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Calling Cards Eyed for Cook County Inmates
By Chicago Tribune
Published: 04/18/2003

The telephone company SBC Illinois said recently it will explore offering prepaid phone cards to Cook County Jail inmates, a proposal made after some county commissioners raised concerns about the large bills family members receive for accepting collect calls from prisoners.
The rate on the calling cards would be 25 cents a minute, a fee the phone company said would be necessary to recoup its costs, but one that commissioners and activists called price gouging.
The debate unfolded during a County Board Finance Committee meeting in Chicago where commissioners approved a politically connected deal that would allow the phone company to continue its exclusive rights to run the county's 1,000 pay phones through 2008.
Under the contract, the county is expected to receive $6 million a year through a 45 percent commission from SBC. Since winning the contract in 1999, the phone company has gained gross revenues of $10 million to $11 million a year through which it pays the county, said Ron Lindsey, senior account manager for SBC Illinois.
The issue for some commissioners, and one that has generated national attention in recent years, is that the county is making money off families of prisoners, many of whom have not gone to trial and are, under the law, presumed innocent.
Under the current system, prisoners are required to make operator-assisted collect telephone calls that include a connection fee of $2.71. The daytime rate is about 13 cents per minute for a collect call.
Michael Deutsch, a lawyer with the People's Law Office, said the calling cards may help by getting rid of the connection fee, 'but 25 cents a minute is high. They're still gouging.'
Deutsch, who lost a federal lawsuit a few years ago over the high fees, said governments in Illinois and across the country look the other way because of the revenue the fees generate.
The phone companies 'give them a great kickback because they're making a lot of money on it,' he said.
SBC's contract had been set to expire next year. However, the company asked for the new deal--three years with two one-year extension options--because it was preparing to make system improvements but wanted a new contract before it made the investment.
The county did not seek competitive proposals for the new contract or the one approved in 1999 because, a county official said, SBC offered 'a very attractive deal' and they've been a 'good partner.'



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