Click here for Adobe Acrobat version
Click here for Microsoft Word version

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                    )                               
                                                                    
                                    )   File No. EB-07-IH-5119      
     In the Matter of                                               
                                    )   NAL/Acct. No. 200832080087  
     CapRock Communications, Inc.                                   
                                    )   FRN No. 0001-6437-66        
                                                                    
                                    )                               


                                     ORDER

   Adopted: June  10, 2008 Released: June  10, 2008

   By the Enforcement Bureau:

    1. In this Order, we adopt the attached Consent Decree entered into
       between the Enforcement Bureau ("Bureau") and CapRock Communications,
       Inc. ("CapRock"). The Consent Decree terminates an investigation by
       the Bureau against CapRock for possible violation of, among other
       things, section 254 of the Communications Act of 1934, as amended (the
       "Act"), and sections 54.706, 54.711, and 64.1195 of the Commission's
       rules relating to registration, regulatory filings and the universal
       service fund.

    2. The Bureau and CapRock have negotiated the terms of the Consent Decree
       that resolve this matter. A copy of the Consent Decree is attached
       hereto and incorporated by reference.

    3. After reviewing the terms of the Consent Decree and evaluating the
       facts before us, we find that the public interest would be served by
       adopting the Consent Decree and terminating the investigation.

    4. In the absence of material new evidence relating to this matter, we
       conclude that our investigation raises no substantial or material
       questions of fact as to whether CapRock possesses the basic
       qualifications, including those related to character, to hold or
       obtain any Commission license or authorization.

    5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
       Communications Act of 1934, as amended, and sections 0.111 and 0.311
       of the Commission's Rules, the Consent Decree attached to this Order
       IS ADOPTED.

    6. IT IS FURTHER ORDERED that the above-captioned investigation IS
       TERMINATED.

    7. IT IS FURTHER ORDERED that CapRock shall make its voluntary
       contribution to the United States Treasury, as specified in the
       Consent Decree, by mailing a check or similar instrument payable to
       the Order of the Federal Communications Commission, to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
       63101. Payment[s] by wire transfer may be made to ABA Number
       021030004, receiving bank Federal Reserve Bank of New York, and
       account number 27000001. For payment by credit card, an FCC Form 159
       (Remittance Advice) must be submitted.  When completing the FCC Form
       159, enter the NAL/Account number in block number 23A (call sign/other
       ID), and enter the letters "FORF" in block number 24A (payment type
       code).  CapRock shall also send electronic notification of payment of
       the voluntary contribution on the date said payment is made to
       michele.berlove@fcc.gov.

    8. IT IS FURTHER ORDERED that CapRock will file reports with the
       Commission ninety days after the effective date of the Consent Decree,
       as defined therein ("Effective Date") and twelve months after the
       Effective Date. Each report shall include a compliance certificate
       from an officer, as an agent of CapRock, stating that the officer has
       personal knowledge that CapRock has established operating procedures
       intended to ensure compliance with this Consent Decree, together with
       an accompanying statement explaining the basis for the officer's
       compliance certification. All reports shall be submitted to Hillary S.
       DeNigro, Chief, Investigations and Hearings Division, Enforcement
       Bureau, Federal Communications Commission, 445 12th Street, S.W.,
       Washington, D.C. 20554. The Company shall also transmit a copy of the
       reports via email to hillary.denigro@fcc.gov.

    9. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
       shall be sent by first class mail and certified mail, return receipt
       requested, to C. Douglas Jarrett, Keller & Heckman LLP, 1001 G Street,
       N.W., Suite 500 West, Washington, D.C. 20001.

