it's not as cheap as Telefonica but believe me it is well worth it.
Well done DSL SPain.