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Families Suffer from Collect Call Price Gouging

Few people realize that state correction agencies gather millions of dollars annually in contract deals with telecom companies. Prisons award exclusive rights to the outgoing phone calls in return for up to 60% of the revenue. Prisoners' calls are billed at rates far higher than the current public rates. Some often pay a $3.00 connection fee and 45 cents a minute per call. States claim that the revenue goes back to programs for the inmates, but it usually goes in a general fund with no direct benefit to the inmates themselves. Phone companies claim that security requirements contribute to the high rates. Inmates can only call collect and only to those on their personal list. In many states, phone service providers bid for prison contracts, which are awarded based on how much money a provider will give back to the state. The provider becomes the only service an inmate can use.

Thu, 16 Mar 2000 07:43:22 -0800