IT Ministry proposes further limits on Czech postal service’s monopoly

Ceska posta, the Czech postal service, could lose its exclusive position delivering post weighing more than 50 grams as of January 2006, according a proposal sent by the IT Ministry to the government.

CP had a monopoly on post weighing less than 350 grams through the end of April 2004. “With the country’s entry to the European Union in May, this limit was moved to 100 grams,” says IT Ministry spokeswoman Klara Volna, adding that post lighter than 100 grams but costing over CZK 19 is exempt from the ban.

CP sent 591 mln letters and postcards last year, 22 mln fewer than in 2002. However, sales from this activity rose 9 % to CZK 4.3 bn. CP delivered 104 mln registered letters, up 2 % from 2002. The Czech IT Ministry will propose transforming the state-owned company into a joint-stock company by mid-year. The government has no plans to privatize CP within the next two years.

In the amendment to the Postal Law sent to the government, the ministry also proposes that the Czech Telecommunications Office (CTU) serve as the country’s postal watchdog. The IT Ministry, which is responsible for CP, cannot fill this role, as EU law requires an independent body, according to Volna.

CP’s competitors entered the market in the mid-1990s. Roughly ten firms, mainly large international giants such as UPS or DHL, now compete with CP.