Global Tel Link
{{Short description|Corrections phone system provider}}
{{Infobox company
| name = GTEL Holdings, Inc.
| trade_name = GTL
| logo = Global Tel Link logo.svg
| type = Private
| industry = Telecommunications
| fate =
| predecessor =
| successor =
| founded = {{Start date and age|1989}} (as Global Telcoin, Inc.)
Mobile, Alabama, U.S.
| founder =
| defunct =
| hq_location_city = Falls Church, Virginia
| hq_location_country = U.S.
| area_served =
| key_people = Deb Alderson, CEO
| products = Telephone services in prisons
| owner =
| num_employees =
| num_employees_year =
| website =
}}
Global Tel Link (GTL), formerly known as Global Telcoin, Inc. and Global Tel*Link Corporation, is a Reston, Virginia–based telecommunications company, founded in 1989, that provides Inmate Calling Service (ICS) through "integrated information technology solutions" for correctional facilities{{cite web|url=https://theintercept.com/2015/06/24/opm-contractor-veritas/|title=OPM Contractor's Parent Firm Has a Troubled History|work=The Intercept|date=June 24, 2015|author=Lee Fang}}{{cite magazine | title =Company overview | magazine =BusinessWeek | date =February 5, 2017 | url =https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4611589 | accessdate =February 5, 2017 }} which includes inmates payment and deposit, facility management, and "visitation solutions". The company's CEO is Deb Alderson. In 2020, GTL delivered 4.1 billion call minutes to incarcerated individuals and their families.
Board of directors
In 2019, Deb Alderson was Chief Executive Officer (CEO), Jeffrey Haidinger was President and Chief Operating Officer (COO), Steve Yow was Chief Financial Officer (CFO), Anthony R. Bambocci was Chief Marketing Officer and Executive Vice President, and Matthew Caesar was Senior Vice President of Engineering and Development.{{citation | title =People | publisher =Bloomberg LP | date =February 6, 2017 | url =https://www.bloomberg.com/research/stocks/private/people.asp?privcapId=4611589 | accessdate =February 6, 2017 |series=Company Overview of Global Tel*Link Corporation }} Board members included Hugh D. Evans and Ramzi M. Musallam from Veritas Capital and Jeffrey C. Weber from DC Capital Partners, LLC.
History
GTL was founded in 1980 in Mobile, Alabama, under the name Global Telcoin, Inc. The company changed its name in 1999 to Global Tel*Link Corporation. Private-equity firms Veritas Capital and Goldman Sachs purchased GTL from Gores Equity LLC for $345 million.{{citation |url=https://www.prisonlegalnews.org/news/2012/feb/15/private-equity-firms-profit-handsomely-from-prison-phone-services/ |title=Private Equity Firms Profit Handsomely from Prison Phone Services |date=February 15, 2012 |accessdate=February 5, 2017 |publisher=Prison Legal News}}{{rp|23}} In October 2011, GTL was sold for $1 billion.{{citation |url=https://www.nytimes.com/2015/03/31/us/steep-costs-of-inmate-phone-calls-are-under-scrutiny.html |date=March 31, 2015 |accessdate=February 5, 2017 |work=The New York Times |title=The High Cost of Calling the Imprisoned |author= Timothy Williams}}
Controversies
GTL, along with other similar entities such as Securus Technologies and the private-equity firms that own them, such as Veritas Capital, have been criticized by advocacy groups, The New York Times, The Washington Post, Bloomberg Business, and some lawmakers, for charging overly high prices in their monopoly in communication with incarcerated individuals. The Federal Communications Commission (FCC) has tried unsuccessfully for many years to cap the price of phone calls, an effort deprioritized in the late 2010s under industry lobbying by the first Trump administration.{{citation |url=https://www.washingtonpost.com/local/public-safety/fcc-made-a-case-for-limiting-cost-of-prison-phone-calls-not-anymore/2017/02/04/9306fbf8-e97c-11e6-b82f-687d6e6a3e7c_story.html|title=FCC made a case for limiting cost of prison phone calls, but not anymore |author=Ann E. Marimow |newspaper=The Washington Post |location=Washington}} The Biden administration's FCC reduced the cost of minutes for inmates in May 2021.{{Cite web|url=https://www.fcc.gov/document/fcc-lowers-interstate-and-international-prison-phone-rates|title=FCC Lowers Interstate and International Prison Phone Rates|date=20 May 2021}}
Litigation
