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USPS gets critical as price increases approved

Critical Mail

The US Postal Regulatory Commission has approved USPS price increases that will take effect onApril 17 while the US postal operator launched a new mail product for time-sensitive shipments and

awarded a $45 million IT contract to XO Communications.

According to the Regulatory Commission, the USPS price changes satisfy the requirements of thelaw.

As part of the price adjustments relevant for retail customers, First-Class Mail letters remainunchanged at 44 cents while additional ounces increase to 20 cents. Postcards will cost 29 cents.Letters to Canada or Mexico will increase to 80 cents while mail to other internationaldestinations will remain unchanged at 98 cents.

Prices will also change for other mailing services, including Standard Mail, Periodicals,Package Services and Extra Services.

USPS said the 1.7% average increase is at or below the rate of inflation as measured by theConsumer Price Index although actual percentage price increases for various products and servicesvary.

Postmaster General Patrick R. Donahoe, said: “Postal Service products and services offer a greatvalue to the American public. For a very affordable price, you can send letters, bill payments,packages, and other mail across town or across the nation.”

Meanwhile, USPS has launched a new product for important, time-sensitive shipments requiringtracking and secure delivery.

Critical Mail offers commercial mailers tracking services and simple, low flat-rate pricing aswell as eye-catching envelope designs. It is tailored for customers requiring cost-effectivemailing solutions for important documents in many types of businesses, including those in theentertainment, financial services, membership services, and tourism industries. Event tickets,identification documents, stored-value cards, education transcripts and urgent direct mail messagescan also be shipped with Critical Mail.

Gary Reblin, vice president, Domestic Products, commented: “Critical Mail is an excellent choicefor commercial mailers looking for a trackable, cost-effective solution for secure delivery ofimportant documents. The envelopes are designed to create a high level of visibility with therecipient that complements the importance of the contents.”

Available to customers who qualify for Commercial Plus pricing or who have signed a customercommitment agreement, Critical Mail requires use of an authorised postage payment system. Itfeatures 1- to 3-day delivery depending on destination, with Track & Confirm service includedat no extra cost. Extra services such as signature confirmation and insurance are available.

Critical Mail requires use of USPS-supplied envelopes at a mailing cost of $3.50 for letters and$4.25 for larger, flat-size pieces.

Separately, USPS has awarded a six-year contract with expected potential revenue of $45 millionto XO Communications to provide managed network services to 1,400 of its facilities under theTelecom Integrated Postal Network (TIPN) contract.

XO MPLS IP-VPN provides a secure, intelligent and managed network solution for federal agenciesto connect operations, converge voice, video and data communications, and prioritise Internet,intranet, extranet, voice, video and mission-critical applications – all over a single, highperformance application-aware IP network.

A subsidiary of XO Holdings, XO Communications is a leading US provider of advanced broadbandcommunications services and solutions for businesses, enterprises, government, carriers and serviceproviders.

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