You May Hug the Screen

Issue 10-09-17   |   Reviewer:   Angelina I. T. Kiser, Ph.D.
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Abstract

Visitation at some U.S. correctional facilities has moved from face-to-face visits to some form of video viewing. Securus Technologies Inc. controls about a third of the video market, and the financial success of this type of business has attracted the private equity world. However, for now, the majority of Securus's revenue comes from traditional phone services to 3500 correctional facilities.

Phones rates for prisoners have been criticized as being cost prohibitive. Consequently, a class action lawsuit was filed to limit prison phone rates. The Federal Communications Commission ruled on the case in 2013 and placed a cap on interstate calling rates. A federal court in June then ruled in a countersuit filed by Securus and four other companies that the FCC lacked the authority to limit in-state rates. Interstate caps remain intact.





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