The company has faced a number of class action lawsuits for violating the Federal Communications Act. The plaintiffs claim that the company uses its position to establish high rates and pays kickbacks to facilities which award it the contract.{{cite web|url=https://topclassactions.com/lawsuit-settlements/lawsuit-news/58518-global-tellink-class-action-claims-unfair-rates-inmates/|title=Global Tel*Link Class Action Alleges Unfair Rates for Inmates|work=Top Class Actions|date=June 18, 2015|author=Melissa LaFreniere}} In March 2016, the FCC ruled that Global Tel*Link could be limited on its prison call costs.{{cite web|url=http://www.recode.net/2016/3/7/11586754/court-ruling-puts-cheaper-prison-calls-on-hold|title=Court Ruling Puts Cheaper Prison Calls on Hold|work=Recode|date=March 7, 2016|author=Ina Fried}}
Mississippi Attorney General Jim Hood filed a lawsuit against Global Tel Link for racketeering, stating that the company was "involved in a conspiracy, scheme and/or enterprise that included bribery, kickbacks, misrepresentations, fraud, concealment, money laundering and other wrongful conduct."{{Cite web|url=http://www.clarionledger.com/story/news/politics/2017/02/08/epps-bribery-civil-lawsuit/97645586/|title=Mississippi AG files lawsuits in Epps bribery case|author=Gates, Jimmie E.|work=The Clarion-Ledger|date=8 February 2017|accessdate=23 April 2017}} The suit alleged that GTL had paid "consulting fees" to an agent of the company, which were used in exchange for Mississippi Department of Corrections public contracts.{{Cite web|url=http://www.aikenstandard.com/news/lawsuit-lurks-over-aiken-county-jail-s-new-contract-for/article_e106eaec-1baa-11e7-a813-8f23e8f7e59c.html|title=Lawsuit lurks over Aiken County jail's new contract for inmate call service|author=Girardeau, Tripp|work=Aiken Standard|date=7 April 2017|accessdate=23 April 2017}} Global Tel Link paid $2.5 million to settle the bribery lawsuit involving former Corrections Commissioner Chris Epps in August 2017.{{Cite web|url=https://www.usnews.com/news/best-states/mississippi/articles/2017-08-15/prison-phone-firm-pays-mississippi-25m-over-bribery-case|title=Prison Phone Firm Pays Mississippi $2.5M Over Bribery Case}}{{Cite web|url=http://www.clarionledger.com/story/news/2017/08/15/epps-lawsuit-settled-2-5-m/568119001/|title=2nd company settles in lawsuit in Chris Epps' prison bribery case, AG says}}
The company faced a class action lawsuit in 2024 with the plaintiffs claiming that the company engaged in a "quid pro quo kickback scheme" with county jails in Michigan which banned in-person visits in order to maximize revenue from voice and video calls.{{cite news |title=Jails banned visits in “quid pro quo” with prison phone companies, lawsuits say |url=https://arstechnica.com/tech-policy/2024/03/jails-banned-family-visits-to-make-more-money-on-video-calls-lawsuits-claim/ |access-date=3 April 2024 |publisher=Ars Technica |date=29 March 2024}}
Reception
GTL came under scrutiny for entering into concession contracts with local prisons in order to have a monopoly on the provision of inmate telecom. The FCC reported that an inmate call from GTL could cost as much as US$17.30 for a 15 minute call,{{cite web| url=https://www.wsj.com/articles/SB10001424052702304626304579507832617352424?cb=logged0.34201950619971133 | title=American Securities Puts Prison-Phone Operator GTL on Block | author=Ryan Dezember| date=April 17, 2014 | work=Wall Street Journal | access-date=22 June 2016}}{{cite web|url=https://www.bloomberg.com/news/articles/2014-12-17/serial-podcasts-2-500-phone-bill-and-the-prison-pay-phone-racket|title=Serial's $2,500 Phone Bill and the Prison-Calling Racket|work=Bloomberg Business|date=December 17, 2014|author=Joshua Brustein}} The company claimed that these high costs were required in order to securely monitor these calls.{{cite web|url=http://www.attn.com/stories/941/who-profits-from-prisoners|title=Here are 6 Companies That Get Rich off Prisoners|work=attn|date=February 21, 2015|author=Ashley Nicole Black}}{{cite news| url=https://www.nytimes.com/2006/07/04/business/04cards.html | work=The New York Times | title=Phone Card Issuers Must Pay Access Fees | first=Dow | last=Jones/Ap | date=2006-07-04 | accessdate=2010-05-03}}
In 2015, the FCC implemented a rule to cap the fees for interstate inmate phone calls at $3.75 for 15 minutes. But, in March 2016, a federal court ruled that the FCC could not cap rates on prison phone calls, but upheld its ability to cap other ancillary charges. In June 2017, the US Court of Appeals further rolled back the FCC rule.{{cite web|url=https://www.cadc.uscourts.gov/internet/opinions.nsf/C62A026B396DD4C78525813E004F3BC5/$file/15-1461-1679364.pdf|title=Global Tel*Link v. FCC No 15-1461 Opinion|author=US Court of Appeals For the District of Columbia Circuit|accessdate=2017-12-14|date=2017-06-13}}