FCC’s Wireline Competition Bureau Addresses the Payment of Site Commissions For Interstate Inmate Calling Services

In the 2013 Inmate Calling Report and Order and Further Notice of Proposed Rulemaking (FNPRM), the Federal Communications Commission took numerous steps to address high interstate inmate calling services (ICS) rates.

A Partial Stay Order by the United States Court of Appeals for the District of Columbia Circuit in January 2014 does not affect the ordinary operation of the FCC’s complaint process under section 208 of the Act. Moreover, the Partial Stay Order issued did not disturb the FCC’s determinations regarding site commissions Pursuant to a complaint that challenges the lawfulness of an ICS provider’s interstate ICS rates, the FCC will conduct an adjudication to determine whether those rates are just and reasonable under section 201 of the section 201” of the 1934 Communications Act.

As part of that review, the Commission will follow its established practice and consider whether the challenged rates exceed the reasonable costs of providing ICS and, in that connection, will examine any payment of site commissions by ICS providers to correctional facilities. Any interstate ICS rates that are found to exceed the recovery of costs reasonably related to the provision of ICS may be found unjust and unreasonable under section 201 of the 1934 Act.

Such a finding may result in lowering interstate ICS rates (even if those rates are already at or below the interstate ICS rate caps adopted in the Order). It may also result in an order of refunds to end users.


FCC’s Wireline Competition Bureau Addresses the Payment of Site Commissions For Interstate Inmate Calling Services