Securus Ex Parte Sub

Ex PARTE PRESENTATION NOTIFICATION LETTER submitted by c/o Squire Patton Boggs (US) LLP

Securus Ex Parte Submission

2017-07-24

This document pretains to ITC-T/C-20170511-00095 for Transfer of Control on a International Telecommunications filing.

IBFS_ITCTC2017051100095_1251116

S         U I R E AJ                                                                                 Squire Patton Boggs (US) LLP
                             ®@©/                                                                    2550 M Street, NW
PATTON BOGGS                                                                                         Washington, DC 20037
                                                                                                     O    +1 202 457 6000
                                                                                                     F    +1 202 457 6315
                                                                                                     squirepattonboggs.com



                                                                                                     Paul Besozzi
                                                                                                     T    +1 202 457 5292
                                                                                                     Paul.Besozzi@squirepb.com


VIA ECFS AND IBFS

July 24, 2017

Marlene H. Dortch
Secretary
Federal Communications Commission
445 12th Street, SW
Washington, DC 20554

            Re:        Ex Parte Submission — WC Docket No. 17—126; TTC—T/C—20170511—
                       00094; TTC—T/C—20170511—00095 — Securus Investment Holdings, LLC;
                       Securus Technologies, Inc.; T—NETIX, Inc.; and T—NETIX
                       Telecommunications Services, Inc.


Dear Ms. Dortch:

Securus Investment Holdings, LLC; Securus Technologies, Inc.; T—NETIX, Inc.; and T—
NETTIX Telecommunications Services, Inc. (collectively "STT") and SCRS Acquisition
Corporation, acting through counsel, note the attached communication submitted to the
Commission today regarding inmate calling services rates and other information regarding
STI. There is no reference therein to the pending request for approval of the indirect
transfer of control of STTI‘s domestic and international Section 214 authority‘ through a
parent—level transaction.




‘ Joint Application ofSecurus Investment Holdings, LLC, Transferor, Securus Technologies, Inc., Licensee
T—NETIX, Inc., Licensee T—NETIX Telecommunications Services, Inc., Licensee, and SCRS
Acquisition Corporation For Grant ofAuthority Pursuant to Section 214 ofthe Communications Act of
 1934, as amended, and Sections 63.04 ofthe Commission‘s Rules to Transfer Indirect Ownership and
Control ofLicensees to SCRS Acquisition Corporation, WC Docket 17—126 (filed May 11, 2017),
ITC—T/C—20170511—00094, ITC—T/C—20170511—00095 (filed May 11, 2017).


44 Offices in 21 Countries

Squire Patton Boggs (US) LLP is part of the international legal practice Squire Patton Boggs, which operates worldwide through a number of separate
legal entities.

Please visit squirepattonboggs.com for more information.

min ocne n77C/a /ANMEDINAC


Squire Patton Boggs (US) LLP
July 24, 2017

Page 2


Nonetheless, STI, pursuant to Section 1.1206 of the Commission‘s rules," hereby makes this
filing in the above referenced dockets.




                                                      Respectfully submitted,




                                                      Paul C. Besozzi
                                                      Squire Patton Boggs (US) LLP
                                                      2550 M Street, NWV
                                                      Washington, DC 20037
                                                      202—457—5292
                                                      Counselfor Securus Investment Holdings,
                                                      LLC; Securus Technologies, Inc.; T—
                                                      NETIX, Inc.; and T—NETIX
                                                      Te/lecommunications Services, Inc.
ce: Chairman Ajit Pai
    Commissioner Mignon Clyburn
    Commissioner Michael O‘Rielly
     Brendan Carr, General Counsel
     Kris Monteith, Chief, Wireline Competition Bureau
     Tom Sullivan, Chief, International Bureau
     Jay Schwarz, Office of Chairman Pai
     Kristine Fargotstein, Office of Chairman Pai
     Jim Bird, Office of General Counsel
     Madeleine Findley, Wireline Competition Bureau
     Daniel Kahn, Wireline Competition Bureau
     Jodie May, Wireline Competition Bureau
     Sherwin Siy, Wireline Competition Bureau
     Tracey Wilson, Wireline Competition Bureau
     David Krech, International Bureau
     Sumita Mukhoty, International Bureau
     Lee G. Petro, Counsel for Petitioners
     William B. Wilhelm, Counsel for Transferee.




2 47 C.F.R. § 1.1206.




