FCC Caps Price Charged By Prison Payphones Industry

WASHINGTON -- The Federal Communications Commission voted to place price caps on the cost of phone calls from prisons. The Oct. 22 decision was taken after prisoners and their families complained that inmate-calling companies are charging up to $14 per minute.

The mandated cap will cut rates for local and in-state long-distance inmate calling, and reduce its existing cap on interstate long-distance calls by up to 50%. Under the ruling, calls for some inmates will be reduced to 11¢ per minute.

The FCC also closed loopholes by barring most add-on fees imposed by inmate calling service providers, and set strict limits on the few fees that remain. As the FCC pointed out in its decision, extra fees and charges can increase the cost of families staying in touch by phone with incarcerated members by as much as 40%.

"None of us would consider ever paying $500 a month for a voice-only service where calls are dropped for seemingly no reason, where fees and commissions could be as high at 60% per call and, if we are not careful, where a four-minute call could cost us a whopping $54," FCC commissioner Mignon Clyburn said before the Oct. 22 vote.

The two largest inmate calling service providers, Global Tel Link and Securus Technologies, are not pleased with the FCC's ruling. Among their contentions is the fact that the new caps do no limit commissions to the facilities.

"In today's decision, the FCC may ultimately hurt inmates and their families -- the very people they set out to help. While they might see lower per-minute rates, they could be left with either the lowest quality of phone service or no phone service at all," said GTL chief executive Brian Oliver. "Indeed, telling the world that technology, security and commissions can all be provided under the proposed caps is profoundly naïve, ignores the FCC's own record and defies common sense."

GTL is planning to seek judicial review of the FCC's order.