By Clare Kane MADRID, Dec 19 (Reuters) - Spanish telecoms companyTelefonica has beaten its forecast for uptake of abundled package launched in October to retain market share,signing up one million customers. The former monopoly also said on Wednesday that it hadlowered prices for its pay-TV services and included them in itsFusion package, which includes mobile, fixed line, televisionand internet services. Macroeconomic pressure in Spain, where the unemployment ratestands at more than 25 percent, has encouraged consumers to shop around for the best deals. Telefonica's revenue in its increasingly competitive homemarket fell 13 percent year on year in September and LatinAmerica now accounts for more of its revenue than recession-hitEurope. Customers had been leaving the company's Movistar mobilebusiness in droves, giving up almost two million phone linesbetween March and October. The exodus has shrunk Telefonica'sshare of the mobile market to 37 percent from 40 percent in ayear, according to data from Spain's telecoms regulator. At the end of September, Telefonica had 760,000 pay-TVcustomers in Spain - a fall of 6 percent year on year. It saidthe business had been hit by the government's decision toincrease value-added tax to 21 percent from 8 percent on Sept.1. CUSTOMER SAVINGS Monthly prices for Fusion start at 49.90 euros ($66) beforetax for the four services. Morgan Stanley analysts estimated that existing Telefonicaclients with convergent offers would make a 23 percent saving bysigning up for Fusion, which could dilute revenue in Spain byabout 4 percent. "We see the consumer as the big winner from quad-play inSpain," Bank of America Merrill Lynch analysts said in aresearch note. A price war between mobile operators in Spain has heated upin recent months after the biggest players, Telefonica andVodafone, lost customers to rivals after scrappingsmartphone subsidies. Vodafone has now reinstated the subsidies. France Telecom's Orange has fought back with asimilar package, offering television, internet, fixed line andmobile, while smaller rival Jazztel provides bundledinternet and television packages. Telefonica, which hopes to reduce its debt to 50 billioneuros by the end of 2012, from 56 billion euros at Sept. 30,this month said that it is considering listing its LatinAmerican businesses to raise cash. The company transferred about half of the shares of itsPeruvian unit to its Latin American holding company onTuesday, moving a step closer to an initial public offering.