A Mega-Merger in the Prison Phone Industry is in the FCC's Hands
Securus provides technology services to prisons and jails and has been slammed by inmates’ families who say they’re charged outrageous prices to phone loved ones. The controversy has extended into video call and email services, two other places the company has staked a claim. In October, the company was hit with a $1.7 million fine for allegedly misleading the Federal Communications Commission. By May, attention shifted to another scandal, as the company took heat for enabling warrantless cellphone tracking around the country. It’s against that backdrop that Securus is now moving ahead with a merger that could further consolidate a market already criticized as woefully consolidated. The company, which already claims to service more than 1.2 million inmates in North America, has announced its intention to acquire ICSolutions, a smaller competitor in the industry. While exact market figures are difficult to come by, and Securus has pointed to a handful of smaller businesses that offer similar services, inmate advocates argue that the merger will allow two companies to effectively dominate the market. The only thing standing in the way is the FCC.
A Mega-Merger in the Prison Phone Industry is in the FCC's Hands