Affordability, Accountability, Innovation and Reform

Company Has Now Added New Members to Senior Leadership Team From Outside Traditional Corrections Sector
 

Emergency offerings to help keep families connected include more than 21.7 million free phone calls totaling 165.6 million free minutes; 4.8 million free video connections; 10.2 million free JPay Stamps

• 1 million free call credits for incarcerated individuals and their families, resulting in 160.3 million free minutes of phone connections;
• 8 million free video connections to friends and families of incarcerated individuals;
• 8 million free JPay Stamps for electronic messaging to about 448,000 incarcerated individuals;

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.

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

About Securus Technologies

Headquartered in Dallas, Texas, and serving more than 3,450 public safety, law enforcement and corrections agencies and over 1,200,000 inmates across North America, Securus Technologies is committed to serve and connect by providing emergency response, incident management, public information, investigation, biometric analysis, communication, information management, inmate self-service, and monitoring products and services in order to make our world a safer place to live. Securus Technologies connecting what matters®. For more information, please visit SecurusTechnologies.tech.

Accomplishments reflect a positive shift in accessibility and ongoing engagement with key stakeholders

Aventiv Technologies and its corrections-services subsidiary, Securus Technologies, today reported progress on key milestones of the transformation commitments announced in mid-January. Under the direction of President and CEO Dave Abel, the organization is undertaking an expansive and holistic transformation to make its products more accountable, affordable and accessible. The pace of the early progress in the multi-year effort highlights the company’s ability to quickly adapt to the new vision and operating practices.

“While we recognize that this work is just the first step in a long-term process, we are very proud of what we have already achieved,” said Dave Abel, President and CEO of Aventiv Technologies. “I am dedicated to driving meaningful change in the organization, in the sector and in the communities we serve. We are continuing much-needed face-to-face conversations with all stakeholders – we need to work together on this.”

In the first sixty days since Aventiv made these commitments, the company took multiple steps towards full achievement of its goals, including:

• Developed and deployed new technology to reduce reliance on third-party payment services, eliminating their fees and bringing savings to impacted consumers by an average of 30% in the total cost of each call.
• Negotiated new contract with a major county customer lowering the cost of phone calls by more than 60% for over 6,000 incarcerated individuals and their loved ones.
• Integrated commission-free and agency-paid options for telephone calls with both existing institutional customers and potential new institutional customers.
• Convened first quarterly consumer forum with formerly incarcerated individuals and their families in Detroit to hear firsthand about their experiences and how to better serve them which will be used to inform future development efforts.
• Met with leaders and participants of job-training and -placement organizations currently operating inside and outside of correctional facilities to learn about employment best practices and help guide development of re-entry support.
• Signed the Getting Talent Back to Work pledge from the Society for Human Resource Management and committed to give hiring opportunities to deserving individuals with a criminal record.
• Sponsored the Second Annual Correctional Education Reentry Summit hosted by Ashland University and supported the participation of formerly incarcerated students of the University.

“Aventiv’s efforts to expand and invest in correctional education services will lead to more successful re-entry outcomes and reduced rates of recidivism, ultimately saving taxpayers money in the long-term,” said Todd Marshall, Vice President for Correctional Education and Innovation at Ashland University. “We have proudly worked with the organization for years and look forward to their participation in this year’s Re-Entry Summit, leading the charge to building connections to improve the reintegration and reengagement of formerly incarcerated individuals back into their communities.”

Additional initiatives and progress on milestones will be publicly detailed quarterly.

About Securus Technologies

Headquartered in Dallas, Texas, and serving more than 3,450 public safety, law enforcement and corrections agencies and over 1,200,000 inmates across North America, Securus Technologies is committed to serve and connect by providing emergency response, incident management, public information, investigation, biometric analysis, communication, information management, inmate self-service, and monitoring products and services in order to make our world a safer place to live. Securus Technologies connecting what matters®. For more information, please visit SecurusTechnologies.tech.

Mr. Abel Announces Accelerated Transformation Program Focused On Affordability, Accountability, Innovation and Reform

DALLAS, Jan. 13, 2020 -- Technology and government services executive Dave Abel has been named President and Chief Executive Officer of Aventiv Technologies and its corrections services subsidiary Securus Technologies, effective immediately.

"Dave is an innovative leader who we recruited in April to develop and accelerate an ambitious business transformation program for Securus," said Bryan Kelln, president of portfolio operations at Platinum Equity, which owns the companies.

"We are pleased to take the next step with his appointment as CEO, and excited about his plans for making Aventiv and Securus more accountable, more affordable, more accessible and more attentive to the needs of both customers and consumers," Mr. Kelln said.

As his first order of business, Mr. Abel announced an ambitious multi-year transformation effort that he said will "acknowledge past criticism, pursue present opportunities and lead future innovation."

"The role of technology in government and corrections is evolving, and Aventiv and Securus are at the forefront of that evolution," Mr. Abel said. "The industry is changing, and we intend to embrace it. We will be the change."

Mr. Abel acknowledged that both the company and the industry have faced criticism in the past over pricing, data security, product innovation and other issues.

