fl.)! 7J;;;i/l(~ · Radhika Karmaka Allen Kohler, Townsend, Aldrich Townsend, Kramer, Aldrich Aldrich John O'Keefe, Aldrich John Beach, Townsend, Aldrich Townsend, John Beach Accounting

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

1

2

3

4

5

6

7

8

--

•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: vtownsend@paytel.com

Albert H. KramerRobert F. AldrichDickstein Shapiro Morin &Oshinsky2101 L Street, NWWashington, DC 20037Phone: 202-785-9700Fax: 202-887-0689E-Mail: KramerA@dsmo.com

AldrichR@dsmo.com

Michelle D. BernardOdyssey International, Inc.1300 Pennsylvania Avenue, N.W.Suite 700Washington, DC 20006Phone: 202-204-2575Fax: 301-990-9701E-Mail: mbernard@odysseyintl.com

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: mtrathen@brookspierce.com

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: edgillespie@quinngillespie.com

'1111'11'11'''''''1'''''''11''''''11111'11'''"''''111111''1I""" '1"'''1'1'1111''''''''''1'1'1'''' "'1',1',1''1'11'','''' '1'1"

'11'''''''1', 'I'" I " 1,,"1 'I "111 '1 "" 1 " ", 1 111'1' 1I I IIIIII 1 I, :1 ,1 , IIII 1II1111111jl I 11:111 i II I Itlllll'IIIIII,111 :1 1

I 11111111111111 "111111111 1111 II 'I'll'" I ,11]1 1'1' II 1'1 I 1:1 "I'I II" 11'11 1111111111 , .. I II III IIII II [I II

"II,Jdul",kL,;i", 11l,Ii,;;"L,llllU,II ""JI''''''dll, Llillll",L';"lil;'"A,",IJI"I1 ,II • ,li";IIIII, ",i""hlhllilli "',11111

Meeting-Inmate Issues

Indust Partitipants

Townsend, Aldrich

Townsend, Kramer, Aldrich

Townsend, Aldrich

John Beach,Townsend, Aldrich

FCC Partici ants

CCB Staff

Kaufman

Mary Beth Richards

Brent OlsonRadhika Karmaka

1997 FCC INITIATIVESInitiative

Meeting-Inmate Issues

Meeting-Inmate Issues

i:iJ!IIIIJI::ilill.llliill·i::::JJJ~. Meeting-NST BellSouth/CEI!ji:liljillllj~lili~il:li:ii:.i:::;j;:: Meeting-NST BellAtlantic/CEI Brent OlsonRadhika Karmaka

Allen Kohler,Townsend, Aldrich

Townsend, Kramer, Aldrich

Aldrich

John O'Keefe, Aldrich

John Beach,Townsend, Aldrich

Townsend, John Beach

Accounting & Audits Division

John MuletaMichael Carowitz

Jose Rodriguez &Accounting Staff

John Muleta1st TeamMary Beth RichardsMichael CarowitzGlenn Reynolds

Meeting CEI/CAM

Meeting-Inmate Issues

Meeting - CEI/CAM

:11111,Iilill"lllllillillliiiIi !Iillii:· Meeting-NST-_-.::...._----------+-------------+-----------;

1998 FCC INITIATIVESDate Initiative FCC Partici ants ants

J 14 Meeting - NST

Meeting - Inmate Remand

Pat Donovan, Dan Abeyta,Raja Kannan

Mary Beth Richards

Phillips, Frost,Kramer, Aldrich

Kramer

TrathenTownsend, Aldrich

Townsend, Aldrich, Farber

Townsend, Kramer

TrathenTownsend, Aldrich

Townsend, Farber

Dan AbetaCalvin Howell

Larry StricklandGlenn Reynolds

2nd TeamRose CrellenJennifer Myers

Pat Donavan, Dan AbetaCalvin Howel, Raja KannanJennifer MyersRose CrellenCraig Stroup

