[Federal Register Volume 76, Number 230 (Wednesday, November 30, 2011)]
[Notices]
[Page 74078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30829]
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POSTAL REGULATORY COMMISSION
[Docket No. MT2011-3; Order No. 998]
Standard Mail Market Test
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
application for an exemption from the annual revenue limitation that
applies to market tests of experimental market dominant products. It
seeks the exemption for Every Door Direct Mail Retail, a Standard Flats
experiment now underway. This document describes the Postal Service's
reasons for seeking the exemption, addresses procedural aspects of the
filing, and invites public comment.
DATES: Comment deadline: December 5, 2011; reply comment deadline:
December 12, 2011.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
(202) 789-6820 or [email protected].
SUPPLEMENTARY INFORMATION: On November 18, 2011, the Postal Service
filed a request, pursuant to 39 U.S.C. 3641, for an exemption from the
$10,000,000 revenue limitation in any year during the test of an
experimental market dominant product.\1\ Pursuant to 39 U.S.C. 3641,
the Commission previously approved the market test.\2\
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\1\ Request of the United States Postal Service for Exemption
from Revenue Limitation on Market Test of Experimental Product--
Every Door Direct Mail Retail, November 18, 2011 (Request). The
product was originally named Marketing Mail Made Easy, but was
renamed Every Door Direct Mail (EDDM)--Retail. Request at 1.
\2\ Order Approving Market Test of Experimental Product--
Marketing Mail Made Easy (Order No. 687), March 1, 2011.
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EDDM-R is a Standard Mail Flats experimental product. It must meet
the preparation requirements of the Simplified Address option for
Standard Mail Saturation Mail, be flat-shaped, and weigh less than 3.3
ounces. Neither a permit nor mailing fee is required but it must be
entered and paid for at a local Destination Delivery Unit (DDU) and not
exceed 5,000 pieces per delivery unit. Request at 1.
The Postal Service explains that EDDM-R service commenced on March
31, 2011, and since then revenue has grown rapidly to about $8.5
million. If growth continues, revenue for FY 2012 will reach the $10
million limitation within 2 or 3 months. Id. at 2.
Pursuant to 39 U.S. C. 3641(e), revenues from a test product may
not exceed $10 million in any year unless, upon written application,
the Commission exempts the test from that limit, up to $50 million in
any year subject to an adjustment for inflation under 39 U.S.C.
3641(g). The Commission shall approve the application for exemption if
it determines under 39 U.S.C. 3641(e)(2) that the product is likely to
benefit the public and meet an expected demand; likely to contribute to
the financial stability of the Postal Service; and not likely to result
in unfair or otherwise inappropriate competition.
The Postal Service asserts EDDM-R is likely to benefit the public
and meet an expected demand. In support, it points to widespread
interest in the product, revenues of $3.4 million this fiscal year, and
87 percent of revenues are from new customers. EDDM-R permits small and
medium-sized businesses to communicate at low cost in their marketing
areas by mailing without permits or fees and simplifying mail entry.
Id. at 3. The Postal Service states EDDM-R revenue has been about $8.5
million and contribution to date has been approximately $4.9 million
which contributes to financial stability. Id. at 4. The Postal Service
also states EDDM-R is unlikely to result in unfair or inappropriate
competition. All customers, including Mail Service Providers (MSPs) are
eligible to participate in the program. Id. EDDM-R does not eliminate
or increase the cost to small or medium-sized businesses that use or
may use MSP services. Non-mail options for advertising have remained
competitive. Rather than a substitute for other media, EDDM-R enhances
businesses' ability to use mail as a part of an integrated marketing
plan. Id. at 5.
The Commission will receive comments on the Postal Service's
Request. Interested persons may submit comments on whether the Postal
Service's Request is consistent with the policies of 39 U.S.C.
3641(e)(2) and (g). Comments are due not later than December 5, 2011.
Reply comments are due not later than December 12, 2011. The filing can
be accessed via the Commission's Web Site (http://www.prc.gov).
The Commission has previously appointed Larry Fenster to serve as
Public Representative in this docket.
It is ordered:
1. The Commission will receive comments on the Request in this
Docket No. MT2011-3 for consideration of the matters raised by the
Request.
2. Pursuant to 39 U.S.C. 505, Larry Fenster remains 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 December 5,
2011.
4. Reply comments are due no later than December 12, 2011.
5. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission,
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-30829 Filed 11-29-11; 8:45 am]
BILLING CODE 7710-FW-P