FCC Inmate Calling Order Spells Out Rate/Fee Limits in Face of Legal Threats
The FCC released the text of its order restricting inmate calling service (ICS) charges that it called “excessive and unaffordable.” The ICS market “is characterized by increasing rates, with no competitive pressures to reduce rates,” with service providers acting as “unchecked monopolists” in how they treat consumers, said the 210-page item, which included a Further NPRM and was adopted 3-2 Oct. 22 (see 1510220059). The item contains extensive discussion explaining the decisions and economic analysis. ICS providers Global Tel*Link and Securus Technologies have vowed to challenge the decision in court, with Securus saying it would seek a stay. Neither commented Friday.
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The item’s first sentence cited Martha Wright’s petition 12 years ago as sparking the rulemaking. Wright died earlier this year, but her group continues. “The Martha Wright Petitioners are pleased to see that many of our proposals to eliminate unjust, unreasonable and unfair ICS rates and ancillary fees were incorporated into the Report and Order," the petitioners said Friday. "The FCC took appropriate action within their statutory authority to provide relief to millions of Americans, including the 2.7 million children with at least one incarcerated parent. While it is unfortunate that several ICS providers announced they would appeal the Order even before its release, we firmly support the FCC’s approach to help resolve this significant criminal justice and civil rights issue.”
The order capped intrastate and interstate per-minute ICS rates for debit or prepaid calls in four tiers: at 11 cents for all prisons (federal and state), 14 cents for jails (generally local) with 1,000 inmates and above,16 cents for jails with 350-999 inmates and 22 cents for jails with 349 or fewer inmates (all based on average daily population). Collect calls for prisons are initially capped at 14 cents/minute and for all jails at 49 cents/minute, and then phased down to the four-tier caps over two years.
Dissenting Commissioner Ajit Pai issued an 11-page statement calling the intrastate regulations unlawful due to a lack of jurisdiction. He also said the order “fails to comply with the Administrative Procedure Act because the record evidence does not support the Commission’s chosen rate caps.”
The commission also prohibited all ancillary fees except $5.95 for live agent fees, $3 for automated payment fees and $2 for paper bill/statement fees. ICS provider site-commission payments to correctional authorities are permitted but discouraged, since providers must collect any associated costs from ICS users without exceeding the caps. The federal caps are a ceiling and won't affect state restrictions that go further, but the FCC said it would preempt inconsistent state laws. Following Federal Register publication, prisons will have 90 days to comply with the rules and jails will have six months to comply.
An attached FNPRM seeks comment on “rates for international calls, promoting competition in the ICS industry, the benefits of a recurring Mandatory Data Collection, as well as a requirement that ICS providers file their ICS contracts with the Commission, video visitation, and other newer technologies to increase ICS options." It also seek additional comment "on the operations and economic impacts of providing those services as experienced by end users, correctional facilities, and ICS providers.”