Postal service jumps on net bandwagon
At a time when the Internet is biting into postal operators' profits, Chinese postal companies are jumping on the technology bandwagon.
They hope that web services can breathe new life into the traditional postal service, providing a fresh source of revenue.
Providers of web solutions have been licking their lips at the prospect of creating a web system for the mail service.
Pitney Bowes, the world's biggest maker of postage meter machines, announced last week that it had forged a partnership with China Post to implement its first Chinese web-based postage management system, Postagebyphone.com.
The US-based company has signed contracts with more than 15 provincial postal bureau – including Shanghai, Guangdong and Sichuan – to provide and install postage meters. "Mail is a fundamental method for trade and commerce in any country and this is going to be even more true in China as sectors such as direct mail, telecoms and utilities start generating large volume of mail," said Deepak Chopra, president of Pitney Bowes' Asia Pacific region. "As the world leader in mail and document management solutions, we are ideally suited to help organizations in China manage their increased mail and document flow." Henri Ho, the company's Asia Pacific vice-president, told Business Weekly that the order placed by China Post was worth " many millions of US dollars," but declined to give a specific figure.
He estimated China's postage meter market would be worth US$400 million.
The Postagebyphone.com system does not have the faults of the traditional meter process and greatly increases the efficiency of postal work.
It offers highly secure and reliable functions as well as flexibility and convenience for remote meter resetting. The entire process is done via the telephone or Internet.
Internet postage services are meant to cut the trips that businesses and consumers make to post offices.
E-postage has been catching on quickly in the global market.
Postagebyphone.com is now operating in more than 20 countries, processing more than 1.5 million items of mail worth US$14 billion annually.
Pitney Bowes has installed more than 1,900 meter units in China, including the US Embassy and consulates.
Domestic postal services have been widely criticized in recent years for their lack of awareness of competition, low efficiency and poor management.
Feeling the sting of the Internet, postal authorities have realized that bridging regular mail services with the web is the key for operators to stay afloat.
Liu Liqing, who heads China's top postal watchdog, has vowed to broaden the use of information technology and increase the proportion of e-service income in gross postal income to more than 10 per cent by 2005.
Authorities are expected to make the practice of digital-stamping of post to create "intelligent mail" more widespread.
In December, China Post kicked off a revolutionary Desk Post Office service – PC-letter. This was a combination of traditional postal services and the Internet that enabled users to send letters via computer. The addressee, who may not have access to the Internet, would then receive the letter on paper, mailed directly by the postal office.
Special mailing software and an electronic stamp card, the new hybrid mail (HM) service is available 24 hours a day, taking advantage of advanced computer technology and allowing the postal networks to serve computer users.
Endorsing the revolutionary system, Founder – the No 2 PC vendor in China – has announced it will install the PC-letter system on all computers before they are distributed for sale. "We see great potential in the marriage of traditional postal services and the web," said Zhou Xianfeng, general manager of Founder Technologies.
The postal service now has the largest goods delivery network in the world with more than 200 distribution centres, 67,000 sales stations, 30,000-plus postal cars, 150,000 postal workers, as well as postal airliners and an information and financial network.
