Malta: Competition in postal services sector uncertain
As the European Parliament prepares to vote on a draft directive for the full market opening of postal services this month, the Malta Communications Authority (MCA) told MaltaMedia that “It is still early to tell if anyone would be interested in setting up shop following liberalization” in Malta.
Recently that Transport Committee said that the deadline for remaining postal service monopolies in European Union (EU) member states, such as Maltapost in Malta, should expire by 31st December 2010, two years later than the 1st January 2009 deadline proposed by the European Commission.
The two-year postponement was a compromise to get the proposal through.
Some Members of the European Parliament had argued that in parts of the EU, more time is needed to create a stable regulatory framework for ensuring that post continues to be delivered EU-wide at an affordable cost, and to enable postal operators to adapt to new market conditions.
Full market opening should mean that national operators will no longer have a monopoly on mail below the maximum weight of 50 grams, known as the reserved area.
In this light, a spokesperson for the MCA told MaltaMedia that Malta is not “among the ‘laggards’, having rationalised its postal operation some time back.” While noting that “it is debatable whether an additional two year ‘closed-shop’ will bring about added efficiency” to post services operations, the spokesperson added that in the other sector that it regulates, it was the actual market opening that served to spur the relative operators to adapt to open market conditions.
In fact, a new operator recently entered the market providing full territorial coverage within the universal service area, specifically seeing to the delivery of summons in line with the Local Tribunals Regulations. This service already falls outside the area currently reserved for Maltapost.
