Implications of Electronic Mail and Message Systems for the U.S. Postal Service

Ch. 5-Revenue/Cost Model and Results * 57

local delivery, these messages will be delivered
as first class mail at the same rates as for con
ventional mail. Thus, the alternative revenue/
cost assumption would apply, and the contri
bution to USPS fixed costs would be 12C/piece
rather than 4. To the extent that USPS pro
vides electronic services (e.g., printing, en

veloping, and/or transmission) as well as
physical processing and delivery, USPS would
establish rates to cover the costs of electronic
services plus some markup over costs. This
would provide an additional contribution to
fixed costs. OTA has not estimated or ana
lyzed this contribution.

United States. Congress. Office of Technology Assessment. Implications of Electronic Mail and Message Systems for the U.S. Postal Service. UNT Digital Library. http://digital.library.unt.edu/ark:/67531/metadc39480/. Accessed September 20, 2014.