Prison-Phone Providers Call Off Merger
Two US providers of phone services for correctional facilities called off their planned merger after the Federal Communications Commission refused to clear the deal. Closely held Securus Technologies Inc. and Inmate Calling Solutions LLC withdrew their merger application after FCC staff reviewing the deal said it would hurt the public interest. FCC Chairman Ajit Pai said he agreed with the staff decision. The two companies provide phone calls, video chats and other services to more than 1 million people in local jails like New York City’s Rikers Island and in state and federal prisons including Louisiana State Penitentiary, which is known as Angola. Criminal justice advocates and consumer groups have complained that the high rates the companies charge for phone calls and other communications prevent inmates from staying in touch with family members.
Prison-Phone Providers Call Off Merger