Pitney Bowes 2006 Annual Report Download - page 5

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regulations needed to implement provisions of the reforms, an effort we will support in
whatever ways we can.
Another development also deserves mention; it is one that reflects the increasing emphasis
that national postal operators are placing on technology to improve efficiency in a changing
environment. The U.S. Postal Service and Royal Mail in the United Kingdom recently became
the latest national postal operators to adopt what is called shape-based rating or pricing in
proportion. This means that postage rates will now be based on both the weight and shape
of a piece of mail. A brokerage statement, for example, that is folded and inserted into a
smaller envelope will cost less to mail than if the same piece were sent flat in a larger
envelope. With our broad range of folding and inserting systems, this change, adopted by
two of the world’s largest postal operators, represents a significant revenue opportunity.
Michael J. Critelli
Executive Chairman
Murray D. Martin
President and
Chief Executive Officer
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