[Federal Register Volume 76, Number 223 (Friday, November 18, 2011)]
[Notices]
[Pages 71610-71611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29808]
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POSTAL REGULATORY COMMISSION
[Docket No. MT2012-1; Order No. 959]
Market Test of First-Class Tracer
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-field Postal Service
proposal to conduct a market test of a market dominant product, First-
Class Tracer. This document describes the proposed test, addresses
procedural aspects of the filing, and invites public comment.
DATES: Comment deadline: November 28, 2011.
ADDRESSES: Submit comments electronically by accessing the ``Filing
Online'' link in the banner at the top of the Commission's Web site
(http://www.prc.gov) or by directly accessing the Commission's Filing
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically
should contact the person identified in the FOR FURTHER INFORMATION
CONTACT section as the source for case-related information for advice
on alternatives to electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at (202) 789-6820 (case-related information) or [email protected]
(electronic filing assistance).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Notice of Filing
IV. Ordering Paragraphs
I. Introduction
On November 7, 2011, the Postal Service filed a notice, pursuant to
39 U.S.C. 3641(c)(1), announcing its intent to initiate a market test
beginning on or about December 7, 2011, of an experimental market
dominant product, First-Class Tracer.\1\ The market research test will
consist of providing customers a means to track the transportation and
processing of single-piece First-Class Mail. Id. at 1.
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\1\ Notice of the United States Postal Service of Market Test of
Experimental Product First-Class Tracer, November 7, 2011 (Notice).
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II. Background
The Postal Service states that consumers have continuously looked
for ways to track single-piece First-Class Mail through the postal
system. Id. at 1-2. It proposes the instant market test of the First-
Class Tracer as a convenient and highly visible means of providing
commercial mailers and individual consumers a tool through which to
gain information on the transportation and processing of their First-
Class Mail letters. Id. The Postal Service sees the market test as a
way to leverage product design, development, and distribution of
resources with minimal competitive impact. Id. at 2.
The Postal Service explains that the proposed market test will
consist of retail distribution sales of the First-Class Tracer to
consumers in specific test locations. Id. at 1. Sales will be revenue
generating, and the Postal Service will test different prices in
different test locations. Id. Expenses incurred will be considered
research and development costs incurred in connection with new product
development. Id.
Statutory authority. The Postal Service indicates that its proposal
satisfies the criteria of section 3641, which imposes certain
conditions on experimental products. 39 U.S.C. 3641. For example, the
Postal Service asserts that the First-Class Tracer is significantly
different from all products offered by the Postal Service within the
meaning of section 3641(b)(1). Id. at 4. In addition, it contends that
the product will only be available at retail, apply solely to a market
dominant product, and will not create an unfair or inappropriate
competitive advantage for the Postal Service or any mailer. Id. at 5;
see also section 3641(b)(2). The Postal Service states that the First-
Class Tracer
[[Page 71611]]
is correctly classified as a market dominant product. Id.; see also
section 3641(b)(3). The Postal Service does not anticipate that the
annual revenues from the market test will exceed $10,000,000, as
adjusted for inflation in any fiscal year, pursuant to 39 U.S.C.
3641(e), (g). Id. at 4, 6.
Product description and nature of market test. Pursuant to section
3641(c)(1)(B), the Postal Service provides a description of the nature
and scope of the market test. The product will be offered at 50 retail
locations around the Washington, DC metropolitan area in two packaged
quantities, a five-label pack and ten-label pack. Id. at 3. Test prices
will vary according to the test location. Id. Depending on early test
results, the Postal Service may offer alternative packaging quantities
and change sale channels. Id. The Postal Service states that the
duration of the market test will not exceed 24 months unless the Postal
Service requests an extension from the Commission. Id. at 6.
A First-Class Tracer, which consists of a barcoded label, tracing
number, and QR Code, will allow customers to obtain information on the
processing and transportation of their First-Class letters. Id. at 2-3.
First-Class Tracer service does not receive a delivery scan. Id. at 2.
The Postal Service provides an illustrative figure of the First-Class
Tracer in its filing notice. Id. at 3.
III. Notice of Filing
The Commission establishes Docket No. MT2012-1 for consideration of
matters raised by the Notice. Interested persons may submit comments on
whether the Postal Service's filing in the captioned docket is
consistent with the policies of 39 U.S.C. 3641. Comments are due no
later than November 28, 2011. The filing can be accessed via the
Commission's Web site (http://www.prc.gov).
The Commission appoints Kenneth R. Richardson to serve as Public
Representative in this docket.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MT2012-1 for consideration
of the matters raised by the Notice.
2. Pursuant to 39 U.S.C. 505, Kenneth R. Richardson is appointed to
serve as officer of the Commission (Public Representative) to represent
the interests of the general public in this proceeding.
3. Comments by interested persons are due no later than November
28, 2011.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-29808 Filed 11-17-11; 8:45 am]
BILLING CODE 7710-FW-P