   FEDERAL COMMUNICATIONS COMMISSION

   Kris Anne Monteith

   Chief, Enforcement Bureau

                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                    )                               
                                                                    
                                    )   File No. EB-07-IH-5119      
     In the Matter of                                               
                                    )   NAL/Acct. No. 200832080087  
     CapRock Communications, Inc.                                   
                                    )   FRN No. 0001-6437-66        
                                                                    
                                    )                               


                                 CONSENT DECREE

    1. The Enforcement Bureau ("Bureau") and CapRock Communications, Inc.
       ("CapRock"), by their authorized representatives, hereby enter into
       this Consent Decree for the purpose of terminating the Enforcement
       Bureau's investigation into whether CapRock violated, among other
       things, section 254 of the Communications Act of 1934, as amended (the
       "Act") and sections 54.706, 54.711, and 64.1195 of the Commission's
       rules relating to registration, regulatory filings and the universal
       service fund ("USF").

   I. DEFINITIONS

    2. For the purposes of this Consent Decree, the following definitions
       shall apply:

    a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
       S: 151 et seq.

    b. "Bureau" means the Enforcement Bureau of the Federal Communications
       Commission.

    c. "CapRock" means CapRock Communications, Inc. and its
       predecessors-in-interest and successors-in-interest.

    d. "Commission" and "FCC" mean the Federal Communications Commission and
       all of its bureaus and offices.

    e. "Compliance Plan" means the program described in this Consent Decree
       at paragraph 10.

    f. "Effective Date" means the date on which the Commission releases the
       Adopting Order.

    g. "Investigation" means the investigation commenced by the Bureau's May
       24, 2007 Letter of Inquiry regarding whether CapRock violated, among
       other things, section 254(d) of the Communications Act of 1934, as
       amended (the "Act") and sections 54.706, 54.711, and 64.1195 of the
       Commission's rules relating to registration, regulatory filings and
       the universal service fund.

    h. "Order" or "Adopting Order" means an Order of the Commission adopting
       the terms of this Consent Decree without change, addition, deletion,
       or modification.

    i. "Parties" means CapRock and the Bureau.

    j. "Rules" means the Commission's regulations found in Title 47 of the
       Federal Regulations.

   II. BACKGROUND

    3. Pursuant to section 64.1195(a) of the Commission's rules and pursuant
       to Commission orders, all carriers that provide interstate
       telecommunications service and certain other providers of interstate
       telecommunications must register with the Commission through
       submission of FCC Form 499-A. In addition, section 254(d) of the Act
       and sections 54.706 and 54.711 of the rules require telecommunications
       carriers that provide interstate telecommunications services to file
       annual and quarterly Telecommunications Reporting Worksheets (FCC Form
       499-A and FCC Form 499-Q) and contribute to the USF on the basis of
       their interstate and international end-user telecommunications
       revenues.

    4. CapRock, a Texas-based company, is a niche provider of
       telecommunications, offering primarily international satellite
       services worldwide to the energy, maritime, construction and mining
       industries, as well as for disaster relief and government
       applications, but also providing interstate telecommunications in the
       United States. CapRock thus is subject to the requirements discussed
       in paragraph 3 above.

    5. On March 23, 2007, through counsel, CapRock self-disclosed to the
       Bureau that it had discovered that it had failed to comply with
       certain regulations pertaining to universal service and other
       associated reporting and contribution obligations.  CapRock also
       indicated that  it would be submitting its registration, annual and
       quarterly Telecommunications Reporting Worksheets for prior reporting
       periods, all of which were submitted on April 2, 2007. On May 24,
       2007, the Bureau issued a letter of inquiry ("LOI") to CapRock
       directing it to provide certain documents and information. CapRock
       submitted its response on June 13, 2007. On August 6, 2007, the Bureau
       sent a follow-up letter of inquiry to CapRock, to which CapRock
       responded on August 27, 2007 and September 12, 2007.

   III. TERMS OF AGREEMENT

    6. Adopting Order. The Parties agree that the provisions of this Consent
       Decree shall be subject to final approval by the Bureau by
       incorporation of such provisions by reference in the Adopting Order
       without change, addition, modification, or deletion.

