NAA Update Status of Valassis NSA Postal Rates Elimination of Saturday Delivery.
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Transcript of NAA Update Status of Valassis NSA Postal Rates Elimination of Saturday Delivery.
Status of Valassis NSA
NSA Filed with PRC on April 30 Opposition Leads to Extended Review PRC Approves NSA in August (4-1 vote)
The Lone Dissenter
“Too much evidence was presented…by many opponents of this NSA for me to conclude that it would not cause unreasonable harm to the marketplace.”
- Commissioner Tony Hammond
NAA Challenges Decision
NAA Lawsuit Filed on Day of PRC Decision Supported by NNA / Valpak/ Newspaper
Guild Written Briefs in Spring/Oral Argument in May Decision Late Summer Congressional Opposition to NSA Continues
Status of Spree Implementation
Phoenix / Atlanta Test Markets Rob Mason, Valassis CEO (Feb 21):
“It’s a Challenge to Pull Together Package.”
Package Launch Moved to 2nd Q
Postal Rates
USPS Listens to NAA / Creates “High Density Plus”No Rate Increase for HDP in 2013 Opens Door for Narrowing Rate GapDialogue on USPS/Newspaper Partnership
USPS Financial Challenges
$15.9B loss in FY 2012 $11.1B Default to U.S. Treasury $15B Borrowing Authority Exhausted Low Cash Flow
Changes to Mail Delivery
Six Days of Package Delivery Five Days of Mail Delivery Mail Delivered to Post Office Boxes Savings = $2B Annually
Impact on Newspapers
Community Newspapers Rely on USPS Opportunity for Daily Newspapers
- Delivery of Magazines/Catalogues - Advertiser Dissatisfaction with
Service Dialogue on Opening Up the Mailbox Negative - USPS Targets Ad Inserts in
Select Markets
Congressional Action to Preserve Saturday
USPS Receives $78 Million in Fed. Funding Legislative Rider Requiring 6-Day Delivery USPS – “We Won’t Take the Money”
- Trading $78 Million for $2 Billion- Achieve 6-Day with Package Delivery
Possible OutcomesScenario # 1:
- USPS Ignores Directive from Congress - Eliminates Saturday Delivery on August 5
- Letter Carriers File Lawsuit on Same DayScenario # 2:
- Congress Adopts Postal Legislation - Two-Year Delay Until GAO Studies