Bangkok Minister set to reject hike in postal rate
The Information and Communications Technology minister will most likely reject a proposal to increase the regular domestic postage rate to three baht from two baht unless the Communications Authority of Thailand comes up with more sound reasons.
The CAT maintains that the increase is necessary as “part of the master plan to improve postal services”.It has been asked to submit proposals to increase future revenue and give more plausible reasons for the proposed increase, which was rejected last month by ICT Minister Surapong Suebwonglee.
He said that unless the agency came up with acceptable details supporting the proposal, he would not forward it to the cabinet for consideration.
He has asked to see the cost structure of the postal business, unit costs, new revenue sources and a cost-cutting plan.
“We want to see the overall financial structure of the postal business, as well as its business plan. We will allow the agency to raise the postage rate if it is able to prove that, after all loopholes are plugged and all opportunities for additional revenue tapped, the unit cost [per letter] remains higher than two baht,” the minister said.
Transparency would have a significant impact on the CAT, he said, since the agency planned to register its two businesses as a telecom company and a postal company, with the former to be listed on the Stock Exchange of Thailand.
“In the past, the CAT proposed only a broad master plan without giving enough details on figures and strategies. As a result, it is difficult for us to approve the proposal to raise the standard domestic postage rate,” Dr Surapong said.
He also said that Thai Airways International still charged the CAT higher fees for air mail services than other carriers did, so the CAT should negotiate with the national carrier for discounts.
A CAT executive said that under a plan for 2003-07 drafted by C&C International Venture, the state would be required to give the agency subsidies totalling 3.5 billion baht.
The agency’s postal business this year lost one billion baht on total revenue of seven billion. It expects to increase revenue by 10% next year.
