FEDERAL COMMUNICATIONS COMMISSION 
WASHINGTON 
OFI'ICEOF 
THE CHAIRMAN 
The Honorable Rich Nugent 
U.S. House of Representatives 
November 4, 2014 
1727 Longworth House Office Building 
Washington, D.C. 20515 
Dear Congressman Nugent: 
Thank you for contacting me to express the concerns raised by local governments and 
other constituents in your district regarding the Commission's inmate calling services (ICS) 
proceeding. In your letter, you strongly urge that any rate changes be phased in gradually and that 
the Commission consider allowing recovery of incurred costs. Your views are very important and 
will be included in the record of the proceeding and considered as part of the Commission's 
review. 
On September 26, 2013, the Commission released a Report and Order and Further 
Notice of Proposed Rulemaking on ICS. In the Report and Order, the Commission adopted 
interim reforms of interstate ICS rates, requiring that providers' rates and charges be just, 
reasonable, and fair. The Report and Order also required submission of data from res providers 
on costs and usage, which the Commission received in August 2014. 
The Report and Order recognized that security measures are an important part ofiCS and 
made clear that it is appropriate for security costs to be recovered through ICS rates. In the 
associated Further Notice of Proposed Rulemaking, the Commission sought public comment on 
a number of outstanding issues regarding ICS, including reform of intrastate ICS rates and 
practices, and whether the Commission should adopt a rate structure that distinguishes between 
jails and prisons. 
The Report and Order is already having positive results. Lower interstate rates and 
increased ICS usage enable more families to connect with inmates. Unfortunately, intrastate 
rates have increased in many states. Moreover, res providers are imposing an increasing array 
of ancillary charges, and correctional facilities are continuing to demand site commissions, or 
payments to facilities that are not based on their costs to provision ICS, which represent a 
significant portion ofiCS provider gross revenues. 
Under the leadership of Commissioner Clyburn, who has been spearheading the 
Commission ' s effort on this issue, the Commission adopted a Second Further Notice of 
Proposed Rulemaking (" Further Notice") on October 17, 2014, with a goal of comprehensively 
reforming the ICS system, including both interstate and intrastate rates. The Further Notice 
Page 2-The Honorable Rich Nugent 
seeks comment on the data submitted by ICS providers in August, which includes cost data for 
jails and prisons of all sizes. The Further Notice seeks comment on the data and whether rules 
should account for the differences in costs to served ifferent types of facilities. 
Your letter raises several important issues, and the Further Notice recognized these issues 
and seeks comment on how to address them. For example, with respect to your concerns related 
to the recovery of incurred costs, the Further Notice seeks comment on whether correctional 
institutions incur any costs in the provision ofJCS and, if so, how facilities should recover such 
costs if the Commission otherwise determines to prohibit the use of site commissions. And, with 
respect to your suggestion of a "grace period" for implementation, the Further Notice seeks 
comment on providing a multi-year transition period to provide sufficient time for correctional 
facilities to adjust their budgets. 
Please be assured that we will take into consideration the issues and concerns presented 
by all stakeholders engaged in this proceeding, including, as you suggest, representatives of state 
and local governments. The goal of the Further Notice is to reform the ICS system 
comprehensively, while also ensuring appropriate cost recovery and transition periods for 
correctional facilities. 
I appreciate your interest in this matter. Please let me know ifl can be of any further 
assistance. 
Sincere I~ 
~heeler 
FEDERAL COMMUNICATIONS COMMISSION 
WASHIN GTON 
OffiCI:: OF 
THE CHAIRMAN 
The Honorable Rob Wittman 
U.S. House of Representatives 
2454 Rayburn House Office Building 
Washington, D.C. 20515 
Dear Congressman Wittman: 
November 4, 2014 
Thank you for contacting me to express the concerns raised by local governments and 
other constituents in your district regarding the Commission's inmate calling services (ICS) 
proceeding. In your letter, you strongly urge that any rate changes be phased in gradually and that 
the Commission consider allowing recovery of incurred costs. Your views are very important and 
will be included in the record of the proceeding and considered as part of the Comrnission1S 
revtew. 
On September 26, 2013, the Commission released a Report and Order and Further 
Notice of Proposed Rulemaking on ICS. In the Report and Order, the Commission adopted 
interim reforms of interstate ICS rates, requiring that providers' rates and charges be just, 
reasonable, and fair. The Report and Order also required submission of data from ICS providers 
on costs and usage, which the Commission received in August 2014. 
The Report and Order recognized that security measures are an important part of ICS and 
made clear that it is appropriate for security costs to be recovered through ICS rates. In the 
associated Further Notice of Proposed Rule making, the Commission sought public comment on 
a number of outstanding issues regarding ICS, including reform of intrastate ICS rates and 
practices, and whether the Commission should adopt a rate structure that distinguishes between 
jails and prisons. 
The Report and Order is already having positive results. Lower interstate rates and 
increased ICS usage enable more families to connect with inmates. Unfortunately, intrastate 
rates have increased in many states. Moreover, ICS providers are imposing an increasing array 
of ancillary charges, and correctional facilities are continuing to demand site commissions, or 
payments to facilities that are not based on their costs to provision ICS, which represent a 
significant portion ofiCS provider gross revenues. 
Under the leadership of Commissioner Clyburn, who has been spearheading the 
Commission's effort on this issue, the Commission adopted a Second Further Notice of 
Proposed Rulemaking (" Further Notice") on October 17,2014, with a goal of comprehensively 
reforming the ICS system, including both interstate and intrastate rates. The Further Notice 
Page 2- The Honorable Rob Wittman 
seeks comment on the data submitted by ICS providers in August, which includes cost data for 
jails and prisons of all sizes. The Further Notice seeks comment on the data and whether rules 
should account for the differences in costs to serve different types of facilities. 
Your letter raises several important issues, and the Further Notice recognized these issues 
and seeks comment on how to address them. For example, with respect to your concerns related 
to the recovery of incurred costs, the Further Notice seeks comment on whether correctional 
institutions incur any costs in the provision of ICS and, if so, how facilities should recover such 
costs if the Commission otherwise determines to prohibit the use of site commissions. And, with 
respect to your suggestion of a "grace period" for implementation, the Further Notice seeks 
comment on providing a multi-year transition period to provide sufficient time for correctional 
facilities to adjust their budgets. 
Please be assured that we will take into consideration the issues and concerns presented 
by all stakeholders engaged in this proceeding, including, as you suggest, representatives of state 
and local governments. The goal ofthe Further Notice is to reform the lCS system 
comprehensively, while also ensuring appropriate cost recovery and transition periods for 
correctional facilities. 
I appreciate your interest in this matter. Please let me know ifl can be of any further 
assistance. 
Sincerely,