SAO PAULO, July 26 (Reuters) - Telefonica Brasil SA is using digital customer services to further reduce spending on call centers and paper billing, executives told analysts on Wednesday, suggesting there is room to continue improving operational profitability.

Management at Brazil's biggest telecommunications firm declined on the earnings call to give a hard target for cost savings from the digital push, but said the kinds of costs being targeted make up a third of operating expenses. (Reporting by Brad Haynes)