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Deregulation Spurred Big Payday for Investors

The Telecommunication Deregulation Act of 1987 allowed GTL to enter the operator services market giving the company the opportunity to market operator services to private pay phone vendors and inmate phones in 1989.

After a decade-long period of consolidation and mergers in the industry, Securus and another company, Global-Tel-Link, control 80 percent of the prison phone call market.

Veritas Capital, an investment arm of Goldman Sachs, saw a reported three-year, 325 percent gain when they sold GlobalTelLink to American Securities for $1 billion in 2011. Veritas and Goldman Sachs purchased Global Tel Link in 2009 for $345 million.

That's a $655 million return on their investment in two years.



Niagara Falls Reporter - Publisher Frank Parlato Jr. www.niagarafallsreporter.com

Nov 05, 2013