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - Inmate Remand

'::::::::::::::::::: .. ".. :::::::::(:~::::::::::::::::::::::.

liililillllillillillll~~jllillillljlljllllli:ill: Meeting - NST--.:..-:=....---=-----------4....:....::..---=--------+---......:..--------1

FCC 1

Meeting - Inmate Remand

Meeting - NST

Meeting - Inmate Remand

Initiative

Meeting - Inmate Remand

3rd TeamAnna GomezJudy AlbertDan AbetaCalvin HowellRaja Kannan

4th TeamKris MontiethRaja KannanCalvin Howell

Kris MontiethCalvin Howell

1999 FCC INITIATIVESFCC Partici ants

Kris Montieth & Staff

Townsend, Kramer

Phillips,Townsend, Aldrich

TrathenTownsend, Aldrich

Townsend, Aldrich

Indust Partitipants

Townsend,Kramer

March 18 Conference Call - Inmate Remand Kris Montieth & Staff Kramer

Jane JacksonFull Staff

Industry Leaders, StateAttorneys, DSMO

May6 Public Notice - Inmate Remand

June Inmate Remand Comments

:::::":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

Meeting - Inmate Remand

Meeting - Inmate Remand

Date Initiative FCC Partici ants

illlll:liliilll.~llliil!llil!II_M_e_e_tin....:g=---_N_S_T +-~_~_:_;_:I°..:..,v_~....:~J:....~aL_~_~_~_~_:_ni_ln_e_, c_al_v_in_+T_r_a_th_e_n..:..,_T_ow_n_s_e_n_d_,A_I_d_ric_h_--tJon Stover, Lynne Milne, CalvinHowell, Raja Kannan

FCC 2

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - NST

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - NST

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - Inmate Remand

Meeting - NST

;ililililii~;:jjjiliii:Meeting - NST and Dial Around

I!rll!;;:~ii;~iii~ii;i;;: Meeting - NST and Dial Around

::IJJ,Blllgr:·~~j:· Meeting - NST and Dial Around

/t:!I~lllliilijiiiii Meeting - NST and Dial Around

Meeting - Inmate Remand

FCC

Jon Stover, Lynne Milne, CalvinHowell, Raja Kannan, AdamCandeub, AI Barna, LynwoodSmith

Lynne Milne, Calvin Howell, RajaKannan, Adam Candeub, AIBarna, Lynwood Smith, TamaraPriess

Vog Varma, Tamara Preiss,Deena Shetler

Jordan Goldstein

Congressman Burr

Jon Stover, Calvin Howell,Raj Kannan, AI Barna, LenworthSmith, Anna Janckson-Curtis

