Pay Tel Knocks, Sheriffs Slam Inmate Calling Order; Others Laud FCC Action

Pay Tel said the order had “several positive aspects,” including the creation of a “tiered rate structure that distinguishes between jails and prisons, application of the new rules to intrastate rates, and regulation of ancillary fees." But Pay Tel said the order also suffered from “significant shortcomings” because it “stops short of articulating a comprehensive, rational and sustainable approach to reform of inmate calling services," according to Pay Tel President Vincent Townsend in a Friday company release.

Pay Tel said it had two primary concerns: “[1) T]he order adopts rate caps for certain tiers which are below Pay Tel's reported costs of providing service; and 2) the order fails to address site commission payments, which the record has shown are a source of the high rates and fees.” Townsend said: “The FCC has previously concluded that this sort of system is broken, and causes providers to implement strategies that are bad for consumers, so it is a mystery as to why they have chosen to perpetuate it." The agency didn't ban the payment of site commissions for securing correctional facility contracts, but it said they weren't a cost of providing ICS and thus were excluded from the agency’s rate cap determinations.

Pay Tel and others had asked the FCC to create an “additive” per-minute mechanism to recover site commission costs. “The solution Pay Tel proposed would have placed downward pressure on rates as facilities sought to stimulate minutes of use in pursuit of greater cost recovery,” Townsend said. “Unfortunately, the FCC failed to do this. ... We are concerned that it has created a regulatory environment which is not sustainable for companies like Pay Tel that are committed to ethical business practices.” Townsend told us Friday that Pay Tel is leaning toward joining ICS provider litigation but first wants to read the text of the order, which isn't yet out.

The National Sheriffs’ Association said the order “overreaches their congressional mandate and disregards the realities of maintaining the safety and security of jails.” The association said in a statement that the FCC “blatantly ignored” many facts raised by the group and state and local sheriffs’ associations attesting to their costs. “The FCC has ignored the very real concerns of sheriffs who operate more than 80% of jails across this country,” said Jonathan Thompson, the association CEO. "Criminals who are incarcerated sometimes continue their criminal enterprises from jail or prison. Anything from organized crime to gang affairs to harassment or intimidation of witnesses. All of those things contribute to the security measures and costs necessary to ensure the safety of the facility and the public. The rate caps established by the FCC will force many jails to limit, or eliminate altogether, access to phones because they simply cannot afford the cost of the service.”

The CBC praised the FCC for taking “a step in the right direction” to ensure calling rates are reasonable and fair for inmate families keeping in touch. “Prior to today’s announcement, these prohibitively expensive phone calls could range up to nearly $14 dollars per minute and often force families and individuals to forgo contact with loved ones while they are incarcerated,” said Rep. G.K. Butterfield, D-N.C., chairman of the caucus, in a statement. “The new caps reduce the average rates for phone calls substantially and lessen the additional hardship that many families are faced with while their loved ones are imprisoned.” The statement noted some caucus members recently urged the FCC to adopt a comprehensive solution to lower calling rates and end “predatory practices.” Those members urged stronger action on site commissions (see 1510200078).

MMTC said the action “addressed one of the most important social justice issues of our time." The NHMC lauded the FCC for doing “a great thing in reducing the predatory charges that have prevented so many families from staying connected with their loved ones."