American Securities Puts Prison-Phone Operator GTL on Block

Cellphones, texting and email have decimated the traditional phone business, but until recently it had a literally captive market where it could command $17 or more for a 15-minute call. Now, the largest US operator of prison phones, Global Tel*Link Corp., is being shopped by its private-equity owner, according to people familiar with the matter.

The sales push follows a decision by federal regulators to cap the fees that companies like GTL can charge for interstate calls to and from inmates. The government also is weighing a cap on charges for in-state calls. GTL, based in Mobile (AL), has been passed between private-equity firms over the past decade. It was sold most recently in late 2011 for about $1 billion to New York-based American Securities LLC. It isn't clear whether regulatory concerns were behind the firm's decision to find a buyer for the company.