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4-digit add-on bar code -- or the entire 9-digit bar code -- on the letter at the destination post office).

In contrast, OTA has concluded that the 60 percent USPS estimate may be low for the following reasons. First, full coverage computerized local address directories appear to be technically and economically feasible. USPS already has partial local directories several metropolitan areas. Second, there is no evidence that two-stage encoding will pose a significant problem for multi-line OCRs. Reasserts that two-stage encoding can be accomplished with no significant degradation in performance. Third, it is reasonable to expect that production model multi-line OCRs would have improved performance

compared to the prototype RSC/OCRs.

USPS has found that single-line

OCR

performance improved 5 to 10 percent between prototype and production.

With respect to overall productivity, USPS has concluded that the single-line and multi-line OCRs are roughly equal. Average data from USPS performance reports are shown in figure 2.

In addition to REI, OTA has identified two other companies that manufacture

multi-line OCRs:

Telefunken (Germany) and ELSAG (Italy). Japanese firms may have

the capability and interest, judging from their activity in the single-line OCR market. Other than REI, no U.S. companies are known to currently have multi-line OCR capability. At one time, Control Data Corporation, IBM Corporation, and Ford-Aerospace (Philco-Ford) all had single-line OCR products, and might have been able to develop multi-line OCRs, but left the business in the mid-1970’s. Burroughs, Pitney Bowes, and ElectroCom have acquired single-line OCR capability under licenses to

foreign manufacturers (NEC, ELSAG, and Telefunken, respectively).

in

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