[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