Securus, GTL Downplay Power; Verizon Sees 'Monopolistic Characteristics'

Big inmate calling service providers denied they have ICS monopolies, in Friday California Public Utilities Commission comments. Verizon and consumer groups said inmates can’t choose. Comments in docket R.20-10-002 were on a staff proposal to temporarily adopt FCC 2013 interstate ICS rate caps for intrastate rates, or any new caps the FCC adopts, until the CPUC adopts permanent rates. "That the result of the competitive RFP process results in a sole provider is no indication that ICS providers are monopolists empowered to charge excessive rates,” Securus commented. Global Tel*Link (GTL) said that “the market arises from competition between ICS providers to supply ICS to correctional facilities via a competitive bidding process conducted by the governmental bodies that oversee these institutions.” Verizon, which no longer sells ICS service, wrote that “given that inmates have no other options in service provider, there are certainly monopolistic characteristics.” Inmates lack choice but "the nature of the specialized service in issue distinguishes it" from utility monopolies, said PayTel. “Providers compete, vigorously, for the right to provide service to inmates in confinement facilities, and, in the absence of the agreement of the facility, have no right or ability to provide service to inmates.” The Californians for Jail and Prison Phone Justice Coalition noted a “duopoly,” with Securus and GTL controlling 82% of the market. Securus and GTL said they’re committed to lowering rates. High prices at some jails reflect a provider's internal costs and requirements of "correctional agencies for revenue in the form of site commissions,” Securus said. Intrastate rates above FCC interstate caps “are a consequence of the unique needs of correctional facilities, as determined by the governmental bodies that oversee them,” GTL said. The CPUC should “accord correctional facilities, and the governmental bodies that oversee them, the ‘wide-ranging deference’ necessary to execute the unique arrangements critical to institutional efficiency and security.” The California commission should reduce rates to 5 cents per minute for intrastate voice calls, less than the staff proposal, said the CPUC Public Advocates Office. Current rates in 132 out of 214 California jails are at or below the proposal’s 21 cents interim cap, but a 5 cents cap would benefit people incarcerated in 82 facilities, it said. Incarcerated people and their families told a commission hearing last week rates are too high (see 2104290034).