Dorothy Attwood6th TeamJay AtkinsonAdam Candeub

Jane JacksonLenworth SmithLynne MilneFlorence Setzer

Dorothy Attwood

Tamara PreissAdam Candeub

Jay AtkinsonAdam Candeub

Jane Jackson, AI Barna, LynneMilne, Jon Stover, Anna Curtis,Raja Kannan

Jordan GoldsteinLA for Commissioner Ness

Commissioner Furchtgott-Roth

Commissioner PowellLA Kyle Dixon

Dorothy Attwood and Staff

Chairman KennardLA Anna Gomez

Deena ShelterLA for Commissioner Tristani

Anna GomezLA Chairman Kennard

Townsend, Aldrich, Farber

Townsend, Aldrich

Townsend, Aldrich

Townsend, Aldrich

Townsend, Trathen

Townsend, Trathen, Wood

Townsend, Aldrich

Townsend, Aldrich

Trathen, Aldrich

Townsend, Aldrich

Townsend, Aldrich

Townsend, Aldrich

Trathen, Wood, Aldrich

APCC Leaders,Allard, Kramer

APCC Leaders,Allard, Kramer

APCC Leaders, Allard,Kramer, Ted Weerts

APCC Leaders,Kramer, Aldrich

APCC Leaders, AllardKramer, Ted Weerts

APCC Leaders,Kramer, Ted Weerts

Townsend, Aldrich

3

2001 FCC INITIATIVES

FCC

Meeting - Inmate Remand

Meeting - Inmate Families' Concerns

Meeting - Inmate Families' Concerns

Meeting - NST

Meeting - NST

Meeting - NST

Meeting - NST

Meeting - NST

Meeting - NST

Meeting - NST

Meeting - Inmate Issues/NST

Meeting -Inmate Partial Solution

Meeting -Inmate Partial Solution

Meeting -Inmate Partial Solution

Meeting -Inmate Partial Solution

Meeting -Inmate Partial Solution

Meeting -Inmate Partial Solution

Meeting - Inmate Issues/NST

Meeting - NST/lnmate

Meeting - NST

Meeting - Inmate/NST Issues

Dorothy Attwood and Staff

Anna GomezLA Chairman Kennard

Dorothy Attwood and Staff

Congressman Burr, KimbreyRhinehardt

Sean Dalton, CongressmanTaylor's Legal Advisor

Kimbrey Rhinehardt,Congressman Burr's advisor

Congressman Burr

Congressman Burr

Dorothy Attwood, Jane JacksonGlenn Reynolds, Lenworth Smith

Jane Jackson, Jay Arkinson

Congressman Burr

Dorothy AttwoodJay ArkinsonAdam Candeub

Marsha MacBrideGlenn ReynoldsLynworth SmithDeena Shetler, Advisor toCommissioner Tristani,Gregg Haledjian

Kyle Dixon, Advisor toChairman Powell

Jordan Goldstein, Advisor toCommissioner Kopps

Bryan Tramont, Advisor toCommissioner Abernathy

Jeff Carlisle, Chris Libertele

Kimbrey Rhinehardt,Congressman Burr's Assistant

Jeff Carlisle, Respresentativesfrom General Counsel's Office

Jeff Carlisle, Deborah Weiner,Paula Silberthau, Linda Keeney

Townsend, Aldrich,

Townsend, Aldrich, MichaelHamden, Elizabeth Alexander

Townsend, Aldrich, MichaelHamden, Elizabeth Alexander

Trathen, Townsend

Townsend, Hubbard

Townsend

Townsend, Sandusky,Kramer

Townsend

Sandusky, Trathen,Aldrich, Kramer

Wood, TrathenAldrich, Kramer

Townsend, Sheriff Hurleyand Sheriff Watson

Townsend, Aldrich

Townsend, Aldrich,Kimrey Rhinehardt, Advisor toCongressman Burr

Townsend, Aldrich,Michelle Bernard

Townsend, Aldrich,Michelle Bernard

Townsend, Aldrich,Michelle Bernard

Townsend, Aldrich,Michelle Bernard

Townsend, Aldrich

Townsend, Bernard, Aldrich

Wood, Aldrich, Kramer

Townsend, Kramer,Aldrich (Phone)

4

Commissioner Kopps,Jordan Goldstein

Commissioner Martin,Sam Feder

Kyle Dixon, Legal Advisorito Chairman Powell

FCC

Sandusky, KramerRenard, Aldrich, Townsend

----- -+---------~.-~~-+_----------__l

Sandusky, KramerRenard, Aldrich, Townsend

Sandusky, KramerRenard, Aldrich, Townsend

5

--

•2

INMATE CALLING')

SYSTEMS

Inmate Phone Local Exchange Company Called Party

PHONECONTROLS

@) @Cell Cell

Block 1 Block 2@) @

Cell CellBlock 3 Block 4

On-SiteInmate Phone

Manual Controls

On-SiteAutomated CallProcessor (ACP)

FacilityAdministrative

Computer

The Rt

On-Site Recordingand Monitoring

System

"Dumb" phones withvandal proof equipment

Inmate Voice Prompts

•Phone taken off hook

Please dial "zero" plusthe number you arecalling now.

