OREANDA-NEWS. May 20, 2008. CJSC TransTeleCom (TTС) has disclosed the financial results for 2007 according to International Financial Reporting Standards. The consolidated income of the TTС group of companies, which includes the parent company and 18 companies is 24.5 billion rubles. The growth rate is 38% compared to year 2006 reporting, when TransTeleCom earned 17,8 billion rubles. Telecommunication services allowed TTC to earn 14 bln roubles (compared to 12.7 bln in 2006) which is accounted as the major share in company’s revenues, reported the press-centre of TransTeleCom.

Net profit of the company according to IFRS is 2,539 bln rubles that exceed results of the past annual reporting period on 17 % (2,172 billion rubles).

2007 was the final year of 5-year of company’s business development round declared by its strategy for years 2003-2007. All of the tasks that were formulated by the shareholder are completed. TransTeleCom has built the Digital Communications Backbone Network. The Company has created the efficient system of technical exploitation based on the latest industrial standards. Half of the investments (12,4 billion rubles) for the building of the network is returned to the shareholder. The company demonstrated high level of commercial growth rates taking leading positions in Russian telecommunication market.

TransTeleCom’s Digital Communications Backbone Network provided reliable, secured and efficient information exchange giving its clients and principal shareholder (“Russian Railways” JSC) access to the high quality telecommunication services. The availability ratio of the services provided for RZD’s divisions’ technical needs was 99,99 %.

TTC had successfully finished construction of unique national scale long distance calls network built with NGN technology and started operations on the long distance communications market.
An underwater fiber-optic route with capacity of 400 Gbps connecting mainland Russia and TTC’s network segment on Sakhalin was opened for commercial use.

The construction of fiber-optic cable system that connects Sakhalin (Russia) and Hokkaido (Japan) was completed in December 2007. The project codenamed HSCS (Hokkaido-Sakhalin Cable System) is a joint project of TransTeleCom and NTT Communications Corporation, the major Japan telecommunications operator.

This high-speed cable system is the first telecommunication project in its kind and scale between the two countries that was completed within peak terms. The aim of this project is to provide seamless access for global companies and telecommunication operators to the high-speed transcontinental backbone EurasiaHighway which is a reliable and efficient data transit route between European and Asian countries and based on the TransTeleCom's backbone network.

TTC mantains leading positions on the Russian telecommunications market in corporate segment. TTC’s share on the national private lines market is 38 % and 18% on the international private lines market. TTC holds 46 % IP Access market and 34% of IP VPN market.

By the end of 2007 TTC had 1 565 clients compared to 1 490 clients in 2006 and about 21 000 network uplinks (with 13 000 in 2006).

The growth of the client traffic exchange continued in TTC’s networks. Annual volume of internet traffic exchange tripled to 23 069 108 Gb. IP VPN traffic tripled as well to 516 879 Gb.
TTC opened the representative office in Beijing and thus became the first Russian telecommunication company with the permanent presence in Asian-Pacific region.

The representative office will focus its activities on developing ties with Chinese regulatory authorities as well as facilitating scientific, technological and economic cooperation with Chinese governmental institutions and telecommunication companies.

The office is also tasked with driving sales of TTC services and its Eurasian infrastructure capacities.

TransTeleCom has a long history of successful cooperation with four major Chinese telecommunication companies: China Unicom, China Netcom and China Telecom. The interconnection agreement between China Tietong. In year 2007 TTC has signed an interconnection agreement with China Tietong. Earlier similar Agreements were concluded with major Chinese backbone operators China Netcom, China Unicom and China Telecom. The total border capacity totals 40 Gbps.

In 2007 TTC and Huawei Technologies the leading Chinese manufacturer of telecommunication equipment have signed an Agreement of Strategic Partnership. According to this Agreement TTC and Huawei commit to further development of connections between the two companies.

Being aware of its social role and social responsibility the Company has continued its long term charity program ‘TransTeleCom’s Children Hearts’ which is aimed at aiding critically ill children with atelocardia from indigent families. Starting from September 2006 TransTeleCom Company has transferred 11 069 908 rubles to support the program thus financing the surgery for 83 children and newborns. Thanks to donations from TTC employees another 21 children heart surgery became possible. The program also financed 6 medical screening surveys in various regions of Russia.