German Regulator OKs 2005 stamp prices

The German telecommunications and postal services regulator RegTP Tuesday said it approved a 0.7% overall cut in 2005 stamp prices proposed by German mail delivery company Deutsche Post World Net AG. The new prices for letter delivery will take effect Jan. 1, 2005, and will be valid until Dec. 31, 2005, RegTP said. Since parts of its business are still without competition, Deutsche Post can’t set its own pricing for letters without regulatory approval. A spokesman for Deutsche Post later said the lower price will lose it EUR50 million in sales next year. Prices for standard letters and postcards will remain unchanged at EUR0.55 and EUR0.45, respectively, Deutsche Post said. Stamp prices for the compact letter, however, will be lowered to EUR0.95 from the current EUR1.00.

Deutsche Post press release 23 Nov
Further price reductions for mail from January 1, 2005
§ Deutsche Post pricing proposal approved
§ Standardbrief at 55 cents and postcards at 45 cents to be maintained

The prices proposed by Deutsche Post for letter mail services have been approved by the regulatory authority. The new, and for some mail products reduced, prices will take effect on January 1, 2005. Overall, this yields savings for customers in the amount of 50 million euros over the prior year. Prices for standard letters (Standardbrief), at 55 cents, and postcards, at 45 cents, remain the same.
Among the changes are:
The price for compact letters (Kompaktbrief) within Germany will be reduced by 5 cents (minus 5 percent) to 95 cents (previously 1 euro).
Changes are also on tap in fees for items sent abroad. Example: Compact letters within Europe will cost 95 cents – mirroring the domestic price – as opposed to the current 1 euro. On the whole, pricing for international oversize letters (Maxibrief) will be simplified through reduction in the number of weight steps and price harmonization. Additionally, prices for oversize letters from 500 to1000 grams will be reduced. Oversize letters sent within Europe will go from 10 euros to 8 euros, for air transport to the rest of the world from 20 euros to 18 euros, for surface transport from 10 to 8 euros.
Fees will be eliminated for machine-readable business reply in direct marketing (previously 6 cents). Simultaneously, the higher business reply fee for non-machine readable items is being reduced to 25 cents (previously 26 cents). Business reply is an important element of a mailing for business customers; the return allows success to be measured.
The updated service information “Services and Prices” will be made available to customers at retail outlets in time for the price conversion. An overview of price changes for key products can be seen here.