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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (date of earliest event reported):
December 6, 1999
CAPROCK COMMUNICATIONS CORP.
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(Exact name of registrant as specified in its charter)
Texas 0-24581 75-2765572
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
15601 DALLAS PARKWAY, SUITE 700
DALLAS, TEXAS 75248
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (972) 982-9500
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N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
CapRock recently entered into an agreement with AT&T Corp. to build
jointly approximately 1300 miles of fiber network in Texas, Oklahoma,
Arkansas and Louisiana. AT&T issued a press release on December 6,
1999 announcing this project. See Exhibit 20.1 to this Form 8-K. To
the extent such press release relates to matters not directly
involving CapRock, CapRock disclaims any responsibility with respect
to such statements.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit.
20.1 Press Release, dated December 6, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAPROCK COMMUNICATIONS CORP.
December 9, 1999 By: /s/ Kevin W. McAleer
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Kevin W. McAleer
Chief Financial Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
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<S> <C>
20.1 Press Release, dated December 6, 1999.
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[AT&T LOGO]
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For further information:
Connie Weaver
Vice President
AT&T Investor Relations & Communications
908-221-3655
[email protected]
FOR RELEASE MONDAY, DECEMBER 6, 1999
AT&T ANNOUNCES MAJOR FIBER-OPTIC NETWORK EXPANSION
NEW YORK - In response to unprecedented growth in demand for
high-speed bandwidth and Internet-based services, AT&T today announced an
aggressive plan to work with three telecom companies to add a new,
state-of-the-art fiber-optic network that will link 30 major metropolitan areas
nationwide. When completed, the plan will allow AT&T to maintain its low-cost
position in the industry, leapfrog its competitors in technology, and quickly
and economically deploy ultra-high-speed bandwidth.
AT&T estimates these 30 cities will represent 80 percent of the future
domestic demand for high-speed services. Deployment of this new overlay network
will also enable AT&T to be among the first to offer ultra-high-speed bandwidth
OC-192 services now and OC-768 services when that technology becomes available.
"The capital expenditure for this project is estimated at $1 billion
over two years, approximately 60 percent of what it would have cost us to
complete the network on our own," said Frank Ianna, president of AT&T Network
Services. "This innovative approach also allows us to complete the project in
just 24 months. This is the first time AT&T has worked a cost-sharing
arrangement with other companies to build additions to our existing fiber-optic
network, while retaining control over construction.
"Although a number of other companies are building large networks,
AT&T already has a base of 80 million customers with real demand that is
growing at a phenomenal rate," Ianna said. "This project will allow us to
quickly and economically increase bandwidth whenever necessary and will also
allow us to generate new revenue by leasing fiber capacity to other companies."
AT&T has long had a program to expand and enhance its fiber network to
improve reliability, restoration, capacity and geographic coverage. This
program represents a significant acceleration of the company's plan to augment
its network to capture near-term and long-term revenue opportunities,
particularly by improving the time-to-market advantages of AT&T's Internet
offerings.
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When this fiber-optic network is completed, it will be equipped with
ultra-high bandwidth Dense Wave Division Multiplexing and Optical Switches that
will allow AT&T to rapidly provision and restore service. The deployment of
this long distance fiber network, when combined with AT&T's more than 10,000
route miles of local fiber, will make AT&T uniquely capable of meeting customer
demand for high-capacity, end-to-end service.
Working with CapRock Communications, PF.Net and Touch America, AT&T
will overlay the new conduit and fiber on existing routes, a method that is
significantly more cost effective than leasing capacity from other suppliers
and also less costly and faster than AT&T installing the new network alone.
The new overlay network will include 16,500 route miles of the
latest-generation fiber-optic cable. AT&T will work with CapRock
Communications, PF.Net, and Touch America to deploy 10,500 miles of fiber-optic
cable. In addition, AT&T has already installed 3,100 miles of the new cable and
plans to deploy another 2,900 miles on its own.
Using existing AT&T rights-of-way or rights-of-way negotiated by one
of the three participating firms, a multi-conduit facility will be installed.
AT&T will own three of the conduits, while the remaining will belong to the
firm doing the actual construction. At first, only one of the AT&T conduits
will contain fiber-optic cable, an arrangement that makes it possible for AT&T
to quickly and inexpensively install new fiber in the future.
CapRock Communications, PF.Net and Touch America will build segments of
the new network in different geographic regions of the country, closely adhering
to AT&T's strict construction and quality standards. AT&T will manage the
project and supervise the construction of each segment.
The new network will include three east-to-west fiber-optic cable
routes, as well as three north-to-south runs. The east-to-west routes will span
the northern tier of states, the southern tier of states, and the central
section of the country. The north-to-south routes will run along the East Coast,
the West Coast, and through the Midwest.
