Prison Phone Justice

August 2024

Prison Profiteers: How Private Companies Profit
From Prison Phone Calls and Harm New Jersey
Residents
Marleina Ubel, Senior Policy Analyst
For the thousands of people incarcerated in New Jersey's prisons and jails, a phone call to
loved ones can make a significant difference during challenging and isolating times. Research
consistently shows that communication between people behind bars and their support systems
helps to improve their mental health in the short term and strengthen the relationships needed
for a successful reentry in the long term.i
Yet, despite the importance of these connections with the outside world, communication is
increasingly out of reach for individuals incarcerated in New Jersey due to the exorbitant fees
charged by private, for-profit telecommunication companies that have monopoly contracts
with corrections agencies.ii Because incarcerated individuals and their families bear these costs,
fees for prison communication disproportionately harm women, people of color, and families
with low incomes, exacerbating racial and economic inequities within the criminal legal system
and throughout the state.iii
By moving away from this profit-driven model and providing accessible communication across
the state’s prisons and county jails, New Jersey can keep families connected, allow people who
are incarcerated to better plan for their releases, and finally put a stop to the predatory
practices that cost families across the state $15 million every year.iv While this is an incredible
burden for families, the expense for the state is a small fraction — 1.4 percent — of the nearly
$1.1 billion correctional facilities budget.v

How We Got Here: The Rise of Private Prison Communications
Until the 1980s, prisons in the United States managed access to phone calls through AT&T,
with many facilities providing collect calls at prices comparable to the cost of a collect call on
the outside.vi With the rapid growth of incarceration fueled by the War on Drugs, the federal
break-up of the AT&T monopoly, and the subsequent “prison boom” of the 1980s, private
telecommunication companies emerged, and their business models capitalized on the growing
number of prisons and jails across the United States, cornering the market, commissions to
prison and jail administrators, and making calls more expensive.vii
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New Jersey Policy Perspective
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New Jersey is one of many states that contracts with private telecom companies to provide
communication services for its prisons, including phone calls, electronic messaging, and video
calls. The state currently contracts with two companies: ViaPath, formerly Global Tel Link, and
JPay, a subsidiary of Securus Technologies.viii Founded in 1989, ViaPath was one of the first
companies to transform prison phone calls into a multimillion-dollar industry.ix JPay, founded
in 2002 as a prison money-wiring service, has since emerged as one of the largest prison
technology contractors in the country.x
ViaPath and JPay make up nearly 80 percent of the prison communication market share in the
United States, and their monopoly contracts allow them to charge exorbitant fees and generate
hundreds of millions of dollars in profit from incarcerated individuals and their families.xi The
two companies have each faced their fair share of price-gouging complaints, with ViaPath,
ordered to pay $67 million to settle a 2015 class-action lawsuit, and JPay ordered to pay $6
million in fines and restitution in 2021 for charging excessive and illegal fees.xii
In 2023, ViaPath and JPay brought in a combined $6.6 million in revenue from their
monopolies on phone calls, e-messages, and video calls in New Jersey’s state prisons.xiii Phone
calls made up nearly three-quarters of prison communication revenue in New Jersey, with
ViaPath bringing in more than $4.8 million from state prisons. Electronic messaging made up
24 percent of prison communication revenue, and video calls made up the remaining 2.5
percent. JPay brought in a combined $1.7 million from electronic messages and video calls.

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

How it Works: The High Cost of Private Prison Communications
Phone calls are the primary communication channel in New Jersey’s prisons, with ViaPath
charging fees of about $0.044 per minute at state facilities and even higher rates at some
county jails.xiv High fees, combined with call limits of fifteen minutes, make it less likely that
incarcerated individuals will stay in touch with their families, straining the relationships that
are critical to their success when they are released.
According to a recent survey by the New Jersey Office of Corrections Ombudsperson, many
people incarcerated in New Jersey do not feel they have enough time on the telephone to
maintain relationships with their loved ones.xv Still, the majority indicated the phone as their
preferred method of communication.xvi
Incarcerated individuals also rely on a basic form of electronic messaging offered by JPay,
similar to email, but without direct internet access. Electronic messages are composed on lowtech tablets sold by JPay,xvii often for $50, and then connected to a kiosk that delivers the
message. Sending messages requires the purchase of credits, known as “stamps,” that cost
$0.35 each.xviii Each message requires one stamp, and additional stamps are needed for
receiving a message with a photo attached or sending one that exceeds a single page in length.
Video calls offered by JPay operate on the same system of kiosks and tablets as electronic
messages. At $9.95 for thirty minutes,xix they are extraordinarily expensive for incarcerated
individuals and their families. It’s worth noting that not all correctional facilities in New Jersey
currently provide access to video calls.
Prison Communication Services: Fee Rates and Average Costs
Fee Rate

