Telefonica SA (TEF) said Friday that demand for the products it sells has improved in the third quarter, compared to previous quarters.

"There has been an uptick in sales of mobile Internet and high-speed ADSL packages in the third quarter, our commercial activity is improving," Telefonica's Chief Operating Officer Julio Linares said in a meeting with journalists.

Telefonica's chairman, Cesar Alierta, added that consumption in general had risen in the quarter.

Madrid-based Telefonica is slated to report third-quarter earnings Nov. 12.

Telefonica has been hit by a steep drop in consumer spending in its home Spanish market that is mired in a deep recession.

Telefonica is Spain's largest telecommunications company by market value and customers, and has operations throughout Europe and Latin America.

Company Web site: www.telefonica.com

-By Jason Sinclair, Dow Jones Newswires, 34 913958127, jason.sinclair@dowjones.com