FEDERAL COMMUNICATIONS COMMISSION 
WASHINGTON 
OFFICE OF 
THE CHA I RMAN 
The Honorable Frank Pallone 
U.S. House of Representatives 
23 7 Cannon House Office Building 
Washington, D.C. 20515 
Dear Congressman Pallone: 
January 20, 2015 
Thank you for your letter expressing support for the Commission's effmis to achieve fair 
and reasonable rates for inmate telephone calls. In your letter, you express concern that the 
current system is financially burdensome for inmates and their families. Your views are very 
important, and they will both be included in the record of the proceeding and be considered as 
pati of the Commission' s review. 
In September 2013, the Commission released a Report and Order and Further Notice of 
Proposed Rulemaking on inmate calling services (ICS). In the Report and Order, the 
Commission adopted interim reforms of interstate I CS rates, requiring that providers ' rates and 
charges be just, reasonable, and fair. These interim reforms included interim caps on local , in­
state long distance, and interstate long dista11ce telephone services. 
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 at-ray 
of ancillary charges, and correctional facilities are continuing to demand site commissions -
payments to facilities that are not based on their costs to provision ICS- representing a 
significant portion of ICS 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 
reforn1ing the ICS system, including both interstate and intrastate rates. The Further Notice 
seeks comment on whether to ban site commissions. The Further Notice also seeks comment on 
permanent rate caps on all services - local, in-state long distance, and interstate long distance 
telephone services. These caps would replace the current interim caps, protecting inmates and 
their families from exorbitant rates as site commissions are phased out. Finally, 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 inmates and their families. The goal of 
Page 2-The Honorable Frank Pallone 
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 if I can be of any further 
assistance. 
Sincerely, ' / // 
~ U/--~heeler • -