[waterlesscloud]

>Instead of contracting to one service like any other entity, government would always need to contract with several

No, the government is the entity making a selection among several choices, and is the entity in the position to negotiate the rates.

Therefore they could bargain for lower rates if they wanted.

Misrepresenting the choices isn't making your case.

[rdtsc]

> and is the entity in the position to negotiate the rates.

But Lower rates for whom? Inmates. Why would prison officials care if inmates get lower rates?

[waterlesscloud]

Sure, but that's not a failing of the free market, that's a failing of the government.

[rayiner]

As far as I can tell, JPay is picked because it's the biggest. Any evidence the competitors wouldn't do the same once they got the contracts?

[waterlesscloud]

Write it into the contracts that they cant?

The government is the entity with power here. The government regularly dictates all kinds of terms for their contracts. All the time.

[res0nat0r]

If you read the article you will see that they do it most likely cheaper than the prison can do:

JPay’s rapid rise stems in part from the generous deal it offers many prison systems. They pay nothing to have JPay take over handling financial transfers. And for every payment it accepts in these states — prisoners typically receive about one per month — the company sends between 50 cents and $2.50 back to the prison operator.

The government does have the power, and they most likely are outsourcing this part of their non core infrastructure like most other companies do, to save money.

[rhizome]

They will still save money without the kickbacks, which should be illegal as payola.