ORIGINAL DICKSTEIN SHAPIRO MORIN &OSHINSKY LLP 2101 L Street NW· Washington, DC 20037-1526 Tel (202) 785-9700 • Fax (202) 887-0689 Writer's Direct Dial: (202) 828-2236 161.58.0023 December 6, 2001 EX PARTE OR LATE FILED Ms. Magalie Roman Salas RECEIVED Secretary D Federal Communications Commission Ec - 6 2001 The Portals, TW-A325 COAwuNlC4_ 445 12 th St., SW OFFIcE OF THE 8ECRErNw Washington, D.C. 20554 NOTICE OF EX PARTE PRESENTATION Re: CCDocket No. 96-128 (remand of inmate service issues) Dear Ms. Salas: On December 5, 2001, Robert F. Aldrich of this law firm, and Michelle Bernard of Odyssey International, Inc., Marcus Trathen of Brpoks, Pierce, McLendon, Humprhey & Leonard, Jeff Connaughton of Quinn, Gillespie & Associates, LLC, Vincent Townsend, President of Pay-Tel Communications, Inc., and Chairman of the Inmate Calling Service Providers Coalition, met with John Rogovin, FCC Deputy General Counsel, and Paula Silberthau of the Office of the General Counsel. \Ve discussed the Coalition's positions of record in the proceeding regarding inmate calling services on remand from the United States Court of Appeals for the D.C. Circuit, and the information contained in the enclosed documents, which were handed out at the meeting. The enclosed documents include, under Tab 3, charts showing rate information fl.)!" local collect calling rates and rate ceilings in each state. These charts update and correct in±cxmation previously submitted to the Commission. Robert F. Aldrich RFA/nw Enclosure cc: John Rogovin Paula Silberthau 1379420 v1 TKD801 1 DOC 1177 Al'cnue of the Americas. Nell' York, Nell' York 10036 Tel (212) 83.5-1400· Fax (212)997-9880 http://Jl'WJl'.dsmo.com D J C K ,Ii i Ie I \ S Ii .A PI j{ () M i) R J \ C> 0 S HI'S KY LLP No of Cnoies rec'd List ABCDE
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ORIGINALDICKSTEIN SHAPIRO MORIN &OSHINSKY LLP
2101 L Street NW· Washington, DC 20037-1526Tel (202) 785-9700 • Fax (202) 887-0689
Writer's Direct Dial: (202) 828-2236161.58.0023
December 6, 2001 EX PARTE OR LATE FILED
Ms. Magalie Roman Salas RECEIVEDSecretary DFederal Communications Commission Ec - 6 2001The Portals, TW-A325 ~ COAwuNlC4_445 12th St., SW OFFIcE OF THE 8ECRErNw~Washington, D.C. 20554
NOTICE OF EX PARTEPRESENTATION
Re: CCDocket No. 96-128 (remand of inmate service issues)
Dear Ms. Salas:
On December 5, 2001, Robert F. Aldrich of this law firm, and Michelle Bernardof Odyssey International, Inc., Marcus Trathen of Brpoks, Pierce, McLendon, Humprhey& Leonard, Jeff Connaughton of Quinn, Gillespie & Associates, LLC, Vincent Townsend,President of Pay-Tel Communications, Inc., and Chairman of the Inmate Calling ServiceProviders Coalition, met with John Rogovin, FCC Deputy General Counsel, and PaulaSilberthau of the Office of the General Counsel.
\Ve discussed the Coalition's positions of record in the proceeding regardinginmate calling services on remand from the United States Court of Appeals for the D.C.Circuit, and the information contained in the enclosed documents, which were handed outat the meeting.
The enclosed documents include, under Tab 3, charts showing rate informationfl.)!" local collect calling rates and rate ceilings in each state. These charts update and correctin±cxmation previously submitted to the Commission.
7J;;;i/l(~Robert F. Aldrich
RFA/nwEnclosure
cc: John RogovinPaula Silberthau
1379420 v1 TKD801 1 DOC
1177 Al'cnue ofthe Americas. Nell' York, Nell' York 10036Tel (212) 83.5-1400· Fax (212)997-9880
http://Jl'WJl' .dsmo.com
D J C K ,Ii i Ie I \ S Ii .A P I j{ () M i) R J \ C> 0 S HI'S K Y L L P
No of Cnoies rec'd l).}-~List ABCDE
TABLE OF CONTENTS
INTRODUCTION
INMATE CALLING SYSTEMS
LOCAL COLLECT CALL RATES
STATE IMPOSED RATE CAPSRULES AND TARIFFS
THE CASE FOR RATE RELIEF
CONSUMER ISSUES
LEVELING THE PLAYING FIELD
FAIR COMPENSATION OPTIONS
WNlbplinmateilablecon.doc
Section
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•1
THE TELECOMMUNICATIONS ACT OF 1996
INMATE CALLING SERVICES
Specific Mandates of Section 276 of the 1996 Act.
