PublishedMay 16, 2001

CCIA Denounces USPS Competition Against Private Sector

Washington, DC- Computer & Communications Industry Association President and CEO Ed Black today released the following statement regarding the House Government Reform Committee’s hearing on “The U.S. Postal Service’s Uncertain Financial Outlook”:

“We are pleased that Chairman Burton and the Committee are continuing their examination of the financial status of the Postal Service, and are particularly heartened that the Committee will today hear from some of the parties directly impacted by the Postal Service’s troubles. As a representative of the high-tech industry, we find it quite strange that we find ourselves included in that group — the idea that the Postal Service would try to force its way into our industry was inconceivable even a few years ago.

“However, as the USPS struggles to overcome its vast waste and inefficiencies, it has become all too clear to us that our industry is in the crosshairs of this powerful government agency. Rather than focusing on the problems it faces in delivering the mail — the very basis for its existence — the Postal Service has turned its attention to e-commerce and perhaps even telecommunications as the answer to its revenue shortfalls. Technology and advanced communications can certainly assist Postal Service operations and improve mail delivery services, but the USPS’ plans include leveraging these tools into competitive offerings in private sector markets.

“Needless to say, we do not welcome the government as a competitive entrant in our industry. Many of our companies compete against each other, and are happy to do so in the free market. However, under no circumstances can we countenance the Federal government as an active participant in the vibrant, competitive market for online and telecommunications services. This is not the traditional role of the U.S. Government in our economic system, and no compelling reason has been given to justify such a fundamental change in the relationship we as citizens have with our government.”

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