Smuggled mobiles erode profit of US prisons’ phone buisness


Posted on September 7, 2011  /  0 Comments

The increase of smuggled mobile phones in prisons across America has prompted the Government Accountability Office investigatingĀ  any links between the high cost of landline phone calls and mobile phone use. It has been found that the Bureau of Prisons (BOP) charges high on landline calls as it uses the funds to pay for inmate wages and other amenities, rather than those costs coming from the State as would happen in most countries.

The BOP charges inmates $0.06 per minute for local calls and $0.23 per minute for long distance calls, with no connection charge. In fiscal year 2010, BOP’s inmate telephone system generated approximately $74 million in revenue, cost approximately $39 million to operate, and showed a profit of approximately $34 million.

The report found that lowering rates would have several implications. Inmates would benefit from the ability to make cheaper phone calls, but lower rates could result in less revenue and lower profits, and therefore fewer funds available for inmate wages and recreational activities. According to BOP officials, when inmates have fewer opportunities for physical activity, idleness increases, and the risk of violence, escapes, and other disruptions also rises. Read the full report.

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