Gloomy e-mail for US post

The inexorable rise of e-mail is putting the strain on the Amercian postal
service USPS, which is considering reducing its delivery service from six to
five days a week. In a statement before the House of Representatives earlier
this month, William Henderson, the postmaster general, blamed the “explosive
growth in commmunications technology” for USPS’ difficulties. He said: “The
current financial challenge arises against a backdrop of explosive growth in
communications technology and revolutionary restructuring of the
marketplace.”
As consumers and businesses become increasingly comfortable with the
internet, there seem to be fewer and fewer reasons for sticking a stamp on an
envelope.
Approximately 75pc of workers use e-mail, according to a report by the
internet messaging company United Messaging. Meanwhile, a recent study conducted by the mail management solutions provider Pitney Bowes shows that internet access in US households has jumped from 34pc in 1999 to 53pc in 2001, which is putting the strain on the traditional postal system. But the biggest threat to USPS comes not so much from e-mail but from the rise of online bill payment. A spokesman for USPS said: “About $17 billion of our business is at stake as people get used to paying bills online and using electronic transfer and direct deposit payment methods.” It seems unlikely that USPS will follow the dinosaurs and the dodo into extinction, although e-mail and online bill payment will make sure that its life is more of a struggle. People’s fears about security is a boon for the postal system. The Pitney Bowes study showed that more than 90pc of US households prefer traditional mail when receiving financial documents, while 76pc consider traditional mail more secure than e-mail. It also found that people find reading traditional mail less time consuming than e-mail, with 62pc saying that tearing open an envelope is faster than clicking open an inbox. Tim
Bates, vice-president of marketing at Pitney Bowes, said: “Message volumes keep
climbing. When compared with e-mail, regular mail is winning the vote of
American households. Mail is universal – it does not require special
training or hardware and it is secure and personal.” A USPS investigation into possible cost-cutting measures, including a five-day service, should be announced in the summer.
DAILY TELEGRAPH, 19th April 2001