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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
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