Represents estimated mail volume not protected by the Private Express Statutes (PES). Also in response to this pressure, the Service has not initiated a compliance audit against any mailer since 1994. Authority to Suspend the Statutes Has Been Questioned

At times, the Service has yielded to pressure from competitors and mailers to allow more private letter delivery by issuing regulations to suspend the Statutes for certain types of letters. Moreover, their numbers have increased, as have the volumes and variety of mail they deliver. We estimated that the Service’s five principal competitors accounted for more than 85 percent of all U.S. domestic expedited and parcel delivery revenues, compared to about 15 percent for the Postal Service. However, restrictions on mailbox access make delivery of First-Class mail by private firms less likely than delivery of third-class mail. The rate would need to increase to only 42 cents in 2005, assuming a 25-percent loss of Priority Mail volume or third-class volume. 5.) 6.) 4.) Comparisons are difficult to make given the greater size of the U.S. Issues Relevant to Proposed Changes to the Statutes

As it now operates, the Service has assumed two distinct roles as (1) a competitor with private delivery firms and (2) a federal entity established to provide universal mail service. Postal Service and the Postal Rate Commission. In summary, it is unclear as to exactly how removing or relaxing the Statutes might affect private mail delivery.
Why GAO Did This Study

Pursuant to a congressional request, GAO examined the effects of certain statutory restrictions on private letter mail delivery.

What GAO Found

GAO found that: (1) the U.S. Postal Service (USPS) believes that private express statutes are necessary to protect its mail volume and revenue base; (2) it is difficult to enforce the statutes due to complaints from mailers and competitors; (3) USPS has not initiated any audits to determine mailer compliance since 1994; (4) USPS has issued regulations suspending the statutes to allow private firms to deliver urgent and international mail; (5) there is considerable debate as to whether USPS is the only organization capable of providing efficient and economical mail service; (6) USPS competitors account for more than 85 percent of all U.S. domestic expedited letter and parcel delivery revenues; (7) four USPS competitors could deliver USPS priority mail if given the opportunity; (8) private delivery firms are increasing their capacity to deliver USPS third-class mail by participating in national alliances that broaden their delivery networks; (9) several countries encourage private delivery firms to enter into agreements with postal administrations to increase mail delivery competition; and (10) USPS needs to determine how changes in private express statutes will affect universal mail service and postal rates.