FCC Fee Reduction Adjustments - Grayson County, Securus, 2016
Download original document:
Document text
Document text
This text is machine-read, and may contain errors. Check the original document to verify accuracy.
FCC Fee Reduction Adjustments Grayson County Agenda 1. Review of FCC Order which was partially stayed 2. Explanation of revenue and commission structure and rebalance proposal 3. Review of Grayson Counties current Transactions, Commissions and Proposed Options 4. Next Steps; Commissioners court date on May 17th ? 5. Signed contract addendum by May 31st, 2016 SECURUS Technologies | 2 Objective Objective With the recent STAY order that was approved by the 12th Circuit Court, Securus was successful in defending our customers’ best interests by stopping the FCC from lowering calling rates below a point where commissions were impossible to pay. That is a HUGE win for our customers. However, though we stopped part of their illegal lawmaking, there are portions of the order that were not stayed and will therefore require MINOR and TEMPORARY changes to many of our customers’ agreements. These changes are temporary in that we believe that once we are ultimately victorious in our legal battle with the FCC, we will be able to revert to our originally agreed upon terms. The items that must change are as follows: • Funding fees are now capped at $3.00 for automated transactions (90% of our volume today) and $5.95 for operator necessitated transactions • Most other fees have been eliminated • We can no longer charge surcharges per call that are not tied to an increment of usage • This does NOT mean that each minute of usage can not be a different amount from another minute of usage SECURUS Technologies | 3 How providers make money When we originally bid on your contract we used: Fees charged to end users • • • • • • Monies collected from the completion of calls Funding Fee Bill Statement Fee Regulatory Recovery Fee Cost Recovery Fee Voice Biometric Fees Location Validation Fees Securus uses the money we have left over to staff a call center, provide 100% of the equipment you use, staff technical support, account managers, customer service representatives, network engineers, expert field technicians etc. 100% of the operating expense for the provision of inmate phone service is paid from what is left over. Total Revenue generated from the contract Commission offer is generated SECURUS Technologies | 4 Impact of the Changes When we originally bid on your contract…. Fees charged to end users Monies collected from the completion of calls Total Revenue generated from the contract Fee caps/eliminations imposed mean lower revenues on this side of the equation This must be increased In order to offset this reduction, basic algebra tells us that either: Commission offer is generated OR This must be decreased SECURUS Technologies | 5 Grayson County Amendment Avg Fee Before FCC Changes Avg Fee After FCC Changes Option 3 would reduce the monthly commission to approx. $3076 but would not impact call rates Proposed Increase in rates. The delta from current to new is noncommissionable, and will re-balance revenue SECURUS Technologies | 6 Execution of Contract Amendment Questions, comments concerns? SECURUS Technologies | 7 SECURUS Technologies | 8