Redmail delivers the news in Austria

Redmail, a joint venture between the Styria Media Group AG and TNT Post in Austria, today decided to create value by focussing on the regional delivery of newspapers. The move also sees the company terminate its addressed mail business and part of its unaddressed mail business.

The recently introduced Postal Act, which limits real competition in Austria for addressed mail, has contributed to this decision.

This Postal Act introduces a mandatory license system for postal services with regard to all mail items up to 50g. Furthermore, access to Austrian mailboxes is difficult.

Around 30% of all households have mailboxes that can only be opened with a key and Österreichische Post is the only postal operator with these keys. This makes it impossible for other postal companies to deliver addressed mail to these households.

This refocus of activities is in line with TNT’s strategy to manage its European Mail Networks business (EMN) for value realisation through partnerships and sale, as announced during the company’s Analyst Meeting on 3 December 2009.

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