Prison Phones Prove Captive Market for Private Equity

The FCC may be taking on phone costs for incarcerated individuals.

From the article: “Global Tel*Link Corp., Securus Technologies Inc. and smaller competitors in the $1.2 billion inmate-phone industry bid for exclusive contracts to provide telephone service, agreeing to pay as much as two-thirds of calling charges to government or private prison operators. Those commissions can drive fees to levels that make it difficult for prisoners to maintain contact with spouses, children and parents.”

“In an online question-and-answer exchange last month, [FCC Chairman] Genachowski, a Democrat, called prison phone rates a “serious issue for families, communities, security” and said the FCC is “preparing next steps.” He didn’t provide details.”

Read more here.

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