Average Costs

Phone Calls

$0.044 per minute

$0.66 for 15 minutes

Electronic Messaging

$0.35 per “stamp”

$0.70 for a message
with a photo

Video Calls

$0.332 per minute

$9.95 for 30 minutes

Source: New Jersey Department of Corrections.
NEW JERSEY POLICY PERSPECTIVE | NJPP.ORG

While this business model results in hundreds of millions of dollars in profits for companies
like ViaPath and JPay, it has devastating consequences for incarcerated people and their
families, with repercussions that reverberate into communities across New Jersey and the rest
of the nation.

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

How Private Prison Communications Harm New Jersey Families
The cost of prison communications imposes a severe burden on incarcerated individuals and
their families, who often shoulder the cost. Poverty and incarceration are inextricably linked in
the United States, where the vast majority of people incarcerated are low-income, while
incarceration itself results in greater poverty.xx For these individuals and families, any cost
associated with communication can be an insurmountable challenge that perpetuates cycles of
poverty and inequality.
Fees for phone calls, video calls, and electronic messages add up quickly, with incarcerated
individuals and their families paying $15 million annually to stay connected. This includes $7.4
million spent across New Jersey’s state prisons and an additional $7.6 million across county
jails.xxi
For incarcerated individuals, wages inside correctional facilities are far too low to afford the
fees charged by ViaPath and JPay to stay in regular contact with their families and support
systems, forcing their families to foot the bill. Incarcerated workers are exempt from New
Jersey’s minimum wage law and work at a daily, not hourly, rate. They can earn anywhere from
$1.60 to $7.50 a day, with most workers earning between $1.60 and $3.00, on average.xxii
For the large portion of people in prison who earn the lowest daily pay rate ($1.60), making a
phone call home or sending an email costs them nearly half of their earnings for the day. For
example, it would cost $1.36 to have a 15 minute phone call and receive one email with a photo
attachment, nearly wiping out one’s daily earnings.xxiii In Fiscal Year 2022, the total wages paid
to all incarcerated people in New Jersey was $9.2 million.xxiv Put another way, if people who are
incarcerated relied solely on their wages to pay for communication, 72 percent of their total
earnings would have gone toward calls and messages.
However, people in prison must pay for more than just communications, such as, basic hygiene
items from commissary,xxv child support, and some medicines, and with such low wages, they
are often unable to afford the communications they so desperately need. As a result, the vast
majority of costs end up falling onto the shoulders of family members and other loved ones,
who are disproportionately women of color.
Nationally, one in three families with an incarcerated loved one goes into debt due to the fees
associated with trying to stay connected.xxvi Of family members responsible for incarcerationrelated costs, 83 percent were women, with women of color disproportionately affected given
the racial disparities in the criminal legal system.xxvii New Jersey has the highest Black-white
disparity in incarceration in the country, with 61 percent of incarcerated individuals identifying
as Black and only 22 percent as white.xxviii
The for-profit prison communication system has far-reaching effects on the finances and
overall well-being of families across the state. In a recent op-ed in The Star-Ledger, Malika
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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

McCall, a mother and business owner in Newark whose two sons were incarcerated in New
Jersey, detailed the financial and emotional toll of not being able to afford to keep in touch
with her children. Malika’s story is both heartbreaking and all too common for families with a
loved one incarcerated in New Jersey.
From going into debt to not taking calls because of an inability to pay, the consequences of
high fees extend beyond financial stress; they irreparably harm the bonds between parents and
their children and take a significant emotional toll on families already struggling to get by.

Building Bridges and Connecting Families with Free Prison Communications
There is a growing movement of states and local governments recognizing the importance of
connecting families and removing barriers to communication. In the last three years, five states
and multiple jurisdictions, including New York City, have eliminated fees associated with
prison communication, setting an example for New Jersey and other states to follow.xxix And
just this summer, the Federal Communications Commission passed new rules that put caps on
phone and video calling rates in prisons and jails and ban corporate kickbacks on these services
to prison and jail administrators.xxx
At the core of accessible prison communications is family, human dignity, and a commitment
to ensuring the successful return to community. When incarcerated people can regularly
connect with their families, it fosters a sense of hope, encourages productive behavior, and
enhances participation in rehabilitation programs.xxxi Moreover, facilitating open lines of
communication between incarcerated individuals and their support networks stands out as one
of the most effective strategies to bolster reentry outcomes and reduce recidivism rates.xxxii By
eliminating communication fees, New Jersey can keep families connected and finally put a stop
to the predatory practices that cost families across the state $15 million every year.

