DENVER — Qwest Communications International Inc. reported an 89 percent increase in fourth-quarter earnings on strong sales of Internet and data products, despite aggressive competition and the looming threat of a slowing economy.

The telecommunications company on Tuesday also reported a 6 percent drop in operating expenses excluding $393 million in litigation charges.

During a call with analysts, Qwest Chief Financial Officer John Richardson said the industry has felt the effects of the nation's housing woes. "We continue to note a marked decrease in the number of calls received for new and relocating customers in 2007," he said.

For the quarter ending Dec. 31, Qwest reported net income of $366 million, or 20 cents a share, up from $194 million, or 10 cents a share, in the fourth quarter of 2006. Revenue fell 1.5 percent to $3.4 billion from $3.5 billion and operating costs dropped 6 percent.