CapRock Communications Acquires Advanced Telecommunications Switching Systems

Strategic Insights -

CapRock Communications, Corp. has agreed to purchase more than $13 million worth of advanced telecommunications switching systems from Nortel Networks, enabling the company to provide integrated communications services in Houston and neighboring areas. The purchase allows CapRock to deliver local and long-distance services, as well as Internet and data connectivity, over its own facilities. This acquisition marks a significant step towards CapRock's goal of becoming the dominant integrated communications provider in the Texas and Southwest region.

Key Takeaways:

  • CapRock Communications will provide local and long-distance services, as well as Internet and data connectivity, over its own facilities after the implementation of the new switching systems.
  • The DMS-10 switching system in Victoria, Texas, will offer advanced local calling services such as caller ID and call waiting ID.
  • The DMS-500 multi-service switching system in Houston will support a host of applications, including voice, video, and data functions, and is scalable up to 100,000 ports.
  • CapRock owns and operates a 260 route-mile fiber optic network linking Houston, Victoria, and Corpus Christi, with approximately 800 route miles of fiber optic network substantially complete as of December 31, 1998.
  • CapRock plans to expand its network to 3,300 route miles by the end of 1999 and ultimately cover 5,500 route miles in five states by the end of 2000.
  • Nortel Networks' DMS-500 multi-service switching systems will enable CapRock to offer a full portfolio of high-demand network services customized for small to medium-sized business customers.
  • The DMS-500 system supports Advanced Intelligent Network-based services and provides a platform for evolving to next-generation Internet Protocol (IP) networks.

Statistics:

  • The purchase of the equipment is valued at over $13 million.
  • Nortel Networks has installed more than 4,900 DMS-10 systems in over 35 countries in the past 20 years.
  • Nortel Networks had 1997 revenues of $15.5 billion, and Bay Networks, a wholly owned subsidiary, had revenues of $2.4 billion in its most recent fiscal year.
  • CapRock's fiber optic network will expand to 3,300 route miles by the end of 1999 and 5,500 route miles by the end of 2000.
  • Nortel Networks' workforce totals approximately 80,000 employees worldwide.

Sources:

  • Business Wire, January 25, 1999
  • Nortel Networks' press release
  • CapRock Communications' press release
  • Nortel Networks' financial reports