Securus asks FCC to look the other way while it expands; advocates and families call its bluff

In our rebuttal to Securus, we disprove the company's claims of healthy competition in the prison phone market.

by Aleks Kajstura, July 31, 2018

Two weeks ago, the Prison Policy Initiative, along with the Wright Petitioners and other advocates, called on the Federal Communications Commission to stop the merger of prison phone companies Securus and ICSolutions. Following Securus’ reply, we filed a rebuttal today demonstrating why the company should not be allowed to acquire its last effective competitor for prison and jail phone contracts.

Securus tried to argue that there’s still plenty of competition left in the market. The company quibbles over the methods we used to calculate its future market share (should it acquire ICSolutions). But the math here is not really that complicated: When a giant industry player acquires a competitor, there is immediately one less player, which reduces competition.

And competition in the prison phone market is more important than ever. Prisons and jails are finally starting to pay serious attention to the rates shouldered by incarcerated people and their families, taking these concerns into account when they choose a phone provider.

Securus, meanwhile, “continues to engage in charging unlawful and egregious rates,” as well as enabling illegal cell phone tracking. Securus is asking the FCC to look the other way as it acquires one more of its competitors. It must be prevented from expanding its frontier for misconduct.

 

For our detailed analysis of why Securus/ICSolutions are wrong about diversity of competition, and barriers to entry and expansion in the prison and jail phone market, see Exhibit D of our filing.

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