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

i

Wang, L. Research roundup: The positive impacts of family contact for incarcerated people and their families, Prison
Policy Initiative. Decmber 21, 2021 https://www.prisonpolicy.org/blog/2021/12/21/family_contact/
ii

Worth Rises. The Prison Industry How It Started How It Works and How It Harms. December, 2020. Pg. 48-49.
https://static1.squarespace.com/static/58e127cb1b10e31ed45b20f4/t/621682209bb0457a2d6d5cfa/1645642294912/The
+Prison+Industry+How+It+Started+How+It+Works+and+How+It+Harms+December+2020.pdf
iii

deVuono-powell, Saneta et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center,
September, 2015. Pg. 9 https://ellabakercenter.org/wp-content/uploads/2022/09/Who-Pays-exec-summary.pdf
iv

Based on fiscal analysis done by Worth Rises using current DOC and jail population data and 2023 usage data
including taxes and deposit fees paid by families. This figure includes the costs associated with both prisons ($7.4
million) and county jails ($7.6 million). Methodology is on file with author.
v

Governor’s Detailed Budget. FY2025. Pg. B-2.
https://www.nj.gov/treasury/omb/publications/25budget/pdf/FY2025-Budget-Detail-Full.pdf
vi

Worth Rises. The Prison Industry How It Started How It Works and How It Harms. December, 2020. Pg. 48.
https://static1.squarespace.com/static/58e127cb1b10e31ed45b20f4/t/621682209bb0457a2d6d5cfa/1645642294912/The
+Prison+Industry+How+It+Started+How+It+Works+and+How+It+Harms+December+2020.pdf
vii

Worth Rises. The Prison Industry How It Started How It Works and How It Harms. December, 2020. Pg. 48.
https://static1.squarespace.com/static/58e127cb1b10e31ed45b20f4/t/621682209bb0457a2d6d5cfa/1645642294912/The
+Prison+Industry+How+It+Started+How+It+Works+and+How+It+Harms+December+2020.pdf
viii

JPay was acquired by Securus in 2015 and has been referred to by both names by the press and other
stakeholders.(https://theappeal.org/prison-tablets-ipads-jpay-securus-gtl/) New Jersey is currently looking to cut
ties with JPay and have ViaPath take over all prison
communications.(https://www.njspotlightnews.org/2024/04/nj-prison-ombudsperson-examines-phone-accesspolicies-urges-corrections-department-change-policies/)
ix

Schwenk, K. Wall Street Is Finding New Ways to Milk the Prison System. Jacobin. February,
2024.https://jacobin.com/2024/02/prison-phone-calls-telecom-revenue
x

Law, V. Captive Audience: How Companies Make Millions Charging Prisoners to Send An Email. Wired. August, 2018.
https://www.wired.com/story/jpay-securus-prison-email-charging-millions/
xi

Wagner, P. and Bertram, W. State of Phone Justice 2022, Prison Policy Initiative. December, 2022.
https://www.prisonpolicy.org/phones/state_of_phone_justice_2022.html
xii

Land, G. Prison Phone Co. to Pay $67M to Settle Claims It Looted 'Inactive' Accounts. Law.com. December, 2021.
https://www.law.com/dailyreportonline/2021/12/06/prison-phone-co-to-pay-67m-to-settle-claims-it-lootedinactive-accounts/?slreturn=20240626133133 & Flitter, E .JPay, a prison contractor, was fined over fees it charged to
former prisoners. New York Times. October, 2021. https://www.nytimes.com/2021/10/19/business/jpay-prison-cardfees.html
xiii

Data NJPP received from NJ DOC. These figures are for state correctional facilities alone and do not include
revenues from county jails.

