CORRECTED - CORRECTED-UPDATE 1-EarthLink narrows quarterly loss on lower exp

(Corrects analysts' earnings view for the fourth quarter to 19 cents a share from 21 cents, after the Reuters Estimates consensus was corrected)

Feb 7 (Reuters) - Internet service provider EarthLink Inc (ELNK.O) narrowed its quarterly loss, helped in part by lower operating costs and expenses, triggering a 4 percent rise in its shares in pre-market trade.

The company said it bundled its municipal Wi-Fi segment into discontinued operations, which resulted in earnings from continuing operations of 19 cents a share.

The fourth-quarter loss was $9.5 million, or 8 cents a share, compared with a loss of $24.8 million, or 20 cents a share, in the year-ago period.

Revenue fell 14 percent to $282 million.

Analysts on average were expecting earnings of 19 cents a share, before items, on revenue of $275.1 million, according to Reuters Estimates.

EarthLink said its municipal wireless broadband business posted a fourth-quarter loss of $32.1 million, compared with a loss of $7 million in the year-ago quarter.

The Atlanta, Georgia-based company said it has no definitive agreements to sell its municipal wireless assets, although it is committed to sell it.

In November, the company had said it was considering strategic alternatives for the business as further investments in it would not help in maximizing shareholder value.

Shares of the company were trading up about 30 cents to $6.92. (Reporting by Bijoy Koyitty in Bangalore; editing by Anil D'Silva)