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by nickalewis 3898 days ago
We need to eliminate or limit kickbacks next.

This is a monumental decision for inmates & their families, but long-term progress can be made by getting rid of commissions, particularly at the state & local level. The FCC chose not to make a decision on commissions (citing the lack of legal authority) however it's eliminating or limiting these kickbacks thats needed to really re-align the market. Currently commissions are negotiated on a percentage basis, so facilities have an incentive to favor high customer costs since they get a chunk. This could be improved by legislation limiting commissions to a per-minute basis, so facilities have incentive to favor lower cost & higher-volume. That way rates continue to move downward.

Think about it like this... With the FCC's decision today rates are limited to a max of 0.14 cent a minute. Since commissions are percentage based a facility could demand 13.99999 cent commissions. Theres no incentive for them not to! If states were to set a maximum per-minute commissions at say, .05 cent a minute, it would encourage facilities to push the rates down in order to increase usage. Rates would never fall below .05 cent, but facilities would have incentive to push the rates down as close to the maximum as they could. It would also help cut down on the extra fees vendor's charge. Since extra fees eat into the money that families can spend on actual calls, facilities would have financial incentive to favor lower fees that would increase the number of minutes used.

We've seen nationwide[1] that lowering the total price to families increases call volume. Also increasing phone calls fights recidivism and heals family units. It's something I've been reading and personally care alot about with my work with Penmate[2]. Today's victory was landmark, but there's certainly more progress ahead.

[1] 2014 FCC Report on ICS (search 'call volumes') http://apps.fcc.gov/ecfs/document/view?id=60000975214 [2] http://penmateapp.com