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

xiv

Data Worth Rises acquired while performing their fiscal analysis.The prices vary in county jails, but the average
rate is $0.051 per minute, or $0.77 for a 15 minute phone call.
xv

NJ Office of the Corrections Ombudsperson. Visits and Phone Calls, Special Report. April, 2024. Pg. 8.
https://www.documentcloud.org/documents/24539968-special-report-on-visits-and-phone-calls_correctionsombudsperson
xvi

NJ Office of the Corrections Ombudsperson. Visits and Phone Calls, Special Report. April, 2024. Pg. 6.
https://www.documentcloud.org/documents/24539968-special-report-on-visits-and-phone-calls_correctionsombudsperson
xvii

Law, V. Captive Audience: How Companies Make Millions Charging Prisoners to Send An Email. Wired. August,
2018. https://www.wired.com/story/jpay-securus-prison-email-charging-millions/
xviii

NJ Office of the Corrections Ombudsperson. Visits and Phone Calls, Special Report. April, 2024. Pg. 8.
https://www.documentcloud.org/documents/24539968-special-report-on-visits-and-phone-calls_correctionsombudsperson
xix

NJ Office of the Corrections Ombudsperson. Visits and Phone Calls, Special Report. April, 2024. Pg. 8.
https://www.documentcloud.org/documents/24539968-special-report-on-visits-and-phone-calls_correctionsombudsperson
xx

deVuono-powell, Saneta et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center,
September, 2015. Pg. 9 https://ellabakercenter.org/wp-content/uploads/2022/09/Who-Pays-exec-summary.pdf
Note: In New Jersey, data from the Office of the Public Defender suggests that 90% of all criminal defendants are
indigent, or without resources. https://pub.njleg.gov/publications/reports/CSDC%20Third%20Report.pdf
xxi

Based on fiscal analysis done by Worth Rises using current DOC and jail population data and 2023 usage data
including taxes and deposit fees paid by families.
xxii

DiFilippo, D. Inflation hits inmates’ wallets, even as their wages have flatlined. NJ Monitor. September, 2022.
https://newjerseymonitor.com/2022/09/28/inflation-hits-inmates-wallets-even-as-their-wages-have-flatlined/ &
NJ DOC response to FY24 budget hearing questions. 2023. Pg. 20-21.
https://pub.njleg.state.nj.us/publications/budget/governors-budget/2024/DOC_response_2024.pdf Note that the
wages now range from 1.60 to 7.50 due to an increase in wages in April, May and June of 2024.
xxiii

NJPP analysis of data obtained from Worth Rises and NJDOC

xxiv

NJ DOC response to FY24 budget hearing questions. 2023. Pg. 21.
https://pub.njleg.state.nj.us/publications/budget/governors-budget/2024/DOC_response_2024.pdf
xxv

Detailed NJDOC commissary price list acquired by The Appeal. 2024.
https://www.documentcloud.org/documents/24444224-nj_doc_combined_commissary_lists
xxvi

deVuono-powell, Saneta et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center,
September, 2015. Pg. 9 https://ellabakercenter.org/wp-content/uploads/2022/09/Who-Pays-exec-summary.pdf
xxvii

deVuono-powell, Saneta et al. Who Pays? The True Cost of Incarceration on Families. Ella Baker Center,
September, 2015. Pg. 9 https://ellabakercenter.org/wp-content/uploads/2022/09/Who-Pays-exec-summary.pdf
xxviii

NJ Department of Corrections. Incarcerated Persons In New Jersey Correctional Institutions

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org

On January 1, 2024, By Race/Ethnic Identification. January, 2024.
https://www.nj.gov/corrections/pdf/offender_statistics/2024/By_Race-Ethnicity_2024.pdf
xxix

Kaiser-Schatzlein, R. Is This the End of Prison Phone Fees? Mother Jones. October 2023.
https://www.motherjones.com/criminal-justice/2023/08/conneticut-prison-phone-fees-securus/
xxx

Bertram, W. FCC votes to slash prison and jail calling rates and ban corporate kickbacks. Prison Policy Initiative.
July 2024. https://www.prisonpolicy.org/blog/2024/07/18/fcc-vote/
xxxi

Wang, L. Research roundup: The positive impacts of family contact for incarcerated people and their families, Prison
Policy Initiative. Decmber 21, 2021 https://www.prisonpolicy.org/blog/2021/12/21/family_contact/ &
Worth Rises. The Prison Industry How It Started How It Works and How It Harms. December, 2020. Pg. 52.
https://static1.squarespace.com/static/58e127cb1b10e31ed45b20f4/t/621682209bb0457a2d6d5cfa/1645642294912/The
+Prison+Industry+How+It+Started+How+It+Works+and+How+It+Harms+December+2020.pdf
xxxii

Petersilia, Joan. When Prisoners Come Home: Parole and Prisoner Reentry. Oxford University Press, 2006, p

246.

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New Jersey Policy Perspective
137 W. Hanover Street | Trenton, NJ 08618 | (609) 393-1145 | njpp.org