Ceska posta only bidder for Czech postal service licence

Ceska posta, the Czech Post Office, was the only bidder for a licence to provide basic postal services in the next three years in a tender closed today, the regulatory Czech Telecoms Office CTU said.

“The licence can be granted only to those who have adequate technological, organisational, economic and personnel qualities for such a task, including a branch network,” said Eduard Prandstetter from the CTU’s section for postal service regulation.

Up to now, Ceska posta has always been the only applicant for the licence and has always obtained it.

Prandstetter said the branch network requirement was one of the key obstacles to bigger competition among bidders for the licence.

The postal licence ensures the holder a monopoly to deliver letters and parcels up to a certain weight and price, which now reach 100 grams and Kc19.

In exchange for the licence, the company must secure the availability of basic postal services throughout the Czech Republic, but also the payment of old-age pensions or the registration and collection of TV and radio fees.

Prandstetter said the extent of the monopoly was gradually decreasing and that the monopoly could be cancelled around 2009.

Ceska posta’s rivals, including DHL, TNT, UPS, Mediaservis and Messenger, focus rather on delivering parcels or express mail in bigger towns, and on distributing commercial leaflets.