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As for multi-line OCR maintenance cost, OTA concluded that the cost of updating the multi-line OCR address directory would probably be greater than updating the single- line OCR directory. USPS has very roughly estimated this additional maintenance cost

at one work year per local directory per year (equivalent

months). projected

Since 209 local directory updates would be to have OCRs), the additional yearly directory

to three persons working for 4 needed (the number of cities maintenance cost is estimated

to

be

about

$9.32

million

(209

local

directory

updates

times

$44.6K

per

average

work

year). This amount is negligible (on the average one percent or less) total yearly multi-line savings, and therefore was excluded from further

compared analyses.

to

the

Single- to multi-line assumed a conversion cost judgment.

conversion cost. of $200,000 per

In the absence of unit, based on best

firm estimates, OTA available engineering

Multi-line ZIP+4 usage. USPS believes that use of multi-line OCRs would likely have a detrimental effect on mailer acceptance and use of ZIP+4. In other words, all other things being equal, USPS believes that ZIP+4 usage would be less for a multi-line OCR system than for a single-line OCR system.

While a few mailers have indicated that a USPS switch to multi-line OCRs would reduce the likelihood of converting to ZIP+4, the cost of conversion, level and stability of USPS ZIP+4 rate incentives, and relationship to USPS presort rate incentives appear to be much more important to mailers than the type of OCR equipment used by USPS. [n sum, the available evidence suggests that mailers base their decisions about ZIP+4 use primarily on economic and financial factors and not on technological factors.

49

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