Deutsche Post considers expansion in EU

Deutsche Post AG, the German postal service operator, plans to take advantage plans by Brussels to open up the EU telecommunications market. The EU has now decided to reduce the upper weight limit for monopolies on letter deliveries to 100 grams on 1 January 2003, and further to 50 grams on 1 January 2006. Deutsche Post reports that it has already proved its abilities on an ‘extensively deregulated domestic market’ and that it plans, gradually, to make use of potential offered by other European markets.

Letter deliveries accounted for around 34 per cent of turnover for Deutsche Post Worldnet in 2000 (newer figures are not yet available), while around 74 per cent of profits arose from this area of activity. Deutsche Post believes that the reduction in the upper weight limit for the letter monopoly (currently at 200 grams in German) will have only marginal effects, as only 4 per cent of letter turnover is likely to be open to competition in the first stage of deregulation, and a similar percentage in the second.