CAT'S postal deregulation draft master plan complete

Agency readies itself for liberalisation of market from 2005 The Post Department of the Communications Authority of Thailand (CAT) has finished drafting its master plan aimed at protecting its business from overseas entrants when the market starts undergoing deregulation in 2005.

Like the telecoms market, postal services must be liberalised under the country’s commitments to the World Trade Organisation, which mandates that deregulation of the industry must be completed by 2012, said Somchai Reopanichkul, CAT executive vice president.

The postal unit has already prepared ahead for the big changes by engaging C&C International Venture to draw up the master plan.

Despite its monopoly on basic services and postage, the unit has reported losses for several years and projects another one this year of Bt1.8 billion, bigger than last year’s Bt1.4 billion.

The master plan will see the CAT setting up a regulatory body to oversee the postal unit’s operations after it becomes Thailand Post Co in October, as well as to supervise privately owned companies.

The public utility commission will establish rules and regulations for awarding licences, such as service quality standards and licence fees, grant licences to postal service providers and issue postage stamps.

The master plan classifies postal services as basic and commercial. Basic service covers letters and postcards, while commercial services are Express Mail Service (EMS) and parcel post delivery.

Basic service has a short-term plan for 2002-2004 and a long-term plan for 2005 and beyond. Thailand Post will continue to hold a monopoly on mail delivery until 2012, but private firms will be allowed to start offering limited services after 2004.

After 2004 private firms can set up branches in some areas to

o currently provides payment services, including money and postal orders, cash on delivery and Western Union transfers.

The unit has already started to think commercially. It recently presented to the Cabinet its proposal to mark up stamps from the current Bt2 to Bt3 this year, and Bt4 in 2005 to help reduce its losses.

The government also plans to allocate to the postal unit Bt6.5 billion in funds from this year to 2007 to help clean up its mountain of debt.

The CAT will soon propose its master plan to the Cabinet for

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