Planning and engineering for this project is already under way. Actual
construction on some segments has already begun, with initial completion dates
of March 2000. Additional sections will be deployed later in the year and
during the following year, with the entire project set to be finished by late
2001.
Current plans for this project call for CapRock Communications to
install fiber-optic cable in Arkansas, Louisiana, Oklahoma, and Texas.
PF.Net will deploy fiber-optic cable along sections of the East Coast,
from Florida to Georgia, and North Carolina to Virginia. In addition, the firm
will install fiber from Missouri into Oklahoma and across the southern tier of
states, from Georgia south to Florida, and then west across Alabama,
Mississippi, Louisiana, Texas, New Mexico, and Arizona into Southern
California.
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Meanwhile, Touch America will be installing three cable routes, the
first running from Minnesota through Wisconsin and Illinois into Missouri. The
second cable will run from Illinois west through Iowa, Nebraska, Colorado,
Wyoming, Utah, and Nevada into Northern California. The third Touch America
cable route will run west from Montana through Idaho into Washington.
These projects will deploy the latest-generation fiber-optic cable
available from two suppliers. Lucent Technologies will provide its TrueWave(R)
RS cable, while Siecor, a joint venture of Siemens and Corning, will supply
Corning's Enhanced LEAF(R) fiber. Both fiber types easily handle high-speed
broadband OC-192 service and are designed to carry OC-768 when that technology
becomes commercially available.
AT&T (www.att.com) is the world's premier provider of voice and data
communications, with more than 80 million customers, including businesses,
consumers, and government. AT&T runs the world's largest, most powerful long
distance network and one of the largest wireless networks in North America. The
company is the leading supplier of data and Internet services for businesses and
the nation's largest direct Internet service provider to consumers. AT&T also
provides local telephone service to a growing number of businesses.
CapRock Communications (www.caprock.com) is a southwestern U.S.
facilities-based integrated communications provider (ICP) offering local, long
distance, Internet, data, and private-line services to business customers. The
company also provides switched and dedicated access, regional and international
long distance, private lines, and dark fiber to carrier customers. The company
is building a 6,100-mile fiber network, as well as voice and data networks in
six southwestern states. Media contact: Andrew Roberts at 972-982-9550.
PF.Net (www.pf.net) will provide fiber-optic communications
infrastructure to communications carriers, Internet Service Providers,
corporations with enterprise network needs, and government entities. The company
is constructing "The Network to the Net" - this IP-based, fiber-optic nationwide
network will connect to national access points in more than 70 cities, including
the five largest communications markets in the United States. The company is
owned by PF Telecom, LLC, Washougal, Wash., Koch Telecom Ventures, Inc., a
wholly owned subsidiary of Koch Industries, Inc., Wichita, Kansas, and Odyssey
Investment Partners, LLC, New York, New York. Media contact: Leslie Teegarden at
360-835-4721.
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Touch America (www.in-tch.com or www.mtpower.com) is a wholly owned
telecommunications subsidiary of The Montana Power Company (NYSE:MTP), providing
long distance, private-line, and Internet services, and business telephone
equipment since 1983. The company's 12,000-mile digital fiber-optic network
employs the most advanced telecommunications technology available today. The
company plans to have an 18,000-mile network by year-end 2000 and more than
23,000 miles by year-end 2001. Touch America offers a full line of long distance
services, as well as dedicated voice, data, video and frame relay solutions.
Touch America's equipment services include design, installation, and maintenance
of PBX and key systems. The company also offers construction management
oversight of the installation of fiber-optic systems. Touch America and The
Montana Power Company are based in Butte, Montana. Media contact: Cort Freeman
at 406-497-2368.
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SIDEBAR-
THE 30 MAJOR METROPOLITAN AREAS SERVED
BY THE NEW FIBER-OPTIC NETWORK
Arlington, Virginia New York, New York
Atlanta, Georgia Orlando, Florida
Austin, Texas Philadelphia, Pennsylvania
Boston, Massachusetts Phoenix, Arizona
Bridgeport, Connecticut Pittsburgh, Pennsylvania
Chicago, Illinois Portland, Oregon
Cleveland, Ohio Richmond, Virginia
Dallas, Texas Sacramento, California
Denver, Colorado Salt Lake City, Utah
Greensboro, North Carolina San Diego, California
Houston, Texas San Francisco, California
Kansas City, Missouri San Jose, California
Los Angeles, California Seattle, Washington
Minneapolis, Minnesota St. Louis, Missouri
Newark, New Jersey Washington, D.C.
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