• Section 276(a)(1) directed the Commission to "ensure that all payphone serviceproviders are fairly compensated for each and every completed intrastate andinterstate call using their payphone."
• Section 276 also required the Commission to establish nonstructural safeguardsto end the BOCs' historical discrimination against independent Inmate CallingService (lCS) providers in favor of their own ICS operations.
In the five years since the Payphone Orders independent ICS providers have struggledto compete in a number of states without the fair compensation on local calls to whichthey are entitled and without the "level playing field" promised by theTelecommunications Act.
"Indecision and avoidance are not legitimate policies"Michael Powell, ChairmanFederal Communications CommissionBefore House Committee on AppropriationsMay 22, 2001
• Our issue is fair compensation on below cost local collect call rates in countyjails.
• Today there are approximately 27 states with rate caps on local collect callsfrom inmate facilities and no workable asp options.
10. States cap the operator surcharge and the local call element at theBOC or LEC rate
9. States cap the operator surcharge. The local call element equalsthe provider market based coin rate
8. States cap the operator surcharge and the local call element at aPUC approved rate
wwlbp/inmatenele_act.doc
BACKGROUND
• The Commission failed to adequately address rcs in the payphone orders.
• The Coalition filed a petition for review of the Commission's rulings with the United StatesCourt of Appeals for the District of Columbia Circuit.
• After the filing of the Coalition's initial brief, the Commission sought a voluntary remand ofthe case. The Commission acknowledged that it had not adequately addressed the issuesraised by the Coalition and asked the court to return the proceeding to the Commission sothat it could provide further analysis, promising that it would act expeditiously. The courtgranted the Commission's request for remand on January 30, 1998.
• Over the past five years members of the Coalition have had dozens ofmeetings at the FCCseeking the fair compensation and adequate safeguards for fair competition promised by theTelecommunications Act. During this time period we have regrettably had to educate sixdifferent sets of Staff in attempting to get movement on our issues.
F:IWJNWORDOIBPIINMATE\Backgmd.DOC.doc
For further information contact:
Vincent Townsend, ChairmanInmate Calling Service Providers CoalitionPO Box 8179Greensboro, NC 27419Phone: 336-852-7419 ext. 227Fax: 336-852-9897E-Mail: [email protected]
Albert H. KramerRobert F. AldrichDickstein Shapiro Morin &Oshinsky2101 L Street, NWWashington, DC 20037Phone: 202-785-9700Fax: 202-887-0689E-Mail: [email protected]
Michelle D. BernardOdyssey International, Inc.1300 Pennsylvania Avenue, N.W.Suite 700Washington, DC 20006Phone: 202-204-2575Fax: 301-990-9701E-Mail: [email protected]
wwlbp/inmate/continfo.doc
Marcus TrathenBrooks Pierce McLendon Humphrey & Leonard150 Fayetteville Street Mall, Suite 16001600 First Union Capitol CenterRaleigh, NC 27601Phone: 919-839-0300 ext. 107Fax: 919-839-0304E-Mail: [email protected]
Jack Quinn, Ed GillespieJeff Connaughton, Harriet James MelvinScott R. HynesQuinn, Gillespie & Associates, LLC1133 Connecticut Avenue, NW 5th FloorWashington, DC 20036Phone: 202-457-1110Fax: 202-457-1130E-Mail: [email protected]
:::::":1111111111111,,11111111111::::\ Meeting - NST - New JerseyLynne Milne, Calvin Howell, Jon Dennis Lincoln, Beach, Wood,Stover, Rene Terry, Raja Kannan Townsend, Aldrich
Inmate Remand Reply Comments
Meeting - Inmate Remand
Meeting - Inmate Remand
5th TeamLynne Milne, Jon Stover, ReneePerry, Calvin Howell, Raja Kannan Townsend, Aldrich, Farber
Lynne Milne, Jon Stover, ReneePerry, Calvin Howell, Raja Kannan Townsend, Aldrich
2000 FCC INITIATIVES
Aldrich, Townsend
Aldrich, Townsend
Trathen, Wood, Townsend,Aldrich
Jon Stover, Lynne Milne, CalvinHowell, Raja Kannan, AdamCandeub
Jon Stover, Lynne Milne, CalvinHowell, Raja Kannan, LynwoodSmith, Adam Candeub, AI Barna
•Maintain files for off-netand Code 50 rejects(CLECs with no billing andcollection agreements)
•Manually bill off-net andCode 50 rejects
M. J. "1J1k1l" Fl»ter, Jr.Oovtfnor
George Talbot, Jr.Vice PresidentGlobal Tel·link, Inc.3501 Holiday Drive, Suite 405Now Orleans, LA 70114
RE: LazerVoice
Dear George,
Burt Cain~~rb~n
January 4,2001
RI'hllrd L StalderSeCrslll'll
The LazerVoice recording and monitoring system installed at" the Louisiana State Penite1ltiarycontinues to prove to be an invaluable tool in intelligence gathering. In December, our investigative unitprovided information obtained through lazerVoiceonthe whereabouts ofJessieJames Caston, oneofthe FB['sto most-wanted fugitives, to the FBI and Louisiana State Police, which was vital in the captorc ofCaston onDecember 20, 2000.