    7. Jurisdiction. CapRock agrees that the Bureau has jurisdiction over it
       and the matters contained in this Consent Decree and has the authority
       to enter into and adopt this Consent Decree.

    8. Effective Date: Violations. The Parties agree that this Consent Decree
       shall become effective on the date on which the FCC releases the
       Adopting Order. Upon release, the Adopting Order and this Consent
       Decree shall have the same force and effect as any other Order of the
       Bureau. Any violation of the Adopting Order or of the terms of this
       Consent Decree shall constitute a separate violation of a Bureau 
       Order, entitling the Bureau to exercise any rights and remedies
       attendant to the enforcement of a Commission Order.

    9. Termination of Investigation. In express reliance on the covenants and
       representations in this Consent Decree and to avoid further
       expenditure of public resources, the Bureau agrees to terminate its
       investigation. In consideration for the termination of said
       investigation, CapRock agrees to the terms, conditions, and procedures
       contained herein. The Bureau further agrees that in the absence of new
       material evidence, the Bureau will not use the facts developed in this
       investigation through the Effective Date of the Consent Decree, or the
       existence of this Consent Decree, to institute, on its own motion, any
       new proceeding, formal or informal, or take any action on its own
       motion against CapRock concerning the matters that were the subject of
       the investigation, nor will the Bureau recommend any such action to
       the Commission. The Bureau also agrees that it will not use the facts
       developed in this investigation through the Effective Date of this
       Consent Decree, or the existence of this Consent Decree, to institute
       on its own motion any proceeding, formal or informal, or take any
       action on its own motion against CapRock with respect to CapRock's
       basic qualifications, including its character qualifications, to be a
       Commission licensee or authorized common carrier or hold Commission
       authorizations, nor will the Bureau recommend any such action to the
       Commission.

   10. Compliance Plan. CapRock agrees that it will develop, within sixty
       (60) calendar days from the Effective Date, an internal Compliance
       Plan to ensure CapRock's future compliance with the Act, the
       Commission's rules, and the Commission's orders governing reporting
       and USF contribution requirements for providers of telecommunications.
       The Compliance Plan includes the following components:

    a. Compliance Manual. CapRock shall create, maintain and update a USF
       Compliance Manual. CapRock personnel who engage in activities related
       to USF compliance and reporting obligations of CapRock will have ready
       access to the Compliance Manual and are to follow the procedures
       contained therein. The Compliance Manual will, among other things,
       describe the rules and requirements as they apply to CapRock regarding
       USF compliance and reporting obligations. The Compliance Manual will
       set forth a schedule of filing and payment dates associated with the
       USF, and CapRock will create compliance notifications that alert
       CapRock to upcoming filing and payment dates. The Compliance Manual
       will encourage personnel to contact CapRock's Designated Contact and
       Regulatory Legal Counsel with any questions or concerns that arise
       with respect to CapRock's USF compliance and reporting obligations.

    b. Compliance Training Program. CapRock will establish an USF compliance
       training program for any employee who engages in activities related to
       CapRock's USF compliance and reporting obligations. Training sessions
       will be conducted for such employees to ensure such employees are
       informed regarding all applicable USF obligations, and, for new
       employees who are engaged in such activities, within the first sixty
       (60) days of employment.

    c. Designated Contact. CapRock will designate one employee as the point
       of contact for all USF compliance obligations.

    d. Review and Monitoring. CapRock will review the USF Compliance Manual
       and USF Compliance Training Program to ensure that they are maintained
       in a proper manner and continue to address the objectives set forth
       therein.

    e. Audits. CapRock will ensure that any internal reviews of this
       Compliance Plan, if conducted, specifically consider compliance with
       the pertinent USF requirements.

