Communicating with inmates has become big time business for many companies in the United States and Canada. Large organizations have streamed lined the process, and discovered a market that is easy for them to control. An inmate doesn’t have an option of choosing a particular service when trying reach out to friends or family members. If they are in a position where visitation isn’t allowed, phones are usually the best recourse. The rates are set by the service providers. There is no negotiating plans and pricing. This leaves the customer at the mercy of the big companies that control the communication process.
The FCC has looked to intervene and set a cap on rates. However, these efforts have had little impact. The pricing is arranged in a deal with the technology provider and the local law enforcement agency. At the moment there is little that can be done about how these two entities conduct business.
Calls are priced at about a dollar per minute. Interstate communication rates have been regulated by the FCC. This means that an inmate call form Virginia to North Carolina is price capped by law. The rates are set and cannot be elevated by the service provider. Intrastate calls are not subject to this regulation, and often become inflated. It is believed service providers have adjusted their pricing on calls within state to make up for revenue lost by the FCC regulation.
Large companies blame the FCC’s involvement for not being able to accommodate customers with lower prices. Since the government agency regulated one aspect of their business, they claim that they were forced to adjust service rates in order to cover costs. In the end, the consumer is getting the bill.
References
http://www.ibtimes.com/why-prison-phone-rates-keep-going-even-though-fcc-regulated-them-2388200