Although LazerVoicc has proven its effectiveness at the Louisiana State Penitentiary, as we havedeveloped numerous cases against inmates involved in illegal activities and a few involving correctionalofficees, it has now proven its effectiveness in assISting other law enforcement agencies in the apprehension of •armed and extremely dangerous fugitives. such as Caston.
Please allow me this opportunity to again thank you for this system; it is a proven asset in our daily·operations and in the ~fety ofthe general public. We are extremely proud to have the LaurVoice system inoperation at the Louisiana State Penitentiary!
UNLA'VFUL FLIGBT TO AVOID PROSE~unON - MURDE~ATTEMPTED MURDER OF A POLICE OFFI~ER
JESSE JAMES CA,STON.. ,'.~~
i'
~ill,I
CAUTIONJF..5S£ JAMES CASTON IS BEING SOUGHT FOR THE MUanERoFms wiFEAND HERFEMAtEFRIEND. AND TJIEATTEMPT£D MURD.ER OFTWO POLICE OFFICERS IN LAKE PROV;IDENCE,LOUlSIANA.lNAPRn. OF2000. H£ IS ALSO SUSPECfED OFABDUCTINGAldAN IN LOUISIANA
, AND FORCING mMAT GUNPOINTTO DRIVE11IEMTO 'tEXAS.
CONSIDERED ARMED AND EXTREMELY DANGEROUS ,1l~\'OU HAVEA.W INFORMATION CONCERN!NGTHIS rERSON, PLEASE CONTAcrYOUR LOCALFBI OFf1CEOR
TIJ.£ NEA'REST lI.s.EMUASS\' OR CONSULATE.
REWARDThe FBI is offering a $50,000 reward for inf0"'1ation leading directly to the atrest of Jesse James Caston.
'Il'ww.rbl.s:oy
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•3
FAIR COMPENSATION
Section 276(a)(1) directed the Commission to "ensure that all payphoneservice providers are fairly compensated for each and every completedintrastate and interstate call using their payphone."
Service Coin Payphones Inmate Phones
Non-compensatory Non-compensatoryProblem state rate caps on state rate caps on
local calls local collect calls
FCC deregulated lBO-Voluntary remandSolution local coin rate January 1998
Legal Decision sustained by Precedents alreadyChallenge US Supreme Court established for action
wwlbpfonmatelfairCOI!1l.doc
"APPLICABLE LOCAL CALL RATE"*(Following the 1996 Telecom Act)
30 STATES
WHERE THE LOCAL CALL RATE ELEMENT FOR LOCAL COLLECT CALLS
HAS BEEN LINKED TO THE PROVIDER MARKET RATE
FOR A LOCAL COIN CALL AT A PAYPHONE
Tariffed AmountBefore
The Telecom Act
$.25
$.20
$.10
Tariffed AmountAfter
The Telecom Act
"Provider Market BasedLocal Coin Rate"
"Provider Market BasedLocal Coin Rate"
"Provider Market BasedLocal Coin Rate"
10+ STATES
LOCAL CALL ELEMENT TIED TO LEC RATE
wwlbplinmatelapplicab.doc
COUNTY JAILTYPE OF CALL DISTRIBUTION
NC,SC,TN
INTER-LATA
INTRA-LATA 9%
5% INTERSTATE
I iii LOCAL _INTRA-LATA fa INTER-LATA _INTERSTATE I
,
No State Imposed Rate Ceilings \ 12 Minute Inmate Local Collect Call 6-Dec-01
~--.---
State BOC Applicable Local Call Rate Collect Call Total Rate Rate Cap? Rate Cap Details--
Init. Min. Add'i Min. Notes Surcharge .-1 Nebraska
Note: The amounts specified in this chart are the tariffed rates of the Bell Operating Company. Individual providers' rates may vary from theamounts specified.
