Building on the October 2006 partnership agreement for mutual data-network business development, NTT Com and TransTeleCom, Russia's leading backbone telecom operator, signed another agreement in February this year for the construction of an undersea optic cable system, the Hokkaido-Sakhalin Cable System (HSCS), which will connect Ishikari, Hokkaido in Japan and Nevelsk, Sakhalin in Russia. The new cable will become the shortest uninterrupted link between Japan, Russia, other parts of Asia and Europe, providing extra backup in the event of natural disasters such as earthquakes. This cable is due to begin operation in early 2008.

Further expanding its global coverage, NTT Com announced in April and May, respectively, the launch of its state-of-the-art global MPLS-based IP-VPN services in two new important markets: Dubai, the United Arab Emirates, in partnership with Etisalat, and Melbourne, Australia. NTT Com's latest developments are focused not only on developing a larger and more robust network, but also on strengthening customer support. One continuous effort the company has made in improving service quality and customer support is the Arcstar Carrier Forum (ACF). The objective of this forum is to share NTT Com's Know-how and best practices with partner telecom operators, especially in the Asia-Pacific region. The ACF 2007 was held in Tokyo on November 2007, with 13 partner carriers, including TransTelecom and Etisalat, participating to discuss quality improvement-related issues.

Meanwhile, NTT Com continued to expand its value-added services portfolio and established premium data centers in new markets beyond Japan, the U.S. and Europe as well as consolidating global data center functions in the area of procurement, quality management and service/ practice standardization. Adding to its total list of some 100 data centers worldwide, the company in June became the first Japanese telecom operator to open a premium facility in Shanghai, China. NTT Com substantially upgraded existing installations of the data center, ensuring complete redundancy of commercial power supply, air conditioning, uninterrupted power supply (UPS), power generators and power distribution route.

NTT Com then announced in November a joint venture with VNPT, Vietnam's largest telecom operator, to launch data centers in Hanoi in mid-2008 and Ho Chi Minh City in early 2009.

NTT Com continued to be highly recognized in 2007 for its world-class service and quality. In May, the company was awarded three Diamond Awards for "Best in Class" results in the "Voice of the Customer: Global Data VPN" report issued by Telemark, the international telecom marketing research and analysis firm with proven expertise in measuring customer satisfaction. NTT Com outperformed rivals in three of eight categories: Top 10 Customer Priorities, Pricing and Billing.

Reflecting NTT Com's holistic approach to providing total ICT solutions, NTT Com was selected for Best Managed Service at the World Communications Awards in London on November 28, becoming the first Asian carrier to earn the coveted award. NTT Com was particularly gratified to receive industry recognition for its efforts because the award accents the company's strong focus on delivering a complete suite of ICT services under a one-stop shop. As one WCA judge put it, "NTT [Com] is really extending its range of ICT capabilities."

Commenting on NTT Com's newest WCA award, EVP Osamu Inoue stated, "NTT Com has won WCA awards for Best Global Carrier (2004), Best Customer Care (2005) and now Best Managed Service, which is like winning a Triple Crown in our industry. We are deeply honored to be continually recognized by the prestigious World Communication Awards program. We believe that this is a testament to the credibility of our services and our continuing commitment to world-class, high-quality service."