Prison Phone Co. Tells DC Circ. FCC Rate Caps Are Unjust

Law360, New York (June 6, 2016, 3:22 PM EDT) -- A prison telephone services company criticized the Federal Communications Commission's rate caps on phone calls from inmates, telling the D.C. Circuit on Friday that the agency's new rules violate a fundamental principle of regulation by preventing the company from profiting from its investment.

In the public version of a brief from Dallas, Texas-based inmate calling services, or ICS, provider Securus Technologies Inc., the company argued that the FCC's caps for automated payments and live agent transactions are considerably less than its demonstrated costs.

"Rate caps that are below the direct cost of service, by definition, cannot provide any return on investment...

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