    f. Compliance Reports. CapRock will file compliance reports with the
       Commission ninety days after the Effective Date and twelve (12) months
       after the Effective Date. Each compliance report shall include a
       compliance certificate from an officer or responsible official, as an
       agent of CapRock, stating that the individual has personal knowledge
       that CapRock has established operating procedures intended to ensure
       compliance with this Consent Decree, together with an accompanying
       statement explaining the basis for the officer's or responsible
       official's compliance certification. All compliance reports shall be
       submitted to Hillary S. DeNigro, Chief, Investigations and Hearings
       Division, Enforcement Bureau, Federal Communications Commission, 445
       12th Street, S.W., Washington, D.C. 20554. The Company shall also
       transmit a copy of the reports via email to hillary.denigro@fcc.gov.

    g. Termination Date: Unless stated otherwise, the compliance requirements
       under  this Consent Decree  will expire twelve (12) months after the
       Effective Date.

   11. Voluntary Contribution. CapRock agrees that it will make a voluntary
       contribution to the United States Treasury in the amount of
       one-hundred nine thousand and four hundred dollars ($109,400), to be
       paid in three equal installments on July 1, 2008, October 1, 2008 and
       January 2, 2009. Each payment must be made by check or similar
       instrument, payable to the order of the Federal Communications
       Commission. The payment must include the Account Number and FRN Number
       referenced in the caption to the Adopting Order. Payment by check or
       money order may be mailed to Federal Communications Commission, P.O.
       Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may be
       sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
       Convention Plaza, St. Louis, MO 63101. Payments by wire transfer may
       be made to ABA Number 021030004, receiving bank Federal Reserve Bank
       of New York, and account number 27000001. CapRock will also send
       electronic notification within forty-eight (48) hours of the date said
       payment is made to michele.berlove@fcc.gov.

   12. Waivers. CapRock waives any and all rights it may have to seek
       administrative or judicial reconsideration, review, appeal or stay, or
       to otherwise challenge or contest the validity of this Consent Decree
       and the Order adopting this Consent Decree, provided the Commission
       issues an Order adopting the Consent Decree without change, addition,
       modification, or deletion. CapRock shall retain the right to challenge
       Commission interpretation of the Consent Decree or any terms contained
       herein. If either Party (or the United States on behalf of the
       Commission) brings a judicial action to enforce the terms of the
       Adopting Order, neither CapRock nor the Commission shall contest the
       validity of the Consent Decree or the Adopting Order, and CapRock
       shall waive any statutory right to a trial de novo. CapRock hereby
       agrees to waive any claims it may otherwise have under the Equal
       Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R. S: 1.1501 et
       seq., relating to the matters addressed in this Consent Decree.

   13. Severability. The Parties agree that if any of the provisions of the
       Adopting Order or the Consent Decree shall be invalid or
       unenforceable, such invalidity or unenforceability shall not
       invalidate or render unenforceable the entire Adopting Order or
       Consent Decree, but rather the entire Adopting Order or Consent Decree
       shall be construed as if not containing the particular invalid or
       unenforceable provision or provisions, and the rights and obligations
       of the Parties shall be construed and enforced accordingly. In the
       event that this Consent Decree in its entirety is rendered invalid by
       any court of competent jurisdiction, it shall become null and void and
       may not be used in any manner in any legal proceeding.

   14. Subsequent Rule or Order. The Parties agree that if any provision of
       the Consent Decree conflicts with any subsequent rule or Order adopted
       by the Commission (except an Order specifically intended to revise the
       terms of this Consent Decree to which CapRock does not expressly
       consent) that provision will be superseded by such Commission rule or
       Order.

   15. Successors and Assigns. CapRock agrees that the provisions of this
       Consent Decree shall be binding on its successors, assigns, and
       transferees.

   16. Final Settlement. The Parties agree and acknowledge that this Consent
       Decree shall constitute a final settlement between the Parties. The
       Parties further agree that this Consent Decree does not constitute
       either an adjudication on the merits or a factual or legal finding or
       determination regarding any compliance or noncompliance with the
       requirements of the Act or the Commission's Rules and Orders. The
       Parties further agree that this Consent Decree is for settlement
       purposes only and that by agreeing to the Consent Decree, CapRock does
       not admit any liability for violating the Act or the Commission rules
       or orders in connection with the matters that are the subject of this
       Consent Decree.

