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Don't get why they cant just use skype or another video service like it
Because then the prisons wouldn't make money off of it. The prisons get kickbacks from the virtual service providers. Providing Skype would require Internet and devices to access the Internet, which would cost the prison money. If I recall correctly the video provider doesn't charge the prisons, only the prisoners. Moreover, if they contract with a provider, maintenance and equipment become the providers responsibility and not the prisons, which makes it easier for the prisons.