Two inmate calling service companies agreed to drop a merger bid after US regulators recommended blocking the deal because of significant competitive concerns, the Federal Communications Commission (FCC) announced on Tuesday, April 2, reported the Wall Street Journal.
Closely held Securus Technologies and Inmate Calling Solutions on Tuesday withdrew their merger application. Allowing Securus Technologies and Inmate Calling Solutions to merge would not have been in the public interest, FCC Chairman Ajit Pai said in a statement.
The two companies provide phone calls, video chats, and other services to more than 1 million people in local jails like New York City’s Rikers Island and in state and federal prisons including Louisiana State Penitentiary, which is known as Angola.
Criminal justice advocates and consumer groups have complained that the high rates the companies charge for phone calls and other communications prevent inmates from staying in touch with family members.
Full Content: Wall Street Journal
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