   17. Modifications. This Consent Decree cannot be modified without the
       advance written consent of both Parties.

   18. Paragraph Headings. The headings of the Paragraphs in this Consent
       Decree are inserted for convenience only and are not intended to
       affect the meaning or interpretation of this Consent Decree.

   19. Authorized Representative. Each party represents and warrants to the
       other that it has full power and authority to enter into this Consent
       Decree.

   20. Counterparts. This Consent Decree may be signed in any number of
       counterparts (including by facsimile), each of which, when executed
       and delivered, shall be an original, and all of which counterparts
       together shall constitute one and the same fully executed instrument.


     ________________________________   
                                        
     Kris Anne Monteith                 
                                        
     Chief                              
                                        
     Enforcement Bureau                 
                                        
     ________________________________   
                                        
     Date                               
                                        
     ________________________________   
                                        
     Alan B. Aronowitz                  
                                        
     General Counsel                    
                                        
     CapRock Communications, Inc.       
                                        
     ________________________________   
                                        
     Date                               


   47 U.S.C. S: 254.

   47 C.F.R. S:S: 54.706, 54.711, and 64.1195.

   47 U.S.C. S: 154(i).

   47 C.F.R. S:S: 0.111,  0.311.

   47 U.S.C. S: 254.

   47 C.F.R. S:S: 54.706, 54.711, and 64.1195.

   See Letter from Trent B. Harkrader, Deputy Chief, Investigations and
   Hearings Division, Enforcement Bureau, FCC, dated May 24, 2007 ("May 24,
   2007 LOI").

   47 U.S.C. S: 254(d); 47 C.F.R. S:S: 54.706, 54.711, and 64.1195.

   47 U.S.C. S: 254(d), 47 C.F.R. S: 64.1195(a); Universal Service
   Contribution Methodology, Federal-State Joint Board on Universal Service,
   1998 Biennial Regulatory Review - Streamlined Contributor Reporting
   Requirements Associated with Administration of Telecommunications Relay
   Service, North American Numbering Plan, Local Number Portability, and
   Universal Service Support Mechanisms, Telecommunications Services for
   Individuals with Hearing and Speech Disabilities, and the Americans with
   Disabilities Act of 1990, Administration of the North American Numbering
   Plan and North American Numbering Plan Cost Recovery Contribution Factor
   and Fund Size, Number Resource Optimization, Telephone Number Portability,
   Truth-In-Billing and Billing Format, IP-Enabled Services, Report and Order
   and Notice of Proposed Rulemaking, WC Docket Nos. 06-122 and 04-36, CC
   Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, and 98-170, 21
   FCC Rcd 7518, 7548-49, para. 61 (2006).

   See LOI.

   See LOI Response, dated June 12, 2007 but forwarded to the Commission
   under cover letter from C. Douglas Jarrett, Keller and Heckman LLP, to
   Vickie S. Robinson, Assistant Chief, Investigations and Hearings Division,
   Enforcement Bureau, FCC, dated June 13, 2007.

   Letter from Trent B. Harkrader, Deputy Chief, Investigations and Hearings
   Division, Enforcement Bureau, FCC, to C. Douglas Jarrett, Keller and
   Heckman LLP, dated August 6, 2007 ("Supplemental LOI").

   Letters from C. Douglas Jarrett, Keller and Heckman LLP, to Michele Levy
   Berlove, Attorney Advisor, Investigations and Hearings Division,
   Enforcement Bureau, FCC, dated August 27 and September 12, 2007
   ("Supplemental LOI Responses").

   Federal Communications Commission DA 08-1322

   2

   Federal Communications Commission DA 08-1322