Prison Call Caps? Inmates Pay More Elsewhere

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American businesses have been known to adapt quickly, especially in the face of regulation.

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Just look at what’s happening with prison phone calls. 

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Making a 15-minute phone call from a large jail used to cost more than $11. Why so expensive? Lack of competition. Two companies, ViaPath and Securus, facilitate most prison calls. Some jails also allegedly negotiated kickbacks with the aforementioned phone providers, which means they get a share of the revenue in exchange for giving them the contract.

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In July, the Federal Communications Commission voted to cap 15-minute phone call prices in prison at $1.50. However, as the FCC’s new rules squeeze ViaPath and Securus financially on phone calls, they are now distributing tablets to inmates filled with premium content at steep prices to make that revenue back:

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• $25.00 for a movie rental
• $2.50 for a song

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American capitalism knows no bounds.