STAMFORD, Conn., December 20, 2007 - As the mailing industry marks the first anniversary of landmark postal reform legislation, Pitney Bowes Inc. (NYSE:PBI) offered an upbeat assessment of the work that has been done to implement the law’s provisions, and of the implications the new law has for anyone who sends or receives mail.
President Bush signed the Postal Accountability and Enhancement Act on December 20, 2006, launching a new era for the United States Postal Service. Under the new law, increases in the price of postage for most mail cannot exceed the rate of inflation for at least the next nine years, and the Postal Service has unprecedented flexibility to manage the rates it charges beneath this “rate cap.” The law also envisions a major redesign of the postal network, calls for the creation of new service standards, and encourages the Postal Service to adopt new technologies to speed operations and lower costs.
“The postal reform bill was a major rethinking of virtually every aspect of postal operations,” said Pitney Bowes Executive Chairman Michael Critelli who, as chairman of the Mailing Industry CEO Council, was involved in helping to shape the final legislation. “We see tremendous long-term benefits both for the Postal Service and the mailing industry.”
Critelli praised the new Postal Regulatory Commission for swiftly establishing its mission and strategy, for engaging the industry in its deliberations, and for delivering, eight months ahead of schedule, new regulations that will determine how the Postal Service will set its rates in the future, beginning in 2008. Critelli also complimented the Postal Service for moving quickly to propose the new service standards called for under the law, also after extensive industry consultations.
“This kind of engagement with the industry is crucial to the long-term success of postal reform,” said Critelli. “The mailing industry employs some nine million Americans and accounts for $900 billion in economic activity. We all have a huge stake in making sure we capture the benefits of postal reform without needlessly disrupting this powerful economic engine.”
The next year should see equally important developments, Critelli noted. The Postal Service is expected to issue its first rates using the new rules, and the Postal Service and the Postal Regulatory Commission face crucial reporting deadlines to Congress on several aspects of postal operations.
“We are very encouraged by the swift actions of the leadership at both the Postal Service and the Postal Regulatory Commission,” Critelli said. “They are focused on fulfilling the many obligations placed on them by postal reform, and we look forward to continued dialogue and action to make the mailstream even more valuable and effective than ever before.”
About Pitney Bowes
Pitney Bowes is a mailstream technology company that helps organizations manage the flow of information, mail, documents and packages. Our 35,000 employees deliver technology, service and innovation to more than two million customers worldwide. The company was founded in 1920 and annual revenues now total $6 billion. More information is available at www.pb.com.