Phone company Telstraclear has reported a fall in earnings in the last six months of 2010.
The Australian-owned company made gross earnings of $62 million in the six months to December, a decrease of 16% on the same period a year ago.
Revenue rose 1% to $353 million but costs rose by more due to outsourcing its call centre activites and higher sales and marketing expenses.
Telstraclear's Australian parent Telstra reported its profit fell by a third to $AUS1.2 billion because it has been investing heavily to try to win back some of its lost market share.
Telstra is reportedly close to a final deal with the Government to hand over its fixed-line network to the state-owned National Broadband Network in exchange for $AUS11 billion in long-term payments.
Telstra says it is on track to put a deal to shareholders by 1 July.