Court recognizes shortcomings of FCC rate caps and FCC jurisdictional oversteps
FOR IMMEDIATE RELEASE
Reston, Virginia (PRNewsWire) – June 13, 2017 – GTL , an innovation leader in correctional technology and payment services solutions for government, commends the U.S. Court of Appeals on its ruling today in Global Tel*Link v. FCC, Case No. 15-1461, which held that the Inmate Calling Service (ICS) proposed rate caps adopted by the Federal Communications Commission (FCC) in its 2015 Second Report and Order exceeded the FCC’s authority, were arbitrary and capricious, and should not take effect.
In March 2016, a panel of the U.S. Court of Appeals in Washington, D.C., unanimously granted a partial stay in response to the petitions from Global Tel*Link Corporation (GTL) and others who had challenged the FCC’s authority to set rates below providers’ costs and questioned the agency’s attempt to assert jurisdiction in areas traditionally left to state utility commissions and corrections officials.
The Court’s decision prevents further upheaval in the inmate services market and recognizes that the FCC had set rate caps at levels that fail to fully account for the costs of administering ICS in our nation’s prisons. The decision also acknowledges that the agency improperly preempted state, county, and municipal entities in areas of ratemaking and correctional security without clear authority to do so.
“We are committed to market-based reforms that result in lower rates for inmates and their friends and family members, but those reforms must account for the true costs of providing ICS and give deference to state and local governments on issues of intrastate rates and security,” said GTL CEO Brian Oliver. “We look forward to working with regulators and all interested parties to address these fundamental issues in a fair and deliberative process,” concluded Mr. Oliver.
GTL leads the fields of correctional technology and government payment services with visionary solutions and customized products that integrate seamlessly to deliver security, financial value, and ease of operation for its customers. As a trusted industry leader, GTL provides services to 32 state departments of corrections, the District of Columbia, Puerto Rico, the Federal Bureau of Prisons, and 73 of the 100 largest city/county facilities, including 39 of the top 50, which comprise 1.9 million inmates nationwide. To learn more about GTL, please visit www.gtl.net or our social media sites on Facebook, Twitter, LinkedIn and YouTube.
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