Business

Feds dialing up prison call probe

US regulators are considering rate caps and other steps to lower jailhouse telephone rates that enrich private equity firms as they cost US prisoners and their families as much as $17 for a 15-minute call.

Federal Communications Commission Chairman Julius Genachowski Wednesday proposed information-gathering that could lead to a vote to intervene in the $1.2 billion prison-phone market, FCC Commissioner Mignon Clyburn said at a rally today.

“For far too long, friends and family of the incarcerated have had no choice but to pay unconscionably high long-distance rates,” Clyburn told demonstrators seeking lower rates who gathered outside the agency’s headquarters in Washington.

Clyburn, like the chairman a Democrat, said the proceeding was started by Genachowski and could lead to lower rates “soon,” without specifying a timeline. Rate caps are among steps under consideration, said two agency officials who spoke on condition of anonymity because the matter hasn’t been made public.