Platinum Equity Chairman and CEO Tom Gores sent the following correspondence today in response to a letter dated May 20, 2020 from former FCC Commissioners Mignon Clyburn, Michael Copps, and Gloria Tristani requesting that Securus Technologies, a Platinum Equity portfolio company, take steps to support incarcerated individuals and their families during the COVID-19 pandemic:
June 5, 2020
Dear Commissioners Clyburn, Copps and Tristani:
Thank you for your May 20 correspondence, and for your continued efforts in support of robust and affordable communications services, particularly in the corrections environment. We are pleased to support those same goals both in concept and in action, as change agents who are transforming Securus Technologies and the industry as a whole.
We agree wholeheartedly that access to reasonably priced telephone service is more important than ever for the country's incarcerated population in the face of restrictions on in-person visitation caused by the coronavirus crisis.
On March 13, the day COVID-19 was declared a national emergency in the United States, Securus began offering free and discounted services to every one of its state and county corrections agency customers.
Since then, the company has provided 16.1 million free phone calls totaling 116.2 million free minutes; 4.5 million free video connections; and 6.6 million free email message stamps to incarcerated individuals (and their families) at more than 731 facilities. In addition to the calls themselves being free, there are no funding or transaction fees associated with them.
“All of these actions to support individuals impacted by COVID-19 are part of a broader effort to transform the company and make services more accessible and affordable for incarcerated individuals and their loved ones.” – Tom Gores
The company has also provided additional free calling cards, or "compassion credits," to connect incarcerated individuals who have fallen ill during the pandemic with their loved ones; provided free phone calls between incarcerated individuals and public defenders in certain locations where permitted; and created an inbound email system by providing printers and supplies at 33 locations in California where incarcerated individuals do not have access to individualized email.
Beyond communications connections, Securus also is providing free access to select games and movies on its tablets in facility locations where permitted. So far, more than 500,000 movie rentals and nearly 1 million games have been downloaded or accessed without charge since April.
Further, the company has signed the FCC's Keep Americans Connected Pledge, Chairman Pai's initiative focused on mitigating the pandemic's impact on telecommunications access.
All of these actions to support individuals impacted by COVID-19 are part of a broader effort to transform the company and make services more accessible and affordable for incarcerated individuals and their loved ones.
In January, CEO Dave Abel announced a number of commitments that include lowering the costs of phone calls and other communications products, increasing transparency, and engaging directly with communities impacted by incarceration.
Those transformation efforts haven't come in a vacuum. They were mandated by Platinum Equity after acquiring the business in 2017. I am happy to report that since then, prices for Securus calling services have fallen by more than 30 percent.
To cite just one example: In Washtenaw County, where your letter cites information claiming that a 10-minute call "would cost about $11.62," current rates are actually substantially lower. Under the current contract there, the rates are $0.21 per minute for all calls, or $2.10 for a 10-minute call – even with a substantial commission retained by the corrections agency under its contract.
Well before the COVID crisis, Inmate Calling Service rates at Securus were steadily declining even in the absence of FCC-imposed caps on intrastate rates, falling on average by about 50% since the FCC issued the 2013 Interstate Inmate Rate Order.
All of Securus' rates for interstate calls are at or below the per-minute rates set by the FCC in the 2013 Interstate Rate Order, and its fees are in compliance with those promulgated in the FCC's 2015 Inmate Rate Order. On an intrastate level, Securus' rates are in compliance with the applicable state PUC / PSC rules and regulations.
Platinum Equity appointed CEO Dave Abel to transform Securus; establish a culture of service focused on the needs of incarcerated consumers and their families and not just on corrections agency customers; reduce telecom pricing; and invest in developing new technologies.
Dave and his team are making significant progress on those objectives. With your permission, I'd like to make them available to meet with you and discuss these reforms directly, to listen to your thoughts, and to consider ideas on what we can do better, faster or both.
Thank you again for your long record for public service on these issues, and for your willingness to work with us on these shared objectives.
Best regards,
Tom Gores
For more information about Platinum Equity’s transformation of Securus Technologies: http://transformation.aventiv.com/
The dream of a run to the baseball state playoffs ended in districts.
An anticipated final concert with the school band was cancelled.
As co-class president, experiencing detailed planning for a senior prom that will never occur.
Thomas Arend, who remains upbeat despite the setbacks, is succinct when discussing how routine rites of passage have been snatched away over the last few weeks.
“It kind of sucks,” he said.
The North Thurston (Wash.) High School student is just one of many to see the final months of senior year interrupted by school closings. Gov. Jay Enslee announced in early April that schools in the state of Washington would remain closed through the end of the academic year.
Online learning continues and seniors will graduate, but the familiar scene of “Pomp and Circumstance” playing while students walk across stages may not occur in the coming weeks.
