Securus Warns FCC Draft Inmate Calling Service Order Could Put It Out of Business
Securus said the FCC's draft inmate calling service order could put it out business (see 1509300067). In a meeting with agency officials, "Securus explained that, if adopted, the rates and rules in [an FCC] Fact Sheet could be 'a business…
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ending event' for the company," said a filing posted Thursday in docket 12-375. "Under the rate caps listed in the Fact Sheet, there being no rules in the draft order that address site commissions, Securus may be forced to continue paying site commissions on all existing contracts, even though the draft rate caps are significantly below Securus’s cost to provide service. Securus currently pays approximately $140 million of site commissions on local and intrastate ICS." Pay-Tel Communications also made filings expressing concerns about the FCC's proposed treatment of site commissions, which ICS providers often pay to correctional authorities to win contracts. The commission plans to vote on the draft order and a further NPRM at its Oct. 22 meeting.