He said that under his leadership the companies would seek the proper balance between the needs of customers, the corrections agencies that contract for the companies' products and services; consumers, the incarcerated individuals and their families who use those products and services; and public policy officials who oversee corrections facilities, their operations and their vendors.

"We have the opportunity – and the responsibility – to address the financial and social needs of the communities we serve, making our services more affordable and accessible while continuing to innovate and help our government partners keep those communities safe and secure," he said.

Securus has undergone substantial change since being acquired by Platinum Equity, with a major emphasis on eliminating certain past practices, enhancing and expanding others, and transforming from a traditional corrections telecommunications service provider into a broad technology innovator.

"We have the opportunity – and the responsibility – to address the financial and social needs of the communities we serve, making our services more affordable and accessible while continuing to innovate and help our government partners keep those communities safe and secure," said Dave Abel.

Aventiv Technologies launched in October 2019 as part of a corporate reorganization reflective of the company's progression with distinct business lines for government payments (AllPaid) and corrections services (Securus Technologies and JPay).

"Technology at its best is an engine of change," said Mr. Kelln of Platinum. "As the owners of Aventiv, we are keenly aware of the calls for change and steadfast in our determination to forge a new way forward.

"To that end, we have asked Dave to take the reins of the entire organization as we jointly execute on an overhaul of the agenda," he said. "Under his leadership, Aventiv will clearly demonstrate new values, supporting community needs and creating benefit for all stakeholders."

COMMITMENTS

Building on previous reforms that have already been implemented, Mr. Abel committed to accelerating in 2020 an expansive, holistic reform of corporate policies and practices. The full scope of the program will be announced in the weeks ahead, but Mr. Abel today previewed some of the initiatives that will be included:

1.  Accessibility and Affordability    

• While Securus has reduced the average cost of calls by 30% over the past 3 years, not all consumers felt the same relief.  The company pledges to work with all our institutional customers to broaden rate relief for more consumers by targeting the elimination of legacy outlier rates and reinvesting in the development innovations and tools to further reduce costs.
• In 2019 Securus became the only service provider to announce full neutrality on the presence of site commissions and the provision of products regardless of the funding source and model determined by each locality.  The organization will build on that in 2020 by working with all interested institutional customers on implementing these lower-cost-to-consumer alternatives.
• Securus will reduce the application of third-party funding fees by investing in technology solutions where possible -- and negotiating lower rates where outside vendors are still required -- to provide savings to consumers of at least 35% on these fees by year end.

2.  Transparency

• Securus will provide a clear and simple recitation of call rates to both customers and consumers, ensuring that those call rates are always available online and at the time of each call before they are accepted.
• The Company will commission an annual report of inmate calling costs, produced and published by an independent third party, including a breakdown of what is being charged beyond the specific cost of the call (for example, additional costs necessary for the provision of safety protocols and service).
• Securus will publish by the middle of this year an industry-leading report detailing a terms-of-use policy for its products, and memorializing comprehensive data privacy standards.

3.  Education, Reentry and Recidivism

• Securus will immediately sign the Society for Human Resource Management Getting Talent Back to Work Pledge.
• The Company will contribute at least $3 million in 2020 to efforts focused on reducing recidivism rates and improving reentry rates, including support for The Securus Foundation to connect justice agencies more closely to their communities utilizing technology.
• The Company will create a post-incarceration scholarship program to facilitate the completion of post-secondary degrees begun under Securus' existing educational product and service opportunities.  

4.  Listening and Responsiveness  

• Mr. Abel and other company executives will meet each quarter with families and individuals personally impacted by incarceration to hear their recommendations and address their concerns about the company's products and services.
• Company leaders will also meet with corrections facility customers, correctional trade associations and advocates of alternative incarceration approaches to hear their recommendations and hear their concerns.

5.  Technology and Innovation

• Securus pledges to invest at least $40 million this year in facility communication infrastructure for the advancement of public safety and community needs. 
• The Company will devote at least $30 million to fund innovations in the development of secure products to take on the ever-evolving challenges facing correctional agencies in the new decade.

BIOGRAPHICAL INFORMATION

Mr. Abel joined Securus as President in April of 2019, recruited from outside the industry to bring new ideas and urgency with respect to accelerating and expanding the reform agenda and technology transformation mandated by Platinum Equity. Most of his career has been dedicated to helping governments use technology to improve mission effectiveness and lower costs to taxpayers and consumers.

Prior to joining Aventiv, he founded and ran a business focused on performance improvement and software automation. As an executive at IBM and a partner at PwC, Mr. Abel was responsible for turning around and growing service and software businesses worldwide. While applying technology to some of society's greatest challenges, he is known for balancing the often competing needs of security, privacy and consumer value.

About Aventiv Technologies
Headquartered in the Dallas-Fort Worth Metroplex, Aventiv Technologies is the parent company for Securus Technologies, JPay and AllPaid. With nearly 2,000 associates, Aventiv serves the public sector by applying technology solutions to make complex connections more secure and simpler than ever before. For more information, please visit www.Aventiv.com