214 acac asoriadakarninan


 Richard A. Smith
 Chief Executive Officer and                                                           SECU RUS
 Chairman of the Board                                                                 Technologies


July 21, 2017




Hon. Mignon Clyburn
Commissioner, Federal Communications Commission
425 12th Street, S.W.
Washington, DC 20554

Dear Commissioner Clyburn:

I was surprised to see a press report today of your comments at yesterday‘s Broadband Deployment
Advisory Committee meeting, at which you reportedly said that some inmate families have been
charged "as much as $25 per minute for local calls." 1 hope that your remarks were reported
inaccurately, because | am quite sure that no inmate provider has ever charged a per—minute rate
anywhere near that level for any kind of call, let alone local. It has to be an error or an extreme outlier.

1 am well aware of your feelings towards Securus and other companies that provide inmate calling
services. It is clear you have strong opinions about this topic, and | respect your right to express your
views even when | disagree with them.

But, as the late Senator Daniel Patrick Moynihan was fond of saying, "Everyone is entitled to their own
opinion, but not to their own facts."

The fact is that Securus has never charged any inmate or their family a price of $25 per minute for any
call. The fact is that our company‘s average revenue from inmate calling, across all types of calls
(interstate, intrastate, and local), is about 18 cents per minute. And approximately $.05 to $.06 of that
goes to pay site commissions we are obligated to pay under our contracts with correctional facilities. In
jurisdictions where there are no commission payments, our rates are substantially lower. If I include all
of the "free calls," my average revenue is $.09 per minute — just $.09 per minute!

In the past, | have seen you cite a price of $25 for a 15 minute call (which would be about $1.67 per
minute). That, of course, is an order of magnitude less than the $25 per minute price you reportedly
spoke of yesterday —— but, even so, it is an order of magnitude greater than Securus‘ actual average
price.

Here are facts that are NEVER reported, but are relevant to treating what we do with respect:

   + rate2
     per minute;
                 7%, from $.23 per minute to $.18
   + Interstate rates have 72% We filed that
       with the FCC recently as an ex parte;
   e   Video calling has increased exponentially and we charge only $.24 per minute;



                4000 International Parkway   |   Carroliton, Texas 75007 |   SecurusTechnologies.com


                                                                                        Commissioner Mignon Clyburn
                                                                                                        July 21, 2017
                                                                                                          Page 2 of 2



                                                                                        y for all services;
                     t              we c           average $4C0                 y     '   s including
             education, audio calling, video calling, tablets, book downloads, email, religious/bible
             downloads, law library, facility operating procedures, newspaper downloads, commissary
             ordering, music downloads, and more.

 We are actively investing in inmate education, recidivism reduction, and corrections welfare programs:

       0




             for on the job deaths;
       P _ that trains and finds positions
             for inmates    post release;
       ®     — with a full—time Director to reduce
             recidivism and assist inmates post release;
       e     And more ...

 Spreading inaccurate information about our business and our industry has serious consequences. Both
 correctional facility staff and our own employees are put at risk of harm from persons who are angered
 by these false and inflammatory reports. | personally have had to obtain 24/7 security protection
 because of death threats against myself and my family, which were prompted by press reports that
 grossly exaggerated the amounts Securus charges for telephone calls.

 1 respectfully ask that you refrain from mischaracterizing the prices charged by Securus and other
 inmate calling providers. If you would like to get a better understanding of our pricing and rate
 structures, I would be pleased to meet with you and provide a briefing. If, after that meeting, you still
 believe our prices are too high, at least you will be able to base your opinion on accurate data, as
 opposed to the wildly inflated numbers reported in the press today.

 In conclusion, | respectfully invite you, the entire Commission, and your staff to our Technology Center
 in Carrollton, Texas (near Dallas) for a full 2 to 3 hour presentation of technologies and how we are
 assisting inmate long—term development today. | would love to host you — you can make it a single day
 trip if you wish. It will change your life!

 Sincerely,
                           z>


                                        5s
       o_      es
 Ze        » BA
fifiard A. Smith                  g
 Chief Executive Officer and        Chairman of the Board
 Securus Technologies, Inc.


 Cc:       Hon. Ajit Pai
           Hon. Michael O‘Rielly




                    4000 International Parkway   |   Carrollton, Texas 75007 |   SecurusTechnologies.com



Document Created: 2017-07-24 16:32:04
Document Modified: 2017-07-24 16:32:04

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