Newton-based Iowa Telecommunications Services Inc. reported today that its third-quarter earnings fell 22 percent, partly as a result of telephone access line declines, reported the Associated Press.

Earnings were $6.3 million, or 20 cents per share, compared with $8 million, or 25 cents per share, in the third quarter of 2006. Revenues rose 2 percent to $60.8 million, compared with $59.6 million a year ago. Analysts had expected earnings of 21 cents per share on revenues of $61.1 million.

The decline in net income was primarily due to a one-time $2.9 million gain in the prior-year period from the sale of four exchanges. The company also had a 4 percent decline in local-services revenues as a result of a decline in access lines.

“The loss was primarily residential lines and was an expected consequence of the entry of a new competitor into many of our markets in the middle of the second quarter of 2007,” said Alan Wells, company chairman and CEO.

Meanwhile, Iowa Telecom’s service and sales revenues rose 19 percent from DSL Internet service revenues, which soared 34 percent on consumer growth. Operating costs and expenses increased 11 percent to $42 million.