No cause for gloom and doom in the postal market

Kurth: “Sober assessment reveals opportunities for competition”

The Federal Network Agency has today publicly presented its Activity Report 2006/2007 for the telecommunications and postal markets. Looking at the development of the German postal market the president diagnosed a cautiously positive trend for the last two years. “In light of the heated debates of the past weeks I would initially recommend a level-headed analysis and assessment. When the gun smoke has settled a little, people will once again be able to recognise the opportunities for competition, which market liberalisation presents. In my opinion there is no cause for painting a gloomy picture without alternatives. Using flexible solutions and creative business models, competition can be built up and developed successfully”, Kurth said.

The annual turnover in the postal market has reached almost 24 billion Euros, 18 billion of which were achieved on a competitive market.

At present around 750 licensees are active on the letter market. With a turnover of over one billion Euros they have now reached a market share of more than ten percent. These companies have formed networks that are targeted at covering the largest possible area. That way they can expand the offering for their own customers.

“In the last five years the prices for single letters in Germany have decreased by more than five percent, contrary to the trend in other European countries. This benefits the consumers in general, and not just the business customers”, Kurth continued to elaborate.

According to the words of the president the basic postal services within the scope of the universal service will still be provided to their full extent, even after liberalisation. However, should problems with their provision occur the Federal Network Agency could remedy the situation using the instruments laid down in the Postal Act. The provision of basic postal services would therefore still be ensured, Kurth declared at the end.