Chairman Pai's Response to Members of Congress Regarding Prison Payphone Rates

On March 28 2017, Federal Communications Commission Chairman Ajit Pai responded to several members of Congress regarding prison payphones and the FCC's decision not to defend at oral argument the intrastate calling rate caps. Chairman Pai wrote that he concluded there was a market failure in regards to the rates being charged for inmate calling services. But, Chairman Pai wrote, "the FCC's well-intentioned efforts have not been fully consistent with the law. In particular, the FCC has attempted to cap rates for intrastate inmate calls in apparent violation of the clear limits Congress placed on the agency's intrastate authority, and it failed to account for all record evidence."

Chairman Pai continues later, "Your letter asks about the FCC's decision not to defend at oral argument the intrastate calling rate caps. As indicated above, agency counsel did defend the Commission's authority to cap interstate rate caps, as well as to cap the ancillary charges that can drive up the cost of prison payphone calls. But given the circumstances in which the Commission found itself in this case- where oral argument was scheduled less than two weeks after I was designated to lead the Commission, the Commissioners who dissented from the order on review constituted a majority at the agency, and the court itself had stayed the effect of the intrastate calling rate caps- we determined that defending the portions of the Order supported by a majority of FCC commissioners was the most appropriate way to proceed."