Virtual Phones In Prisons

Not only are internet phones and mobile applications used in business but they are also revolutionizing the way prisons run. Forget about courting cost-conscious small businesses and residential home owners. Today’s VoIP providers are overlooking one of today’s most lucrative markets: the U.S. prison system. Talk about a captive audience: in many states, a prisoner must pay about $15 for a fifteen minute phone call. Another factor driving up costs is the monopoly telephone companies like Global Tel*Link, Securus Technologies and CenturyLink have on the prison phone industry. Together, these three telcos dominate 90 percent of the market by inking exclusive contracts with state prison systems that set exorbitant rates and then kick back a portion of the revenue to the states. As public debate swirls around reducing the cost of prison phone services, more cost-effective alternatives such as pre-paid cards and price caps are being bandied about. But it’s VoIP that’s eliciting the most positive feedback.