Notice2021-25324
Market Test of Experimental Product
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 22, 2021
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is recognizing a recently filed Postal Service proposal to conduct a market test of an experimental product called Extended Mail Forwarding. This notice informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 86 Issue 222 (Monday, November 22, 2021)</title>
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[Federal Register Volume 86, Number 222 (Monday, November 22, 2021)]
[Notices]
[Pages 66348-66349]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25324]
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POSTAL REGULATORY COMMISSION
[Docket No. MT2022-1; Order No. 6038]
Market Test of Experimental Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is recognizing a recently filed Postal Service
proposal to conduct a market test of an experimental product called
Extended Mail Forwarding. This notice informs the public of the filing,
invites public comment, and takes other administrative steps.
DATES: Comments are due: December 7, 2021.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="http://www.prc.gov">http://www.prc.gov</a>. 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: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Compliance With Legal Requirements
IV. Data Collection
V. Notice of Commission Action
VI. Ordering Paragraphs
I. Introduction
In accordance with 39 U.S.C. 3641 and 39 CFR part 3045, the Postal
Service filed notice of its intent to conduct a market test of an
experimental product called USPS Connect Local Mail.\1\ The Postal
Service states that currently, when business mailers who send documents
locally with regular frequency wish to send documents for same-day or
next-day arrival, they are directed to use a variety of services that
were designed for end-to-end mailing over long distances, and are
priced accordingly. Notice at 1. The Postal Service asserts that USPS
Connect Local Mail is designed as an economical alternative for these
mailers. Id. at 1-2. The Postal Service ``intends for the market test
to run for two full years beginning on January 9, 2022,'' although it
explains that it ``may decide to seek permanent product status earlier,
or alternatively [it] may seek authority for an additional year of
testing if more time is needed to determine the feasibility or
desirability of the product.'' Id. at 3.
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\1\ United States Postal Service Notice of Market Test of
Experimental Product--USPS Connect Local Mail, November 10, 2021
(Notice).
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II. Background
On November 10, 2021, the Postal Service filed the Notice proposing
the USPS Connect Local Mail market test. The Postal Service asserts
that ``local document delivery could benefit from increased
competition, and that economical local document delivery is a market
that is currently underserved by USPS.'' Notice at 1. As such,
according to the Postal Service, USPS Connect Local Mail (as well as
its planned package-focused counterpart, USPS Connect Local) \2\ is
designed to offer improved access to the Postal Service network for
local mailers and will leverage the Postal Service's current ``last-
mile infrastructure to create
[[Page 66349]]
economical new solutions for customers.'' Notice at 2.
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\2\ In a separate proceeding to adjust Competitive product
rates, Docket No. CP2022-22, the Postal Service has proposed to add
``USPS Connect Local'' as a new price category under the existing
Parcel Select product. Docket No. CP2022-22, USPS Notice of Changes
in Rates of General Applicability for Competitive Products, November
10, 2021, at 2-3. Any comments on the Postal Service's plans to add
this new Competitive product price category should be filed in
Docket No. CP2022-22.
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The Postal Service states that USPS Connect Local Mail will be
available at Destination Delivery Units or by carrier pick-up in line-
of travel. Id. at 2. It also states that it will offer same-day or
next-day delivery, six days per week, with customers receiving same-day
or next-day delivery based on whether they've entered their mail within
the Critical Entry Time. Id. The Postal Service adds that it will offer
tracking services for USPS Connect Local Mail. Id. According to the
Postal Service, ``[d]ocuments mailed using this service must be paper-
based and may contain personal information.'' Id. at 3.
The Postal Service plans to offer USPS Connect Local Mail at $2.95
for a Letter or Flat size mailpiece with a weight up to 13 ounces. Id.
at 2. It will allow customers to pay for this service using Click-N-
Ship or through a Postal Service application programming interface. Id.
at 3. According to the Postal Service, USPS Connect Local Mail will
cover its attributable costs, which it estimates to be $2.03 per piece
based on the volume variable cost of Priority Mail flats, modified to
reflect differences in mail processing, transportation, and packaging
costs. Id. at 2-3.
The Postal Service states that USPS Connect Local Mail will be
tested nationwide with a phased rollout. Id. at 3.
III. Compliance With Legal Requirements
The Postal Service asserts that the proposed market test meets the
requirements of 39 U.S.C. 3641 and 39 CFR part 3045. First, the Postal
Service explains that, ``from the viewpoint of mail users, USPS Connect
Local Mail is significantly different from all products offered by the
Postal Service within the last two years'' as required by 39 U.S.C.
3641(b)(1). Notice at 3. The Postal Service states that it ``does not
currently offer an expedited First-Class Mail product for local mailers
to quickly and cost effectively mail local personalized
correspondence,'' nor does First-Class Mail include tracking or free
packaging. Id. at 3-4. According to the Postal Service, although
Priority Mail Express and Priority Mail may be used to deliver local
mail, they are ``intended for nationwide, end-to-end shipping and their
pricing reflects these higher costs.'' Id. at 4. Thus, it asserts, USPS
Connect Local Mail is significantly different from the other services
it offers. Id.
Second, the Postal Service asserts that USPS Connect Local Mail
``will not create an unfair or otherwise inappropriate competitive
advantage for the Postal Service or any mailer,'' as set out in 39
U.S.C. 3641(b)(2), because it was ``designed to increase small business
access to the USPS network and . . . leverages the Postal Service's
existing delivery network to address a need for locally-focused small
businesses,'' thus ``offer[ing] a low-priced alternative in a market
that is arguably underserved by USPS.'' Id.
Third, the Postal Service states that USPS Connect Local Mail is
properly categorized as market dominant as required by 39 U.S.C.
3641(b)(3) given that it ``is not structuring USPS Connect Local Mail
to meet any of the exceptions or suspensions to the Private Express
Statutes.'' Id.
IV. Data Collection
To better understand the results of the market test, the Postal
Service asserts that it will collect the following data on a quarterly
basis by district for USPS Connect Local Mail: Volume of mailpieces,
number of customers, and revenue.\3\ The Postal Service also states
that it will collect data on the attributable costs of USPS Connect
Local Mail, including administrative costs of the test. Notice at 5.
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\3\ Id. at 5. The Postal Service states that, although
``[v]olumes and revenues for USPS Connect Local Mail are difficult
to predict . . . it is possible that the Postal Service may
eventually need to seek a waiver of the annual statutory limitation
of $11,860,140.'' Id. It explains that, should the revenue approach
this amount, the Postal Service ``will furnish the appropriate
notice to the Commission and submit an application for exemption
from the cap under 39 U.S.C. 3641(e)(2) in a timely manner.'' Id.
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V. Notice of Commission Action
The Commission establishes Docket No. MT2022-1 to consider matters
raised by the Notice. The Commission invites comments on whether the
Postal Service's filing is consistent with the requirements of 39
U.S.C. 3641 and 39 CFR part 3045. Comments are due no later than
December 7, 2021. The filing can be accessed via the Commission's
website (<a href="http://www.prc.gov">http://www.prc.gov</a>).
The Commission appoints Mallory L. Smith to serve as an officer of
the Commission to represent the interests of the general public in
these proceedings (Public Representative).
VI. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MT2022-1 to consider the
matters raised by the Notice.
2. Pursuant to 39 U.S.C. 505, Mallory L. Smith is appointed to
serve as an officer of the Commission to represent the interests of the
general public in these proceedings (Public Representative).
3. Comments are due no later than December 7, 2021.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2021-25324 Filed 11-19-21; 8:45 am]
BILLING CODE 7710-FW-P
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</html>Indexed from Federal Register on November 22, 2021.
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