Norway Post’s comment on the proposal for full competition in the postal market from 1 January 2007

The Norwegian Ministry of Transport and Communications has proposed a more
rapid liberalisation of the Norwegian postal market than EU’s liberalisation
time schedule. The proposal will mean full liberalisation of the postal
market in Norway from 1 January 2007.
“We welcome free competition, but consider it important for Norway Post to
be allowed to compete on the same terms as the other players with whom we
will be competing. We should not be given a handicap,” says Norway Post
chief executive Kaare Frydenberg.
“We have implemented extensive efficiency and restructuring measures in
recent years, in preparation for the competition we knew would come. Thus we
will face the new situation with competitive products and services,”
Frydenberg says.
Even now 75 per cent of Norway Post’s revenues come from a fully competitive
market. The remaining 25 per cent of the company’s revenues, approximately
NOK 4 billion, are currently protected by Norway Post’s monopoly, which,
according to the proposal of the Ministry of Transport and Communications
will be opened up for competition from 1 January 2007.
Strong competitors
The major international postal companies have already entered the Norwegian
market for communications and logistics services, and more national and
international players will follow suit in a fully liberated market. DHL (the
German postal operator), TNT (the Dutch postal operator), Linjegods (owned
by German Schenker BTL/Deutsche Bahn) og TollpostGlobe (50 % owned by Sweden
Post) are examples of companies present in Norway. In addition, Norwegian
newspapers which represent an important competitor in the market for
distibution of newspapers and unaddressed advertising, are expected to
expand their services to also include traditional postal services. The
establishment of the company Mediapost shows that the large media groups
have ambitions in this field and may become a major competitor to Norway
Post.
Norway ahead of the EU
From 1 July 2003, Norway Post’s licensed area for closed, addressed letters
was reduced from 350 to 100 grams in keeping with the EU’s time schedule for
liberalisation of the postal market. EU’s plan is to reduce the licensed
area for letters to under 50 grams from 2006, with possible full
liberalisation from 2009. The proposal by the Norwegian Ministry of
Transport and Communication means that the Norwegian postal market will be
fully liberated earlier than the EU.