AirGATE to deliver RFID-enabled phones to U.S. prisons

Published 28 June 2006

There are 120,000 phones in more than 3,100 correctional facilities around the U.S., and inmates complete 750,000 collect calls daily on these phones; the prison authorities want to make sure that they know who makes what phone call, so prisoners will be equipped with RFID-equipped wristbands, and the phones will be equipped with RFID scanners

Allen, Texas-based AirGATE Technologies, a wholly owned subsidiary of Dallas, Texas-based X-Change Corporation (OTCBB: XCHC), has received an order for delivery of prototype modules and the initial 2,500 scanners for intended installation in a RFID-enabled prison-based telephone solution being developed for use in correctional facilities. During the next four years, additional orders could exceed 36,000 scanners.

AirGATE has issued a series of purchase orders for the first 2,500 scanners to Toronto, Canada-based Sirit (TSX: SI), a provider of RFID technology. The purchase orders also cover OEM development and delivery of prototypes to AirGATE. Sirit has entered into a collaboration agreement with AirGATE to provide the INfinity Micro module for use in law enforcement and homeland security applications. AirGATE has been using Sirit’s INfinity 166 module in its RFID-enabled telephone solution being developed for its technology partner to install in phones in correctional facilities nationwide.

The AirGATE system consists of scanners and RFID-enabled wristbands which identifies who is making a prison-based collect phone call. AirGATE’s marketing partner manages more than 120,000 phones in more than 3,100 correctional facilities around the United States. Inmates complete 750,000 collect calls a day on these phones.