I think you missed step zero: 0. Rent-seeking private company/ies realize that prisoners could be a literal captive audience, and successfully lobbies governme

I think you missed step zero: 0. Rent-seeking private company/ies realize that prisoners could be a literal captive audience, and successfully lobbies governments (state and federal) to require prisoners to use only a single, prison-approved phone operator. Also, step 2 is now redundant, and replace step three with "Profit!!!"