3. SPECIAL SERVICES
Special services add value to the mail in four primary ways: (1) providing safe choices on how to send money with postal money orders; (2) providing alternative ways and places to receive mail through the Post Office Box service; (3) customizing First-Class Mail service, Expedited mail service, and Package Services with a variety of accountable-mail services that permit customers to confirm receipt and delivery of their mail, obtain signatures, insure mail contents, register mail for additional security, and have the Postal Service perform Collect on Delivery (COD) services; and (4) allowing customers to track letters and flats.

The Confirm service allows mailers to electronically receive information so that they can track their outgoing mailings or incoming reply mail. The service provides mailers with near real-time information about First-Class Mail, Standard Mail and Periodicals by using PLANET barcode technology so that mailers can uniquely identify their mail pieces. On August 5, 2002, the Postal Service’s Board of Governors approved the rate classification for Confirm. The rates, represented by a three-tier subscription fee structure, were implemented in September 2002.

Product Development also initiated electronic enhancements for Certified Mail and Registered Mail™ services. Market research was conducted to assess customer interest in electronically enhanced Certified Mail service. Customers overwhelmingly favored proposed electronic enhancements that allow them to access the delivery status of their Certified Mail and Registered Mail™ items on the Internet. As of June 30, 2002, customers could view the delivery status of their Certified Mail and Registered Mail™ items via the Internet.

The second round of cost-based Post Office (PO) box fee structures was implemented along with the R2001-1 rate case. The fee structure for PO boxes is now based on one of seven fee levels that best match the cost of the PO box space at a given post office. Further refinements of this fee structure will continue in future rate filings. This will make it possible for PO box fees in a number of locations to cover their costs, which will create more equitable box fees over time and improve the contribution of Post Office box service to institutional costs. Additionally, in June 2002, the Postal Service migrated to the first web-based, standalone system capable of tracking Post Office box activity. This represents the initial step towards the integration of the 13,000-plus standalone systems currently used to track Post Office box activities into the new Advanced Computing Environment (ACE) web-based system. This new web-based system will help Postal Service management drive product strategies to grow Post Office box revenue and contribution.

Mail that is correctly addressed and barcoded, prior to acceptance by the Postal Service, is a key factor to enabling an efficient and cost-effective delivery system. The Postal Service, in partnership with the mailing industry, identified and proposed several initiatives to reduce the volume and associated costs of undeliverable-as-addressed (UAA) mail. The initiatives under consideration, which will have a final rule published in 2003, include: a Move Update requirement for all classes of mail; increasing the frequency of mandatory Move Update processing; removal of current manual hardcopy notifications as a Move Update option; and increasing the frequency of address matching (ZIP+4) processing.