Dutch regulator seeks end to TPG postal monopoly

Dutch telecommunications regulator OPTA said on Wednesday it saw no reason to maintain the postal monopoly of transport and logistics company TPG NV (TP.AS)(NYSE:TP – news), operator of the Netherlands’ post office.
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And in a fresh sign it wants an end to cable monopolies, OPTA lauded cable operators’ moves to open up their networks to multiple Internet service providers, but warned it could force the opening up of those networks to Internet competition.

“There are no general economic or social reasons for the remaining postal monopoly to be maintained,” OPTA said in a statement outlining its vision for 2002.

TPG said in a statement it supported the liberalisation of the Dutch postal market, but took issue with some of OPTA’s criticisms.

OPTA, whose recommendations are usually enacted by the Dutch parliament, said the liberalisation of the Dutch telecoms market had helped lower prices and boost investment in the sector.

The postal system, however, had not passed on efficiency benefits to consumers and business clients — with excess profits used instead to benefit the shareholders of former state monopoly TPG and to finance its expansion strategy, OPTA said.

“The current system has not fulfilled its aims and ambitions,” said the regulator.

“The consequence is … that consumers and business customers have derived relatively little benefit from the efficiency gains TPG has made in recent years,” it added.

TPG said, however, that 70 percent of the Dutch mail market was already open for competition, with foreign postal companies active in the country, making it one of the leaders in Europe in freeing up the market.

TPG also cited research that local stamp prices in the Netherlands, corrected for buying power, had the best price-quality ratio in Europe.

Mail services across Europe are gradually being opened up to increased competition. The European Commission is expected to reduce the weight and price thresholds at which competition is permitted, but has not set a date for full market opening.

Britain plans to open up its service to full competition by 2006, while the market has been liberalised in Sweden.

OPTA welcomed moves by cable organisations to increase choice of Internet service providers over the cable network, but said it would this year gain the ability to force competition if necessary.

United Pan-Europe Communications (UPC) (UPEC.AS) (NasdaqNM:UPCOY – news), which controls almost 40 percent of the Dutch cable market, dominates the Internet-over-cable segment with its own chello broadband service.

UPC, which no longer answers press telephone inquiries due to an ongoing financial crisis, has said in the past it will not open up its networks voluntarily to Internet competitors.