Platinum Equity portfolio company
Jostens, a trusted memorabilia manufacturer for high school and collegiate markets, is bringing graduation ceremonies to seniors, families and school officials stuck at home.
The company will provide digital tools and content to offer free online virtual commencement centers to assist high schools and colleges celebrate graduates who have seen the expectations of a traditional ceremony dashed by social distancing measures instituted to mitigate the spread of the coronavirus, which causes COVID-19.
“What I see is Jostens providing hope,” said Scott Seaman, the executive director for the Association of Washington School Principals. “They’re really providing hope for kids, providing hope for the faculty of schools and they’re providing hope for families.
The goal is to provide some normalcy during these unprecedented times. While lingering dreams of a typical graduation ceremony may be dashed for some, Jostens is helping to make up for the sense of loss for all.
“What I see is Jostens providing hope,” said Scott Seaman, the executive director for the Association of Washington School Principals. “They’re really providing hope for kids, providing hope for the faculty of schools and they’re providing hope for families.
“There will be something. The show will go on. We’re going to have a graduation ceremony one way or another, and Jostens is providing that hope in the system.”
Call to action
On the weekend before St. Patrick’s Day, Jostens representatives were gathered for an off-site meeting in South Carolina.
Platinum Equity had earlier issued a call to action across its entire portfolio focused on mitigating the economic impact of the emerging crisis and encouraging its management teams to think creatively about repurposing or redeploying their resources.
Governments were moving to address the growing crisis and governors started issuing stay-at-home orders.
The first reaction among those at the meeting: The potential business fallout.
The next reaction? Anger that students could potentially lose out on routine milestones.
“This is a rite of passage that these kids earned,” said John Bibeault, Jostens vice president and general manager/scholastic division.
Adding to the sense of urgency was the realization the Class of 2020 was born right after 9/11 and has lived through two defining moments in the financial collapse of 2007-8 and the current crisis.
Creative juices started flowing. Contingency planning commenced with an able assist from a company official, who is a military veteran.
In discussions with education officials, there were two main concerns expressed: how to feed children depending on school meals and the infrastructure of distance learning.
Shortly after those initial discussions, Jostens moved to address the second concern by making its video series targeting the mental health of high school students available for free.
The virtual commencement idea came next.
Jostens has developed password protected resource centers for students under the direction of principals, collegiate commencement directors and other school officials. A Jostens representative gives access to a protected area on the company website.
Clients receive step-by-step instructions on how to pull off a virtual ceremony.
If a high school doesn’t have easily accessible livestreaming capability, Jostens sets it up.
Jostens is hoping to partner with celebrities to deliver commencement speeches.
“We’re doing the right thing first … administrators, teachers and students are picking that up,” Bibeault said.
Recognizing the Class of 2020
Founded in 1897 and based in Minneapolis,
Platinum Equity acquired Jostens in December 2018. The company specializes in custom class jewelry, graduation products, and yearbooks.
Bibeault has 18 years with Jostens and says the company has become more customer-centric since he joined 18 years ago.
“As times have changed, affiliations to school are not necessarily what they once were,” he said. “Traditions change, but when you’re in the jewelry business and the apparel business, when you’re in the printing business, you’re also in the fashion industry.”
The response to COVID-19 is a natural outgrowth. The company is also beginning to produce and distribute non-surgical face masks and disposable gowns to help healthcare concerns. The manufacturing will occur at plants in South Carolina and the Dominican Republic.
“It’s reinvigorated me and it’s reinvigorated our salesforce. I think that’s going to make the difference in getting through this tough time.”
- John Bibeault, Jostens vice president and general manager/scholastic division
Bibeault has participated in delivery events for Jostens.
“Seeing moms cry, seeing dads cry, kids cry,” he said. “They’re completely happy that they’re getting that cap and gown. They’re going to have something to take a picture in, to celebrate in.”
It addressed a need at all economic levels.
“We’ve seen million-dollar homes,” he said. “We’ve gone door-to-door in trailer parks.
“It’s reinvigorated me and it’s reinvigorated our salesforce. I think that’s going to make the difference in getting through this tough time.”
Arend is looking forward to life after this tough time. The Lacey, Wash., student is planning to enroll in Washington State in the fall, following in the footsteps of his parents.
Maybe in a few years, he will go through a traditional college graduation.
But for now, Josten’s virtual commencement is something he is eager to experience.
“It will provide a recognition for all of us and as well as a time for everybody to have a landmark to say, ‘OK, this is when we’re actually done. I remember this day,’” he said.
“I can see people sending texts saying congrats, you have the parents and stuff being live streamed, the kids’ reactions. I think it will be a cool way to recognize our Class of 2020.”
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