Portugal Telecom said that the operating income in its domestic mobile business decreased by 17 percent to EUR92.7 million for the second quarter of 2011, on operating revenue which decreased by 10.7 percent to EUR306.7 million. The decrease in sales was attributed to a reduction in interconnection fees, a fall in service revenue due to VAT increases and the growth of certain service plans, and a drop in equipment sales. The company’s customer base grew by 0.9 percent year-on-year to 7.33 million at the end of the period, but during the three months it lost 80,000 customers, as growth in contract users failed to offset prepaid churn.