• Inmate dials number

Your call will be placedas a collect call.

State your name now:(beep)

Your name has beenrecorded as (name)

Ifyou want to record yourname again dial "two"

For rate information dial-'our"

One moment while yournumber is beingvalidated

Please wait while yournumber is dialed

•Called party answersphone and accepts call

Call accepted. Thankyou for using IPSPCommunications.Go Ahead.

•To signal end of call

You have one moreminute for your call

You have fifteenseconds left

•On/off switches forindividual inmate phones

Database Management

•PINs to restrict access toapproved numbers only

•Number blocks:harassing calls, witnesses

•Free calls to PublicDefenders. BailBondsmen

Call Processing

•ACP Automated Operatorgives voice prompts toinmate to state name anddial number

• L1DBIBNS databasequery

•L1DB returns '050· nobilled number screening(BNS) validation andOCN ofLEC

•0+ to 1+ call conversion•ACP determines correctcall routing

•Call is completed•Prison call branding•Automated rate quotes• Incoming calls blocked

Call Monitoring

•Call Time Limits•3-way call detection•Voice overlay/repeatbranding

• Flag calls for facility alerts• Fraud digit detection toprevent secondary dialtone

Investigations

•Flag calls to specific ANls•Flag calls from variousCell Blocks to same ANI

Frequently CalledNumbers

•Administrative reporting

Facility Controls

•Call alerts for real-timecall investigation

• Digital controls to tum offindividual phones or cellblocks

Database Management

•Maintain negativedatabases - on siteblocking

•PINs to restrict access toapproved numbers only

•Real-time monitoring ofinmate conversations

•Recording and playbackof inmate conversations

• Recording andmonitoring selectable byPIN, phone number. CellBlock

•Full time, full channelrecording

• LEC connects localcalls

·IXC connects longdistance calls

Called Party VoicePrompts

•Called party answersphone

You have a collect callfrom (name of inmate)at (name offacility/detention center).

Ifyou will accept dial"three" now

For rate infonnation dial"fou~

To decline the call, dial"nine" or hang up now.

•Called party dials "three"to accept call

Thank you for usingIPSP Communications.Go ahead.

•To signal end of call

You have one moreminute for your call

You have fifteen seconds

CompanyOperations Center

AdministrativeComputer

Database Management

• Number blocks forharassing calls,witnesses, facility staff

• Free calls

Fraud InvestigationTraffic Analysis

• Post-Gall VelocityChecks

•Calling Pattern Analysis•Calls from multiple CellBlocks to same ANI

• Multiple originatingnumbers to the sameterminating number

Fraud InvestigationBlocks

• Multiple numbers at thesame address

•Uncollectable calls• High Toll calls

CompanyCustomer Service

Facility Support

•Service requests•Call Detail Reports•Monitor calling patternsand velocity checks

Customer Support

•Customer inquiries•Customer requestedblocks

•High Toll Program•Secure bill name andaddress from localexchange companies

•Contact customers toverify billing

•Credit applications•Credit checks•Direct billing andcollection

CompanyBilling Systems

•Processing billingrecords to LECs

•Monitor for off-net andCode 50 rejects

•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!

Sincerely,

BC:aln

xc: File

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" FBI TEN .lVIOS'T·":·'·WANTED FUGITIVE"

Light Brown (poS'lble ponyuil)BlueFairMale

WhIte

American

~:

Complexion:Sex:

, Race:

N~t1onaUty: ,

Remarks:

San andMarks:

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Al1l13eS: Jessie Junes

Dat.#!~~ace~Height: '

Weight;

Build:

Occupations:

UNLA'VFUL FLIGBT TO AVOID PROSE~unON - MURDE~ATTEMPTED MURDER OF A POLICE OFFI~ER

JESSE JAMES CA,STON.. ,'.~~

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~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

, I

"_

•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 RATEFOR 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

..$ 3.75 $ 425 NoOwest $ 0.50 N/A _.

