FCC Cites Brattle's Analyses in Landmark Decision for Inmate Calling Rate Fairness

WASHINGTON, July 24, 2024 /PRNewswire/ -- Following a July 18 vote, the Federal Communications Commission (FCC) has adopted new rules to enforce the Martha Wright-Reed Just and Reasonable Communications Act of 2022. These new rules, which now prevent phone carriers from sharing their profits with the facilities they serve, will reduce the cost of a 15-minute phone call by more than $10 at some facilities. These more reasonable rates for Incarcerated People's Communications Services (IPCS) will allow incarcerated people and their loved ones to stay connected, preserving families and reducing the chances of reincarceration. 

The FCC order establishing the new rules extensively references Brattle's analysis. The phone carriers serving this market advocated for higher rates, ones covering costs that went well beyond providing phone and video services in prisons and jails. Brattle's model carrier approach for setting just and reasonable rate caps for audio and video communications services demonstrated the reasonableness of the FCC's new rates.

A Brattle team – led by Principals Coleman Bazelon and Paroma Sanyal – served as the pro bono economists for the leading group advocating for the FCC to lower the costs of calls in prisons and jails, the Wright Petitioners. Working with their pro bono counsel, Jenner & Block, Brattle provided independent analysis estimating per-minute costs for audio and video calls in small, medium, and large facilities, drawing on the 2023 ICPS Mandatory Data Collection as well as market data.

"This is a landmark victory for those who have endured exorbitant IPCS rates for an unjustifiably long time. After more than a decade refuting the carriers' inflated cost analyses, incarcerated people and their loved ones will finally pay rates to talk to each other that are related to the costs of providing service," said Dr. Bazelon.

According to the FCC's order, reducing calling rates for the incarcerated population has several positive financial and social impacts. Financially, lower calling rates provide crucial relief to both inmates and their families, easing the strain of exorbitant communication costs. Socially, promoting affordable communication in prisons not only upholds basic human rights but also contributes to lower recidivism rates by helping inmates maintain vital connections to the outside world.

"We applaud the FCC for taking this important and monumental action. This order serves as a transformative win for incarcerated people and their loved ones who for far too long have had to grapple with outrageous IPCS rates," said Rebekah P. Goodheart, co-chair of Jenner & Block's Communications, Internet, and Technology practice. "Thanks to the relentless advocacy of various groups and civil rights organizations, much-needed relief will be provided."

Since 2013, over 30 individuals have contributed to Brattle's pro bono analysis on this topic, with exceptional contributions from Senior Research Analyst Shea Peretz and Research Analysts Preetul Sen and Natalie Selfe.

ABOUT BRATTLE
The Brattle Group answers complex economic, finance, and regulatory questions for corporations, law firms, and governments around the world. We are distinguished by the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. Brattle has 500 professionals across North America, Europe, and Asia-Pacific. For more information, please visit brattle.com.

SOURCE The Brattle Group