Ceska posta rivals to have easier access to market

The rivals of postal services operator Ceska posta should have easier access to the market in line with an amendment to the law on postal services passed by the Chamber of Deputies today.

The amendment aligns Czech legislation with EU directives. To get a licence for the provision of postal services, one will no longer have to prove expert skills.

The amendment will now have to be seen by the Senate.

On the other hand, according to the amendment, Ceska posta should have a clearer monopoly on the delivery of direct-mail, a very lucrative segment of the market.

At present, the service is provided also by other entities.

Deputy for the opposition Civic Democratic Party (ODS) and shadow Transport Minister Martin Riman said this segment of the market was liberalised and the amendment only increased market regulation.

“Ceska posta had a profit of hundreds of millions of crowns last year and it is absurd to increase its monopoly at the expense of the liberalised market,” said Riman.

IT minister Vladimir Mlynar denied that the Czech postal market was liberalised and added that the only liberalised segment was delivery of items heavier than 100 grammes.

“Ceska posta’s revenues from the delivery of items weighing under 100 grammes stood at Kc4.8bn last year, of which Kc800m was from direct-mail,” said Mlynar.

The amendment also shifts the role of regulator of the market from the IT Ministry to the Czech Telecoms Office (CTU).

Competition in the Czech postal market first appeared in the early 1990s. Ceska posta’s rivals are multinationals DHL, TNT, and UPS, as well as local companies like Messenger and Sprinter, and some individuals.

Overall, Ceska posta has about ten rivals in the Czech market.