Czech Post Office To Lose Some Of Its Monopoly

The monopoly of state-owned Czech Post Office Ceska posta (CP) will weaken again next May, as the cabinet has decided to cut the maximum weight of consignments that CP delivers as the only company on the market, IT Ministry spokeswoman Klara Volna told CTK today. CP’s exclusivity will newly apply to consignments up to 100g, against a previous 350g. Customers will pay Kc19 for the delivery, instead of the standing Kc27, Volna said. At present, CP is the only holder of a licence for an across-the-board provision of basic postal services. The exclusivity is meant as a certain compensation for CP’s duty to provide its services on the entire Czech territory, including loss-making localities. For a few years, CP has had competitors in other segments of the market, such as the delivery of parcels and express consignments. For the first time, more companies will be allowed to apply for the licence for next year. The IT Ministry will be receiving applications until the end of September. CTK has not reached CP representatives for comment. Ceska posta, which runs 3,400 post offices, made a Kc392m profit last year, which was one third less than in 2001. Sales hover around Kc14bn.