State Imposed Rate Ceilings \ 12 Minute Inmate Local Collect Call 6-Dec-01
State BOC Applicable Local Call Rate Collect Call Total Rate Rate Cap? Rate Cap Details
Init. Min. Add'i Min. Notes SurchargeI Illinois sse $ 0.24 $ 0.21 Capped by PUC $ 2.81 $ 5.36 Yes PUC rate cap
Texas sse $ 0.10 $ 0.08 CaDDed bv PUC $ 3.75 $ 4.73 Yes PUC rate caDWisconsin sse $ 0.50 N/A pniVla.iilRarlcet based coin rate $ 3.00 $ 3.50 Yes Capped at twice AT&T or BOC rateArizona awes! $ 050 N/A IPm'YR'Iiiiilrl{er based coin rate $ 2.30 $ 2.80 Yes CaPDed at LEC tariff rateMississippi Bell South $ 035 N/A Capped at BOC rate $ 2.25 $ 2.60 Yes CaDDed at BOC tariff rateColorado awes! $ 0.25 See note PUC caD: $.25 per 5 min. $ 1.85 $ 2.60 Yes PUC rate capMontana Owest $ 0.50 N/A CaDDed bv PUC $ 2.00 $ 2.50 Yes CaDDed at LEC averaoe + 50%Florida Belt South $ 0.50 N/A IP11>iI/d8it:marlcet based coin rate $ 1.75 $ 2.25 Yes PUC rate capVermont Verizon $ 035 N/A CaDDed at LEC rate $ 1.65 $ 2.00 Yes Capped at LEC tariff rateKentucky Belf South $ 0.50 N/A CaDDed bv PUC $ 1.50 $ 2.00 Yes PUC rate caD
I Oklahoma sse $ 0.25 N/A Capped at LEC rate prior to 1997 $ 165 $ 1.90 Yes Capped max. rate of LEC or IXCMinnesota awes! $ 0.50 N/A Capped at BOC rate $ 130 $ 1.80 Yes CaDDed at BOC tariff rateNew York Verizon $ 0.25 $ 0.05 Capped at BOC rate $ 1.30 $ 1.80 Yes CaDDed at AT&T or LEC rates, whichever is hioherIowa awes! $ 0.50 N/A Capped at BOC rate $ 1.25 $ 1.75 Yes Capped at BOC tariff rateAlabama Bell South $ 0.50 N/A ~mBikefbaSedcoin rate $ 125 $ 1.75 Yes CaDDed at LEC tariff rateNevada sse $ 0.14 $ 0.05 CaDDed bv PUC $ 1.00 $ 1.69 Yes PUC rate caDNew Jersev Verizon $ 0.09 $ 0.03 Capped by PUC $ 1.26 $ 1.68 Yes Capped at BOC tariff ratelouisiana Bell South $ 0.35 See note PUC cap: $.35 per 5 min. $ 063 $ 1.68 Yes PUC rate caDOhio sse $ 0.50 N/A COin illte' n"li~iIil' $ 110 $ 1.60 Yes Capped at LEC tariff rateMassachusetts Verizon $ 0.35 N/A Capped at BOC rate $ 0.86 $ 1.56 Yes CaDDed at BOC tanff rate
I Pennsylvania Verizon $ 0.25 N/A_. 1.30 $ 1.55 Yes CaDDed max. rate of LEC or IXCCalifomia sse $ 0.50 N/A
South Carolina Bell South $ 0.50 N/A 0.70 $ 1.20 Yes CaPDed at LEC tariff rateWest Virginia Verizon $ 0.50 N/A 0.60 $ 1.10 Yes CaDDed at LEC tariff rateMarvland Verizon $ 0.50 N/A 0.60 $ 1.10 Yes Capped at BOC tariff rateNorth Carolina Sell South $ 0.25 N/A 0.80 $ 1.05 Yes CaDDed at LEC tariff rateTennessee Bell South $ 0.50 N/A Capped at LEC rate $ 050 $ 1.00 Yes CaDDed at BOC tariff rate
National Average $ 2,07
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910
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12
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Source: Technologies Management, Inc.
Note: The amounts specified assume that the serving local exchange carrier ("LEC") is a Bell Operating Company. Where the serving LEC isan independent telephone company, and the rate ceiling is based on the tariffed rate of the serving LEC, the applicable rate ceiling mayvary from the amount specified. In addition, in states where the rate ceiling for the "Local Call Rate" element is the individual provider'slocal coin rate ("Provider market based coin rate"), the local call rate element charged by a particular provider may vary from the amountspecified.
NORTH CAROLINA LOCAL COLLECT CALL RATESCAPPED AT THE TARIFFED RATE OF THE LOCAL TELEPHONE (COMPANY
OPERATOR SURCHARGE + LOCAL CALL ELEMENT
LOCAL COLLECT PROVIDER OFLEC OPERATOR LOCAL CALL TOTAL INMATE PHONE