2~_--_._-_.-

$ $ 4.25 NoOwest $ 0.50 N/A 3.75 --".-3 Indiana SSC $ 0.50 N/A $ 3.00 $ 3.50 No --4 Rhode Island Verizon $ 0.50 N/A $ 2.50 $ 3.00 No --.- "",-5 Washington Owest $ 0.50 N/A $ 2.30 $ 2.80 No5 North Dakota Owest $ 0.50 N/A $ 2.25 $ 275 No ..-----7 Utah Owest $ 0.50 N/A $ 2.25 $ 2.75 No3 Georgia Bell South $ 0.50 N/A $ 2.20 $ 270 No3 South Dakota

._--$ 2.60 NoOwest $ 0.50 N/A $ 210 -

J Michigan SSC $ 0.50 N/A $ 2.05 $ 2.55 No1 Kansas SSC $ 0.50 N/A $ 2.00 $ 2.35 No ._.. --2 New Mexico Qwest $ 0.50 N/A $ 180 $ 2.30 No -----3 Connecticut SSC $ 0.50 N/A

--$ 1.75 $ 2.25 No

4~.--~---

... _-NoOwest $ 0.50 N/A $ 130 $ 180

5 Maine Verizon $ 0.50 N/A $ 1.30 $ 180 No ... ~:> Oreqon

._-_._.NoOwest $ 0.50 N/A $ 130 $ 1.80 -

7 Hawaii Verizon $ 0.50 N/A $ 120 $ 1.70 No3 Al1

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/ACo....."C ,...""."" j

0.95 $ 1.45 Yes Capped at LEC + $.30 pay telephone surcharoeSouth 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

2

3

4

56

7

B

910

1

12

13

14

15

16

1718

19

20

2

22

23

24

2526

27

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

SURCHARGE RATE ELEMENT RATE SERVICE

A1ltel $0.70 *$0.25 $0.95 NoBellSouth $0.80 *$0.25 $1.05 QuittingConcord/CT Comm $0.70 $0.35 $1.05 NoLexcom $0.68 *$0.20 $0.88 NoNorth State $0.68 *$0.10 $0.78 NoSprint $0.65 *$0.20 $0.85 1 FacilityVerizon $0.70 *$0.25 $0.95 NoIndependents $0.80 *$0.25 $1.05 No

North Carolina Average Rate: $0.95

* Local coin rate initially set by LECs over twenty years ago.

AVERAGE LOCAL COLLECT CALL RATE FOR ALL 50 STATES: $2.22

REQUESTS TO THE LECS TO CHANGE THE LOCAL CALL ELEMENT HAVE BEEN DENIED.

F:IEXCElIBRENDAITIM\RATEFINL.XlS 12101

OPERATING AREAS OF TELEPHONE COMPANIESState of North Carolina

LEGEND

1. Mantic Telephone Membership Corp2. Barnardsville Telephone Company3. Carolina Telephone & Telegraph Co4. Central Telephone Company5. Citizens Telephone Company6. Concord Telephone Company, The7. Continental Teleptlone Company of Va8. Ellerbe Telephone Company9. General Telephone Co. 01 the S E

10. Heins Telephone Company11 Lexington TelePhone Compeny12. Mebane Home Telephone Co., Inc13. Mid-Carolina Telephone Company14. North State Telephone Company15. Piedmont Telephone Membership Corp

16. Pineville Telephone Company17 RandOlph Telephone Company18. Randolph Telephone Membership Corp.19. Saluda Mountain Telephone Company20. Sandhill Telephone Company21. Service Telephone Company22. Skyline Telephone Membership Corp.23. Southern Bell Telephone and Telegraph Co24. Star Telephone Membership Corp.25. Surry Telephone Membership Corp.26. Tn-County Telephone Membership Corp27. Westco Telephone Company28. Western Carolina Telephone Company29 Wilkes Telephone Membership Corp.30. Yadkin Valley Telephone Membership Corp